Using full-stack financial integration, we provide the same services and functions of today’s traditional financial system, but through one single holistic structure.
|Investment Advisor We manage your portfolio through our online platform, providing ongoing reporting, automated distributions, composite tax management, investor relations, and asset rebalancing. Comparable service: Schwab, Betterment||0.15% annually||0.25 – 1.45%1 annually|
|Index / Mutual Funds, ETFs We create a professionally managed, diversified pool of companies and investment vehicles. Comparable service: Vanguard, iShares||—||0.12 – 1.2%2 annually|
|Asset Management Our team manages the ongoing operation and oversight of the real estate properties in your portfolio, including the accounting, construction, financing, zoning, sales, and marketing — similar to running any operating business. Typically, management also takes a share of the upside, such as carried interest or stock options, which Fundrise does not.3 Comparable service: Blackstone, Vornado||0.85% annually||1.0 – 3.8% annually|
|Total Annual Costs / Fees||1.0% annually||1.37 – 6.45% annually|
Fundrise saves you
0.37 – 5.45% annually.
By removing gatekeepers and structural flaws, Fundrise’s full-stack system delivers investors access to the private market at up to 40% lower cost than traditional investments.
|Auction Efficiency Premia The liquid public markets are generally considered to be extremely efficient and price an investment higher than in the private markets because of the auction like environment of an exchange. At Fundrise, you can bypass this premia and only pay for liquidity if you sell before the investment is complete. Comparable service: NYSE, NASDAQ||—||20 – 30%4 up-front|
|Initial Public Offering (IPO) Fundrise investments are primary offerings which are qualified each with the Securities and Exchange Commission (SEC) without the high fees that a traditional investment banker charges to take a company public through an IPO. Comparable service: Goldman, Morgan Stanley||—||5.0 – 7.0%5 up-front|
|Asset Origination / Acquisition Our team of experts actively builds portfolios of assets that we source and acquire in the private market. Unlike public real estate investment trusts (REITs), which act primarily as holding companies for assets that have already been acquired, Fundrise is similar to a private equity fund that originates, underwrites, negotiates, and closes on debt and equity investments. These fees are often paid by the borrower or property entity. Comparable service: Blackstone, Starwood||0 – 2% up-front||0 – 3%6 up-front|
|Total Up-Front Costs / Fees||0 – 2% annually||25 – 40% annually|
Fundrise saves you
23 – 40% up-front.
Our approximate 40 year estimate is based on the total annual savings from index investing versus conventional active management which is equal to approximately 0.84% annually per Vanguard and Lipper as of December 31, 2015. Compared to the upfront savings of the private-to-public pricing premium of at least 20% to 40%.