A Fundrise Review After 5 Years Invested

In January of 2018, I made some of my first passive real estate investments, including an allocation to a diversified portfolio of projects with Fundrise. Five years later, I feel more than comfortable sharing this Fundrise review.

Fundrise stands out to me for a few reasons.

One, you do not have to be an accredited investor to invest with them. You can put in as little as $10 and they’ll match it with another $10 in bonus shares. That’s a quick way to earn 100% on your money.

Fundrise Returns

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In five years, my total return has been 59%. Annualized and accounting for timing of cash flows, I’ve seen a 10.8% IRR.

Using the rule of 72, an IRR of 10.8% would double your money in 6 to 7 years. 10.8% is also pretty similar to the long term returns of the stock market when averaged over many decades. Past results don’t necessarily predict future returns.

While double-digit returns are good, the returns I’ve seen with Fundrise are below the average IRR of fully realized deals on the RealtyMogul (see past returns), EquityMultiple (see past returns), and Crowdstreet platforms, which are all in the mid-to-high-teens.

You can compare the returns seen of Fundrise investments with that of publicly traded REITS and US stocks for the last 6 years on the site. They’ve also got every investor’s actual returns plotted out on a graph. The scatter plot is updated daily.

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