Fundrise is worth a look if you want private real estate in your portfolio, want to start small, and can leave the money alone for at least five years. Skip it if you might need the cash sooner, want a steady monthly check, or want an investment you can sell any day the market is open.
Fundrise at a glance
No accreditation neededFundrise pools money from everyday investors into private funds that own rental home communities, apartments, warehouses and real estate loans. You buy shares of the funds, not individual buildings, and Fundrise manages everything.
The catchYour money is not on tap. Withdrawal requests are reviewed once a quarter, returns are not guaranteed, and client accounts lost 7.45% in 2023 by Fundrise’s own figures.
This is not the Fundrise older reviews describe. Those reviews walk through a long menu of regional eREITs and eFunds. Today Fundrise points to three publicly registered funds as its largest and most diversified: the Flagship Real Estate Fund, the Income Real Estate Fund and a venture fund. The eFunds were merged into the Growth eREIT, and the venture fund, once called the Innovation Fund, now trades on the New York Stock Exchange as VCX.
We checked the figures on this page against Fundrise’s own site, its help center, the Flagship fund’s prospectus and the SEC’s investor pages. New to this kind of investing? Start with how real estate investing works for beginners, or compare platforms in our list of the best real estate investing apps.
Is Fundrise legit?
Yes. Fundrise is a real company, founded in 2012 and based in Washington, DC. Its investment adviser, Fundrise Advisors, is registered with the Securities and Exchange Commission. Its main real estate fund is registered under the Investment Company Act of 1940, which means a public prospectus and regular reports you can read before you invest.
On size, Fundrise’s homepage says it is trusted by more than 2 million people. Its About page is more specific: more than 385,000 active investors and more than $2.87 billion of investor equity under management. Fundrise calls itself America’s largest direct-to-consumer private markets manager.
Legit does not mean safe. The Flagship fund’s prospectus tells you to buy shares only if you can afford a complete loss of your investment, and Fundrise’s own track record includes a losing year. Both are covered below.
While some of the cons may be worrisome, most of its pros seem quite impressive and we would say Fundrise is a legit real estate investing option.
What Fundrise is and how you invest
Think of Fundrise as a fund manager with an app. It raises money from everyday investors, buys and builds real estate with it, and passes along the results. By its own count the portfolio is largely made up of more than 20,000 residential units, plus industrial buildings tied to online shopping.
You do not pick buildings. You pick a plan, and Fundrise spreads your money across its funds.
| Plan | What it is built to do |
|---|---|
| Supplemental Income | Maximize quarterly dividends, mostly by lending to real estate developers |
| Balanced Investing | A mix of dividends and long-term growth |
| Long-Term Growth | Own property directly and earn mostly through rising value, not dividends |
You can also build a custom plan from your account settings.
The funds behind the plans
| Fund | What it holds | How it pays | Cost to leave early |
|---|---|---|---|
| Flagship Real Estate Fund | Rental home communities, apartments and industrial property, mostly in the Sunbelt | Mostly long-term growth | None |
| Income Real Estate Fund | Loans backed by real estate, mainly housing | Mostly quarterly dividends | None |
| eREITs | Separate real estate funds, some closed to new money at times | Varies by fund | About 1% on shares held under 5 years |
| VCX venture fund | Private technology companies | Long-term growth | Trades on the NYSE; bought through a brokerage, not on Fundrise |
When we checked, the Flagship fund had about $1.0 billion in net assets: 67.8% build-for-rent housing, 20.6% industrial, 11.2% apartments and 0.4% real estate debt.
Who can invest
You need to be at least 18, live in the United States permanently, have a US tax ID and file US taxes. You do not need to be an accredited investor, which puts Fundrise on the short list of platforms open to non-accredited investors. People living abroad or in US territories cannot open an account.
You can invest through an individual, joint, trust or business account, or a Traditional or Roth IRA. Fundrise does not offer custodial accounts for kids.
How to get started
- Create an account. Fundrise says you can sign up and place a first investment in less than 5 minutes.
