Journey through My Investment with Fundrise: A Four-Year Tale of Triumph and Returns (Reflections as of 2023)

INVESTMENT TIPS
The Ups and Downs of My Fundrise Experience: 4 Years Later (Current to 2023)
By: Marc Andre
Last Updated: April 19, 2023

Hidden away from most eyes, here’s my insider commission info, so you know how I pay my bills.

Today’s world offers an abundance of investment options, and real estate is no exception. Real estate crowdfunding, including platforms like Fundrise, allow anyone to take a plunge into the property market.

Four years ago, I turned to Fundrise to shake up my investment basket. In this piece, I’ll give you a peek into my gains and losses on this platform. Note that everyone’s journey is unique – your experience might differ based on your goals and investment timing.

Now, let’s cut to the chase and dive into my Fundrise journey, which started at the tail-end of 2018. I chose their long-term strategy prioritising growth. Take a glance at my returns as of April 2023:

2019: 6.2%
2020: 6.3%
2021: 22.2%
2022: 5.3%
2023 (Q1): -0.10%
Lifetime: 9.8% (annual)

While the initial 6.2% gain didn’t meet my expectations, a solid 9.8% annualized return after four plus years has me content. Let me clarify, Fundrise set me up for long-term growth, not quick wins, especially in the first year. The eye-catching 22.2% gain in the third year is a result of U.S. real estate trends and Fundrise backing my portfolio with long-term investments.

Don’t be unsettled by the downswing in 2022 and Q1 2023. If we stack it against the same periods of the stock market and public Real Estate Investment Trusts (REITs), my return looks pretty decent.

Despite a slight dip in Q1 2023 returns, I remain optimistic about the consistency and stability that Fundrise has offered over four plus years. Explore more about Fundrise in our detailed review.

Super-simple Real Estate Investing with Fundrise
Get real estate ownership benefits without doing any legwork via Fundrise. Start your journey with as little as $10 and enjoy access to a range of features:

Consistent historical returns
Wide-ranging property portfolio
Quarterly dividends
User-friendly interface
$10 welcome bonus
Tap the button to learn more about Fundrise.

The majority of investors seek Fundrise to learn about historical returns. Note that these are averages from different investors and portfolios.

While benefits accrue slowly in the early years due to its long-term focus, Fundrise typically yields better returns for long-standing investors. My investment return timeline may sway above or below Fundrise’s average at different intervals.

Looking at Fundrise’s historical returns, you can clearly see a steadier returns slope than public REITs and the stock market (S&P 500) since 2017. Remember that these numbers reflect the ups and downs of numerous Fundrise investors – everyone’s trail is different.

Still, predicting future performance based on past records isn’t always a good idea.

For those ready to embark on their own Fundrise journey, the platform offers various portfolios:

Starter: This beginning portfolio lets you invest in real estate with a minimum of $10.
Basic: Greater benefits, including investing in IRAs, await you with a minimum investment of $1,000.
Long-Term Core Strategy: With at least $5,000, Fundrise gears your portfolio towards long-term growth.
Income Core Strategy: An investment of $5,000 or more allows Fundrise to max out your portfolio’s dividends.
Balanced Core Strategy: Put in at least $5,000 for a balance of long-term and income strategies.
Have a look at Fundrise’s official website for a deeper understanding of these strategies.

My Fundrise highlights rounds up as follows:

Stability – Despite turbulence in the stock market over four years, my Fundrise investment remained relatively steady.
Ease of Use – The user dashboard is intuitive and easy to navigate.
Communication – Fundrise excels in keeping investors up-to-date via regular emails.
Customization – I love how Fundrise allowed me to shape my portfolio based on my goals.
Diversification – My portfolio includes various property types from around the U.S., spreading the risk.

While few real estate crowdfunding platforms match up to Fundrise’s popularity, it’s vital to remember that each has its unique practices.

If you can afford higher stakes, platforms like CrowdStreet, EquityMultiple, and Cadre might be better suited for you. However, Fundrise is designed for a different kind of investor. I’ve also invested in CrowdStreet and EquityMultiple in 2022 and found the platforms satisfactory.

You can see how Fundrise fares against other platforms in our detailed articles: Fundrise vs. RealtyMogul, Fundrise vs. Streitwise, Fundrise vs. CrowdStreet, Fundrise vs. DiversyFund, Fundrise vs. Arrived.

Here are some frequently asked questions and their answers for you:

What’s the average yearly return with Fundrise?
From 2017 to 2022, yearly returns ranged from 5% to 22%, averaging a 10.6% return over four years.

Can I lose money with Fundrise?
Indeed, you can. Future returns aren’t guaranteed, so you should only invest money you can afford to lose.

Has anyone earned money with Fundrise?
Absolutely, many have seen significant annual returns, even in challenging times.

Does Fundrise pay dividends?
Yes, Fundrise does pay quarterly dividends, either as cash or reinvestment.

How quickly can I see returns from Fundrise?
Fundrise is a long-term investment, with the design to span over at least five years. However, dividends are paid quarterly.

Is Fundrise a good option for passive income?
Absolutely. If you’re interested in steady cash inflow, you can choose to receive cash dividends.

What’s the tax process for Fundrise?
Fundrise dividends are taxed as ordinary income, similar to all REITs.
Should I reinvest dividends on Fundrise?
This depends on your goals. If you’re aiming for long-term returns, reinvesting dividends could be a great move.
Is Fundrise volatile?
Fundrise, along with other private REITs, usually exhibit less volatility than their publicly traded counterparts.
Is Fundrise legit?
Yes, Fundrise has proven its worth since its inception in 2012, making it one of the longest-standing platforms in the industry.
Is Fundrise a good choice for investment?
That largely depends on individual preferences and risk tolerance levels. For those willing to diversify their portfolio with real estate, it’s a win-win deal.
How much should I invest in Fundrise?
Better ask yourself first upon weighing the other investments in your portfolio. With Fundrise, you can start small, with just $10, and then build your way up.

If you see your Fundrise balance go down, it’s likely due to a decrease in property values within your portfolio.

The bottom line is, I’m happy with both my returns from and experience with Fundrise and plan to expand my investment over time. Still, it’s crucial you do your homework before deciding to invest. Always remember, I’ve shared my experience here; it’s not meant to be investment advice.