Have you ever felt that Wall Street is rigged against you? Your instincts are right. Wall Street is made for people who manage $1 Billion or more - not you.
The typical fees on the average Wall Street investment are 10-15% from brokers, investment bankers, wholesalers, etc… As an individual investor you are the sucker helping big institutions earn huge fees and better returns.
Meanwhile, the S&P is at an all time high—up nearly 207% since 2009. And who wants to buy anything when it is at an all time high?
The key to smart investing is to go direct. You would never buy retail when you can get the same product at a wholesale price.
After more than two years of working with the SEC and $10 million invested into creating a new technology enabled platform, Fundrise was born, providing savvy investors a way to invest directly in hard assets.
Yield to All
Fundrise real estate investments are cash-flowing and on average generate a 12-14% annual yields without the volatility of the stock market. Though commercial real estate is known as a great investment, historically outperforming stocks and bonds, it’s had a high barrier to entry—access has always been restricted to billion-dollar investment funds run by Wall Street.
“The idea is pretty straightforward,” says Fundrise president Dan Miller. “Technology allows us to dramatically reduce costs and provide our investors with better returns.”
In addition to being a more efficient process, lowering the barrier to entry to the Fundrise platform gives investors access to diversified pools of commercial properties in major US cities. For example, today on Fundrise you can invest as little as $1,000 in one of our eREITs, instantly gaining exposure to properties across the United States. This can be done as easily as you can buy a book on Amazon.
The ability to produce strong returns while maintaining quality is not easy. Fundrise receives thousands of project submissions a year. Of those, fewer than 1% meet their strict underwriting standards.
Quality over quantity
“The introduction of new technology into the process of finding quality real estate investments allows us to cast a much wider net,” says CEO Ben Miller. “We are able to find the needles in the haystack that others can’t because of the sheer volume of opportunities we see.”
For investors, Fundrise’s main draw is that it allows them to build build a low-fee portfolio of high-yielding real estate. “This gives me the ability to be in 15 different deals across the country, all from my laptop,” says Mesh Lakhani, founder of Future Investor, an online education portal for alternative investments. “I have much better diversification, which reduces my risk. It’s part of the income strategy for my portfolio.”
Fundrise envisions a future where investing in buildings is as commonplace as owning stocks, where investors can shop an inventory of the best properties across the country without leaving their living room.
With a growing list of over 100,000 members as of July 2016 , that future doesn’t seem so far away.