Investing Simple Logo
Menu
Webull free stock promotionWebull is a free stock trading app that can allow you to earn compound interest by investing in the stock market.
Get Up To 12 Free Stocks Worth Up To $30,600!
Webull is a commission free stock and crypto trading platform. Right now, Investing Simple readers can get up to 12 free stocks with their current promotion. Open an account to receive 2 free fractional shares worth $3 to $300. Deposit any amount of money to receive 4 to 10 more free fractional shares worth $7 to $3,000. Promotion expires 8/31/2022.
What are the risks of fundrise
Start Investing In Real Estate With $10 Today
Fundrise invests your money in private real estate deals via investment portfolios. Now anyone can get in on private real estate, not just the wealthy.
Written by Cari Scribner on January 21, 2022
Category: 
FTC Disclosure

How To Make Money With Fundrise In 2022

Fundrise has become one of the most well known and trusted crowdfunded real estate investing platforms.

Investors from all over the United States are able to pool money together for private real estate investment. With a minimum of $10 to get started, this investment is very accessible to most people.

However, you might be wondering how you get paid back or earn money from Fundrise. 

There's primarily two ways to earn money investing with Fundrise:

  1. Asset Appreciation - The value of the real estate owned goes up over time, usually a few years.
  2. Distributions - Dividends paid out on a quarterly basis representing an investors share of interest and rent payments collected.

We will be exploring both with more detail!

Best Real Estate Platforms

PlatformMinimumLink
Fundrise real estate investing platform$10 Minimum, Private Commercial Real Estate PortfoliosView Investments
Groundfloor real estate investing platform$10 Minimum, Short Term Real Estate Debt InvestmentsView Investments
Arrived Logo New Small$100 Minimum, Buy Rental Property SharesView Investments
Realty Mogul real estate crowdfunding site$1,000 Minimum, Private Commercial Real Estate PortfoliosView Investments
roofstockMarketplace, Buy/Sell Single Family Rental PropertiesView Investments

1. Asset Appreciation (Real Estate Price Growth)

With Fundrise, all the investors pool their money together to purchase real estate within a portfolio.

In particular, Fundrise looks for properties with a high potential of growing in value. This is usually based on the local real estate market that property is located in.

They will also usually make improvements on properties, which can further add to this overall appreciation.

  • Let's say they buy a building for $800,000 and do $200,000 worth of improvements.
  • Years later, they sell it for $1,500,000 based on the local housing market doing well.
  • That means the profit before fees is $500,000.

Profits earned from the sale are distributed among investors.

Keep in mind, this money is only earned when a property is eventually sold. That is why Fundrise is considered to be a longer term 5+ year investment. 

Crowdfunded Real Estate Free Training

We put together a free 30 minute video training that walks you through the entire process, step by step. This training will help you get up and running in no time at all.

GET THE GUIDE

2. Distributions (Rent/Debt Interest Payments Paid Out)

While most of the money is going to be made from the eventual sale of real estate owned, you can also earn money through rent/interest payments.

Currently, every investment offering from Fundrise pays out dividends on a quarterly basis. However, there are some portfolios that are more focused on growth vs income.

  • A growth oriented portfolio will focus mostly on asset appreciation. 
  • An income oriented portfolio will focus mostly on cash flow/dividends.

Depending on where you are at in your life financially, you may choose one over the other based on your goals.

Nonetheless, these dividends earned can either be reinvested automatically or paid out directly to your bank account. The benefit to reinvesting is this allows you to earn compound interest.

Article written by Cari Scribner

Platform Reviews

Power Your Investing

Choosing the right product and service is essential for your investing. Here are some of the tools and services to help your portfolio grow.
Robinhood
Robinhood provides an easy-to-use free trading platform for beginner investors. Robinhood has $0 account minimums. Get a free stock when you open an account below.
Try Robinhood
M1 Finance
M1 Finance offers a free investing platform where users can build portfolios of stocks and ETFs. Users can also choose from a variety of pre-built portfolios offered for free.
Try M1 Finance
Fundrise
Passively invest in private real estate deals with as little as $10. Fundrise allows you to own residential and commercial real estate across the U.S. starting at a 1% annual fee.
Try Fundrise
Copyright © 2018 – 2022 Investing Simple LLC. All Rights Reserved.
Investing Simple is a financial publisher that does not offer any personal financial advice or advocate the purchase or sale of any security or investment for any specific individual. Members should be aware that investment markets have inherent risks, and past performance does not assure future results. Investing Simple has advertising relationships with some of the offers listed on this website. The information on Investing Simple could be different from what you find when visiting a third-party website. All products are presented without warranty. For more information, please read our full disclaimer.
Website managed by Stallion Cognitive™
magnifiermenuchevron-downcross-circlechevron-down-circle
linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram
Copy link
Powered by Social Snap