It’s no secret that investment real estate is one of the smartest and most profitable financial decisions you can make.
Invest in Real Estate for as Little as $500 Using Fundrise
Although the short-term returns aren’t quite what you could get from the stock market or other ventures, it’s a safe and secure way to grow wealth.
And while things have gotten more expensive over the years, it’s still very possible to invest in real estate and make money. Just like the old days.
The Barriers to Real Estate Investing
However, when most of us think about investing in real estate, we tend to first think about buying a house or some other type of property.
Doing this will set you up for the biggest possible return, but there are also significant barriers to entry.
First, you need a down payment and decent credit to get a loan, and then there are other things to consider.
For example, buying property in an area suggests you’re planning to stay there.
If you’re younger and still not settled down, this can be a major obstacle to getting into real estate investment.
But the longer you wait the less money you can make. Fortunately, there are alternatives.
One of them — Fundrise — has been producing consistent returns for investors since 2014.
In total, it has paid out more than $100 million in dividends, and it also makes real estate investing accessible to those who can’t or don’t want to buy the property themselves.
Interested? If so, read on to learn more about this exciting investment opportunity, or you can check out this full Fundrise review that will walk you through the entire experience of investing on this platform.
What is Fundrise?
Put simply, Fundrise has crowdfunded real estate investing. If you’ve ever heard of GoFundMe or Kickstarter, this is essentially the same idea, except it’s specific to real estate.
Fundrise collects money from many different people and then uses that money to make real estate investments of all kinds.
From there, it distributes dividends as well as each person’s share of the property’s capital appreciation once it’s been sold.
All of this means that you can invest in real estate with as little as $500, allowing you to tap into this revenue stream without having to take the plunge and buy the property of your own.
How Does it Work?
Fundrise operates very similarly to a Real Estate Investment Trust.
Also known as REITs (pronounced “reet”), these investment vehicles essentially pool the resources of many different investors and use that money to make real estate investments.
Typically, they invest in large investment projects since they have the funds to do so, though this isn’t always the case.
REITs are publicly traded investments, and over the past few decades, have produced returns that average around 10 percent.
Fundrise is similar in that it collects money from a large pool of investors and uses it to make real estate investments.
But it’s different in that it’s not a publicly-traded investment product. Instead, when you invest with Fundrise, you’re really investing with them.
The folks at Fundrise will make the decisions about what real estate ventures your money goes to, and everything is kept within the Fundrise family.
To sign up and start investing with Fundrise, there is very little you need to actually do. The first step is to make an account and put some money in it.
The minimum investment is $500, though you can put hundreds of thousands of dollars into your account if you want.
From there, the next thing you need to do is decide on a strategy. Are you looking for a long-term investment, short-term gains, something risky, something safe?
When you sign up and make an account, Fundrise will ask you to specify the types of investments you want to make.
And that’s pretty much it. Going forward, Fundrise will find investment opportunities for you that match your goals and approach, and they will invest the money for you.
The only thing left for you to do is to sit back and let the money flow.
How Do You Make Money with Fundrise?
Now that you have an idea of how Fundrise works, you’re probably wondering: how do I get paid?
There are two ways you can make money with Fundrise. The first is through dividends. These get paid out on investment projects that are currently generating income.
For example, if one of the projects you invest in (or that Fundrise invests in for you) is a big apartment complex full of tenants, then you will get a portion of the rental profits the property generates.
Depending on how much you invest, this could be a few bucks or a few hundred bucks. In either case, dividends are paid out on a quarterly basis.
The other way to make money with Fundrise is through capital appreciation, i.e. when the property you’ve invested in gets sold for a profit.
Again, the amount you’ve invested will determine how much you make.
Unlike dividends, earnings from capital appreciation do not get paid out in regular intervals. Instead, you need to wait until the investment sells to make money.
When you sign up for your account and specify your investment preferences, Fundrise will allocate your funds into investments that will produce the returns you want/need.
If you want to earn cash in the short run, you will find investments that produce dividends. But if you’re more interested in long-term growth, then expect to have your money put into projects where capital appreciation is the goal.
What’s Good About Fundrise?
As you can see, Fundrise is a unique way of investing in real estate. Here are some of the things that make this platform great:
Low Barrier to Entry
Because you can get started with just $500, average people can invest in large-scale real estate projects without breaking the bank.
Since 2014, Fundrise portfolios have averaged between 7 and 14 percent returns.
Consistent, Long-Term Returns
Though you won’t make a fortune overnight, investing in Fundrise can produce steady returns over a long period of time. That’s money you can count on pretty much no matter what.
Since Fundrise does most of the work for you when it comes to allocating funds, it’s super easy to use.
All you need to do is put some money in your account, specify your strategy, and then let Fundrise do the rest.
A Great Way to Learn
If you’re new to real estate investing and unsure how to proceed, Fundrise is a great way to get started.
Not only can you gain actual experience in real estate investing, but Fundrise also has a vast supply of resources to teach you to become a savvy investor so that you can grow your portfolio and make even more money.
What’s Bad About Fundrise?
Although there are a lot of things to like about Fundrise, the platform isn’t for everyone. Here are some things you should know about:
As mentioned, once you deposit your money into Fundrise, they pretty much do the rest of the work.
This is good for some, but other people will really dislike the level of control they have over where their money is going.
In a similar light, this is very much a passive investment vehicle. If you’re someone who likes to actively manage your portfolio and make frequent changes, then you’ll probably be frustrated investing with Fundrise.
The point of Fundrise is to help people grow their portfolios over time. This means you won’t have immediate access to the funds you’ve invested. If you prefer to have more liquidity in your investment approach, then Fundrise might not be the right platform for you.
As a safe, long-term investment product, Fundrise is not going to produce immediate and dramatic returns. If this is what you’re looking for, then you’re in the wrong spot.
Thinking About Investing in Real Estate? Give Fundrise a Try
Real estate is a smart and effective way to make money and grow your wealth.
However, if you’re not at a point in your life where you want to make that leap, there are other ways to make money in the buying and selling of property.
Operating in a similar fashion as a Real Estate Investment Trust, Fundrise lets you make real estate investments with as little as $500 and has been proven to provide consistent, long-term returns.
So, if you’re thinking about investing in real estate but not quite sure where to start, or if you’re looking for ways to diversify your portfolio, then consider giving Fundrise a try today.
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