You can get started as an investor with Fundrise here. The entire account creation and investment process is completed online via the Fundrise website. You will be prompted to provide or verify any required information, as well as make the necessary acknowledgments electronically.
Any US resident over the age of 18 can currently invest.
No, at this time Fundrise investments are only available to US residents.
International investors may currently invest through some US-based entities. Please contact firstname.lastname@example.org for more information.
We currently support personal investment accounts, joint accounts, and certain entity accounts (Trusts, Limited Liability Companies, Limited Partnerships, C Corporations, and S Corporations). For more information on IRA accounts, see below.
Fundrise has teamed up with Millennium Trust Company to allow you to invest IRA funds in diversified commercial real estate investments. To offer Fundrise investors this tax-advantaged option, Millennium assesses a competitive annual $75 fee per Fundrise eDirect Investment.Click here to get started!
Our goal based investment approach allows you to select from one of three primary goals based on your own personal preferences. Based on the goal you choose, we then build a custom-tailored portfolio designed to produce the best results for you over time. If you’re not sure what goal is right for you, we can help you decide through a simple questionnaire in which you can provide us more information about yourself.
Investors can choose to maximize income, long-term growth, or balanced diversification through selecting a goal. Our technology enabled management service will then allocate new funds across available investments in a way to help you best meet your goal.
Fundrise uses bank-level security for investor’s protection. Investor information is encrypted with an AES bit symmetric key, the same as level as the largest commercial banks. Each investor’s connection to Fundrise is always encrypted over HTTPS with Transport Layer Security (TLS). Fundrise applications and data are physically located in multiple secure data centers. We utilize Amazon Web Services for our hosting which is compliant with numerous security certifications.
Investments sold through the Fundrise platform are real investments. All income must be reported to the Internal Revenue Service. As a result, we are required to obtain your social security number and date of birth.
Investors on Fundrise are allocated across a diversified mix of our eDirect offerings—eREITs and eFunds—which are portfolios of private real estate assets located throughout the United States. Your allocation across our eDirect offerings is based on your tailored investment goal. To see more detail on your investments, please visit your account page.
The eDirect funds (eREITs and eFunds) pay a 0.85% annual asset management fee. In addition, clients of the investment services and management system pay a 0.15% annual investment advisory fee, although this may be waived in certain circumstances. To see a comparison of how our fees compare to traditional investment fees, click here.
For a full description of other fees that each investment may incur, please see the offering circulars available at fundrise.com/oc.
The Fundrise Rating quantifies the relative risk of each asset in an investor’s portfolio. An investor can find the risk ratings of the assets in their portfolio in the “Your Account” section of their dashboard.
The Fundrise Rating uses a letter rating system ranging from A to E that provides investors with the ability to easily compare different assets across their portfolio. The Fundrise Rating system is meant to be objective and is driven by factual information about the investment—for example, whether an investment is “ground up development” or “stabilized,” or what the total leverage is on the asset. Fundrise Ratings are for informational purposes only.
Each rating is impersonal and not individualized for any specific investor’s financial situation and is not investment advice. These ratings are not intended to be, nor should you interpret them to be, a prediction of how a particular investment will actually perform. Each investor should always carefully consider investments in any security and be comfortable with his/her understanding of the investment. An investor may also consider consulting an investment professional. The full Fundrise Rating matrix can be found here along with explanations of each rating.
After an investment has closed, investors can track its performance in their portfolio. Within the portfolio, investors will find all the relevant deal documents, as well as receive updates, distributions, and tax documents.
As long as you are an investor, we will send you a Form 1099 or a Form K-1, as appropriate, by approximately mid-March of the following tax year.
While the amount and timing of an investor’s return will vary depending on the goal and investments owned, generally speaking Fundrise investments are meant to be long-term and illiquid in nature. The return is primarily paid out in two ways (i) via quarterly distributions and (ii) via appreciation in asset value at the end of the asset’s investment term. While most investors can expect to receive a quarterly distribution, distributions may be more or less frequent depending on an investor’s overall portfolio allocation, market conditions, and other factors. All distributions will be deposited into your primary bank account on file unless you opt into our Dividend Reinvestment Program (DRIP). However, actual results may be different for each investor and there can be no guarantee of enhanced returns due to investing on Fundrise or the use of Fundrise Advisors’ services or recommendations.
The Fundrise platform provides direct communication with investors, including ongoing reporting and updates on the status of your investment, as well as the delivery of tax filing and other relevant materials.
Each eDirect investment has adopted a quarterly redemption plan to provide periodic liquidity, subject to certain limitations. For more information, please see the disclosure contained in the Offering Circulars.
