Fundrise Review 2018: How to Invest in Real Estate for Only $500


What’s up everyone! I know I mentioned in
my last video if you’re kind of a risk-taker you can invest in REITs over
bonds which is real estate investment trusts. Now I mentioned that I started
experimenting with a platform called Fundrise and I told you that you can check
it out. I put the link in the description so I figured that if you were interested
in you did take a look at the website it always is nice to see a
behind-the-scenes of how someone else has been doing and a sneak peek at the dashboard because you’re not gonna see this dashboard view until you actually create
an account. Now one thing I want to mention is that if you are interested in
Fundrise, there is a five hundred dollar investment minimum so until you create
an account you invest that first five hundred dollars, you’re not gonna see
what the actual dashboard looks like so I’ve decided to create this to kind of
give you a behind-the-scenes tour of what you’re gonna get once you do invest
with Fundrise. So with that said, this is what the dashboard looks like after your
funds have cleared and you have your Fundrise account. Okay
when you log in you’re gonna see your earnings to date. So this is your
dividends right here this thirty eight dollars and forty two cents is how much
I’ve made in dividends. Now I’ve only had Fundrise for about two months and they
pay their dividends quarterly so this thirty eight dollars and forty two cents
is all speculative. It could change but that’s their closest estimate based on
last quarters returns. So that’s what I will be receiving once they do dispersed
dividends which is actually, you can see here, is mid-january 2018. So that’s
actually coming up in a couple weeks. Another cool feature is that
one of the benefits to using Fundrise is that your investment is compounded
over time, so I have it set where it’s gonna automatically reinvest my
dividends. Now if you don’t want to do that, you can have it set where you get
paid your dividends every quarter so if you make $200 in dividends, you can have
it go straight to your bank account. So it kind of is like real estate where you
have that passive income and you’re able to get that every quarter. Right here
this total returns is hypothetical becauseI haven’t been paid yet. Now every quarter what they’re gonna do is they’re
gonna calculate your net asset value and how much you did made in dividends for
the last quarter and they’re gonna put it under here for your total returns. Since
I’ve only had it for two months and I haven’t been paid my dividends yet they
haven’t done that for me yet so I don’t know my NAV. Now if you scroll down a
little bit, you can see your portfolio. So I have six thousand dollars invested and
that’s broken up between a diverse set of real estate investments. You can
see that I have lower or lower risk investments. About 1.3 percent all the
way to high return higher risk investments at one point seven percent
of my portfolio. So mostly my portfolio is balanced with medium risk investments.
Now when you scroll down you can see that they are very transparent. The
one downfall of Fundrise is you have no control over what they invest in. They
have an investment team that seeks out new investments, they do the deals, and they totally control what they’re investing in but they are very transparent. You
can see here that you get a picture of what your investment is. You see the risk, you see what type of investment it is, you can see what the key points were in
the deal, why they purchase that piece of property, and an investment
summary along with the location of where it is so it’s not like you’re giving
them your money and you have no idea what they’re investing in. It’s pretty
transparent where you can see what your portfolio consists of down to each
investment type and they’re gonna go through so you can see I have quite a
few investments in here and the more you invest the more investments you have now
there is a difference between a starter portfolio and what I’m Preston so if you
invest $500 you’re gonna get a starter portfolio I think it’s called the growth
with the income portfolio and it’s gonna be a little bit different than I think
once you invest past 2000 or 2500 dollars your total your whole portfolio
switches into their period switches I think California Los Angeles New York Washington DC it’s just a different
asset allocation structure so you can see the recent activity when they
acquire a new property it goes through the entire timeline when you get paid a
dividend it’ll go there one thing that’s cool is you can
set automation you can automate your savings so you can see here that if you
invest $100 a month you’re almost you’re over doubling your
investment over well that’s 20 years but you can see the
timeline that Ottawa invested really gonna help you accumulate more money now
going back to the dashboard they make it incredibly easy to add money so all you
have to do with add funds your bank accounts a link you say how much you
want to transfer it’s gonna tell you what it’s gonna invest in and you pick
continue it’s gonna take a couple days to verify it but your funds are gonna go
into the account super easy under account you can go to
your performance which is just another display your dashboard like I said it
hasn’t been three months yet so I haven’t been paid so I don’t know how my
actual performance has been down here you can see kind of your dividend growth
you can see any transactions which isn’t a huge deal now this is the cool thing
this is update so you can see that every time a new assets added your portfolio
you can see a small description of the portfolio this is a 1254 square-foot
home you can see why they invested what the area is like and you can ask them
any questions on the phone so you can see all updates like I said for a
private it’s risky because it is a private fund but they are transparent
they are telling you what they’re investing in so that is a cool part
