Fundrise is an easy-to-use real estate platform for investing in private real estate, private credit, and venture capital. The platform accepts clients regardless of annual income or net worth, making real estate investing more accessible to a broader group of investors.
Business Insider's personal finance team compared Fundrise to the best real estate investing apps. We found it to be an industry-leading platform for non-accredited investors to access affordable REITs with flexible liquidity.
Pros and Cons
Fundrise Pros
- Low $10 minimum
- Available to both accredited and non-accredited investors
- Allows you to withdraw funds at any time
Fundrise Cons
- Highly illiquid investment options
Open an Account
$10
0.85% for real estate (additional 1% and $125 for IRAs)
- Available to non-accredited investors
- Low minimum account size requirements
- Varying risk and volatility options
- Passive income
- Investments are illiquid
- Illiquid investment options
- Not ideal for short-term investing
Fundrise is one of the best real estate investing apps for non-accredited investors looking for affordable crowdfunding investment options. The platform accepts clients regardless of annual income or net worth.
- Consider it if: You're looking for an easy and inexpensive way to start investing in real estate.
- Awards: Listed in Forbes Fintech 50 list twice
Compare Fundrise
$25,000
0% investors; 1-5% fee for sponsors; 0.25% to 2.5% tailored portfolios
- Offers a wide range of commercial real estate options for accredited investors.
- Charges investors no fees (sponsors may charge fees)
- Doesn't charge investors fees
- Risk-assessed investment options
- Not available to non-accredited investors (those who have a net worth lower than $1 million)
- Account minimums are on the higher side
- Not for those in search of shorter investment terms and more liquid investments
- Only available to accredited investors
CrowdStreet is one of the best real estate investing apps for accredited investors who want access to commercial real estate-backed equity and debt investment opportunties.
CrowdStreet- Consider it if: You're an accredited investor with at least $25,000 to set aside for multiple years.
- Awards: Listed on Forbes' Best Startup Employers list for 2021
$10,000
1% to 4%; 1.5% for Alternative Income Fund
- Access to alternative investments, including art, real estate, and legal settlements, that allow investors with plenty of assets to further diversify their portfolios
- Investors receive regular interest payouts over the life of the loan
- Higher-risk investments — best for those with a large amount of money to invest; limited investments available
- Fees may be higher than other types of investment accounts
- Investments are highly illiquid
Yieldstreet is best for experienced, high-income/high-net-worth investors, but folks who don't have six figures to invest in should look elsewhere. Yieldstreet is one of the best real estate investing apps for folks interested in real estate and alternative investments.
Yieldstreet- Consider it if: You're a high-net-worth investor interested in diversifying your investments across real estate and other alternative assets.
- Awards: Listed on CB Insights' Fintech 250 ranking as a Top Fintech Startup
$5,000 (minimums can also range between $10,000 and $30,000)
Varies; typically 0.5% (EquityMultiple also charges annual administrative expense fee of $30-$70)
- Low fees
- Option to invest in institutional commercial real estate, equity, preferred equity, and senior debt
- Multiple property types
- Self-directed IRAs available
- Only accepts accredited investors
- Doesn't offer publicly traded REITs
EquityMultiple is one of the best real estate investing apps for accredited investors. It offers commercial real estate assets, senior debt, equity, and preferred equity.
EquityMultiple- Consider it if: You're an accredited investor looking to invest at least $5,000 into commercial real estate.
Fundrise Overview
Fundrise is among the best real estate investing apps for non-accredited investors seeking affordable alternative investment options like private real-estate and venture capital funds. Diversifying your portfolio with real estate and similar asset classes helps mitigate risk and hedge against inflation.
Since Fundrise uses eREITs (electronic REITs) and eFunds, any investor can access the platform's offerings. Unlike publicly traded REITs, Fundrise's funds aren't listed on a stock exchange. That means the assets aren't subjected to market volatility but are less liquid.
With Fundrise, you get exposure to the real estate market without having to buy properties or become a landlord. For $10, you can open a personal investment account. Fundrise IRAs have a $1,000 minimum requirement.