Yes, The Fundrise Dividend Reinvestment Program “DRIP” allows you to automatically reinvest the dividends you earn from your investments directly back into open offerings on the platform according to your goal. For more information about the program, please refer to the full DRIP documentation.
No. At this time, there are no fees associated with participating in the Fundrise Dividend Reinvestment Program (DRIP). For additional information, please refer to the full DRIP documentation.
Your dividends are reinvested into open offerings on the platform according to your current goal. Investors can change their dividend reinvestment plan election in their settings here.
You may opt into or out of the Fundrise Dividend Reinvestment Program (DRIP) at any time by logging into your account settings here.
In the “Investment Accounts” tab, click on the name of the account. Once you have clicked into the account, scroll down to the “Dividend Reinvestment” section, click “Edit”, and make your selection. However, please note that you must do so prior to the end of the quarter in order for your selection to be applied to that quarter’s dividends.
In addition, please note that if you wish to opt into DRIP for an entity or joint account, you will need to make a separate manual selection by clicking on the name of that account.
Yes. You may opt out of DRIP or adjust your DRIP preferences at any time. However, please note that you must do so prior to the end of the quarter in order for your selection to be applied to that quarter’s dividends.
An eREIT (short for electronic Real Estate Investment Trust) is a type of online alternative investment available exclusively through Fundrise. An eREIT is a professionally managed, diversified portfolio of commercial real estate assets, such as apartments, hotels, shopping centers, and office buildings from across the country. Similar to an ETF or mutual fund but specifically for commercial real estate, an eREIT allows an investor to diversify across many properties at a relatively low cost and with minimal effort. Fundrise eREITs are offered directly to investors via the Fundrise website, without any brokers or selling commissions.
Unlike other REITs, the Fundrise eREITs offer more transparency and roughly 90% lower fees. As they are non-traded, they generally have less liquidity than REITs that are publicly traded. They also have lower correlation to the broader market, and may therefore offer greater protection from market volatility.
An eFund (short for electronic Fund) is a type of online alternative investment available exclusively through Fundrise. An eFund is a professionally managed, diversified portfolio of residential real estate assets, such as single-family detached homes, townhomes, and condominiums tailored to first-time, move-up and active adult homebuyers. Unlike publicly traded residential home builders, eFunds are structured as partnerships, not corporations, and therefore are not subject to the same double taxation. Fundrise eFunds are offered directly to investors via the Fundrise website, without any brokers or selling commissions.
You can earn money through interest payments, property income, as well as potential appreciation in value of the properties themselves. As a shareholder, you are entitled to your pro-rata portion of any income earned and distributed. You may receive periodic distributions as certain underlying properties are sold. However, actual results may be different for each investor and there can be no guarantee of enhanced returns due to investing on Fundrise or the use of Fundrise Advisors’s services or recommendations.
Fundrise investments are intended to be long-term investments and are inherently illiquid in nature. Each eREIT and eFund plans to look for opportunities to provide liquidity to its investors after approximately five years of operations. While each eREIT and eFund expects to seek a liquidity transaction in this time frame, there can be no assurance that a suitable transaction will be available or that market conditions for a transaction will be favorable during that time frame.
Most investors will receive both a 1099-DIV and K-1, depending on their goal. Investors in each eREIT will receive a 1099-DIV at the end of each year. Investors in an eFund will receive a K-1, K-1 information, or substitute K-1, which will reflect their annual share of the eFund’s taxable income or losses. We intend to upload these various tax documents to the “Documents” tab of each investor’s dashboard in advance of each tax season.
The Net Asset Value (NAV) per share represents the estimated value of a single share based on a variety of factors including potential changes in the underlying value of real estate assets owned. After an initial ramp-up period for each offering, NAV is typically adjusted on a quarterly or semi-annual basis. While NAV may be used to determine the Redemption Price of a share, it is only an estimate of value and the actual market price that someone would pay for such a share may vary widely. It is not uncommon for investors to see a decline in NAV during the first few quarters of operations (the “ramp-up” period) as a result of standard up front organizational costs as well as costs related to acquiring assets. Much like closing costs incurred during the purchase of a new home, these are generally not commonly recurring expenses, and are therefore unlikely to impact the long-term value of your shares.
We intend to make adjustments to the Net Asset Value per share, or NAV, on a quarterly or semi-annual basis. Please note that all NAV adjustments will be reflected on your investor dashboard.
Yes. Financial statement audits occur annually and will be disclosed to investors as part of the annual report on Form 1-K, which is required to be publicly filed with the Securities and Exchange Commission within 120 days after the year’s end.
