What is an eREIT?
- Definition
- An eREIT is an electronic real estate investment trust, a type of non-traded REIT offered and managed entirely online, designed to give individual investors direct access to institutional-quality real estate portfolios at low minimums.
The eREIT was pioneered by Fundrise in 2015 as a lower-cost alternative to conventional non-traded REITs, which are typically sold through broker-dealer networks that charge sales commissions of 7 to 10% upfront. By distributing online, eREITs eliminate these commissions, directing more of each investor's dollar toward actual real estate. eREITs are not traded on a public stock exchange, so share prices are not subject to daily market volatility. They are generally offered under Regulation A+ and are available to both accredited and non-accredited investors.