Real Estate Investing 101

  • How to Invest in Real Estate Without Buying Property
    There is a common misconception that real estate investing requires property ownership, but there are many real estate investment opportunities outside of ownership that offer lucrative, steady cash flows and far less maintenance from an investor.
  • REITs vs Rentals: What’s the Best Way to Invest in Real Estate?
    REITs and rental properties are two of the most popular ways to invest in real estate, but they each offer very different benefits and drawbacks. We discuss each here in depth to make it easier for you to evaluate your options.
  • 3 Rookie Real Estate Investing Mistakes and How to Avoid them
    Investing in real estate can very difficult or very easy, depending your experience and method of investing.
  • How to Invest in Real Estate: The Basics
    Many are interested in investing in real estate, but don't know how or where to begin. Here we discuss the basics of how real estate investing works and how you can get started.
  • Are You Ready For The Next Financial Crisis? Millennials Say That They’re Not
    A recent Fundrise survey of well over a thousand Millennials in the U.S. revealed that more than 62.7% felt unprepared for the next financial crisis. To make matters worse, the survey also revealed that 47.1% of Millennials feel that there is nothing that they can do to prepare for it.
  • A New Portfolio Theory for the Technology Generation: Invest Like a Billion Dollar Institution
    Virtually every major institutional investor holds on average 25% of their portfolio in private alternatives. These private investments, however, have been largely inaccessible to the average investor - until now.
  • Diversification: Why It’s Crucial For Your Portfolio
    Diversification is the process of investing in different types of assets, minimizing a portfolio’s overall risk by lessening the impact you’d see from a single asset loss.
  • How to Boost Real Estate Take-Home Returns with an IRA
    Fundrise has teamed up with Millennium Trust Company to offer investors the ability to invest directly in real estate through IRA accounts. Learn how investing alternative investments with your self-directed IRA can help diversify your retirement funds and allocate savings more efficiently in a centralized account.
  • How to Earn Residual Income by Investing in Real Estate
    Real estate has become one of the most popular ways to secure residual income. Thanks to new investment vehicles, those interested in building an income stream have several options to choose from.
  • Why Underwriting is the Most Important Piece of the Investment Process
    When evaluating potential investment opportunities, it is imperative that you understand the underwriting that has been performed. The quality of the underwriting can be an indicator of the quality of the investment itself.
  • Real Estate 101: How Investing In Commercial Real Estate Works
    Historically, investing in commercial real estate as an alternative asset has provided investors with attractive risk adjusted returns and portfolio diversification, but many investors still don’t understand how commercial real estate works as an investment.
  • The Top Five Things to Look For in a Real Estate Investment
    Commercial real estate investing can be complex. While no investment is easy, in our experience there are 5 key factors we consider when thinking about making a real estate investment.
  • Introducing eREITs - The First Online Real Estate Investment for Everyone
    While REITs have existed for over 50 years, Fundrise has combined technology and new legislation to create the Fundrise eREITs – low-fee, diversified commercial real estate investments available online to anyone in the United States, no matter their net worth.
  • The New REIT Sector
    REITs are about to get their own sector in the Global Industry Classification Standard, which could result in billions of dollars of additional investment into real estate.
  • REITs 101: A Beginner’s Guide to Real Estate Investment Trusts
    What are REITs? This real estate investment vehicle has been around for 50 years, but it has often been overlooked by investors.
  • The Benefits of Illiquidity
    Illiquid investments may be beneficial due to their lower day-to-day volatility and correlation to the stock market. Due to the higher risk imposed by low liquidity, these assets often command higher returns.
  • Understanding Modern Portfolio Theory & The Fundrise Rating System
    We examine Modern Portfolio Theory and how the Fundrise Risk Rating system can be used to evaluate risk and efficiently diversify.
  • Real Estate 101: Calculating Internal Rate of Return (IRR)
    Calculating IRR can seem complex and potentially intimidating to the average investor. Luckily, modern tools and software make the process simple if you know how to use them.
  • How Do Investors Make Money In Real Estate?
    Although there are many complex factors that go into a successful and profitable real estate investment, the basics of making money through real estate investment can be summed up in three different categories.
  • You Don’t Need an Investment Property to Earn Income from Real Estate
    Owning an investment property has traditionally been a very popular way to earn income through real estate, buying an investment property isn't for everyone. Luckily, there are other avenues to invest in real estate beyond purchasing an investment property.
