No, at this time the Fundrise eREIT is only available to US residents.
Yes. Audits will occur annually and will be disclosed to investors as part of the Fundrise eREIT’s annual report.
Investors in the eREIT will receive a 1099-DIV at the end of each year.
Any US residents - both accredited and unaccredited - can currently invest, so long as such investment does not exceed the greater of 10% of such investor’s gross annual income or net worth.
This is a long-term investment. Subject to then existing market conditions, the Fundrise eREIT expects to consider alternatives for providing liquidity to our shareholders beginning five years from the completion of this offering. While we expect 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. The Fundrise eREIT has adopted a quarterly redemption plan to provide offers periodic liquidity, subject to certain limitations. For more information regarding the quarterly redemption plan, please see the disclosure contained in the Offering Circular.
The Fundrise eREIT has adopted a quarterly redemption plan to provide offers periodic liquidity, subject to certain limitations. For more information regarding the quarterly redemption plan, please see the disclosure contained in the Offering Circular.
In the event of any default under loans, the eREIT will bear the risk of loss of principal and nonpayment of interest and fees to the extent of any deficiency between the value of the collateral and the principal amount of the loan. To the extent the eREIT suffers such losses with respect to our investments in such loans, the value of our company and the value of our common shares may be adversely affected.
As evidence of your investment, you will be provided with an electronically executed subscription agreement, as well as record keeping regarding distributions and other information, through your account on the Fundrise website.
Investments are typically accepted on a first-come, first-served basis. However, Fundrise reserves the right to reject any particular investment. While this offering will be conducted as a continuous offering with sales to occur on a continuous basis, volume may be restricted on a periodic basis to ensure that investor funds do not sit idly. Once additional subscription processing capacity becomes available, an e-mail notification will be sent and the investment page will be re-opened.
Unlike many other REITs, the Fundrise e-REIT offers much more transparency and roughly 90% lower fees. The Fundrise eREIT is non-traded. Generally speaking non-traded REITs have less liquidity than those that are publicly traded. However, the Fundrise e-REIT offers quarterly redemptions, although some limitations may apply.
Fundrise is an online investment platform for commercial real estate. Fundrise gives investors the ability to:
You can get started as an investor on Fundrise by joining the site.
The investment and checkout process is conducted online. You will be prompted to provide or verify any required information, as well as to make any required acknowledgments electronically.
An accredited investor is a term used by the U.S. Securities and Exchange Commission (SEC) under Rule 501 of Regulation D. In order to qualify as accredited, an investor must accomplish at least one of the following:
Prior to getting approval to invest in a private offering on Fundrise, you will be required to show that you qualify as an accredited investor.
There are many methods to qualify as an accredited investor, including providing supporting documentation of your assets or income, providing a letter from a licensed professional certifying your status as an accredited investor, or allowing third-party vendors to verify your status as an accredited investor.
In some instances, a detailed bio stating your source of wealth, employment history, and income may also suffice.
For trusts, LLCs and other entities, we are required to collect the relevant legal agreements to ensure you are legally permitted to direct investments.
To upload this information in advance, please go to the top right hand corner of your screen under your name, and select “settings.” This should bring you to the “Investment Accounts” section. Click on the appropriate account for which you want to upload your letter, W2, bank account statement, trust document, or operating agreement. Scroll down to “Accreditation Status” and click “edit”. At the bottom of this page you can click “choose file” and upload your form here.
For additional information about individual and entity accreditation requirements, please see the SEC website to review their guidelines (http://www.investor.gov/news-alerts/investor-bulletins/investor-bulletin-accredited-investors) or reach out to firstname.lastname@example.org.
The terms of each investment on Fundrise are specific to that listing. Prospective investors should review in detail the offering documents provided for each investment opportunity.
The minimum to invest in the eREITs is $1,000. Minimums may vary for individual private placements.
Maturity refers to the agreed upon date that the full amount on a loan must be paid back to the lender. If everything goes forward by the terms of the loan, this is the date that the final repayment of principal is made. Since there are typically no prepayment penalties, investors may receive funds back sooner than the initial maturity date in some instances.
The initial maturity is the preliminary expected maturity date. In many cases, the sponsor will have an option to extend the deal (typically from 6 months to 3 years) if the project is taking longer than expected.
Usually, there will be a rate hike in the instance that the developer chooses to extend (if there was a 12% gross annual projected return, it might increase to 14% in the final option year). The sponsor is obligated to pay back principal at this time, and has no further options to extend after this date. The date upon which Fundrise receives all payments due under the corresponding real estate asset is referred to as the final maturity date, and is the date on which final payments to investors become payable.
Every offering has unique terms, so maturity dates will vary among projects and are clearly stated in the investment summary on the offering page and on the series note listing (under the “documents” section on the offering).
As an investor, it is important to think through not only how much risk you are comfortable with, but also what length of projects make sense for your investment priorities. There is no liquidity currently offered, so Fundrise maturities represent how long your money is projected to be locked up.
The Fundrise platform provides for direct communication with investors, including the posting of ongoing reporting and updates on the status of a project, as well as the delivery of tax filing and other relevant materials directly to investors.
Projected returns and distributions, as well as a timetable for milestones and a distribution schedule, would be specific to each listing and, when available, would be noted in the offering documents for that investment.
In many cases, a portion of the return may get paid current (quarterly) and another portion might accrue until the end of the life of the investment, when it is scheduled to be paid out in a lump sum along with the principal. The current return represents the cash distributed to investors throughout the life of the Note, on a quarterly basis.