IRS Form 1099-DIV is sent to investors annually and provides the tax character of any distributions (dividends and any other distributions) paid to you during the tax year.
You received a Form 1099-DIV because you received distributions from one or more of your investments in an eREIT. To enable you to properly report these distributions to the IRS, the Form 1099-DIV shows the tax character of the distributions you received. The eREIT who sent you a distribution is identified in the box in the top-left of the form.
Your Form 1099-DIV may show an account or other unique, identifying number that we have assigned to you to distinguish your account from other investors in our internal records.
For your protection, the Form 1099-DIV we send to you may only show the last four digits of your social security number (SSN), individual taxpayer identification number (ITIN) or adoption taxpayer identification number (ATIN). However, we are required to report your complete identification number to the IRS and, where applicable, to state and/or local governments.
Your Form 1099-DIV shows your ordinary dividends in Box 1a, capital gains distributions in Box 2a and non-dividend distributions in box 3.
Each year, we are required to report to you the tax character of distributions paid to you, which is determined by comparing the amount of distributions paid by the eREIT with the eREIT’s earnings and profits for a given year. The eREIT’s calculated current and accumulated earnings and profits is the result of a tax calculation, which often differs from the eREIT’s profits calculated in accordance with generally accepted accounting principles and presented to you in such eREIT’s Annual Report on Form 1-K each year.
In the event that any portion of distributions paid to you exceeds earnings and profits in a given year for the eREIT, it is treated as a non-dividend distribution, also referred to as a return of capital. Distributions that do not exceed the calculated current and accumulated earnings and profits are reflected as either an ordinary dividend or a capital gain distribution depending on the eREIT’s disposition activity related to real estate properties during the year. In general, ordinary and capital gain distributions are taxed currently; non-dividend distributions, or returns of capital, reduce cost basis or the original purchase value of your shares. In the event returns of capital received exceed your original cost basis, then the excess is recognized as a capital gain for the year in which it is received. Therefore, you should generally adjust the cost basis of your investment each year based on the amount shown in Box 3 “non-dividend distributions” on your Form 1099-DIV. By tracking adjustments to your cost basis each year, you will be able to properly report any gain or loss you experience on the disposition or redemption of your shares.
When you sell your shares, the difference between your adjusted cost basis and final net sale price will be taxable as a capital gain or loss on your tax return. Keeping track of your adjusted cost basis each year will be helpful when you finally sell your investment. Please consult your tax advisor if you have any questions or need assistance with the calculation of your cost basis, or if you have other questions regarding your reporting of distributions that you received.
Any corporation (or entity that is taxed like a corporation, including our eREITs), that undergoes a stock split or a merger, pays a stock dividend, pays a “return of capital” distribution (i.e., a distribution exceeding current and accumulated earnings and profits), or otherwise undertakes an “organizational action” is required to either (i) file Form 8937 with the IRS and send copies to its shareholders or (ii) make the required information publicly available on its website. To the extent none of the above described organizational actions are taken, no Form 8937 is required. You can find any Forms 8937 that have been prepared by our eREITs, if any, on our website at www.fundrise.com.
A qualified dividend is a type of dividend which may be subject to preferential tax rates, which are usually lower than regular income tax rates. Non-qualified, ordinary dividends are taxed at the normal rate based on the individual’s ordinary income. Based on the historical operations of the eREITs and how we expect them to operate in the future, we do not expect most dividends that are issued by the eREITs will be qualified. However, to the extent that the eREITs do pay qualified dividends, they will report them as such in Box 1B.
Brokers and barter exchanges must report proceeds from transactions to you and the IRS on Form 1099-B. Based on the reporting you receive on Form 1099-B, you may be required to recognize gain from the receipt of cash, stock or other property that you received in an exchange.
As a result of the redemption plan of each eREIT, designed to provide you with regular, quarterly liquidity, we are required to report proceeds that we distribute to you in redemption of your shares to you and the IRS on Form 1099-B. If you received a Form 1099-B from us, it is likely because you received proceeds from a Fundrise eREIT from a partial or full redemption of your shares. You may be required to recognize gain from the receipt of cash, stock or other property that was received by you in exchange for eREIT shares. The eREIT that redeemed your shares in this type of transaction is identified in the box in the top-left of the form.
For your protection, the Form 1099-B we send to you may only show the last four digits of your social security number (SSN), individual taxpayer identification number (ITIN) or adoption taxpayer identification number (ATIN). However, we are required to report your complete identification number to the IRS and, where applicable, to state and/or local governments.
Your Form 1099-B may show an account or other unique, identifying number that we have assigned to you to distinguish your account from other investors in our internal records.