  • What’s a Good Cap Rate for an Investment Property?
    When analyzing a potential investment property to determine the right cap rate, there are several core factors one can look at including location, asset type, and the prevailing interest rate environment.
  • Four Questions to Ask When Purchasing Investment Property
    While there are many factors to consider when purchasing an investment property, these four fundamentals will get you pointed in the right direction.
  • Private Equity Fund
    A private equity (PE) fund is a collective investment model where money from separate investors is pooled together into a single fund and then used to make investments, most often in various illiquid equity and debt assets.
  • How to Understand Quoted Returns
    While all returns are projections, there are several different ways of quoting returns, which can make it difficult to compare investments on an "apples to apples" basis.
  • Cashing In on Cash Flowing Real Estate Investments
    There are a variety of different types of real estate investing, each marked by different phases of development, so it is important to understand the timeline of the potential project, its development stage, and how that will affect your investment.
  • Three Indicators of a Really Bad Real Estate Investment
    Through the initial underwriting of thousands of project submissions, Fundrise uncovers all types of investing red flags. Here are just three of the thousands of ways to identify a questionable real estate investment.
  • The Capital Stack Explained
    The capital stack represents all the different types of capital invested into a real estate asset and the relationship between each category.
  • Five Top Reads For New Real Estate Investors
    If you’re just getting started in commercial real estate investing, here are five books that will help you get up to speed.
  • Five Investment Books To Read This Summer
    We polled the Fundrise team to compile their favorite investment books.
  • Investment Fees: See ‘Em And Weep
    Unlike cell phone, utility, credit card, or gym charges, which are submitted for payment every month, investment fees are largely hidden, often deducted automatically from your assets. And, they can seriously hinder the net performance of your portfolio.
  • Six Ways to Learn About a Real Estate Market Online
    The advent of online real estate investing has given thousands of investors the ability to build a residual income stream through commercial real estate investments, right from their computer. This has buoyed demand for tools that help investors do some due diligence on investment properties and markets from home as well.
  • Real Estate 101: The Difference Between Hard and Soft Construction Costs
    There are generally two kinds of construction expenses that real estate developers take into consideration when planning and budgeting for a project – hard costs and soft costs.
  • What should I expect from my investment?
    There are three things to expect from any real estate investment: Distributions, Reporting, and Tax Filings. The real estate company managing your investment is responsible for providing these to you via your Fundrise portfolio.
  • What makes for a good investment?
    A good real estate investment offers a return commensurate with the amount of risk that is being taken on by the investor. Therefore, understanding risk is critical to evaluating the quality of any real estate investment.
  • How Should You Measure Return?
    What is the best metric to use to evaluate the return potential of your real estate investment? Learn more in this short video.
  • How Important is Rate of Return?
    Does a high rate of return that you expect for an investment mean that it will be a good investment? The answer, if you had to be very broad, is no. A rate of return doesn’t tell you anything about risk. It’s like saying “should I buy a car?” when you only know its price. Learn more in this short video.
  • Understanding Equity
    The simplest way to minimize financial risk is to use all equity. All equity simply means that 100 percent of the money comes with one simple promise — “If you give me money, I will give you all the profits associated with that money.” If there are profits, the investors get their share, but if there are no profits, the investors are not owed anything. Learn more in this short video.
  • Understanding Debt
    The primary source of capital for real estate investments is mortgage debt. Learn how debt differs from equity, what personal recourse debt means and more.
  • Where’s the Risk? Understanding the Phases of Real Estate
    The more risk one takes, the greater the return should be to offset that risk. These are some of the top risks associated with each development phase and an estimated annual return the market might currently expect for the equity investor.
  • The Effects of Rising Interest Rates on Real Estate
    Interest rates are critical in the evaluation and performance of any investment primarily because of their impact on the present value of future cash flows. The unprecedented actions taken by the Federal Reserve as a result of the 2008 financial crisis, produced a quantitative easing program on a scale never before seen — more than $2 trillion dollars.
  • Why Does Residential Real Estate Cost So Much?
    Everyone pays for housing. Yet there is little to no transparency into why buying or renting costs what it does. Understanding residential pricing starts with the cost of construction, including the hard costs, the soft costs, the land, and the profits to the investors.