Updated June 10, 2026 7:47 PM PT

Fundrise Review: Is It Legit?

By Anna G
Read more about Fundrise
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Fundrise lets you invest in real estate with just $10. But is it any good? Find out in this review if it's worth it and legit.

5-point scale (the higher, the better)

Pros and Cons

  • Low minimum
  • Strong past performance
  • Passive investing
  • Illiquid investment
  • Unknown future returns
Terms Apply
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Bottom Line

Good way to invest in real estate with low fees and no income requirements

Fundrise is among the pioneers that made real estate investing accessible, even to the average person (aka non-accredited investor), with just a minimum of $10.

Aside from funds based on real estate properties and loans, Fundrise also offers a fund for private tech companies.

However, is it the right choice for you?

Learn more with this detailed review.

Note: This is a testimonial in partnership with Fundrise. We earn a commission from partner links on CreditDonkey.

Can you really make money with Fundrise?

Yes, you can make money with Fundrise by investing in its real estate, private credit, or venture capital funds. You can receive profits either through periodic dividends or fund price appreciation at the end.

According to the current track records of Fundrise's clients, you can potentially achieve a 33.3% cumulative net return after 5 years.[1]

But as with any investment, note that past performance does not guarantee future results.

Is Fundrise high risk? Fundrise can be risky. While you may experience high returns, you can also incur negative returns. Plus, your investments are quite illiquid, so you can't easily withdraw your money. It is also unclear how Fundrise would perform in a financial crisis, such as the 2008 market crash.

Fundrise at a glance (June 2026):

Minimum investment$10
Asset typesResidential, commercial, industrial, single-family rentals
LiquidityQuarterly redemption windows; early withdrawal fees apply before 5 years
Annual fees0.15% advisory + 0.85% asset management = 1.00% total
Tax treatment1099-DIV (REIT dividends, taxed as ordinary income)
Best forLong-term passive real estate exposure under $10,000

What is Fundrise?

Fundrise is a real estate investment platform that lets non-accredited investors access private real estate investments starting at $10. Founded in 2012, Fundrise has paid over $361 million in distributions, manages $2.87 billion in investor equity, and has invested over $7 billion in real estate as of June 2026.

While Fundrise initially focused exclusively on real estate, it has since expanded its offerings to include venture capital and private credit investments. The company was co-founded by Ben Miller, who launched Fundrise to make alternative investments more accessible to everyday investors.

Fundrise is open to U.S. residents who are at least 18 years old, and its minimum investment requirement is just $10.

Here are some Fundrise stats-to-date:[2][3]

Active investors385,000+
Active real estate projects185
Completed real estate projects291
Real estate portfolio value$7+ billion
Dividends paid to investors$361+ million
Venture capital portfolio20+ assets, $650+ million in net assets

How does Fundrise Work?

Fundrise works just like a mutual fund, but for alternative assets, mainly real estate, private credit, and venture capital.

At Fundrise, you're not directly investing in an individual asset like a house, loan, or private company. Instead, you're investing in a fund managed by Fundrise with these as the underlying.

Here are the ways to invest in Fundrise:

  1. Auto-diversified portfolios
    Earn passive income through professionally managed, diversified portfolios. Fundrise portfolios may include exposure to real estate, private credit, and venture capital, or a combination of these asset classes.

    Fundrise offers investment plans with different asset allocations based on your financial goals. You can change your plan at any time.[4]

    Types of Investment PlanGoal
    Supplemental IncomeGenerate regular income through dividends
    Long-Term GrowthFocus on long-term capital appreciation
    Balanced InvestingCombine dividend income with long-term growth potential

    Venture Capital Exposure (VCX)
    For investors seeking venture capital exposure, the Fundrise Innovation Fund (NYSE: VCX) offers access to a diversified portfolio of private technology companies. The fund began trading on the New York Stock Exchange in March 2026.

  2. Direct Fund Investment
    If you prefer greater control over your investments, you can manually invest in specific funds that are open for direct investment on the platform. Examples include the Flagship Real Estate Fund and the Income Real Estate Fund.

  3. Fundrise iPO (internet Public Offering)
    The Fundrise iPO allows eligible platform users to invest directly in Fundrise's parent company, Rise Companies Corp., while it remains privately held. Investors may benefit from a future liquidity event, such as an initial public offering (IPO) or acquisition.