Fundrise Pro users can access custom plans and direct investments for $10 a month (or $99 a year). You don't need to be an accredited investor to become a Pro member.
Fundrise is available on desktop or mobile to monitor asset growth, review market trends, set project alerts, and generate passive income. The platform also offers auto-invest features so that you can set up periodic investments with a $10 minimum.
Keep in mind that Fundrise investments are intended for those with a time horizon of at least five years. That said, Fundrise does allow you to cash out anytime, even if you don't reach the five-year minimum. This is rare for a real-estate investment platform. You can still be charged a 1% penalty on early withdrawals from certain fund options.
Ways to Invest with Fundrise
Fundrise offers personal investment, joint, IRA, entity, trust, and advisor-assisted accounts.
How to Open a Fundrise Account
After entering your email address, Fundrise asks you a range of questions, including your primary goal with Fundrise, desired length of investment, current annual income, and how much you plan to invest with Fundrise each year.
Fundrise then recommends one of its four plan options, which mix eREITs and eFunds:
- Supplemental income plan: Invests primarily in private credit (80%) and real estate (20%) to generate consistent dividend payments with low volatility. It's best for retired and near-retired individuals looking to increase their current cash flow. This plan includes the Income Real Estate Fund.
- Balanced investing plan: Invests primarily in growth-oriented assets, such as real estate (90%) and private credit (10%), to grow wealth and diversify your investment portfolio. It's best for investors interested in earning consistent, short-term income and benefiting from long-term capital appreciation.
- Long-term growth plan: Invests solely in real estate assets likely to appreciate in value over time. It's best for investors to diversify their portfolios with alternative investments while earning long-term returns. This includes the Flagship Real Estate Fund.
- Venture capital plan: Invests in various pre-IPO private technology companies, including AI and data infrastructure companies. This plan option is likely to fluctuate over the short term but offers risk-adjusted results over the long term. It's best for investors with a long time horizon. This plan includes the Innovation Fund.
Fundrise is transparent about each plan's strategy, allocation, and asset classes. If you don't agree with the recommended plan, Fundrise allows you to select a different one.
Next, Fundrise requires you to enter your personal information, including your phone number, legal name, address, Social Security number, and date of birth.
Fundrise eFunds and eREITs
Fundrise compares its eFunds and eREITs to mutual funds of alternative assets. Regular Fundrise investors get exposure to eFunds and eREITs through their Fundrise plan. Pro members investors can directly invest in eFunds (more on Pro members below).
Registered Funds:
- Flagship Real Estate Fund: This fund is designed for long-term appreciation and consists of real estate investments such as build-for-rent housing communities, multifamily, and industrial assets in the Sunbelt.
- Income Real Estate Fund: This fund provides cash flow from diversified real estate-backed fixed-income strategies. It primarily focuses on capitalizing on the current dislocation in real estate markets.
- Innovation Fund: This fund's primary objective is appreciation through a diversified portfolio of technology companies. It invests in high-growth private technology businesses.
Strategy Funds:
- East Coast eREIT: Invests in a balance of debt and equity in commercial real estate primarily located on the East Coast. Its goal is appreciation.
- Growth eREIT VII: Aimed at appreciation, this eREIT invests in built-for-rent single-family communities.
- Development eREIT: Invests in renovation properties and new construction with the goal of appreciation.
- Balanced eREIT II: Invests in Class A multifamily properties, primarily located throughout the Synbelt. Its primary goal is appreciation.
You must be an accredited investor to access some of Fundrise's exclusive funds. You can verify your accreditation status by uploading the required documentation to Settings > Advanced Options > Accreditation.
Fundrise Premium Funds (accredited only):
- Opportunistic Credit Fund: This is a private closed-end fund that generates cash flow by investing in second trusts, asset-backed securities, B-notes, and preferred equity positions.
Fundrise Pro
A Fundrise Pro membership allows you to customize your investment plans, invest in specific funds, pick and choose your ideal allocations, and update your portfolios as your goals change.
As a Pro member, you can access expert-level data from Basis™ — Fundrise's proprietary property management data warehouse — and leading market research from John Burns Research and Consulting. Moreover, Pro members can access selective paywalled content from leading news sites like the Wall Street Journal.
