Fundrise Promo Code


Jeremy BiberdorfBy: Jeremy Biberdorf

June 29, 2023June 29, 2023

Fundrise

Disclosure: This is a testimonial in partnership with Fundrise. We earn a commission from partner links on Modest Money.

There are no official Fundrise promo codes available as of now. This is a direct confirmation from Fundrise. Despite various online platforms advertising discounts or promotional codes for Fundrise, the company has unequivocally stated that such offerings are not legitimate.

But that shouldn’t discourage you from understanding more about Fundrise. So, let’s delve into the details of what Fundrise is and how it can provide value to potential investors without the need for promo codes.

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What is Fundrise?

Fundrise is an online real estate investment platform, offering a unique opportunity for everyday investors to participate in real estate investment without the significant capital requirements typically associated with this type of investment. Through Fundrise, you can start investing in a diversified portfolio of private real estate assets with as little as $500.

Fundrise operates on the principle of crowdfunding. This involves pooling together funds from a large number of investors to finance real estate projects. This opens up access to a variety of investment types that were previously only available to wealthy or institutional investors.

Investment Strategies at Fundrise

Fundrise’s robust platform offers a variety of investment strategies, designed to cater to differing investor goals and risk tolerance levels. By adopting a blend of these strategies, the platform strives to create resilient, well-rounded portfolios to deliver consistently strong results. Let’s delve into the specifics of each strategy and some of the associated investments.

Fixed Income

The Fixed Income strategy aims to generate above-market yields by providing innovative and comprehensive financing solutions, which are backed by high-quality real estate. This strategy targets property types with high durability of demand and real constraints on new supply, supporting property values.

Typical returns under the Fixed Income strategy range from 6-8%. This return is often realized through income, making this strategy primarily cash-flowing at acquisition. Some of the notable investments under the Fixed Income category include the redevelopment of an underutilized site in Atlanta, GA, financing a master-planned community in the Bay Area, and financing a premier mixed-use destination in Washington, DC.

Core Plus

Fundrise’s Core Plus strategy emphasizes stabilized real estate, featuring long investment horizons and moderate leverage. The primary goal of this strategy is to unlock additional value through targeted asset management in growing markets across residential and industrial asset classes.

Typically, this strategy yields an 8-10% total return, with a 4-6% income component. Returns from Core Plus investments generally begin to materialize 6-12 months after the first cash flow. Some of the platform’s Core Plus investments include a luxury apartment community in Las Vegas, a new apartment community outside Austin, TX, and a single-family rental community in suburban Houston, TX.

Value Add

The Value Add strategy focuses primarily on acquiring existing properties below replacement cost and investing capital to increase their competitiveness. The strategy largely targets reasonably priced residential communities in growing markets where affordable rental housing is in short supply.

Investors can expect a total annualized return of 10-12%, with income accounting for 2-4%. Returns typically begin to flow in 12-18 months. Example investments in this category include the acquisition and renovation of a commercial building in South LA, the renovation of a suburban apartment community in Orlando, FL, and a mixed-use development in the main corridor for defense contractors.

Opportunistic

Fundrise’s Opportunistic strategy seeks to acquire underutilized, well-located properties in dynamic markets. With the expertise of their in-house development team and leading partners, these properties are often reimagined from the ground up. This strategy involves the most complex and longest-dated business plans but carries the potential for the greatest reward.

This strategy offers a total return of 12-15%, with income typically accounting for 0-2%. Returns usually start to materialize after 2-3 years. Investments include a creative office redevelopment, redevelopment of an industrial site to a new Class A industrial terminal, and development of a residential community adjacent to a walkable local retail destination.

Comparing the Strategies

Each investment strategy offers a different risk-reward balance, investment horizon, and return structure. Whether it’s the interest-earning, immediate returns of the Fixed Income strategy, the rental income from Core Plus, the improvement-oriented approach of Value Add, or the redevelopment-focused Opportunistic strategy, investors can select or combine strategies based on their individual goals and risk tolerance.

With its wide array of strategies and investment opportunities, Fundrise provides an accessible platform for individuals to engage in real estate investment, diversify their portfolios, and work towards their financial goals.

Why doesn’t Fundrise offer promo codes?

Fundrise has chosen a business model that emphasizes transparent, flat fees. They charge an annual asset management fee of 0.85% and an investment advisory fee of 0.15%. This means that the total annual fees amount to just 1% of your investment.

This transparent and flat fee structure eliminates the need for temporary discounts or promotions. Fundrise is committed to providing long-term value for investors rather than short-term promotional incentives.

Are there any benefits to investing in Fundrise?

While there aren’t any Fundrise promo codes, the platform does offer a range of benefits to investors:

  1. Diversification: Fundrise provides access to a diversified portfolio of real estate, which can help to spread risk and potentially increase returns.
  2. Low minimum investment: With the minimum investment set at just $500 for the starter portfolio, Fundrise makes real estate investment more accessible.
  3. Transparent fees: Fundrise uses a simple and transparent fee structure, ensuring that investors know exactly what they’re paying for.
  4. Potential for high returns: While there are always risks associated with any investment, the potential for high returns in real estate investing can make Fundrise an attractive option.

Final Thoughts

While it’s natural to seek out promo codes to maximize investment potential, it’s essential to remember that investing is a long-term game. A promo code might save you some money in the short term, but a well-managed, diversified investment portfolio will likely bring you much more in the long run.

Fundrise has built a reputation for providing everyday investors access to the real estate market through their innovative platform. They have done so without the need for temporary promotional discounts, focusing instead on providing consistent, long-term value to their users.

Despite the absence of official Fundrise promo codes, the platform’s unique investment opportunities and transparent fee structure make it a compelling option for those interested in diversifying their investment portfolio with real estate.

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Jeremy Biberdorf
Jeremy Biberdorf

About the Author:

Jeremy Biberdorf is the founder of Modest Money. He's a father of 2 beautiful girls, a dog owner, a long-time online entrepreneur and an investing enthusiast.

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