Tax implications may vary according to investment. Generally, investors can expect to receive a 1099 for a majority of investments on the platform. However, investors should consult their independent tax advisor for specific questions regarding tax treatment.
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.
Similar to a 1099, a Form K-1 is an accounting of the tax income for the year. Each investor receives one per investment. Form K-1s are most commonly used in partnerships and in real estate ownership.
Investments are usually closed on a first-come, first-served basis; although Fundrise reserves the right to reject any particular investment. Once the total listing amount is reached, the listing is closed.
We do not accept IRA investments at this time.
While there is no public market for the resale of securities purchased through the Fundrise platform, and none is expected to develop, you may resell your securities in private transactions subject to certain restrictions specific to each listing and under the Securities Act of 1933. As a general matter, there are substantial resale restrictions placed on all investments on the Fundrise platform, and no investor should expect to be able to resell any investment in a secondary transaction.
If you have any questions concerning restrictions on the resale of your securities, please refer to the offering documents associated with such securities as well as your legal counsel.
The Fundrise Rating is based on letter ratings ranging from A to E that provides investors with the ability to easily compare investment opportunities across the Fundrise platform.
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 investment professionals.
The full Fundrise Rating matrix can be found here along with explanations of each rating: https://fundrise.com/education/content/fundrise-rating
All Fundrise investments are located in the United States.
We do not currently list international investments at this time.
International investors may currently invest through US-based entities. Please contact email@example.com for more information.
While each Fundrise investment has a unique investment strategy, our broader investment goal is to identify high quality opportunities with superior risk-adjusted returns. In today’s market, we believe that inefficiencies exist in the sub-institutional, small-balance commercial market (generally assets below $100m in total value). We believe this inefficiency provides opportunities for relatively favorable pricing which we aim to capitalize on using our superior technology platform.
Investors are expected to receive distributions quarterly; however, distributions may be more or less frequent depending on market conditions.
Project Payment Dependent Notes (the “Notes”) are debt obligations issued by the National Commercial Real Estate Trust that are tied to the performance of specific underlying real estate assets. Each individual series of Notes has specific interest rates and maturity dates dependent upon the performance of the underlying project investment. Fundrise passes through the economic return of performing corresponding real estate assets to holders of Notes on a regular (generally quarterly) basis.
For additional information regarding Project Payment Dependent Notes, all prospective investors should review the private placement memorandum of the National Commercial Real Estate Trust.
Use of the notes allows Fundrise to standardize transactions and structure them more efficiently. By creating notes that track to each real estate asset, administrative expenses and complexity are significantly reduced.
Notes are issued by the National Commercial Real Estate Trust, which holds the debt or preferred equity investment in the underlying real estate project (which we refer to as “corresponding project investments”). After acquiring the corresponding project investment, the National Commercial Real Estate Trust issues and offers Notes dependent upon the specific performance of the corresponding project investment. Each Note is a special, limited obligation of the National Commercial Real Estate Trust, the manager trustee of which is a wholly-owned subsidiary of Fundrise.
No, an investor is not required to fund additional capital once the initial investment has been made.
When investing in a listing, an investor is purchasing a series of Notes.
A Note is a special, limited obligation of the National Commercial Real Estate Trust. Each series of notes corresponds to an underlying single investment in a real estate project (the corresponding project).
Fundrise’s investment in the corresponding project may be either in the form of debt or equity.
The majority of Notes offered on Fundrise are tied to senior debt or preferred equity investments.
Payments due from an investment in a series of Notes are dependent upon the National Commercial Real Estate Trust receiving distributions on the corresponding project investment net of any potential servicing fees.
For additional information regarding a series of Notes, all prospective investors should review the private placement memorandum of the National Commercial Real Estate Trust with regard to a particular listing.
No, investors are purchasing Project Payment Dependent Notes from the Issuer. These Project Payment Dependent Notes correspond to a specific corresponding project investment made by the Issuer. The performance of the Project Payment Dependent Notes is tied directly to the performance of the corresponding project investment.
When you invest in a Project Payment Dependent Note (the “Notes”), you are investing in an obligation of the National Commercial Real Estate Trust (the “Trust”), for which a Fundrise affiliate entity serves as trustee. Real estate companies make payments to Fundrise Servicing, LLC, an affiliate of Fundrise that services the corresponding real estate assets on behalf of the National Commercial Real Estate Trust, and in turn, the National Commercial Real Estate Trust uses the proceeds of such payments to make payments of principal and/or interest on the Notes.
Payment on the corresponding project investment will remain due even in the event Fundrise goes out of business. However, payments on Notes issued by the National Commercial Real Estate Trust could be delayed or modified in the event of a business disruption.
Our technology-driven approach and discretionary balance sheet funds enable us to provide fast and flexible capital solutions.
More on the process of how real estate companies use Fundrise can be found here: https://fundrise.com/raise-capital
We look for high-quality, experienced developers with an established track record. We also evaluate the developer’s capacity to build the kind of investor network that will help them to fund their offering.
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.
All communication between our users and the website is encrypted and secured using HTTPS and SSL/TLS. We encrypt all sensitive personal information using the AES-256 standard, which is the same encryption standard used by banks to secure customer data. Fundrise uses Amazon Web Services for data storage. Amazon stores data over several large-scale data centers. According to Amazon, they use military grade perimeter control beams, video surveillance, and professional security staff to keep their data centers physically secure.