Fundrise, a financial technology operation headquartered in Washington DC, promises to let anyone invest in real estate with as little as $10. Sound too good to be true? Maybe – but Fundrise actually lives up to this promise (and then some).
Yes, Fundrise gives everyone – accredited or not – the opportunity to invest in both private commercial and residential real estate with as little as $10 down. You don’t need to have hundreds of thousands (or even millions) of dollars in the bank to invest in real estate with Fundrise.
Talk about a game changer!
Below we dig little bit deeper into the ins and outs of how Fundrise offers this opportunity, whether or not it is too good to be true, and how you can join all of these unaccredited investors and create real wealth through real estate with next to no money down, too.
Fundrise – Covering the Basics
Investing in real estate (especially commercial real estate) has the power to transform your financial future faster than maybe any other investment vehicle out there.
Looking back over the last 30 to 40 years, no investment class has come close to performing the way that real estate has – not the stock market, not commodities, not bonds, and not even cryptocurrencies.
No, real estate is the “gold standard” of the investment world because of how steady it is, how reliable it is, and how big of an impact leverage has on your returns.
At the same time, commercial real estate has always sort of been “walled off” to the average person. Only accredited investors – investors carrying around a mountain of money (we are talking at least $1 million and net worth, not including your home) were ever “allowed” to dabble in this market.
Then Fundrise came along and blew that up forever!
How Fundrise Works
Today anybody (and we mean anybody) has the opportunity to get into private commercial and residential real estate investing without having to be an accredited investor themselves.
Fundrise was established back in 2012, leverages the power of financial technology never before seen, and has combined asset pooling of crowdfunding with a flexible and agile strategy that opens up real estate to anybody that’s interested.
All you need is $10 – literally – and you’ll be able to open up your own Starter Portfolio with Fundrise today.
This is because Fundrise purchases undervalued real estate assets, develops the land and the properties to increase their rent or their value, and then either spins off those properties – at a profit – or holds the mortgages, collects interest, or captures rent on more stabilized properties.
All of those profits (all of them) are then distributed across all shareholder members in the Fundrise operation.
Not bad, right?
Pros of Fundrise Investing
The biggest advantage that Fundrise brings to the table has to be the fact that you have to meet absolutely no income or accreditation requirements whatsoever.
You don’t have to be making at least $200,000 a year. You also don’t a personal net worth north of $1 million (excluding your personal home). $10 is all you need!
On top of that, you gain access to investing in Real Estate Investment Trusts (REITs) that encompass properties all across the United States.
Now instead of purchasing one property at a time, dumping a lot of capital into it in hopes of profiting later down the line, you’re able to jump into hundreds or even thousands of properties in a diverse portfolio – all with quarterly dividend distributions to boot.
Pretty cool, yeah?
This unlocks the true passive income potential of real estate investing in a way that would have been tough (if not impossible) to pull off otherwise.
Do You Need to Be an Accredited Investor for Fundrise?
Accredited investors (a term designated by the Securities and Exchange Commission, SEC, in the United States) have to meet certain criteria to be “allowed” to trade securities that are not registered with financial authorities.
Accredited investors must:
- Have an annual income that exceeds $200,000 a year (or $300,000 a year with joint income) for at least two years, with a reasonable expectation of earning the same or more in the current year
- Have a personal net worth of more than $1 million (individually or jointly) that does not include the value of their home
- Own or operate a business or organization that has assets exceeding $5 million
At least one of those criteria needs to be met for the SEC to allow – allow! – accredited investors to dabble in things like the commercial real estate world.
Well, with Fundrise, you can forget about having to meet even just a single one of those accreditation criteria!
Instead you’re going to be able to jump right into the world of real estate investing with both feet, all with as little as $10 (or as much as you can muster, whatever you feel comfortable with), without being held back or hindered in your pursuit of real wealth.
Fundrise is a game changer.
Is Fundrise Right for Me?
Like any other investment opportunity, you really need to do your research and due diligence to figure out if Fundrise is right for you.
Sure, it’s nice that you don’t have to meet any accreditation standards imposed by the SEC to get into the kinds of investments you’d like to get into.
But that may or may not be the right fit for you.
You need to think about your goals. You need to think about the kind of cash and capital you can allocate to these investments, and the kinds of returns that you can expect.
While Fundrise makes it easy to get into real estate investing this isn’t a “get rich quick” kind of opportunity.
Closing Thoughts
No, you don’t have to be an accredited investor to join up with Fundrise, fund your account with at least $10, and immediately start reaping the rewards due all Fundrise shareholders from their diversified portfolio of real estate investments.
Take a closer look at all that Fundrise has to offer today.
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