There was a time when investors with deep pockets were the only people who could afford to get into the real estate market. But a new company called Fundrise is making it easier for people to make smaller investments into properties and still see returns.
For as little as $500, new investors can build their portfolio with exciting and lucrative real estate sourced from Fundrise’s extensive network. “We’ve specifically built the Fundrise portfolio with the intention of being able to withstand prolonged periods of economic distress,” the company’s website asserts.
The company also has a low-fee model, which allows higher dividends even though investments are smaller. At only 0.15%, it’s one of the lowest in the investment industry. There’s also an annual management fee of .085%. Essentially, it keeps lower investments from being eaten up by surcharges and management fees.
While the global pandemic has wreaked havoc on many parts of the economy, the real estate market is booming, and has certain protections built in that still make it one the savviest possible investments. But not everyone wants to be a landlord. That’s where Fundrise comes in. In a CNBC interview, co-founder Ben Miller noted, “What Fundrise does is allows individuals to get access to private real estate at the same if not better terms as institutions and that literally never happened before.”
Founded in 2012, Fundrise was built to defy Wall Street norms and allow “smart investors to invest smarter.” It includes a state-of-the art app that explains the user’s portfolio and notifies them when they receive a dividend.
To learn more, visit fundrise.com.