Fundrise vs. My Rental Property: Detailed guide

Many of us understand why investing in real-estate is actually good for the long-term. The income-producing real-estate has been in a reliable stream for the cash flow. The trouble comes when people actually determines the best way for investing in real estate, well looking for the real estate investment options, most of the non-high-net-worth investors consider rental property and REITs. We all know that different options in real estate have their own advantages and disadvantages which are more suitable to the investors.

Rental Properties investment can be a big opportunity for investors in taking a more active role in real estate investment. This helps to generate the monthly cash flow in addition to the longer-term appreciation, they offer the benefit towards the ownership and the potential for net worth growth. When it comes to benefits they also come up with various other responsibilities.

Real Estate Projects

Fundrise Offers plans with different types of real estate, the person can invest in income-producing rental properties or growth-oriented real estate development. Fundrise offers the different types of investment plans which are based on investment goals. One has the option of keeping the track record of fundrise real estate projects within the investment account. The fundrise real estate projects are united all over, and the primary objective of this investment is to generate revenue from the income-producing properties as well as buying and selling them, they further can choose the growth-oriented portfolio and income-oriented portfolio. The investors to fundrise receive income from the rental payments and the flips proceeds in the form of dividend payment and distribution, and in exchange fundrise as the investment manager collects 1% of the fee.

Many of them don’t know about the fundrise investment and fundrise is a private real estate investment, the person can only buy and sell Fundrise E-REIT and E-fund on the fundrise platform, they are not traded on the stock exchange like REIT which are traded publicly.

Entering to Fundrise

Fundrise is the smartest and simplest way to invest in real estate properties, it seems like a crowd-funding but going in trend with various investment options. Being the investors you will be getting the small percentage of each dozen of the rental properties that portfolio of fundrise contains, fundrise does not give return only on a large amount of investment but also of your small investment and the immediate returns excite you

What is Fundrise?

Fundrise is an investment platform that allows day-to-day investors to invest in private real estate properties. Fundrise is the perfect platform to invest in various deals, here the investment exposure takes both of commercial as well as private real estate properties. The person who is actually interested need a minimum amount of $500 for getting started, you do not need any accredited investor to invest in Fundrise.

The fundrise balanced investing portfolio offers a blend of up to 50% growth and other 50% for income-oriented investments. The balanced investing portfolio invests in E-REITS and E-funds which are on Fundrise portfolio.

How do Fundrise works?

Fundrise is the real estate investment platform where real estate investment trusts and properties are being purchased were not only one but different investors pooled their money for investment. Based on the principal investment, the assets produce income and growth. We all love the positive aspects and fundrise has provided investors on their portion of the investment.

Fundrise E-REIT and E-fund

Fundrise takes a new approach towards the Real Estate Investment Trust (REIT). The perfect use of technology can be seen in Fundrise which makes easy to fund your account, check in the projects, and choosing the portfolio. Coming to the new regulations made for this gives the average investors for accessing the commercial and real-estate with the little as $500.

The Fundrise platform offers a variety of benefits which includes low account minimums and quarterly redemption period. Whereas, the investors understand the liquidity and time horizon of an investment at this platform.

Is Fundrise a Scam?

Reviewing many of the companies consider fundrise as a scam but there are many reasons that the companies are not aware they don’t have much time to know about it, many of them are comfortable with it and did not consider it as a scam, the reason behind it is as follows:

  • The investors are getting paid, so many saying it as a scam is wrong as scammers take your money quickly and they never give you back.
  • They have an Initial Public Offer which raised up to 14 million from legit investors.
  • The reviews of fundrise are fantastic.

Fundrise Returns

Everyone does care about the returns and fundrise gives you better results:

  • Rental Property approx 5.4%
  • Fundrise approx 6.0%

The rental Property has more leverage and get more properties which can minimize the cash that is invested to increase the rate of investment, but by adding the debts it won’t happen with you.

And Fundrise gives the chance to change the investment for the long term growth option for getting the higher returns which usually increases the dividend payment.

Fundrise Investment Liquidity

Fundrise uses the invested funds in purchasing real estate, where the 60 day period has been taken for the withdrawal of funds. There is a quarterly redemption period when one has to withdraw the funds.

This is actually difficult to understand what you are investing in and when you have to invest. Investors are therefore advised to aim the long term investment of at least 5 years time horizon when you’re investing in fundriser. Not everyone understands the policy of fundrise but once you start dealing with their investment policy then you’ll get to know each step how they work and what are the returns they give to you.