- Pick a plan. Income, balanced or growth, or build your own.
- Fund it from your bank. The minimum is $10 for a regular account and $1,000 for an IRA. An order can take up to 5 business days to settle.
- Decide on auto-invest. Recurring deposits start at $10 and cost nothing extra.
- Earn passive income with real estate investing starting at just $10
- Easy-to-use app for seamless access to crowd-funded real estate deals
- Perfect for those who want their money to work for them
What Fundrise has actually returned
Fundrise publishes the average yearly return of its clients’ accounts. Here it is next to the public REIT index Fundrise uses as its own comparison.
| Year | Fundrise client accounts | Public REITs |
|---|---|---|
| 2025 | 6.24% | 1.66% |
| 2024 | 5.75% | 4.33% |
| 2023 | -7.45% | 11.48% |
| 2022 | 1.50% | -25.10% |
| 2021 | 22.99% | 39.88% |
| 2020 | 7.31% | -5.86% |
| 2019 | 9.16% | 28.07% |
| 2018 | 8.81% | -4.10% |
Source: Fundrise’s client returns page. Fundrise describes these as the weighted average performance of all advisory client accounts, with dividends reinvested and net of its 0.15% advisory fee where it applies. They are not the return of any one investor or any one fund. Public REITs is the NAREIT All US REITs index total return, which cannot be bought directly. Past performance does not predict future results.
Three things stand out. Fundrise can lose money: 2023 was down 7.45% in a year when public REITs gained 11.48%. It can also hold up when public real estate does not: in 2022 it was up 1.50% while the REIT index fell 25.10%. And the last four years have been modest, with nothing above 6.24% since the 22.99% year in 2021.
The main fund’s own numbers
An average across every account can hide what one fund did. The Flagship Real Estate Fund is the real estate fund Fundrise features, and its own page shows these net returns by year.
| Year | Flagship Real Estate Fund net return |
|---|---|
| 2025 | 1.3% |
| 2024 | 7.5% |
| 2023 | -11.8% |
| 2022 | -1.9% |
| 2021 | 29.3% |
The fund launched in January 2021. Its annualized return since then was 3.8% when we checked.
Dividends
Fundrise aims to pay distributions after each quarter ends, either to your bank or back into more shares. They move around and are not guaranteed. They are also small on the growth side. The Flagship fund’s annualized distribution rate was 0.21% when we checked, while Fundrise listed a declared yield of 8.15% for its Income objective. If you want income, the plan you choose matters a lot.
Fundrise fees: what it really costs
The two fees Fundrise quotes add up to 1% a year: a 0.15% advisory fee plus a 0.85% management fee inside its real estate funds. That is $10 a year on every $1,000 invested.
The fuller number is in the prospectus. The Flagship fund lists total annual operating expenses of 1.78% once marketing, general costs and interest on borrowing are added to the management fee. Costs at the individual property level come on top and are not in that figure.
| Cost | Amount | How it works |
|---|---|---|
| Advisory fee | 0.15% a year | $1.50 per $1,000. Fundrise says it may be waived in certain circumstances. |
| Real estate fund management fee | 0.85% a year | $8.50 per $1,000, taken inside the fund. |
| Flagship fund total expenses | 1.78% a year | From the prospectus: 0.85% management, 0.74% other expenses and 0.19% interest on borrowing. |
| Sales charge | None | No sales load and no commission when you buy. |
| Leaving early | $0 or about 1% | No penalty on the Flagship and Income funds. About 1% on eREIT shares held under 5 years. |
| IRA custodian | $125 a year | Charged by Inspira Financial. Waived for a year when you invest $3,000 or more, and while your IRA stays above $25,000. |
| Auto-invest | $0 | No added cost. |
| VCX venture fund | 1.85% a year | Bought through a brokerage account, not on Fundrise. |
In dollars, the prospectus example works out to $18 of fund costs in year one on a $1,000 investment, $56 over three years, $96 over five and $209 over ten, assuming a 5% return each year. The 0.15% advisory fee is separate.
