Fundrise Recap. Illiquid Issues

What is Fundrise?

Fundrise is a real estate investment platform that allows investors to buy shares in real estate projects. The platform is designed to make real estate investing more accessible to everyday investors, with a minimum investment of just $10.

Fundrise offers a variety of investment portfolios, including:

• Starter Portfolio: This portfolio is designed for investors who are new to real estate investing. It invests in a diversified portfolio of properties, including single-family homes, apartments, and commercial real estate.
• Growth Portfolio: This portfolio is designed for investors who are looking for higher returns. It invests in properties that are expected to appreciate in value over time.
• Income Portfolio: This portfolio is designed for investors who are looking for a steady stream of income. It invests in properties that generate rental income.

Fundrise charges a management fee of 0.85% of assets under management. There is also a one-time investment fee of 1%.

Pros of Fundrise:

• Low minimum investment: Fundrise's minimum investment of $10 makes it one of the most accessible real estate investment platforms on the market.
• Diversified portfolios: Fundrise offers a variety of investment portfolios, so investors can choose one that aligns with their risk tolerance and investment goals.
• Professional management: Fundrise's team of experienced real estate professionals manages all of the investments on the platform. This frees up investors to focus on other things.
• Liquidity: Fundrise investors can sell their shares at any time, subject to a 1% redemption fee.

Cons of Fundrise:

• Risk: Real estate investing is inherently risky, and Fundrise is no exception. Investors should be prepared for the possibility of losing money.
• Fees: Fundrise's fees are on the higher side compared to some other real estate investment platforms.
• Illiquidity: Fundrise investments can be illiquid, meaning that it may be difficult to sell them quickly.

Overall, Fundrise is a good option for investors who are looking for a low-minimum, diversified way to invest in real estate. However, investors should be aware of the risks involved and the fees associated with the platform.

Here are some additional things to consider before investing in Fundrise:

• Your investment goals: What are you hoping to achieve with your investment? Are you looking for long-term growth, steady income, or a combination of both?
• Your risk tolerance: How much risk are you comfortable taking? Real estate investing can be volatile, so it's important to choose an investment that aligns with your risk tolerance.
• Your time horizon: How long are you willing to invest for? Real estate investments can take time to appreciate in value, so you'll need to be patient.

If you're considering investing in Fundrise, I recommend doing your own research and speaking with a financial advisor to determine if it's the right investment for you.

If you need access to your money in a reasonable amount of time, do not invest in Fundrise. This is a long-term investment as you are actually investing in real estate. If you'd like to invest in the real estate space and need access to money rapidly, I'd recommend researching REIT ETF's.

Happy Trading.