Diversification is one of the main pillars of success when it comes to building long-term wealth. As the saying goes, don't put all your eggs in one basket!
Success in investing doesn’t require a college degree or boatloads of cash or even 24/7 studying of the stock market.
All it takes is a little planning.
A diversified investment portfolio is made of an array of assets earning the highest return with minimal risk.
Assets may include stocks, bonds, ETFs, commodities, or the real heavy hitter... real estate.
The vast majority of today’s investors who are reaping high returns on their investments have wisely included real estate in the mix.
Fundrise is one of the leading real estate investment platforms to get you into real estate without a lot of cash. To get started on Fundrise all you need is $10!
Here's how Fundrise works for complete beginners.
|$10 Minimum, Private Commercial Real Estate Portfolios||View Investments|
|$10 Minimum, Short Term Real Estate Debt Investments||View Investments|
|$100 Minimum, Buy Rental Property Shares||View Investments|
|$1,000 Minimum, Private Commercial Real Estate Portfolios||View Investments|
|Marketplace, Buy/Sell Single Family Rental Properties||View Investments|
Before we talk specifically about Fundrise, let’s look at the reasons why diversifying by adding real estate to the mix is such a great strategy.
Investing in real estate is an ideal way to generate passive income.
Passive income is money that rolls into your bank account without much effort on your part!
When real estate becomes a passive investment, you are not required to get out there with your shovel and start digging for the new construction. You put money in the pot and the actual planners and builders take care of the rest!
You will supply the money, not the manpower! So when you’re asleep or mowing your lawn or eating dinner, your real estate investment continues to grow in value and earn income.
Investing in real estate also provides tax breaks for your personal finances due to depreciation and tax write-offs.
Investing in real estate used to require tens of thousands of dollars just to get started. However, in today's world of democratized investing, everyone can get involved.
Real estate investing apps that pool money from large groups of people are crowdfunding platforms. These apps give anyone and everyone a chance to buy into real estate projects with basically whatever amount they can afford.
In the case of Fundrise, the minimum investment is $10.
If you have more money on hand, how much should you invest in order to diversify? The experts at Fundrise recommend you allocate about 30 percent of your investable assets to alternatives like private real estate ventures.
Fundrise takes your cash, adds it to the pot, and then directs it into heavily researched projects ranging from new housing developments to office space rehabilitations.
This platform will frequently make major improvements to the property to increase the value and therefore, your return. Fundrise puts your investment to work on across-the-board improvements.
These include building new urban housing developments, renovating run-down apartments, and renting out viable vacant buildings.
When the refurbished properties are sold you will ideally see sizeable returns. However, this does not happen overnight. Properties are often held for several years!
Investors who use Fundrise should expect to leave their money invested for at least 5 years.
The experts at Fundrise scout out assets with high potential to grow in value. The key here is to buy ahead of major demographic or cultural spurts, understand emerging neighborhood growth, or recognize untapped property potential. That’s where the experts come in.
Money is made with Fundrise in a few different ways.
You can start investing with Fundrise with as little as $10, but other account types do require a larger minimum investment.
Starter - The Fundrise Starter Portfolio is for new investors who would like to give Fundrise a shot. The minimum investment required is only $10! This portfolio consists of 50% growth and 50% income-oriented holdings. If you want to upgrade to an advanced plan down the road, you can do so at no charge.
Basic- The Fundrise Basic account gives you the opportunity to participate in all that the Starter Portfolio offers with the addition of IRA investing and the ability to create your own investment goals. The minimum investment for Fundrise Basic accounts is $1,000.
Core - Fundrise Core account allows you to invest in the standard Fundrise portfolios - supplemental income, long-term growth, and balanced investing. The minimum investment for Fundrise Core accounts is $5,000.
Advanced - Fundrise Advanced accounts provide all the features offered in Core, plus access to additional investment opportunities. These investments are not available to all Fundrise investors and are more strategic in nature. The minimum investment for Fundrise Advanced is $10,000.
Premium - Fundrise Premium accounts give you all the features offered in Core and Advanced, plus even more unique investment opportunities. These investments typically have longer time horizons and have a limited number of investors. The minimum investment for Fundrise Premium is $100,000.
One of the best things about Fundrise is the flat fee charged to all investors. Each portfolio listed above comes at a standard 1% annual investment fee.
This covers all the research, administrative tasks, and management associated with running Fundrise. In addition, each time a new building is purchased, there is the occasional origination fee.
Fundrise offers a relatively easy way to buy into real estate with a starting point of $10.
Fundrise will pool your money together with thousands of others and put it toward new construction projects or rehabilitations with potential. This will be completely passive investing requiring no time or energy on your part.
How successful has the Fundrise platform been so far? To date, Fundrise has acquired more than $5.1 billion in real estate and distributed over $100 million back to investors in the form of dividends.
If this is the type of investment you are searching for, follow the link below to sign up for Fundrise today!