Fundrise Review [2024]: Invest in Real Estate with Only $10

Is it really possible to make money in real estate investment when you don’t have much cash to start with? We’re here to help answer that question.
Updated Sept. 22, 2023
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Investing in the real estate market might seem like something best left to the pros. After all, you’ve got the stock and bond markets to invest in. That should help you keep a diversified portfolio, right? Maybe not, according to Fundrise. 

While traditional investing practices have been limited to asset classes like public stocks and bonds, Fundrise changes all that. Now you can learn how to invest in real estate like the pros. This platform is an option worth considering if you're interested in building a diversified investment portfolio.

So, let’s find out how Fundrise works, who it's right for, and how to start investing.

Quick Summary

Access high-quality real estate investments without the high costs of conventional real estate transactions.

  • Invest in million-dollar deals without writing million-dollar checks
  • Benefit from real estate investing without the hassle of property management
  • Get started with as little as $10

In this Fundrise review

What is Fundrise?

Fundrise is a financial tech company based out of the Washington, D.C. metro area that operates an SEC-registered crowdfunded real estate investment platform. Founded in 2010 by a group of long-time investors. It gave people a new option for investing in high-quality real estate deals without having to struggle with all the high costs associated with the conventional real estate industry.

Today, more than 210,000 investors use Fundrise, investing in over $7 billion worth of real estate across the country. Members saw an average annual return of 22.99% in 2021 and 7.31% in 2020.

Fundrise alternatives to consider

Invest Like a Real Estate Mogul

Access to carefully curated commercial real estate investments vetted by industry pros.

Join CrowdStreet
Diversify with Commercial Real Estate Investing

Invest in professionally managed properties with guided research and support.

Join today

How does Fundrise work?

When you invest with Fundrise, your funds are allocated across a diversified mix of Fundrise’s offerings, known as eREITs and eFunds, both of which are professionally managed portfolios of private real estate assets located throughout the United States.

What is an eREIT?

An eREIT, short for electronic real estate investment trust, is a type of online investment available exclusively on Fundrise. An eREIT focuses solely on commercial real estate assets, so you’re investments will be in properties such as apartments, hotels, shopping centers, and office buildings. Similar to an ETF (exchange-traded fund) or mutual fund, eREIT investments give you the chance to easily diversify across many properties at a relatively low cost. 

Fundrise offers a range of eREITs for its real estate investors. Each eREIT has a corresponding objective of either income, growth, or both income and growth. eREITs with an income objective focus on potential cash flow, and eREITs with a growth objective focus on properties with the potential for appreciation, or increasing in value. eREITs with an income and growth objective take a balanced investing approach, focusing on both cash flow and appreciation potential.  

Fundrise eREIT options as of January 2022 include:

  • Income eREIT: This eREIT focuses on debt investments in commercial real estate assets. Its objective, not surprisingly, is income. It's available to investors with a Core account or above. 
  • Growth eREIT: This eREIT focuses on commercial real estate with the potential to appreciate. Its objective is growth, as the name indicates, and it's available to investors with a Core account or above. 
  • Heartland eREIT: This eREIT is one of Fundrise's options that focus on a specific region of the U.S. (in this case, the Midwest). It has a broad definition of the Midwest, however, with properties in Dallas, Texas; Dever, Colorado; and Las Vegas, Nevada. Its objective is both income and growth, and it's focusing on both residential multifamily and commercial real estate investments. It's available to Core account members and above. 
  • Development eREIT: This option has an income objective and is focused on multifamily and commercial properties that are in various stages of renovation and development. To find out availability, you'll need to inquire with Fundrise. 

Fundrise eREITs have no brokers or selling commissions. Since eREITs cut out the middlemen and are sold directly to the investor, they also have lower fees compared to other REITs. What does that mean for you, the investor? You pay significantly less to invest your money in real estate.

One thing to keep in mind, though, is that since eREITs are non-traded — meaning they aren’t publicly traded on the stock exchange — they generally have less liquidity than REITs, which are publicly traded. Said simply, this means cashing out your eREITs is a little more difficult. As with any investment, make sure to do your due diligence before you invest.

You can compare Fundrise vs. REITs side-by-side to better understand how Fundrise differs from traditional REITs.

What is an eFund?

An eFund is similar to an eREIT but focuses exclusively on residential real estate assets, such as single-family homes, townhomes, and condominiums.

Traditionally, when you wanted to invest in the housing market, the primary opportunity was via publicly traded homebuilders — think Toll Brothers or D.R. Horton, both companies you can buy stock in. These companies are subject to “double taxation,” however, which makes them a less efficient investment than Fundrise’s eFunds. Double taxation is when a corporation is taxed on its earnings (profits), and shareholders are also taxed on the dividends received from those earnings.

