Has anyone ever used Fundrise to begin REI?

Question

I don't have the money for a down payment on a property yet but in my research, I keep coming across Fundrise - which is a property crowdfunding platform.  Has anyone ever done anyting like this? Is it legitimate? Is it a good choice for investing while I save up for a bigger purchase?

Ian Ippolito · Answer

@Jessica Zastoupil,  thanks for clarifying and now I understand your question.

Fundrise definitely is one option for you,  although it's not the only one. There are two other sites that also offer real estate crowdfunding on a nationwide basis for nonaccredited investors like yourself:  Rich uncles and RealtyMogul.com.  Each has different strengths and weaknesses.

If you have any questions, just let me know.

Mindy Jensen · Answer

@Jessica Zastoupil , I invest with FundRise, and am happy with my returns so far. They have eREITs you can invest in as a non-accredited investor, and individual projects that I believe you have to be an accredited investor to participate in.

Jessica Zastoupil · Answer

thank you Ian,  I will check that out!

Jessica Zastoupil · Answer

Yes, but you can invest as little as $1000 towards their lending to others.  I guess I'm wondering about the returns. Like I said I don't have enough money to do REI on my own yet but Id like to get a foot in the door while I save.  Maybe I'm not explaining myself well enough?

Steven Gesis · Answer

Jessica-

Yes, this is a legitimate platform, however, they seek good quality deals and typically are looking to place money at a substantial cost, also note, you will require a substantial amount of due diligence documents.

Arpan Patel · Answer

They look like the want to lend in the over 5M and under 10M world. So unless you are looking for a big deal this particular lender may not make a lot of sense but that is based on my quick look at their website. I could be wrong. I hope this helps

Jessica Zastoupil · Answer

I wasn't looking at asking them for money,  rather joining as an investor.

Ian Ippolito · Answer

Crowdfunding platforms in general don't like to see inexperienced sponsors. So if you don't have money for even a down payment on a property, Fundrise is unlikely to provide funds for it.

Has anyone ever used Fundrise to begin REI?

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