Fundrise Review [2024] Fundrise Return, How to Withdraw

Fundrise is a real estate investment platform that makes it easy for the average “Joe or Jill” to invest. 

Some people consider real estate investing to be a rich person’s game. I can see why – the average home in the U.S. costs over $500,000. 

But with Fundrise, you can invest in real estate with as little as $10. That’s right! Just skip a trip to Starbucks, and you’ll have saved enough to get started.

In this Fundrise review, I’ll describe how the platform works, discuss the typical returns and help you decide if it’s really worth it. 

What is Fundrise? 

Fundrise is an investment company that pools clients’ money and uses it to fund investments – mostly in real estate. This model allows people to invest small amounts of money in big real estate deals. 

You can use Fundrise to invest in:

• Real estate (properties and homes)
• Private credit (loans offered to other people) 
• Venture capital (money lent to entrepreneurs so they can start businesses)

Are these investments risk-free? Not at all – and it’s important to know that going in. 

But if you’re looking to diversify your investment portfolio and give real estate a shot, Fundrise can make it happen – even if you don’t have much money to devote to the project. And that’s what makes the platform so appealing. 

How Does Fundrise Work?

The basic idea with Fundrise is simple: You put money into your account, and then you invest in the properties and projects that appeal to you. 

But this Fundrise review aims to get a lot more specific – so let’s dig in!

Your first step as a Fundrise investor is to create a Fundrise account. There are two account types to choose from:

1. Individual Brokerage Account – This is the standard account option that lets you build an investment portfolio on the platform.
2. Individual Retirement Account (IRA) – You can create a new account or roll an existing IRA over to Fundrise. In either case, you’ll get some major tax advantages.

To open an account, just head to the official Fundrise website and click “Get Started” in the top-right corner. You’ll have to fund your account before you start investing, but the minimum balance is only $10 – so you won’t have to break the bank if you don’t want to.

Creating an account is almost free. I say “almost” because there is an annual subscription fee (or an “advisory fee,” as Fundrise calls it), but it’s only 0.15%. There’s also a 0.85% management fee for real estate investments. 

So, if you invested $1,000, you’d have to pay $1.50 a year for the advisory fee and $8.50 a year for the real estate management fee. That’s $10 total for the year. Not bad, right? 

Okay, that covers the nuts and bolts. Now, let’s get to the fun part: real estate investing!

The professionals at Fundrise manage a real estate portfolio with more than 20,000 properties worth over $7 billion. 

Properties include:

• Multifamily homes
• Single-family rentals
• Industrial properties

If the properties make money, you can get your share of the returns through quarterly return payouts. 

Sign up for Fundrise Here

Fundrise Return

The experts at Fundrise are trying to build a stable portfolio that does better than the market as a whole. The idea is to maximize the return on investment without taking on excessive risk. 

In general, the strategy seems to be working. The Fundrise annual return was 22.9% in 2021. So, if you invested $10,000 through the platform that year and had “average luck,” you’d have made $2,290 – which is super solid!

Of course, not every year brings that sort of success. The average Fundrise annual return in 2022 was just $1.50%, and Fundrise admits that its funds lost 7.45% in 2023. But that’s how investing goes! Even portfolios that are managed by experts can suffer through difficult stretches.

Still, Fundrise has had a lot more good years than bad ones. Over the past 5 years, the average return on Fundrise has been 6.7% – which is better than you’ll get with even the best savings accounts. 

So, it’s no surprise that the Fundrise rate of return has attracted more than 385,000 investors. 

Is Fundrise Legit?

Fundrise is a totally legitimate company with headquarters in Washington, D.C. 

Founded in 2012, Fundrise has already built a massive real estate empire. Just consider these Fundrise statistics:

• More than 385,000 active investors
• A portfolio worth $7+ billion
• Over $361 million in net dividends earned by investors

None of that means you’re guaranteed to make money with Fundrise. As with any real estate investment, you’ll be at the mercy of the market.

But you can rest assured that Fundrise is a real company with a genuine commitment to its clients.

