Investing in real estate was made easier with the input of many investment platforms like Fundrise. This is one of the most popular companies in the field and here’s how it works.
Even though it was founded in 2010, Fundrise is now the investors’ top choice when it comes to real estate. This company made the possibility to invest in this field more accessible through crowdfunding, which led to the democratization of real estate investment.
Crowdfunding is a way for a large group of people to raise money together in order to donate or invest it. It’s a way to invest in real estate without buying a property! The goal is to merge many small investments into capital for a project with bigger rewards. In other words, if you invest with Fundrise, your money will be added to a larger fund that will then be invested with hopes to gain higher profits than what everyone could’ve gotten if they’d invested separately.
You can invest $500 or less on your own, but it’s known that the smaller the amount you invest, the bigger the chances are that it becomes volatile. A volatile investment is a risky one, as you can learn with this list of 12 terms you need to know if you plan on investing. Luckily, investing with Fundrise can minimize these risks.
However, you need to make a minimum investment of $500 to be part of this fund. It’s a small price to pay for access to real estate and long-term investment, though, and you’ll find a low investment of this sort in every investment platform. The company promises a taste of consistent and exceptional returns for its investors.
Fundrise doesn’t own the properties it invests in. Like the majority of investment platforms, they use third-parties to handle deals. The data they use from third parties is researched and trusted to be true, although the company points out that it can’t ensure its accuracy and completeness.
All in all, you need to consider your own capabilities before investing. Such exposure to investments in real estate properties can benefit you in many ways, but it’s always necessary to check your risk tolerance and your own goals to see if they match your future investments.