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Access private real estate investments with just $10—earn quarterly dividends from rental income and property appreciation without being a landlord.
Fundrise is a real estate crowdfunding platform offering access to private real estate investments. Unlike public REITs traded on exchanges, Fundrise invests directly in properties through eREITs.
You invest through one of their funds: Flagship Fund (diversified), Income Fund (dividend focus), or Innovation Fund (venture capital including AI companies like OpenAI and Anthropic).
Your investment is pooled with others to purchase commercial and residential properties. You earn returns from rental income (dividends) and property appreciation.
Fundrise pays quarterly dividends from the income generated by properties in the portfolio. These represent your share of rental income collected.
Current average dividend yield is around 1.92%—lower than many public REITs but combined with appreciation, total returns have been competitive.
Important: Fundrise dividends are typically taxed as ordinary income at your marginal tax rate (up to 37%), not the lower qualified dividend rate.
Supplemental Income: Focus on income-generating properties for higher dividend yields.
Balanced Investing: Mix of income and growth properties for total return.
Long-Term Growth: Emphasis on appreciation potential over current income.
Venture Capital: The Innovation Fund invests in private tech companies (up 40%+ in 2025).
From 2018-2024, Fundrise annual returns ranged from -7.45% to +22.99%, with an average income return of 4.81%.
In 2022's market crash, Fundrise returned 1.5% while public REITs fell -25.10% and stocks fell -18.11%. The lower correlation to public markets is a key benefit.
However, past performance doesn't guarantee future results, and there have been negative return periods.
Fundrise is designed for long-term holding (5+ years). Unlike public REITs, you cannot easily sell and withdraw at any time.
There's no withdrawal fee for Flagship Fund, Income Fund, or Innovation Fund. However, withdrawing eREIT/eFund shares held under 5 years incurs a 1% penalty.
Withdrawal requests are processed quarterly and may be subject to limitations during market stress.
Fundrise charges approximately 1% total in fees: 0.85% asset management fee plus 0.15% advisory fee.
This is competitive with similar private real estate investments. However, additional fees may apply for specific fund activities.
Compare this to public REIT ETFs with expense ratios around 0.10-0.40%—you pay more for private real estate access.
Transparent breakdown of all fees you might encounter.
| Fee Type | Cost |
|---|---|
| Asset Management Fee | 0.85% annually |
| Advisory Fee | 0.15% annually |
| Total Annual Fee | ~1.00% |
| Minimum Investment | $10 |
| Early Withdrawal Penalty | 1% (shares held <5 years) |
| Flagship/Income Fund Withdrawal | $0 |
| Trading Commissions | N/A (not traded) |
| Account Maintenance | $0 |
Access private real estate with low minimums for 5+ year investment horizons.
Add real estate exposure with lower correlation to stock market swings.
One of the few platforms offering private real estate access to everyday investors.
Fundrise offers a unique way to invest in private real estate with just $10. Quarterly dividends provide passive income, and historical returns have been competitive with public REITs. However, the illiquidity, ordinary income taxation on dividends, and 1% fees make it best suited for patient, long-term investors. If you want real estate exposure you can sell anytime, stick with public REIT ETFs like VNQ. If you're willing to lock up money for 5+ years for potentially higher returns and lower volatility, Fundrise is worth considering.
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