Many people, small business man, wants to deal in real estate but due to lack of finance and money and due to high risk people don’t invest in real estate. But if you want to become rich, financially secure you must invest in different industries. You must create multiple streams of income and one of the main income is rental income which you make from real estate. But the problem is how an average man can buy a property, renovate it and put it on rent. It takes lots of money, time, hard work.

Hence, Dan and Ben Miller in 2010 created world’s first eREIT(electronic/ online real estate investment trust) and an online eFund platform.

Platform like fundrise allows a group of people to invest in real estate properties and you can invest the amount you can afford and get to the level of the real estate “sharks”.

You must have a minimum capital of $500. Its very easy to use, and you can create an average income.



Fundrise is a great platform for all real estate investing enthusiasts out there that want to compete in real estate market and want to become a king in real estate. But many people lack funds needed for that. It’s a great platform for both investors who are at advanced level looking for long term investing and beginners who want to invest in real estate without the burden of managing it through the years.

Experienced investors also use fundrise to diversify their portfolio and a convenient way of investing.

It has a lot of products with detailed explanations so that you can easily search different types of properties, their prices, and fees. It offers three investment opportunity, first is “starter” in which you need minimum initial investment of $500. Second is “core” in which you need to invest $1000 as initial investment. It helps to diversify your portfolio by offering 40+ projects initially. Last one is “advanced”, this is for big investors who are working in this industry for long time and are looking for long term investment. It offers 80 projects with initial investment of $10,000.

It’s a new type of REIT and crowdfunding platform and its success hasn’t been proven yet, its best for those who like to take a bit of risk in investing.

Now those who wants their funds to be safe at all times, must go with traditional form of investing.


When you add funds to your account, fundrise invests them in eREIT and eFunds.

eREIT is an online alternative to traditional REITs which makes investment easy, and provides access to investors to professionally managed portfolios that hold different real estate for example apartments, retail, hotels, or office buildings. The investors offer their funds to the platform, without the need of broker.

eFund is an online investment that gives investors access to the housing market. It provides investment in single-family housing units, with the objective of them achieving long term growth and profiting from appreciation. It gives access in certain US cities.



Any resident of US that’s over the age of 18 years can create an account on fundrise. You need to provide your address, phone number, and social security number upon signing up.

A minimum of $500 investment is required.


  • Select an Investment Plan 
  • Each portfolio has a set percentage of investments they make in eREITS and eFunds. While eREITs are designed with the purpose of generating profit for investors, eFunds are more oriented towards long-term growth. 

There are currently 5 eREITs and 3 eFunds Fundrise invests in: 


  • Income eREIT: debt investments in commercial properties
  • Growth eREIT: investment in commercial properties, mostly focused on multifamily buildings that will appreciate over time
  • East Coast eREIT: investing in debt and equity in the East Coast
  • Heartland eREIT: investing in debt and equity in the Midwest
  • West Coast eREIT: investing in debt and equity on the West Coast 


  • One that focuses on the Washington D.C. area
  • One that focuses on the Los Angeles area    
  • National eFund 

There are 4 types of Investment Plans offered to you by Fundrise, each one designed to fit every investor’s experience, investing capital and investing strategy.

  1. Starter Portfolio: the basic portfolio designed for new investors that want to check how Fundrise works. The structure of the investment is the following: 50% in eREITs and 50% in eFunds, with a minimum of $500 as a starting investment. 
  2. Supplemental Income: The Supplemental portfolio is oriented towards generating profit, which is why eREITs are their prime target. Your money gets invested in the 4 eREITs: Income eREITs-commercial properties, East Coast, Heartland and West Coast, each with 25% respectively. The minimum investment is $1000. – 
  3. Balanced Investing: this portfolio is oriented includes investments in every eREIT and eFund. 20% goes in the Income eREIT, 18.33% in each of three eREITs (East Coast, Heartland, West Coast), 15% in the Los Angeles eFund, and 10% in the Growth eREIT. The minimum investment is also $1000.
  4. Long-Term Growth: This portfolio is fully oriented towards growth and generating returns from asset appreciation which is why 20% of your money goes in the Growth eREIT and 20% in the Los Angeles eFund. The rest of 16.67% is split between each of the three eREITs (East Coast, Heartland, West Coast), and 10% goes in the Washington DC eFund. The minimum investment is $1000. 

Link Your Bank Account and Fund Resources 

You can set up your bank account with your online credentials. Every transaction is made through ACH (Automated Clearing House) and is mandatory for transactions under $25,000. For transaction over this limit, only bank wire is accepted. 

Manage Your Income 

The basic way you profit through Fundrise are dividends and asset appreciations. Fundrise generates dividends for its users in 2 ways:

  1. Rent payments from apartments and commercial leases owned by the eREITs    
  2. Interest payments from real estate debt investments owned by Fundrise 

One way to increase your profit is through the DRIP, which is the Dividend Reinvestment Program. Through this program, the dividends you earn get reinvested in your portfolio, which is called compounding dividends. This means earning dividends on top of your dividends, which contributes to the growth of your portfolio and with it, the growth of your income. It’s also free of charge. 

Fundrise Fees 

Fundrise charges a fee of 1% in total yearly, which is split into 2 different types of fees:

  1. Asset management fee – 0.85% fee that covers all expenses related to managing and oversight of the real estate investments
  2. Investment advisor fee – 0.15% fee that covers all administrative costs

In comparison, traditional investments charge up to 3.8% asset management fee and up to 1.45% investment advisor fee. They also charge a fee for the management of the mutual fund that can be up to 1.2%, an expense you won’t be faced with by using Fundrise. 

Fundrise Positives

  • Minimum funds needed to invest in real estate
  • Lower fees
  • Generate passive income
  • Diversified investing portfolio
  • Ability to operate remotely 

 Fundrise Negatives

  • Limited liquidity – there is a 60-day waiting period for withdrawing money
  • Higher taxes because the profit is treated as income instead of dividends 


How is Fundrise different from traditional investing? 

The number one thing is the fees. While traditional REITs charge a membership fee and upfront commission, Fundrise charges no membership fee and only a small commission yearly. 

Additionally, if you invest through a broker, they will charge a commission, usually around 4-8% which significantly lowers your potential profit. You don’t have this expense through Fundrise because everything is covered through the 1% yearly fee. 

Is it safe to invest in Fundrise? 

Fundrise regularly files with the SEC (Securities and Exchange Commission) and is a subject of a yearly audit. Additionally, Fundrise offers 90-day customer satisfaction guarantee on the Starter Portfolio, which means that if you’re unhappy with how things are turning out in the first 3 months, you can ask for your money back, and Fundrise will return the full sum you invested. 

Can I withdraw money if I change my mind? 

Yes, but you will have to wait for 2 months. Because it’s related to real estate, the funds aren’t as liquid as other investments, so there is a 60-day waiting period for withdrawing funds. 

When will I receive the dividends? 

Fundrise has quarterly redemption periods because the investments are long-term and can last a minimum of 5 years, which is why dividends are paid every 3 months. But, do note that dividend payments aren’t always guaranteed. The real estate market can shift and if that shift is negative for investors, it’s logical that Fundrise wouldn’t be able to pay dividends to its members.

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