    Eligibility is generally limited to existing Fundrise investors, and iPO opportunities are offered periodically on a limited basis.

You can either do a one-time investment or set up recurring deposits to further automate your investments.

If you're looking for a short-term investment, this isn't the app for you. Fundrise is best for long-term investors who want a simple way to get into real estate. Check out their website to start investing with just $10.

How do people make money on Fundrise?

You can earn money at Fundrise in two ways:[5]

  1. Quarterly dividends
    Receive quarterly dividends resulting from loan interest payments and rental income of leased properties.

  2. Appreciation in asset value
    Gain income as the net asset value (NAV) prices of your Fundrise funds increase over time.

At Fundrise, you can also reinvest your dividends automatically.

What is the Average Return in Fundrise?

Fundrise annual returns ranged from -7.45% to 22.99% between 2018 and 2025.

For the 12 months ended March 31, 2026, Fundrise reported income returns of 7.57% (Income accounts), 1.28% (Balanced accounts), and 0.18% (Growth accounts).

Here's a breakdown of Fundrise's annual returns of advisory client accounts:[6]

20188.81%
20199.16%
20207.31%
202122.99%
20221.50%
2023-7.45%
20245.75%
20256.24%

Fundrise vs. Public REITs:

Fundrise and public REITs both provide real estate exposure but differ in structure, liquidity, and performance characteristics.

Here's the historical annual returns for Fundrise and public REITs:[1]

FundrisePublic REITs
20188.81%-4.10%
20199.16%28.07%
20207.31%-5.86%
202122.99%39.88%
20221.50%-25.10%
2023-7.45%11.48%
20245.75%4.33%
20256.24%1.66%

Is it better to invest in REITs or Fundrise?
Fundrise is the better option if the sole basis is dividend gains and costs, as it has a higher historical average income return and lower management fees compared to REITs. However, REITs may be a better choice if you want greater liquidity, as you can buy and sell REIT shares anytime on the stock exchange.

My Experience with Fundrise

Here, I'll share my personal Fundrise experience and returns. I started investing with Fundrise in February 2019. Since then, I've invested $12,943 total by making steady auto deposits each month.

As of end of December 2023, my account value is $13,442.77. This is $499.35 in total returns with an average annual return of 1.5%. The total advisory fees is $46.

Here's how it breaks down by year. I've also included how much were from dividends and appreciation.

YearAnnual ReturnDividends AppreciationTotal returns (net of fees)
2019 (from Feb)6.1%$49.77$53.24$103.01
20207.6%$67.28$196.30$263.53
202127.1%$142.22$1,365.50$1,506.72
20221.0%$429.55-$317.95$111.60
2023-8.4%$157.06-$1,642.73-$1,485.67

I chose the Long-Term Growth portfolio. This means the investments focus more on long-term appreciation than on dividends. Your returns will differ according to which portfolio you choose.

In the past 5 years, Fundrise has been volatile with highs and lows. 2021 was an outstanding year, but as mentioned earlier, don't expect every year to perform like that.

Since I am in the Long-Term Growth plan, it's still unclear how much appreciation I'd see in a few years when more projects mature. I plan to keep my investments for the long haul to ride out the downs.

So yes, you could make more with other investments, but remember that all investments carry some risk. It depends on your risk appetite and your time horizon.

Fundrise Fees

Fundrise charges an all-in 1% management fee as follows:

  • 0.85% annual asset management fee (that goes towards operating costs of the projects)
  • 0.15% annual advisory fee (can be waived in certain circumstances)

However, this does not apply to the Fundrise Innovation Fund, which has a flat 1.85% annual management fee.[7]

This pricing is pretty competitive. However, some of Fundrise's potential costs are not as transparent. Read on to learn more.

Hidden Fees

  • 1% penalty when you redeem shares within five years of investing[8]
  • An annual fee of $125 to Inspira Financial if you're investing as an IRA[9]

Specific funds may have additional fees, including asset management, acquisition, servicing, and others. For a full picture of these charges, you would need to review the few hundred-page circular that comes with each investment.

If you're looking for a low-fee alternative, check out Groundfloor. The company offers short-term real estate loan projects and has low fees.

Withdrawing Profits from Fundrise

To withdraw funds from Fundrise, you need to submit a liquidation request. These requests are reviewed quarterly in early April, July, October, and January.