Is Fundrise Safe?

Fundrise is totally safe in the sense that the company is legit and takes care of your money and data. 

The platform uses Stripe to process payments and Plaid to link to users’ bank accounts. Both of these services are well-known and considered safe and secure. 

Now, let me be clear: Saying Fundrise is “safe” does not mean that the investments you make on the platform are risk-free. 

When you invest in anything, there’s always a chance that you could lose money. As an investor, you’re deciding to accept the risk – knowing that Fundrise’s clients generally make more money than they lose.

If you want your money to be completely safe while still earning some interest, you’re better off with a high-yield savings account (HYSA). HYSA funds are usually protected by the Federal Deposit Insurance Corporation (FDIC), depending on the institution you have an account with. 

Learn more in this article on which savings account will earn you the most money. 

Pros and Cons of Fundrise

It’s time for this Fundrise review to reveal what could attract you to the platform – and what could make you think twice. 

Pros

• The minimum investment is just $10. This is what makes the Fundrise platform accessible to such a wide range of investors.
• The fees are low. Real estate investors only have to pay a 0.15% “advisory fee” and a 0.85% “management fee” per year. 
• Any money you earn will truly be “passive income.” Fundrise manages the properties for you, so you don’t have to deal with logistical headaches. 

Cons

• You lose immediate access to your money with real estate investments. You’re meant to invest for at least 5 years. You can request your money back earlier, but you’ll face a fee (approximately 1% of total share value), and you won’t get the funds until the end of the quarter. 
• Tax season will get more complicated (and expensive). You’ll have to pay taxes on your Fundrise earnings, and you could receive multiple tax documents from the platform. 
• There’s a risk of losing money. Real estate investing is not a “guaranteed” win. Over the years, Fundrise accounts have generally come out ahead – but you need to understand the risks going in. 

Get Started with Fundrise Here

Fundrise Reviews

Fundrise gets an average of 1.8 stars from users on the review site Trustpilot. That’s…not great. 

Some of the complaints stem from a misunderstanding of what the platform does. Let’s look at a few specific reviews to get a clearer picture.

In a 4-star Fundrise review, someone said they were “loving it so far.” They were especially excited about the regular dividends and the ease of tracking their investments.

But another user left a 2-star review with a stern warning: “Don’t invest in Fundrise.” It seems their investments got off to a solid start but then started losing money.

In a 1-star Fundrise review, someone reported a negative return after 5 years. That’s definitely a grim investing experience, and I can see why they were bummed.

Now, let’s end on a positive note! 

One user left a 5-star Fundrise review saying they’d received an average annual return of 13.7%. They also commented that some of the people complaining about Fundrise didn’t seem to know what they were getting into.

That’s a great point. With any investment, you need to know the limitations ahead of time. Fundrise is a terrible option if you want constant access to your money and a guarantee of positive returns. 

But if you’re willing to take a chance with real estate in order to raise your earning potential and diversify your investment portfolio, Fundrise is a solid option. 

Fundrise Reviews Reddit

I found a Reddit thread with someone asking about people’s experiences with Fundrise.

One person shared a super positive Fundrise review, saying they’d seen a $12,000 return on a $32,000 investment. 

Another person said, “Fundrise is great because I can allocate and sit back and forget about it.” 

Someone else advised against using Fundrise because of how you lose immediate access to your funds. 

Fundrise Reviews BBB

Fundrise is an accredited business with the Better Business Bureau (BBB), and it receives an A+ grade. It literally doesn’t get any better than that!

The BBB’s rating is based on several factors, including:

• Fundrise’s complaint history
• Fundrise’s amount of time in business 
• The transparency of Fundrise’s business practices
• Licensing 

The BBB has received 31 complaints about Fundrise in the past 3 years – so even the best businesses aren’t perfect! But the BBB looked at those complaints and decided Fundrise was still worthy of a perfect grade. 

Should that inspire trust in Fundrise? I say – absolutely! 

Is Fundrise Worth It?

