Fundrise is one of those online investment platforms that offer you the opportunity to begin investing in real estate with a small amount of cash. It provides a way to get your feet wet as an investor. If you haven't heard about it yet, or if you're skeptical about the company, here are ten things you need to know about it.
1. You can invest with a small amount of money
When you think about investing in real estate, the first thought that comes to mind is that it's going to cost thousands. With Fundrise, this isn't the case. The minimum investment amount is $500, but if you have this much, then you can begin investing with them.
2. You can choose your investment plan
Fundrise offers three different types of plans. You can invest in options that will help you to gain income or asset appreciation. The third investment option is for both.
3. Fundrise does all the work for you
The only thing that you are required to do for your investment with Fundrise is to invest the money and choose your options. The professionals that are working there do all of the work for you. They do all of the property management and in some cases as well s the property flipping. You won't find yourself working on an old house or anything else. It's a hands-on investment strategy.
4. Fundrise doesn't require stellar credit for investors
Even if your credit isn't great, you can still invest in real estate when you make the investment through Fundrise. Why is it different? Because it is a crowdfunding type of investment company. As such, federal regulations are more relaxed. This means that you don't need perfect credit, a lot of money or any experience in the real estate industry to become an investor.
5. Fundrise has a good performance record
Any time you make an investment there are never any guarantees that you will be successful. However, when the company has a good performance history, the chances are much better for receiving a return on the investment that if the company's record is just so-so. Fundrise is a company that has a good performance record in the past.
6. Fundrise has a vetting process
One of the more assuring aspects of Fundrise is their vetting process. Before they make the choice to fund a project, they put it through a process that includes intensive screening. They're selective about the investments they make with client funds and the properties that are being considered must meet with the strict investment criteria that have been established by Fundrise.
7. Fundrise offers different strategy options
One of Fundrise's main goals is to diversify income in order to create the best outcomes for investments that are possible. They employ a variety of strategies to accomplish this goal. This is why Fundrise investments consist of both equity and debt offerings. Fundrise never puts all their eggs into one basket.
8. Fundrise holds its own when compared with other real estate investment options
In the real estate investment business, most investments in publicly traded real estate investment trusts, also known as REITs, require investors to qualify by meeting strict eligibility requirements. This is not the case for Fundrise. Other investors must have a net worth of $1 million dollars or more, but Fundrise investors don't have to qualify under this criteria.
9. Fundrise offers DRIP options
If you're interested in increasing the potential of your investment with Fundrise, you can enroll in their dividend reinvestment plan, also known as DRIP. When you're enrolled in this program, instead of receiving dividends, the proceeds are reinvested back into your investment account or any other investment plan that you have chosen.
10. Fundrise gives investors access to premium deals
Fundrise first screens all of their options for investment stringently before passing them into the program. After the property has passed this test, a Fundrise investor makes a visit to begin the underwriting process which is very detailed. The property must make it through the final stages before approval by the investment committee, and when it meets all the requirements it is acquired by Fundrise. As an investor, you are granted access to these premium deals. They take extra measures to ensure the highest probability of success for their investors at all levels.
Written by Garrett Parker
Read more posts by Garrett Parker