For context, the SEC says non-traded REITs sold through brokers usually take about 9% to 10% of your investment in sales commissions and upfront fees. Fundrise charges no sales load, so nothing comes off the top when you buy.
Getting your money out of Fundrise
This is the part to understand before you invest a dollar. Fundrise shares do not trade on an exchange. To cash out, you ask Fundrise to buy your shares back, and it reviews those requests once a quarter.
| Ask by the last business day of | Request is reviewed in |
|---|---|
| March | April |
| June | July |
| September | October |
| December | January |
So a request made in August is processed at the start of October, in Fundrise’s own example. Miss the cutoff and you wait another quarter.
On cost, the two main funds charge nothing to leave. The eREITs take about 1% if you sell shares you have held for less than five years, and Fundrise sells your oldest shares first.
The bigger issue is that a request is not a guarantee. The Flagship fund’s prospectus says it offers to buy back between 5% and 25% of its shares each quarter and will likely offer only the 5% minimum. If investors ask for more than that, everyone gets a partial payout and waits for the next quarter. The fund can also add a repurchase fee of up to 2% in the future. This is how interval funds work in general, according to the SEC.
Fundrise itself says to treat this as a five year or longer investment, and that it does not recommend investing if you expect to need the money back in the near term. Take that at face value. Your emergency fund does not belong here.
The risks, in plain English
- You can lose money. Client accounts fell 7.45% in 2023 and the Flagship fund fell 11.8%. The prospectus says to invest only if you can afford a complete loss.
- You may not be able to sell when you want. Fundrise’s funds are not listed on any exchange, and the SEC’s warning about REITs that do not trade on an exchange is blunt: if you need to raise money quickly, you may not be able to.
- The share price is an estimate. No market sets the price each day. Each fund reports its own net asset value, daily for the Flagship and Income funds and quarterly for the eREITs.
- Payouts can shrink or stop. The prospectus says there is no assurance distributions will continue, and that they can be funded from investor money or borrowing instead of profits.
- Borrowing cuts both ways. The Flagship fund is allowed to borrow up to a third of its total assets.
- It is concentrated. About two thirds of the Flagship fund is one bet: build-for-rent housing.
How Fundrise is taxed
Fundrise sends a Form 1099-DIV for each fund that paid you $10 or more in a year, and a Form 1099-B if you sold shares. The old eFunds sent a Schedule K-1, but those funds have been merged and Fundrise expects 2025 to be the last tax year with K-1s.
Plan on most dividends being taxed as ordinary income. Fundrise says it does not expect eREIT dividends to be qualified, and the SEC notes that REIT dividends generally do not get the lower dividend tax rates. Fundrise also offers Traditional and Roth IRAs, with the $125 custodian charge described above.
Fundrise pros and cons
- Start with $10, no accreditation needed
- No sales load or commission when you buy
- No penalty to leave the two main funds
- Registered funds with a public prospectus and SEC reports
- Gained 1.50% in 2022 while public REITs fell 25.10%
- Withdrawals once a quarter, and never guaranteed
- Lost 7.45% in 2023, with modest returns since
- Full fund costs of 1.78% a year, above the 1% headline
- Growth plans pay almost nothing in dividends
- Dividends are mostly taxed as ordinary income
- IRAs need $1,000 and carry a $125 yearly charge unless waived
Who Fundrise suits and who should skip it
- You want real estate without being a landlord
- You can leave the money alone for five years or more
- You already have an emergency fund somewhere you can reach
- You are fine with returns that do not track the public markets
That is the investor Fundrise is built for. Start with $10 at Fundrise
- You may need this money within five years
- You want income you can count on every month
- You want to sell any day with one tap
- You are still paying off high-interest debt
Something you can sell or cash out faster will fit better. Compare the Fundrise alternatives
If you are in the first group, this is where to start.
