The Fundrise Story
We believe everyone should be able to invest in the places around them.
People often say that a problem is actually an opportunity in disguise. As urban retail developers by trade, we spent years creating and building unique places around Washington, DC.
The key to building a great real estate project, just like with any other product, is to know your customers and understand their wants, needs, and interests.
What most people don’t know is that the entrepreneurs who build the places you see around you are typically not the people providing the majority of the funding for those projects. Instead, the money generally comes from large institutional Wall Street companies.
Institutional investment companies are in the business of making money and real estate has proven to be extremely lucrative. Since the early 90’s, private equity investment in real estate has grown in excess of $100 billion dollars in the US.
The problem with this is that real estate property is not some generic “asset-class” that can be summed up as numbers on paper; each neighborhood, town, and city is unique. What makes sense to build in downtown San Francisco is probably not the going to be the right fit for the suburbs of Houston.
Institutional fund managers are disconnected from the places they are investing in and typically don’t care if the projects being built are the right fit or not.
Who does understand what to build in their own neighborhood and cities? The people who live there…and so our problem of raising money from institutional investment companies became an opportunity.
What if instead local people were able to invest in local places? What if the profits from all this investment and new development were passed onto individuals like yourself rather than a handful of Wall Street managers? How would that change what gets built? How would that transform the cities we live in?