about it under resources you can just see more about kind of investing real
estate just kind of the investing basics they really give you a lot of material
if you want to learn now let’s go to their actual website because before you
gonna invest I encourage you to take a look at their entire website they have
so much information on it it’s very nicely designed but you can see here
this is what I mentioned in the last video is that what drew me to fund rise
is their Modern Portfolio theory now you can see here that a traditional
portfolio is 30 percent stock 70 or 30 percent bonds 70 percent stocks and of
course that changes the bottom portfolio has 30 percent real estate because it
totally separate them a stock market now the reason they’re pushing real estate
is because one it has much higher returns than bonds bonds have about a 3%
average return whereas real estate has they’ve been having I think an average
of 9% returns which is outstanding it does fluctuate sometimes you get 12%
sometimes you get 8% it’s kind of in that range but the thing is if the stock
market crashes real estate is secretin bonds if the market crashes bonds are
still going to fluctuate they’re still gonna go down real estate you know that
you’re getting consistent dividends regardless so check out their website it
is fantastic I do want to show you the fees real quick let me see how I can get
to the fees pricing yeah so in total their fees are 1% now yeah you’re gonna
be paying 1% fees but that’s actually not bad I mean compared to if you think
of a 9% annual return you’re paying 1% of fees it’s still an 8% return so
compared to other investments it is still fantastic you can see they have no
upfront costs I encourage you just to go through their entire website like I said
they have so much on there you know take a look you have nothing to lose the last
thing that I want to show you or kind of tell you about is the pros and cons now
the pros here are that it does have diversification it is a very easy way to
invest in real estate without having to put up a lot of capital like I said it’s
a $500 minimum which is not a lot so you have that diversification your totally
separate from the stock market it is a nice return and you know the website is
very easy to use it’s very easy to transfer funds into get set up now so
far I haven’t had any cons because I have a catalana I’m gonna make another
video after that mid-january mark when I do get paid so I’ll do another video
update progress update my progress on that the one downfall that I want to say
is that it is a long term investment so if you need your money like within the
next five years then I went many fun games they recommend holding
your portfolio for five years in order to ensure maximum returns now when you
do investment with fund rise they give you a 90 percent grace period so a 90
percent turn not 90 percent a 90-day grace period to figure out whether you
want to stick with them or not once you cross that 90-day mark there is
a early withdraw penalty if you withdraw your funds before five years so I think
like between one and three years it’s a two percent fee
four years is a one percent feed after five years there’s a 0% percent fee so
they really try to have you keep your money in there for five years because
that’s when you’re gonna get the best return now you can’t pull it out early
just know that you’re gonna have that feat the other thing is it’s very
illiquid meaning that once you put your money in you can’t just pull it out
whatever they have made it an option to pull out your month your money quarterly
so after they calculate your nav and they pay you your dividends you do have
the option to pull your money out each quarter but there is a waiting period
it’s not a quick transition so make sure that you’re only putting money in the
fund rise that you can hold on to for at least five years or you know quite a bit
of time so with that said that that’s pretty much my overview of fund rise if
you’re watching this I just like I said I want to give you what you doing I want
to give you a behind-the-scenes tour of what the dashboard actually looks like
the way they calculate this earnings to date is they take last quarters return
and they pretty much divided by three months to give you that per day value so
I think right now with 6,000 invested and last quarter returning around nine
percent I get about 82 cents a day keep in mind that when it is compounding when
you are investing a certain amount each month your dividends are gonna go up but
know that with fund rise you don’t have that volatility so you are getting
consistent dividends it’s not fluctuating with the market so you know
it’s it’s been a great experience so far you can see on the map
where your investments are located you can see your different investments in
what you have broken into each one from here I encourage you to take a look at
their website read more about it it is a risky investment so it’s not for
everyone but at the minimum you can invest $500 see if you like it or not
I’m gonna put that referral link in the description which is gonna give us each
three months of trading for free so you’re gonna you’re going to negate that
well you’re not going to negate the one percent feed but it’s gonna take three
months off of that so what they do is they take that one percent feed divided
by twelve so you’re just gonna get three months of free management so if you
enjoy this video I would really appreciate a thumbs up let me know in
the comments if there’s anything else that you want to see and I’ll include
that in my next video if you have any questions if you took a look at the
website let me know and I’ll try to answer them to the best of my ability
I’ll try to include them in my next video if you’re not already make sure to
subscribe so you do catch that next review once I didn’t get paid in the
January and I’ll see you next time thanks for watching

36 comments

  • Thanks

  • Thanks for sharing this!

