How to Invest in Real Estate Through Fundrise Starting With as Little as $10

Fundrise is an online platform that allows regular investors — not just wealthy individuals — to invest in real estate. Traditionally, buying investment property required a large amount of money for a down payment, good credit, and the ability to manage tenants and maintenance. Fundrise removes those barriers by pooling money from many investors and using it to buy or develop real estate projects like apartment buildings, commercial properties, and single-family rental homes.

When you invest through Fundrise, you are buying shares in a non-publicly-traded Real Estate Investment Trust (REIT) or a similar fund structure. These investments generate returns through two sources: rental income (paid out as dividends, usually quarterly) and appreciation (the increase in value of the properties over time). Fundrise reports annualized returns that have historically ranged from about 7 to 12 percent, though past performance does not guarantee future results.

The minimum investment on Fundrise is $10 for a starter account, which makes it accessible to a wide range of people. As your investment grows, higher tiers unlock different portfolio options. The basic plan invests in a diversified portfolio of properties across the country, while higher tiers let you choose between income-focused or growth-focused strategies depending on your goals.

One critical thing to understand before investing: Fundrise investments are not liquid in the same way that stock market investments are. You cannot sell your shares at any moment the way you can sell a stock. Fundrise offers a quarterly redemption program, but withdrawing your money early (within the first five years) may involve a penalty fee. This is an investment designed for a time horizon of at least three to five years.

Fundrise charges an annual management fee of around 0.85 percent, which is low compared to traditional real estate mutual funds. There are also advisory fees. It is a legitimate, regulated investment platform, but like any investment, there is risk. Property values can fall, and rental income can decline during economic downturns. Invest only money you can leave in place for several years.