When it is approved, you'll receive an email. Expect funds to be disbursed after the end of the quarter.

When you redeem, the shares you've had for the longest will be liquidated first, following the first-in, first-out (FIFO) rule.

Fundrise funds are designed to be held long-term, typically 5 years or more. So, you can't easily sell and withdraw anytime you want, unlike publicly traded REITs.

What is the early withdrawal fee for Fundrise? There's no withdrawal fee for the Flagship Fund, Income Fund, or Innovation Fund. However, there's a 1% penalty fee for withdrawing eREIT/eFund shares held for less than 5 years.[10]

Fundrise Pros & Cons

Pros:

  • Low minimum
  • Don't need to be an accredited investor
  • Automatically diversified portfolio
  • Quarterly dividend distributions
  • Completely passive investing
  • Available as IRA
  • Transparent fees
  • See Fundrise Deal >>

Cons:

  • Illiquid (5-year hold preferred)
  • Cannot choose individual assets; limited to funds only
  • Potential liquidation fees
  • Can be volatile

Read on to learn more.

Best Alternatives to Fundrise


How to Get Started

Want to let your money work through Fundrise? Here's how:

  1. Create an account
    View special offers and sign up accordingly.

  2. Pick a plan
    Answer some questions about your investment goal. Then, Fundrise will automatically assign an investment plan for you. However, you can also change your plan anytime.

  3. Fund your account
    Link a checking account to your Fundrise account or set up a wire transfer. Processing may take several days, but after that, you can start investing. Minimum is $10.

  4. Earn money
    Fundrise investors are paid dividends every quarter and at the end of investments when the assets mature.

How much do you want to invest in real estate?

Fundrise Investment Plans

After signing up, you'll need to select one of the 4 investment plans to determine how Fundrise will invest your money.

Here's how each strategy differs:

  1. Supplemental Income: This focuses on properties that create cash flow from rent or interest. You will earn more dividends here, so select this if your goal is passive income.

  2. Long-Term Growth: This focuses on properties that are expected to appreciate in value. You'll earn fewer dividends now, but the potential long-term returns could be the highest.

  3. Balanced Investing: This approach creates a more balanced mix of income and growth properties. You earn money through both dividends and appreciation.

  4. Venture Capital: This portfolio invests in high-growth private tech companies. Returns are expected to be in the form of long-term appreciation.

You can change your investment plan at any time, so you're not stuck with your initial choice. Changing will only affect future investments and will not rebalance your current positions.

Types of Accounts

Fundrise supports the following accounts:

  • Personal taxable account
  • Joint account
  • Traditional or Roth IRA (through Inspira Financial Trust)
  • Certain entity accounts (Trusts, Limited Liability Companies, Limited Partnerships, C Corporations, and S Corporations)

Typically, Fundrise investments are held in taxable accounts, meaning investors may owe taxes on dividends and capital gains. However, eligible investors can also invest through tax-advantaged retirement accounts, such as IRAs, which are administered through a third-party custodian.

Is Fundrise Safe?

Yes. Fundrise portfolios are made up of qualified offerings regulated by the Securities and Exchange Commission (SEC), so they follow strict reporting requirements.

Additionally, Fundrise reduces your risk through extensive due diligence, thorough underwriting, and a conservative approach, positioning their portfolio to sustain economic downturns.[11]

Fundrise also has an A+ rating with the Better Business Bureau (BBB), which suggests its trustworthiness and reliability. [12]

To keep your personal information safe, Fundrise uses bank-level security. This includes 2-factor authentication, AES bit symmetric key encryption, and Transport Layer Security (TLS).

But all investing carries some risk. Fundrise has done well since its establishment, but there is no guarantee it'll continue to do so.

Fundrise is not without faults. In August 2023, the SEC filed charges against Fundrise for paying content creators to solicit clients in violation of the cash solicitation rule. Fundrise has then agreed to a cease-and-desist order, a censure, and a $250,000 civil penalty to settle the charges.[13]

See Current Offer >>

How Fundrise Compares

See how Fundrise stacks up against the competition, including other real estate investing platforms.

Fundrise vs Groundfloor
Groundfloor is a good option if you're looking for short-term real estate investments. The projects last only 6 to 18 months.