  • For sure! I actually just got paid my dividends and my next disbursement is set for Mid-April. If there’s anything you want me to cover, please let me know otherwise I’ll do another update video then. Thanks for watching. I’m glad it helped!

  • In 2008 stocks and real-estate crashed – invest in Treasure bonds

  • So it's basically a transparent private REIT? What kind dividend are they paying.

  • I plan to post a portfolio update every month so make sure to subscribe if you don't want to miss it! I will give an account value update along with any new properties they have acquired and added to my portfolio. Also let me know if there is anything else you want to see.

  • Good company, I just got my 4th dividend pymt this month, reinvesting all, so far 8.23% and above

  • Hey, Will Armstrong, thank you so much for showing this video. I was very interest in investing with "fund-rise". Seen some reports that they charge a little more fees than usually. So, that made me a little scared investing with them. I am also interest in "Rich uncles". Same thing with a start of $500.00 minimum. Q: Would you recommend "Fund-rise"? to invest in. I want to start off with the $500.00 minimum. Then after that go to "long-term plan" and invest $1000.00 for 5 years and so on. again, thank you so for showing and posting video. Greatly appreciated.

  • Can you pull the money out anytime you get ready do you have to put money into the account as soon you set it up

  • Is there investment have insurance on your money like the bank

  • How long will it take for you to take your money out if you need to get your money out right now

  • Can you pull your money out anytime you get ready

  • Journey with Cerney- Stock Videos

    I know capital gains after 1 year are taxed at 15% is that the same here?

  • Hi Will,

    Thanks for the vid. So with a $6000 principle how much ~dividends are you getting "per month" ?

  • Brandon Beavis Investing

    Will do you know if this is available for Canadians?

  • Hey Will, With a $1000 investment after 5 years what do you think will be the dividend? Approximately?

  • Nice next stop on investing

  • Hi Will, awesome vid. I'm very new in investing and very interested in learning. My biggest fear is tax, how much does an investor pay in taxes? how can I keep safe? Sorry for these questions I just wish to learn.

  • Hey Will, have you ever tried the Rally Rd app? It allows investors to invest in classic cars. I read that investments start at $50.00. Could you do a video on this? Thanks

  • Okay the fee is .85 after 20 years it’s 18 percent plus 3 percent withdraws fee and it takes 60 days to get your money out fuck all that.

  • My dividends increase consistently at a rate of $2.05. And this is on supplemental income for 10K investment. How much do you get in dividends daily and I'm assuming you picked the Balanced portfolio –right ?

  • Of any need a referral code:
    https://fundrise.com/r/59zep

  • Excellent post! Extremely informed video!

  • Great video can you choose for a percentage of earning be reinvested or it it all or nothing. Thanks

  • Good Morning Will,please can I join and invest in Fundrise from Nigeria,west Africa?

  • 90 day money back promise is BS. They make you take a regular redemption and wait 60 days but 63 for me for some reason. On top of that you get your original money minus dividends you've made. And if they have too many redemption request you may not get paid back.

  • Thank you Will. I wish I came here first before I invested but I'll buy and hold on Fundrise…for now.

  • Invest in real estate https://fundrise.com/r/p3nvq

  • how can you withdraw your money?

  • The World Of Snarf

    That fee waiving looks very tempting! Just curious as to way everyone considers this to be risky? You keep saying that it isn't volatile and I see nothing but very nice linear returns for everyone using it. Where is the large risk?

  • Todd from breaking bad

  • Johnny Encinias Financial Freedom

    This is cool great job I stumbled upon your channel. Way to go. I talk about the same kind of stuff. Congrats for getting monetized. I cant wait.

  • Interesting. Still learning about this. Sounds like Peerstreet or no?

  • Vietnam-Florida Traveler

    Hi I’m still student and don’t have much money. Can I started $500

  • ramakrishna santosh

    can we invest in fundrise since i am an non-us citizen and but I am an US resident from 9 years , please advise ..

  • How long have u been investing on Fundrise?

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