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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 Ed Canty, CFP® on January 13, 2022
FTC Disclosure: Some of the links on this site are affiliate links. Read our full disclaimer here.

Is Fundrise A Safe And Legitimate Investment In 2023?

This is a paid endorsement of Fundrise, we earn a commission if you decide to invest with Fundrise.

One of the most popular crowdfunded real estate investing platforms today is Fundrise.

Fundrise allows investors to gain exposure to real estate investments throughout the United States.

They offer a starter portfolio, a basic portfolio, and 3 advanced portfolios. 

Starting with as little as $10, investors can purchase shares of real estate partnerships managed by Fundrise and owned by individual investors. 

But, is this too good to be true? You might be wondering if Fundrise is a safe investment platform. 

While all investments carry risk, we will cover information investors will likely want to consider.

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Is Fundrise Safe?

The parent company for Fundrise, Rise Companies Corp., is regulated by the Securities and Exchange Commission. 

All materials related to their investments in eREITs and eFunds are also filed with the SEC.

The SEC oversees securities markets as well as registered firms to ensure investors are treated fairly and honestly.

It is still possible to lose money with Fundrise or other crowdfunded real estate investments, and there is never a guarantee of returns.

Another important factor to consider is operating history/track record.

Crowdfunded real estate in general has yet to experience a long lasting recession or market downturn. During the 2020 pandemic, Fundrise did suspend redemptions for a relatively short period of time.

Since this is brand new technology and a new way of investing, it is not a time-tested investment.

How Does Fundrise Protect Information?

Beyond the investment opportunity itself, it is also important to consider if your personal information is stored safely and securely.

Here's the steps Fundrise takes to keep your informations safe:

  1. Fundrise uses bank-grade security technology
  2. Personal information is stored in encrypted or scrambled format using the same encryption method as big banks
  3. When information is shared between you and Fundrise servers, this is fully encrypted as well
  4. Hosting is provided to Fundrise through Amazon Web Services, which is a very secure platform in it of itself

Overall, Fundrise takes many steps to keep your personal information safe and secure. In addition, the Fundrise is registered with the SEC.

That being said, it is not a time tested investment, so we will have to see how Fundrise performs during a prolonged bear market.

Article written by Ed Canty, CFP®
Ed is a CERTIFIED FINANCIAL PLANNER™. At his day job, Ed helps clients plan for retirement, manage their investments, and navigate their tax situation. In his free time, Ed enjoys golfing, traveling, fishing, and wrenching on his old car.

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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.
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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.
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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.
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