Groundfloor works a little differently. Instead of investing in equity, you are lending money to borrowers for quick fix-and-flip housing projects. When the house is renovated and then sold, you'll get your investment back (along with interest).

Flywheel Portfolio, Groundfloor's newest offering, combines hundreds of short-term real estate loans into a single investment. You get instant diversification across these loans, with repayments distributed weekly as loans are paid back.

Fundrise vs Crowdstreet
Crowdstreet is one of the largest commercial real estate marketplaces. This platform is only open to accredited investors (unlike Fundrise, which is open to everyone).

They focus on high-quality commercial real estate deals. You can either choose your own deals or invest in a fund that includes multiple projects. Most of the deals require a $25,000 minimum investment.

What the Experts Say

Beginners can start investing in real estate with just a little bit of money. Find out if that's a good idea.

As part of our series on real estate investing and passive income, CreditDonkey asked a panel of industry experts to answer some of our readers' most pressing questions:

  • Is real estate crowdfunding a safe or risky investment?
  • What is the best way for beginners to invest in real estate?

Here's what they had to say:

Bottom Line

Typically, investing in real estate requires large amounts of money. Fundrise allows investors to access private real estate with a lower minimum investment compared to traditional real estate investing.

However, be aware that the real estate market can be volatile too, so it's best if you can invest for the long term. Also, remember that accessing your funds will be more limited, and there could even be a penalty in the first 5 years.

If you're willing to tie up your money and start small, diversifying into real estate through Fundrise might be worth the investment.

Next steps: View portfolio plans, terms and details

Disclaimer: The information contained herein neither constitutes an offer for nor a solicitation of interest in any securities offering; however, if an indication of interest is provided, it may be withdrawn or revoked, without obligation or commitment of any kind prior to being accepted following the qualification or effectiveness of the applicable offering document, and any offer, solicitation or sale of any securities will be made only by means of an offering circular, private placement memorandum, or prospectus. No money or other consideration is hereby being solicited, and will not be accepted without such potential investor having been provided the applicable offering document. Joining the Fundrise Platform neither constitutes an indication of interest in any offering nor involves any obligation or commitment of any kind.

The publicly filed offering circulars of the issuers sponsored by Rise Companies Corp., not all of which may be currently qualified by the Securities and Exchange Commission, may be found at www.fundrise.com/oc.

References

  1. ^ Fundrise. Client Returns, Retrieved 06/09/2026
  2. ^ Fundrise. About Us, Retrieved 06/09/2026
  3. ^ Fundrise. Real Estate Strategies, Retrieved 06/09/2026
  4. ^ Fundrise. What is the difference between the Investment Plans?, Retrieved 06/09/2026
  5. ^ Fundrise. How can I earn returns on my investment?, Retrieved 06/09/2026
  6. ^ Fundrise. Explore client performance over time, Retrieved 06/09/2026
  7. ^ Fundrise. What are Fundrise's fees?, Retrieved 06/09/2026
  8. ^ Fundrise. Are there any costs associated with liquidating shares?, Retrieved 06/09/2026
  9. ^ Fundrise. What are the fees associated with investing through my IRA?, Retrieved 06/09/2026
  10. ^ Fundrise. How do I withdraw funds (request a liquidation)?, Retrieved 06/09/2026
  11. ^ Fundrise. How It Works, Retrieved 06/09/2026
  12. ^ Better Business Bureau. Fundrise BBB Rating & Accreditation, Retrieved 06/09/2026
  13. ^ Securities and Exchange Commission. SEC Charges Fundrise Advisors, LLC for Paying Content Creators to Solicit Clients in Violation of the Cash Solicitation Rule, Retrieved 4/30/2024
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Write to Anna G at feedback@creditdonkey.com. Follow us on Twitter and Facebook for our latest posts.

Note: This website is made possible through financial relationships with some of the products and services mentioned on this site. We may receive compensation if you shop through links in our content. You do not have to use our links, but you help support CreditDonkey if you do.

Fundrise, LLC ("Fundrise") compensates CreditDonkey Inc for new leads. CreditDonkey Inc is not an investment client of Fundrise.

Compare:

How much do you want to invest in real estate?
30% Less than $500
20% $500 - $1,000
19% $1,000 - $5,000
13% $5,000 - $10,000
18% More than $10,000
Source: CreditDonkey poll of 2,479 respondents
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