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Fundrise Review 2021: Is This Platform Right For You?

Before investing in real estate with this online crowdfunding platform, here are the benefits and risks you should know.


[Updated: Apr 15, 2021 ] Sep 02, 2019 by Matthew DiLallo

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4.2/5

Fundrise

Fundrise takes a unique approach to crowdfunded real estate investments. While most platforms act as a marketplace connecting sponsors and investors, Fundrise instead builds diversified funds with low investment minimums. These significantly lower the barrier to entry for m…
  • Excellent Non-Accredited Options
  • Broad Regulation A Access
  • Easy, low-cost diversification

Total Score 84/100
Bankruptcy Protection 8/10
Deal Flow 8/10
Deal Transparency 3/5
Diversified Fund Options 5/5
Due Diligence 9/10
Ease of Use 10/10
Fees & Commissions 8/10
Investment Minimums 5/5
Investor Resources 8/10
Leadership 4/5
Non-accredited Investor Offerings 5/5
Platform Financials 3/5
Skin in the Game 4/5
X Factors 4/5
Fundrise vs. Stock Market

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Image source: Fundrise
Year Fundrise (platform portfolio) Vanguard Total Stock Market ETF Vanguard Real Estate ETF
2014 12.3% 12.56% 30.29%
2015 12.4% 0.40% 2.37%
2016 8.8% 12.68% 8.53%
2017 11.4% 21.16% 4.95%
2018 9.1% (5.13%) (5.95%)
2019 9.5% 30.80% 28.91%
2020 7.4% 20.95% (4.72%)
Annualized avg. 10.1% 12.74% 8.37%

Data source: Fundrise. Parentheses indicate negative numbers.

CORE INVESTMENT PLAN STRATEGY WHO'S IT FOR? WHAT'S IN IT?
Long-Term Growth Pursue superior overall returns over the long-term. Investors looking to grow the value of the underlying investment. Weighted toward assets with a high potential to appreciate in value such as opportunistic and value-add investments. The typical portfolio allocation is 20%-30% income-focused assets and 70%-80% growth-focused assets. 
Supplemental Income Create an attractive, consistent income stream. Investors looking for the biggest dividends. Weighted toward assets that should generate consistent cash flow like fixed-income or core plus investments. The typical portfolio allocation is 70%-80% income-focused assets and 20%-30% growth-focused assets. 
Balanced Investing plan A balance between growth and income investments.  Investors looking for balanced total returns (dividends and capital appreciation). Weighted relatively evenly across income- and growth-oriented real estate investments. The typical portfolio allocation is 40%-60% income-focused assets and 40%-60% growth-focused investments. 
Fundrise Real Estate Strategies

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Image source: Fundrise.

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