Fundrise allows you to try out Pro for free for 30 days.
Fundrise IRAs
You can open a traditional, rollover, or Roth IRA and invest in the same Fundrise-directed plan options as a general investing account. Fundrise's IRA custodian is Inspira Financial Trust, LLC.
Fundrise IRAs charge a $125 annual fee, but you can get that waived by:
- Investing in $3,000 or more each year
- Investing and maintaining a balance over $25,000
Fundrise Fees
Fundrise requires a minimum for a general investing account with a 0.15% annual advisory fee. To be a Pro member, you'll be charged $10/month (or $99/year). IRAs require a $1,000 minimum.
Management fees vary by fund option. Fundrise real estate funds charge an annual 0.85% management fee. To invest in the Innovation Fund, you'll pay an annual flat 1.85% management fee. IRAs charge a 1% annual fee and a $125 annual fee.
Fundrise Trustworthiness
Fundrise has received an A+ rating from the Better Business Bureau. Fundrise is a BBB-accredited business, meaning it upholds the BBB's standards of trust, in regards to integrity, honesty, transparency, and responsiveness.
On August 22, 2023, the SEC settled charges with Fundrise originally filed against the business in 2016, claiming that Fundrise violated compliance requirements related to working with content creators. Fundrise neither admitted nor denied these allegations but agreed to pay a $250,000 civil penalty.
Fundrise Alternatives
Fundrise vs. CrowdStreet
Fundrise and CrowdStreet are great for short-term real estate assets and other alternative investment options. However, they differ regarding fees and access.
Fundrise is better for investing in cost-effective real estate, private credit, and venture capital funds. It's also better for non-accredited investors, as most of Fundrise's investment options are available to all investors regardless of accreditation status. Crowdstreet only accepts accredited investors and has much higher minimum requirements.
Crowdstreet is better for those interested in automated, tailored portfolios of commercial real estate investments. Investors aren't charged fees to register or access real estate listings. But you must be accredited and meet the $25,000 minimum to open an account.
Fundrise vs. Yieldstreet
Like Fundrise, Yieldstreet is a popular real-estate investing platform for accredited and non-accredited investors. Although they both offer real-estate assets, the platforms differ regarding investment options, minimum, fees, and access.
Compared to Fundrise, Yieldstreet is a better choice for overall alternative investing. In addition to real estate assets, Yieldstreet offers alternative assets including fine art, short-term notes, and multi-asset class funds. However, its minimum investment is significantly higher than Fundrise's (Yieldstreet requires a $10,000 minimum). Non-accredited investors can only invest in Yieldstreet's Alternative Income Fund.
Therefore, Fundrise is the better (and more affordable) option for non-accredited investors who can access most of Fundrise's investment options.
Fundrise FAQs
Fundrise is a good investment platform for low-cost real estate, private credit, and venture capital funds for short-term cash flow and long-term appreciation.
Fundrise's fees include an annual 0.85% annual management fee and a flat 1.85% management fee for the Innovation fund. IRAs charge a 1% annual fee and a $125 annual fee. A Pro membership charges $10 per month.
Yes, you can withdraw your money from Fundrise at any time, even if you don't meet the five-year minimum. You may still be charged a 1% penalty on early withdrawals from certain fund options.
Why You Should Trust Us: How We Reviewed Fundrise
Fundrise was reviewed using Business Insider's rating methodology for investing platforms to examine the different account types offered, pricing, access, ethics, security, and overall customer experience. Investing platforms are given a rating between 1 and 5.
Real estate investing apps generally offer user-friendly sites for education and market access. Some investing platforms are generally better for beginners or passive investors, while others are best for experienced and active traders. Fundrise was evaluated based on how well it performed in each category.
Business Insider's Overall Fundrise Rating
| Features | Our rating (out of 5) |
| Fees | 4.50 |
| Investment selection | 4.00 |
| Liquidity | 3.50 |
| Ethics | 4.50 |
| Access | 4.00 |
| Customer service | 4.00 |
| Overall score | 4.10 |
