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Fundrise Review: Is It the Best Platform for Real Estate Investing in 2025?

Fundrise Review: Is It the Best Platform for Real Estate Investing in 2025?

It's one of the oldest real estate investing platforms. Let's see how it stacks up 10 years later...

PJ Bradshaw
February 07, 2025

1. Platform Overview

Fundrise, founded in 2010 by brothers Ben and Dan Miller, is a pioneer in real estate crowdfunding and alternative investments. The platform allows both accredited and non-accredited investors to access private real estate markets, private credit, and venture capital through its proprietary eREITs (Electronic Real Estate Investment Trusts) and eFunds. With over 2.1 million investors and $7 billion invested to date, Fundrise has become one of the most accessible platforms for diversifying portfolios into alternative assets.

Target Investor Type: Open to all investors, including non-accredited individuals, with a low minimum investment of $10.

2. Investment Offerings

Fundrise offers diversified exposure to three main asset classes:

Real Estate: Residential and commercial properties, primarily in high-growth regions like the Sunbelt.
Private Credit: Real estate-backed loans that generate consistent income.
Venture Capital: Investments in pre-IPO private technology companies through the Innovation Fund.

Investors can choose from four tailored plans:

Supplemental Income Plan: Focused on generating steady dividends through private credit (80%) and real estate (20%).
Balanced Investing Plan: A mix of growth-oriented real estate (90%) and income-producing private credit (10%).
Long-Term Growth Plan: Solely focused on real estate assets with long-term appreciation potential.
Venture Capital Plan: Invests in high-growth private tech companies like OpenAI and Canva.

3. Accessibility

Minimum Investment: $10 for general accounts; $1,000 for IRAs.
Eligibility Requirements: Open to non-accredited investors.
Geographic Availability: Available to U.S.-based investors.

Fundrise’s low minimum investment makes it one of the most accessible platforms for alternative investments, attracting both new and experienced investors.

4. User Experience

Platform Design: Fundrise offers a sleek, intuitive dashboard where users can monitor portfolio performance, dividends, and returns. The mobile app is equally user-friendly.
Educational Resources: Blogs, webinars, FAQs, and investment guides help users understand real estate investing basics.
Customer Support: Email-based support is available Monday through Friday during business hours. However, there is no live chat or phone support.

The platform also features tools like recurring contributions and dividend reinvestment options to simplify long-term investing.

5. Fees and Costs

Fundrise's fee structure is transparent and competitive:

Advisory Fee: 0.15% annually.
Management Fees:
- Real Estate Funds: 0.85% annually.
- Innovation Fund (Venture Capital): 1.85% annually.
IRA Fees:
- $125 annual fee (waived if you invest $3,000 annually or maintain a $25,000 balance).
- 1% annual fee for IRA accounts.

Early withdrawals from eREIT or eFund shares held for less than five years may incur a 1% penalty.

6. Returns and Performance

Fundrise has delivered consistent returns across its funds:

Historical returns range between 8%–12%, depending on the chosen plan.
In challenging years like 2022, Fundrise outperformed public REITs (-25%) with a modest return of 1.5%, thanks to its focus on single-family properties in high-growth regions like the Sunbelt.

The platform’s emphasis on stabilized assets and private credit helps mitigate risk during market downturns.

7. Transparency and Trust

Fundrise operates under SEC regulation and undergoes regular audits by independent third parties to ensure compliance with financial reporting standards. The platform has an A+ rating from the Better Business Bureau (BBB), though it settled an SEC compliance case in 2023 related to its marketing practices without admitting wrongdoing.

While Fundrise is not FDIC-insured (like all investment platforms), its transparency regarding fees, risks, and fund performance builds trust among users.

8. IRA Investing Options

Fundrise supports tax-advantaged retirement investing through Traditional IRAs, Roth IRAs, and Rollover IRAs.

Custodian Partner: Inspira Financial Trust LLC.
Fees for IRAs:
- $125 annual fee (waived if certain conditions are met).
- 1% annual management fee.
Ease of Setup: Investors can roll over existing retirement accounts or open a new IRA directly through the platform within a few business days.
Tax Benefits: Real estate investments within an IRA benefit from tax-deferred growth (Traditional IRA) or tax-free withdrawals (Roth IRA).

By allowing retirement-focused investors to access private real estate markets, Fundrise offers an attractive option for portfolio diversification within an IRA.

9. Leadership Background

The leadership team at Fundrise brings extensive experience in real estate development and technology:

Ben Miller (CEO): Co-founder with over two decades of experience in real estate development at WestMill Capital Partners before launching Fundrise.
Dan Miller (Co-founder): Played a key role in creating the first-ever crowdfunded real estate project in the U.S., raising $325,000 from 175 investors.
Other executives include professionals with expertise in finance, technology, and property management who have contributed to Fundrise’s growth as a leader in alternative investments.

The leadership’s vision of democratizing access to private markets has been instrumental in making Fundrise a trusted name in real estate investing.

10. Unique Features

Fundrise stands out for several reasons:

Low minimum investment ($10), making it accessible to all types of investors.
Diversified offerings across real estate, private credit, and venture capital—all managed within one account.
Quarterly liquidity options for eREITs via redemption programs (subject to limitations).
Pro Membership ($99/year) for advanced tools like Basis™ property analytics and premium market insights from John Burns Research & Consulting.
Tax-efficient IRA options with waived fees for high-balance accounts.

11. Comparison Metrics

Metric	Fundrise	CrowdStreet	RealtyMogul
Minimum Investment	$10	$25,000	$5,000
Asset Classes	Real Estate	Commercial RE	REITs & Private Placements
Historical Returns	8–12%	~10%	~8%
Accreditation Required?	No	Yes	Partial
Liquidity Options	Quarterly	Limited	Limited
Annual Fees	~1%	Varies	~1%-2%

Fundrise excels in accessibility but may not appeal to those seeking individual property selection or higher liquidity options.

12. Pros and Cons

Pros:

Low minimum investment ($10) makes it beginner-friendly.
Open to non-accredited investors with diversified offerings across asset classes.
Competitive fees compared to traditional REITs or private funds.
Tax-efficient IRA options with waived fees for larger accounts.
Strong historical performance during market downturns.

Cons:

Limited liquidity; early withdrawals may incur penalties.
Higher fees for venture capital investments (1.85% annually).
No live chat or phone support; customer service is email-based only.
Returns are not guaranteed; some funds may underperform during economic challenges.

Final Verdict

Fundrise remains one of the best platforms for real estate investing in 2025 due to its accessibility, low fees, diversified offerings, and strong historical performance during market downturns. While its liquidity options are limited compared to publicly traded REITs or stocks, its quarterly redemption program provides more flexibility than many other private investment platforms.

For beginners looking to enter the world of alternative investments or experienced investors seeking tax-efficient diversification through IRAs or venture capital exposure via the Innovation Fund, Fundrise offers a compelling solution.

If you’re comfortable with long-term commitments and moderate risk levels, Fundrise is an excellent choice for building wealth through alternative assets—making it one of the top platforms for real estate investing today!