Vital Dollar may receive compensation from companies, products, and services covered on our site. For more details, please read about how we make money.
Today’s investors have more choices and options than ever, especially regarding real estate investments. With the rise in popularity of real estate crowdfunding, anyone can invest in income-generating properties.
Fundrise is one of the most popular platforms for passive real estate investing. Almost four years ago, I began investing with Fundrise to diversify my portfolio. In this article, I’ll share my Fundrise returns so you can see a real-world scenario and the actual performance.
On their website, you can find details about Fundrise’s historical performance (more about that later in the article). But it’s important to note that each investor’s experience and results will vary. Fundrise offers a few different plans or portfolios based on your goals. Additionally, each investor’s portfolio will differ because of the timing of when they started investing.
As you look at historical returns, whether you’re looking at overall averages or the results of a particular investor, keep that in mind. Your results are likely to vary.
My Fundrise Returns After 3+ Years
I initially invested with Fundrise at the very end of 2018. I chose their long-term core strategy because long-term growth is my priority. Fundrise also offers a core strategy for income generation, which prioritizes dividends over long-term growth, and a balanced approach, which is a blend of the two.
Here are my returns as of October 2022:
- 2019 – 6.2%
- 2020 – 6.3%
- 2021 – 22.2%
- 2022 YTD – 6.4%
- All time – 11.8% (annually)
The screenshot below is from my Fundrise account.
I’m pleased with the 11.8% annualized return three years into the Fundrise investment. Honestly, I was slightly underwhelmed with the 6.2% return the first year. However, since I chose the long-term strategy, Fundrise built my portfolio to maximize long-term results. As a result, those investments weren’t intended to produce considerable gains in the first year.
A few factors contributed to the significant growth in year three, including general real estate trends in the U.S. and progress on those long-term investments that Fundrise placed in my portfolio. I know the results will not continue at that pace (22.2%), but I’m more encouraged by the way the portfolio has held up in 2022.
During the first three quarters of 2022, My Fundrise portfolio gained more than 6%, while the S&P 500 was down by about 25% during the same period.
The screenshot below shows my Fundrise portfolio’s quarterly returns for the first three quarters of 2022 (the last column is year-to-date).
I’m interested to see what happens going forward, but the performance in 2022 has been very solid, in my opinion.
For more details, please read our Fundrise Review.
Fundrise Historical Performance
If you’re researching Fundrise returns, you’re probably looking to find the average historical returns for this crowdfunding platform. While some numbers are available, it’s critical to note that they’re averages across a wide range of different investors and portfolios.
Fundrise aims to be a long-term investment. Because of this approach, the performance may be slow for the first few years before picking up. But, generally, investors who have been with Fundrise longer will earn better returns than those who just started investing because they’ll have more mature properties in their portfolios. Fundrise provides an excellent explanation of this in the article Understanding Fundrise Historical Returns, which I’d encourage every potential investor to read.
If you’re looking for overall average returns, Fundrise provides those numbers. Remember that these numbers reflect the average of all Fundrise investors, and individual results will vary.
Here’s how Fundrise compares to public REITs and the stock market. These numbers are from Fundrise’s track record page, which you can check for updated numbers.
(all U.S. REITs)
|2022 (through 3 quarters)||5.40%||-28.34%||-23.87%|
|Avg. Income Return||5.42%||4.34%||2.17%|
As you can see, since 2017, Fundrise has produced much steadier returns than public REITs and the S&P 500.
The third quarter of 2022 was Fundrise’s worst performance during that time period, with an average return of just 0.09%. However, it’s important to note that public REITs and stocks were down that quarter, so Fundrise outperformed. This continued the streak of positive quarters.
Remember that past performance is not necessarily reflective of future performance, which is true of all investments.
Fundrise Plans and Portfolios
- Starter – The most straightforward way to invest in real estate, the starter portfolio requires a minimum investment of only $10.
- Basic – Invest at least $1,000 to access additional features like investor goals and the ability to invest in IRAs.
- Long-Term Core Strategy – Invest at least $5,000, and Fundrise will set up your portfolio to prioritize the long-term returns.
- Income Core Strategy – Invest at least $5,000, and Fundrise will help maximize your portfolio’s dividends.
- Balanced Core Strategy – Invest at least $5,000 and get a blend of long-term and income strategies.
You can learn more about these strategies at Fundrise’s website.
My Experience with Fundrise
So far, this article has focused on returns, but I’d also like to share my overall thoughts after three years of real estate investing with Fundrise. So here are some of the critical points.
- Stability – The stock market has seen huge ups and downs during the past three years. Meanwhile, my real estate investment with Fundrise has been very calm and stable.
- Ease of Use – I love Funrdise’s platform. The user dashboard is well-designed and extremely easy to use.
- Communication – Fundrise does an outstanding job of communicating with investors. They regularly send emails with updates on specific properties within my portfolio.
- Customization – I like having the ability to customize my portfolio according to my own goals and preferences. For now, I have a long-term approach. But I like that Fundrise also offers a core strategy for maximizing dividends. Investors can also flip a switch in their settings to have dividends reinvested or paid out as cash.
- Diversification – My Fundrise portfolio includes a larger number of properties throughout the United States and many different types of properties. The screenshot below shows the number of properties in my portfolio. Of course, I own a very small percentage of each property, but the diversification helps to minimize risk.
Frequently Asked Questions
Fundrise publishes the average returns of its investors on the company website. From 2017 to 2022, the average returns ranged from 5-22% per year. Keep in mind that each investor’s experience will be different. Fundrise offers several funds for investing in real estate, and results vary depending on the mix of funds included in an investor’s portfolio.
Yes, you can. Fundrise has an excellent track record, but past performance does not guarantee future success. You should not invest in real estate with money you can’t afford to lose.
Yes, with a track record that averages double-digit annual returns, it’s safe to say that people have made money with Fundrise. The average return for Fundrise investors in 2021 was 22.99.%
Yes, Fundrise investors receive dividends quarterly, assuming the portfolio produces the cash to support dividends. Investors can obtain the dividends as cash or have them automatically reinvested.
Fundrise is a long-term investment designed for at least five years. However, dividends are paid to investors quarterly. You can have your dividends reinvested or transferred to your bank account as cash.
Investors who want passive income can choose to receive dividends as cash instead of reinvesting. Fundrise offers a core strategy (minimum investment of $5,000) to produce dividend income. This investment should maximize the dividends you earn each quarter instead of prioritizing long-term growth.
Dividends earned from Fundrise investments are taxed as ordinary income, which is true for all REITs.
It depends on your investment goals. If you aim to maximize long-term returns, reinvesting is a good choice. On the other hand, if you’re more interested in passive income (for example, if you’re retired), quarterly dividends can be a good source of supplemental income.
Fundrise and other private REITs are not as volatile as publicly-traded REITs.
Final Thoughts on Funrise Returns
Overall, I’ve been pleased with my Fundrise returns. Additionally, I’ve also had a good experience using their platform. Based on my experience, I expect to add more to my investment as I continue to build a diversified portfolio.
I’ve written this article to share my personal experience with Fundrise, but it should not be considered investment advice. Be sure to do your due diligence before deciding to invest.
Vital Dollar is an affiliate of Fundrise. If you invest with Fundrise through our affiliate link, we may receive a small commission at no cost to you.