Unlike those residential homebuilders, which are publicly traded and structured as corporations, Fundrise’s eFunds are structured as partnerships, so they’re not subject to the same double taxation. In other words, you and every other investor in Fundrise are considered partners with Fundrise. So any cash distributions you receive are not considered income and won’t be subject to double taxation.

Fundrise Real Estate Interval Fund

This fund was rolled out by Fundrise in December 2020. It had a target initial offering of $1 billion with no cap on its offering capacity. It offers quarterly liquidity, which gives you more ready access to your funds, and it's priced daily (eREITs and other funds are typically updated quarterly or semi-annually). Funds are allocated to the Interval Fund whenever you invest new funds, and the allocation is based on your account level and plan type. 

Account levels

Fundrise offers five investment plans: the Starter, Basic, Core, Advanced, and Premium. With a Core or Basic portfolio, investors can access eFunds, and with a higher-tier portfolio, investors can choose to diversify with eREITs. Investments are subject to an annual asset management fee of up to 0.85% and an annual advisory fee of 0.15% (as of Jan. 13, 2022)*. While Fundrise offers relatively low minimum investments and low fees, it's important to review Fundrise's offering circulars to learn about other fees associated with certain investment options.

Account level Minimum initial investment Fees Features
Starter plan $10
  • Annual asset management fee: 0.85%
  • Annual advisory fee: 0.15%
  • Dividend reinvestment
  • Auto invest
Basic plan $1,000
  • Annual asset management fee: 0.85%
  • Annual advisory fee: 0.15%
  • Starter plan features
  • Ability to create investment goals
  • IRA investing
  • Access to Fundrise IPO
Core plan $5,000
  • Annual asset management fee: 0.85%
  • Annual advisory fee: 0.15%
  • Basic plan features
  • More opportunities for diversification
Advanced plan $10,000
  • Annual asset management fee: 0.85%
  • Annual advisory fee: 0.15%
  • Core plan features
  • Access to more sophisticated investing strategies
Premium plan $100,000
  • Annual asset management fee: 0.85%
  • Annual advisory fee: 0.15%
  • Advanced plan features
  • Priority access to investment team
  • Access to accredited offerings

Who can use Fundrise?

Currently, U.S. citizens or permanent residents currently residing in the U.S. and over the age of 18 can learn how to invest in real estate with Fundrise. You do not need to have a certain net worth or be an accredited investor to use the platform. With five different portfolios to choose from, there’s an option suitable for most everyone.

However, if you are an accredited investor or have a high net worth, it may be worth your time to consider Crowdstreet, which offers investment opportunities in commercial real estate without the fees of other platforms. You can see how Fundrise and Crowdstreet stack up and choose the platform best suited to your investment goals.

How much can you earn with Fundrise?

As the saying goes, past performance is not indicative of future results. However, from 2017 to 2021 — Fundrise investments saw average annualized returns of 10.63%, 8.81%, 9.16%, 7.31%, and 22.99% respectively. To compare, the S&P 500 — a benchmark for U.S. stocks — saw average returns of 21.61%, -4.23%, 31.21%, 18.02%, and 28.47% for the same years.

As an investor with Fundrise, you can earn passive income through a combination of interest payments, property income, and the potential appreciation in value of the properties themselves. The timing and exact amount of your return will vary depending on your selected plan and the investments within your portfolio.

It’s important to keep in mind that Fundrise investments are illiquid (not easily converted to cash) in nature and are designed to be long-term investments held for a least a few years. According to Fundrise, its investments are designed to grow over a minimum five-year timeframe.  

However, Fundrise does have a redemption plan where you can sell shares monthly. You’ll have to wait a minimum of 60 days after submitting your request to redeem your shares, though. Also, early withdrawals may be subject to a liquidity penalty of 1% of the proceeds, depending on the length of time you owned the shares.

You can expect potential returns for your investments to be paid out either via quarterly distributions or, for any appreciation in asset value, at the end of the asset’s investment term (which is typically at least five years). All distributions will be deposited right into your bank account unless you opt into the Fundrise Dividend Reinvestment Program (DRIP). This will reinvest any dividends earned back into open offerings — without fees — instead of being deposited into your bank account. Be aware that these reinvested dividends are taxed the same as if you actually received the cash.

Maximizing your earnings with Fundrise

Your potential earnings with Fundrise will vary depending on your portfolio and the investments within it. But there are a few things you can do to help maximize your earnings. Consider these tips before jumping in:

  • Look at your options: Fundrise doesn’t offer one catch-all portfolio but rather a handful of options tailored to your specific investment style. Understand each of these plans before you begin so you know you’re choosing the best option for your situation.
  • Reinvest your dividends: It might be tempting to take your earnings and do with them what you want, but reinvesting your dividends puts that money straight back into open offerings with Fundrise. There are no fees to reinvest your dividends.