- Earn passive income with real estate investing starting at just $10
- Easy-to-use app for seamless access to crowd-funded real estate deals
- Perfect for those who want their money to work for them
Fundrise alternatives: how it compares
Fundrise is the hands-off choice: one account, a few big funds, and you never pick a property. The platforms below work differently. Some let you choose individual homes or loans, and some only take accredited investors.
| Platform | What you own | Minimum | Who can invest |
|---|---|---|---|
| Fundrise | Shares of large real estate funds | $10 | No accreditation needed |
| Groundfloor | Pieces of short-term real estate loans | $10 per loan | Everyday investors; some offerings are accredited only |
| Ark7 | Shares of individual rental homes | From $20 a share | Check eligibility in its app |
| Yieldstreet, now Willow Wealth | Private credit, real estate and private equity | Check its site | Check its site |
| CrowdStreet | Private market funds | $5,000 typical | Accredited investors only |
| EquityMultiple | Private commercial real estate deals | From $5,000 | Accredited investors only |
If you want someone else to choose the properties and you are starting small, Fundrise is the simplest of these. If you would rather pick each home or loan yourself, or you are accredited and want individual deals, the others are worth a look.
Want the longer list? See our full guide to Fundrise alternatives and the platforms open to non-accredited investors.
Bottom line: is Fundrise worth it?
Fundrise does what it says. It lets ordinary investors into private real estate from $10, it publishes its results including the bad year, and it does not charge you to get in. What it cannot give you is quick access to your money or a promise about returns. Size your investment so that neither one keeps you up at night.
If you’re interested, I recommend you sign up for more information from Fundrise by clicking here.
- Earn passive income with real estate investing starting at just $10
- Easy-to-use app for seamless access to crowd-funded real estate deals
- Perfect for those who want their money to work for them
Fundrise FAQs
You can open a regular Fundrise account with $10. An IRA takes $1,000 to start. After that you can add money at any time, and recurring deposits through auto-invest start at $10 with no added cost.
Fundrise is legit. It was founded in 2012, its adviser is registered with the SEC, and its main real estate fund publishes a prospectus and regular reports. Safe is a different question. Fundrise is an investment, not a bank account. Its client accounts lost 7.45% in 2023 by its own figures, and the prospectus for its main fund says to invest only if you can afford a complete loss.
In seven of the eight years it reports, yes. By the figures Fundrise publishes, client accounts averaged 6.24% in 2025 and 5.75% in 2024, and lost 7.45% in 2023. Those are averages across all client accounts after its 0.15% advisory fee, so your own result will differ. Past returns do not predict future ones, and nothing is guaranteed.
Yes, but not instantly. You submit a request and Fundrise reviews requests once a quarter, so you can wait three months or longer. There is no penalty to leave the Flagship and Income funds, and about a 1% penalty on eREIT shares held under five years. Requests can also be limited, because the main fund only offers to buy back between 5% and 25% of its shares each quarter.
Fundrise charges a 0.15% yearly advisory fee, and its real estate funds charge a 0.85% yearly management fee. Together that is $10 a year on every $1,000. Other fund costs come on top: the Flagship fund prospectus lists total annual expenses of 1.78%. There is no sales load when you buy. IRAs carry a $125 yearly custodian charge that can be waived.
Some plans do. Fundrise aims to pay distributions after each quarter, and you can take them as cash or reinvest them. They are not guaranteed and they vary a lot by plan. When we checked, the Flagship fund showed an annualized distribution rate of 0.21%, while the Income objective showed a declared yield of 8.15%.
No. Anyone 18 or older who lives in the United States permanently, has a US tax ID and files US taxes can invest. Fundrise does not accept investors living abroad or in US territories.
You get a Form 1099-DIV for each fund that paid you $10 or more in the year, and a Form 1099-B if you sold shares. Fundrise says it does not expect dividends from its eREITs to be qualified, so plan on ordinary income tax rates for most of them.
It depends on what you want. Fundrise is built for hands-off investors who want a diversified fund from $10. If you would rather pick individual rental homes or loans, or you are an accredited investor looking for single deals, compare the platforms in the alternatives section above.
More real estate investing reviews
We earn a commission for this endorsement of Fundrise.
