Urban Housing Development eFund

Now, you can invest directly into building new homes for the next generation of American homeowners.

What is an eFund?

An eFund is a new tax-efficient alternative investment that gives everyday investors direct
access to a professionally managed, diversified portfolio of for-sale housing in core US cities.

SALE

For-sale housing

Invest in single-family home
building in core US cities

Diversified

Each eFund intends to invest
in many individual assets

Passive growth

Target long-term growth
through appreciation

Direct-to-investor

Save up to 40% on costs
via our technology model

Home ownership is important to millenials,
but they want to live in the city.

75%
believe home ownership
is an important long-term goal
51%
more likely to live in cities
than other age groups
Source: Demand Institute; January 2015
The opportunity of a generation

The demand for reasonably priced new homes in cities is undeniable, and now you can invest in it.

Within the top US urban centers, there is endemic undersupply of housing which is priced within reach of millenial homebuyers. An eFund intends to capitalize on the key demographic trends that have created pent up demand for affordable for-sale housing, including education and cultural shifts, a strong preference for a walkable, urban lifestyle, and an increasingly attractive buy versus rent cost analysis.

As Millennials shift from renting to home buying in the coming years, an eFund aims to meet demand for attached homes and condos in high-growth neighborhoods in these core metro areas.

Graphic source: Bloomberg calculations using data from US Census Bureau, Zillow Group Inc, Bankrate.com

How does the investment work?

Each eFund intends to invest in the acquisition of properties for the development and sale of single-family homes. You earn potential returns based on any profits from the sale of the completed homes, and you may receive periodic cash distributions as the properties are sold.

1. Buy

We acquire property for the development and sale of homes in high-growth neighborhoods of major cities – places where young people actually want to live.

2. Develop

We build these homes to fit the needs of first-time, move-up, and active adult homebuyers — an underserved demographic in most urban areas.

3. Sell

Once the homes are complete, we leverage our national investor network to source interested homebuyers, and your return comes from any profits upon sale.

Quick facts

Minimum investment $1,000
Distributions Periodic, upon sale of assets
Time horizon Approximately 5 years
Tax docs Annual Form K-1
Fees 0.85% annual asset mgmt. fee

Fundrise investors can earn more than
investors in traditional portfolios.

Hypothetical growth of a $10,000 investment
Hypothetical growth of a $10,000 investment. Learn more about the assumptions in this section, or view our full disclosure.

eFund is available exclusively through Fundrise,
the first low-cost private market investment advisor.

Our low-cost, online only investment model enables you to access to eFund
and other high-potential private market investments through a simple service.

Fundrise Portfolio

“Fundrise Portfolio” is the hypothetical projected return of a portfolio of commercial real estate, based the weighted average projected annual return of (a) the Fundrise Growth eREIT, for Rise Companies Corp. sponsored appreciation-focused investment products (such as joint-venture equity), based on the analysis included in the the Growth eREIT Performance Analysis, and (b) the Fundrise Income eREIT, for Rise Companies Corp. sponsored income-focused investment products (such as senior loans), based on (i) the analysis included in the Income eREIT Performance Analysis, (ii) discounted by approximately 20 – 30% to take into account potential default risks over the long-term. Accordingly, the projected annual returns under such methodology is approximately 11.95% and 8.00% for Rise sponsored appreciation focused investments and income focused investments, respectively, inclusive of appreciation and dividend reinvestment, and net of fees.

Average annualized returns only include returns of investments sponsored by Rise Companies Corp. and does not include returns, if any, of investments directly in Rise Companies Corp. itself.

Traditional Portfolio

“Traditional Portfolio” is the hypothetical projected return of a portfolio of public equities (stocks), based on the California Public Employees Retirement System’s average annual return on public equities over the 20-year period from 1996 to 2016, which was 8.20%, inclusive of appreciation and dividend reinvestment, and net of fees.

Wall Street Journal, “Calpers Is Sick of Paying Too Much for Private Equity,” April 16, 2017