How to stay safe investing with Fundrise

Because of the nature of the investments, Fundrise eREITs and eFunds have a lower correlation to the broader market and could potentially offer greater protection from market volatility.

Fundrise doesn’t invest in just any real estate, either. The company’s real estate team only goes after high-quality investments that can potentially earn income and safeguard against losses. So you can rest easy knowing your money is only going toward sound investments, not the riskier forms of real estate investment. Fundrise also uses bank-level security to ensure your information is safe while using the platform.

FAQs about Fundrise

Is Fundrise a safe investment?

Fundrise eREITs aren’t publicly traded on the stock exchange, so they might experience less fluctuation and are less correlated to the stock market. So if there's a stock market downturn, your eREIT might not be as quick to follow suit.

Keep in mind that Fundrise investments are fairly illiquid, so they may be best for investors seeking long-term growth. However, as with any investment, there’s always risk involved. It’s important to keep in mind that there’s no guarantee you’ll earn money — and there’s always the potential for loss.

Can you lose money on Fundrise?

Yes, so it’s important not to invest with funds you can’t afford to lose. While the goal with any investment is to make money, there’s no guarantee you won’t suffer any losses, either.

Does Fundrise pay dividends?

Fundrise pays quarterly dividends to investors. These are the payments of your share of the income that your investment generated during the prior quarter.

How is Fundrise taxed?

Depending on your portfolio, you may receive income from your eREIT or eFund investment (or both).

REIT dividends are categorized either as ordinary dividends or qualified dividends (depending on the operations of your investment). Ordinary dividends are taxed as ordinary income, while qualified dividends are taxed at the capital gains tax rate. This is reported on tax form 1099-DIV each year.

Income from eFund investments is taxed as ordinary income as well, as the underlying tax structure is a partnership. Any income you receive from your eFund investment will be reported on tax form K-1.

Aside from dividends, if the net asset value of your investment appreciates, you’ll have to pay capital gains taxes as well. However, you won’t pay those taxes until you redeem your shares.

What is the minimum investment for Fundrise?

The Fundrise platform has five levels to choose from, and each has its own minimum requirement. Here are the account levels and initial investments required:

  • Starter: $10
  • Basic: $1,000
  • Core: $5,000
  • Advanced: $10,000
  • Premium: $100,000

What are some alternatives to Fundrise?

If you're interested in learning how to invest in real estate, you might want to consider Diversyfund as an alternative to Fundrise. Diversyfund lets you invest in REITs as well. Read our full DiversyFund review or compare DiversyFund vs. Fundrise.

How to sign up for Fundrise

If you want to sign up for Fundrise, the process is simple. You can open a Fundrise account on or through the Fundrise app.

To get started, you’ll need to choose one of the account levels we described earlier: the Starter, Basic, Core, Income, Advanced, or Premium. Each one gives you a description of the type of investor it’s best for, so you’ll get a good sense of which is right for your situation.

Then you’ll need to provide personal information like your name, email, Social Security number, and citizenship and residency. You can also choose between an individual, joint, or trust account as well. To finish, set up funding for your account by linking to your bank.

Other investments to consider

If investing with a real estate crowdfunding platform like Fundrise doesn't sound quite right for you, there are several other options for investing money, including Ark7, Wealthsimple, and Stash:

Ark7 is a fractional real estate investing platform where you can build passive income by investing in shares of rental properties. The company offers a simple way to add real estate to your portfolio without investing in REITs or buying a whole rental property yourself. Ark7 investors have earned 5%+ annualized distributions1 from monthly income alone2.

Visit Ark7 to learn more.

Wealthsimple is an online investment manager that focuses on ETF investments — primarily, low-cost index funds. There are no account minimums, and Wealthsimple handles many of the complexities of investing, such as portfolio rebalancing, dividend reinvestment, and tax-loss harvesting. You can expect to pay 0.5% in management fees on investments up to $100,000 and 0.4% on investments over $100,000.*

Read our full Wealthsimple review.

If you’re looking for a platform that makes investing approachable to new investors, you may want to consider Stash. With plans ranging from $3 to $9 per month, you can start investing with as little as $1. Stash also provides options for banking where you can get rewarded with stock on your normal day-to-day spending.

Read our full Stash review.

*All rates and fees are accurate as of Jan. 13, 2022.

Crowdstreet Benefits

  • Get access to unparalleled institutional commercial real estate
  • CrowdStreet has launched 560 deals
  • $360M in investor distributions and new deals listed with high frequency
  • Limited to accredited investors

Author Details

Matt Miczulski Matt Miczulski is a personal finance writer specializing in financial news, budget travel, banking, and debt. His interest in personal finance took off after eliminating $30,000 in debt in just over a year, and his goal is to help others learn how to get ahead with better money management strategies. A lover of history, Matt hopes to use his passion for storytelling to shine a new light on how people think about money. His work has also been featured on MoneyDoneRight and