Box 1a shows a brief description of the item for which the proceeds from one of your investments are being reported. If you received proceeds from transactions that must be reported on Form 1099-B from multiple eREITs, you will receive separate forms for each eREIT.
Box 1b shows the date that you acquired the securities which related to the transaction being reported. Box 1b may list “VARIOUS” if you received proceeds relating to shares that you purchased on multiple dates that were redeemed during the tax year.
Box 1c shows the effective date of the exchange being reported. This box may show “VARIOUS” if your Form 1099-B is reporting multiple exchanges in aggregate.
Box 1d shows the aggregate cash proceeds from transactions involving stocks, bonds, other debt obligations or equity instruments. This amount is generally reported on Form 8949 as explained in the instructions for Schedule D (Form 1040).
Box 1e shows the cost or other tax basis of the securities sold or redeemed. Please see the Schedule D (Form 1040) instructions or Publication 550 for details about basis.
Box 2 shows whether the proceeds you received should be reported as short-term gain or loss, long-term gain or loss, or ordinary income. If you received proceeds from an eREIT that would be split between short-term and long-term gain and loss based on the length of time you held your shares, you will receive multiple Forms 1099-B from your investments.
Box 3 is checked when we have reported or will report your basis to the IRS.
A K-1 is a tax form used by partnerships to provide investors with detailed information on their share of a partnership’s taxable income. Partnerships are generally not subject to federal or state income tax, but instead issue a K-1 to each investor to report his or her share of the partnership’s income, gains, losses, deductions and credits. The K-1s are provided to investors on an annual basis so that each investor can include K-1 amounts on his or her tax return.
Depending on which investments you own in your portfolio, you may receive a Schedule K-1, K-1 information, or substitute K-1 (hereafter collectively referred to as K-1), a Form 1099-DIV or both. If part of your Fundrise portfolio is allocated to one or more of the eFunds, you will receive a K-1. For more information, please see the relevant Fundrise Offering Circulars at fundrise.com/oc.
Our goal is to finalize all K-1s by March 15th, however, the eFunds may rely on outside reporting, or require additional time to furnish the forms in a way that is to the investor’s best advantage. Accordingly, you may be required to obtain one or more extensions for filing federal, state and local tax returns.
For federal tax purposes, the information provided to each investor on his or her K-1 is then included on the investor’s federal tax return. Typically, an investor must also file state tax returns in the states in which the eFund owns real property. In some cases, a composite tax filing may eliminate the need for an investor to file at the state level. Please consult with your tax advisor for more information.
Generally, investors that receive a Form 1099-DIV recognize dividend income equal to cash distributions received. Ordinary dividends are typically treated as ordinary income for tax purposes. When an investor receives a K-1, he or she will recognize their portion of the taxable income from the partnership but typically will not pay tax on their cash distributions. The taxable income allocated to each investor may include ordinary income, dividend income, interest income, rental real estate income, or otherwise. This income retains the same character as it had in the partnership, and should be reported on each investor’s federal tax return. Please consult your tax advisor for additional information.
No. Each eFund will submit a Form 1065 to the IRS that will include a copy of each individual investor’s K-1.
Generally, yes, you may report your allocable share of any net losses reported by the eFund on your individual tax return (Form 1040 or other applicable tax form). Please note that the amount that you are entitled to claim as a deduction on your tax return may be less than the total loss amount reported on your K-1. Limitations that apply to deductions include IRS basis rules, at-risk limitations, and passive loss limitations. Generally, you may not claim your share of the eFund’s loss if it exceeds your adjusted basis in the eFund for the applicable tax year. Please consult the IRS or your tax advisor for additional information.
Generally, the capital account reflected on your K-1 should approximate your tax basis in your investment. Your capital account is computed based on your initial investment(s) in an eFund plus any allocable net income, less any net losses and/or cash distributions as reflected on your K-1. It is recommended that you keep your own running record of your cost basis in each eFund for tax purposes as there are certain instances where your tax basis may differ from your capital account balance. For additional details on how to calculate your basis, please consult your tax advisor.
The information provided is for your general guidance and is not intended to be (and cannot be relied upon as) tax advice. Investors are strongly urged to consult with their own tax advisors with regard to the U.S. federal income tax consequences of holding our shares and the related tax reporting requirements. The information provided below only considers selected U.S. federal income tax consequences and does not consider all U.S. federal income tax consequences or state, non-U.S. or any other tax consequences that may be applicable to a particular investor. In particular, some categories of investors, such as tax-exempt investors, persons liable for the alternative minimum tax, dealers and other investors that do not own their units as capital assets, may be subject to special rules not described herein. Please consult your tax advisor as to the appropriate treatment of any tax items.