Fundrise is definitely worth it if you meet these criteria:

• You’re looking to diversify your investment portfolio
• You’re willing to take on the inherent risks of investing in real estate
• You’re okay with a 5-year commitment to the investment (meaning you won’t need sudden access to your money)

Fundrise is a great option if you’re eager to invest in real estate, but lack the funds or knowledge to buy properties on your own. You can get started with just $10, and the experts at Fundrise will handle the details for you. There’s probably no easier way to start playing the real estate game.

And despite the occasional rough patch, investors on Fundrise usually come out ahead. In 2021, the average return was 22.9%!

Of course, using Fundrise isn’t the only way to invest your money – and the best investors “diversify” their portfolios by making several investments in various sectors.

For more investment ideas, read this article on the best way to invest money. 

And for help getting creative with your portfolio, read this post on alternative investments. You can also learn about wine and whisky as alternative investments with this Vint vs Vinovest comparison.  

Start Investing with Fundrise Here

Commonly Asked Questions About Fundrise

Fundrise Competitors / Alternatives to Fundrise / Similar to Fundrise?

Here are some companies like Fundrise that make it easy to start investing in real estate:

• CrowdStreet (learn more in this Fundrise vs CrowdStreet comparison)
• Yieldstreet (learn more in this Fundrise vs Yieldstreet comparison)
• Groundfloor (learn more in this full Groundfloor review and this Fundrise vs Groundlfoor comparison)
• RealtyMogul (learn more in this Fundrise vs Realty Mogul comparison)
• Arrived Homes (learn more in this Fundrise vs Arrived Homes comparison)
• Trion (read this full Trion review)
• LEX (read this guide on How to use LEX to invest)
• Concreit (read this full Concreit review)

And here are a few similar platforms that make it easy to start investing in other alternative assets like gold, wine, and whisky:

• Augusta Precious Metals (check out this Goldco vs Augusta Precious Metals comparison)
• Goldco (read this full Goldco review to learn more)
• Vinovest (read this full Vinovest review to learn more)

And if you’d like to learn how AI can help you manage your portolfio, check out our Streetbeat review.

Fundrise Scam / Is Fundrise a Scam? 

Fundrise isn’t a scam, but a legitimate business with an A+ rating from the Better Business Bureau (BBB). The company is also refreshingly transparent. They even admit on the homepage of their website that their investments lost money in 2023. Talk about honesty!

What is The Catch With Fundrise? 

The only real “catch” with Fundrise is that you lose access to your funds when you invest in real estate. This is not a liquid investment. You’re expected to invest your money for 5 years, and you’ll have to pay a fee in order to withdraw your funds early.

Fundrise Fees?

Fundrise charges real estate investors two simple fees: An “advisory fee” of 0.15% per year and a “management fee” of 0.85% per year. You could face additional fees if you try to withdraw funds from a real estate investment before 5 years have passed. 

Fundrise Customer Service?

Fundrise customer service has a solid reputation, with people saying they get detailed responses to their questions. The only problem is that there’s no phone number to call. You can email customer support at support@fundrise.com or complete a contact form on the official Fundrise website. 

Fundrise Account Levels? 

There are five account levels on Fundrise:

• Starter
• Basic
• Core
• Advanced
• Premium

The level affects how Fundrise manages your account, and it’s determined by the size of your balance. 

Fundrise Withdraw / How to Withdraw Money From Fundrise / How to Take Money Out of Fundrise?

To withdraw money from Fundrise, you’ll have to submit a “liquidation request.” These requests are processed at the end of every quarter – so you can’t get your money right away. Also, an early withdrawal could pose a penalty.  

Bill Miller Fundrise?

Ben Miller is the CEO and co-founder of Fundrise. He’s been with the company for 12 years, and he says that their goal is “to build a better financial system for the individual investor.”

Do You Really Make Money With Fundrise?

You can absolutely make money with Fundrise. Since the company’s founding, clients have earned a combined $361+ million. Just be aware that it’s also possible to lose money since investing always carries some risk.