Improving the efficiency of the real estate investment platform to reduce the barrier to entry for a new class of investors



Real estate investment platform Fundraise recently it was found that this lowers the barrier to entry for a new class of investors, which means “higher potential for the next generation.”

Fundraise General director Ben Miller notes that the platform continues to strive to make “the best alternative investments in the world” available to almost all individual investors – “true democratization.”

Fundrise team writes in the blog post that they restart Starter portfolio, now specially designed for people who may be new to investing. The relaunched starter portfolio offers the lowest minimum investment ever at $ 10, access to their Flagship Fund, focus on investor education and “quarterly liquidity without penalties”.

Fundrise says its goal is to offer a “tailor-made” experience to investors of “any condition” and level of experience, “whether you’re making your first investment in history or investing tens, thousands, or millions of dollars.”

Ever since they launched Fundrise almost 10 years ago, they have insisted on “growing our business with one fundamental aspiration in mind: making the world’s best alternative investments available to every single investor.”

As noted in the update from Fundrise:

“Transforming the status quo into one of the most entrenched asset classes in history — private real estate — requires almost constant innovation — in technology, in our application of financial solutions, and in how we help the general public view their own portfolios. … And we’ve made significant progress: Fundrise manages over $ 1.5 billion on behalf of our more than 150,000 active investors, making us America’s largest private equity investment platform. ”

CEO Miller added that he is pleased to share another change to the Fundrise platform. The one they think should help open up a “whole new” level of accessibility.

Miller confirmed that they are relaunching their startup portfolio, now “specially designed for new investors.”

Over the past year, they have seen an “influx of interest” in alternative investment from young investors, “in particular,” Miller said, noting that this is a group that is “passionate about investing and eager to learn more. Time is one of their most valuable assets (everyone welcomes the miracle of compound interest). “

The new starter portfolio offers:

  • Lowest minimum investment ever: “A minimum of $ 10 opens the door for millions of new investors to start growing their portfolio immediately. (The starter portfolio previously required a minimum of $ 500). “
  • Access to our flagship fundInvestors will be “fully channeled into our Flagship Fund, which already owns more than $ 250 million in real estate nationwide, ranging from the hot single-family rental market to larger last-mile e-commerce logistics centers.”
  • Emphasis on investor educationWe are working with some of the most famous personalities in financial education to develop programs that demystify the alternative investing world.
  • Quarterly liquidity without penalties: Fundrise “is still clearly targeted at long-term investors.” However, the structure of our Flagship Fund “allows us to offer a no-penalty buyback process every quarter should investors be forced to liquidate their assets unexpectedly.”

Over the past few years, Fundrise claims to regularly observe that the investors attracted to their platform are “unusually patient, resilient and forward-looking.”

The firm’s management noted that the fact that the investor does not yet have “large equity capital” to invest in real estate in the private market does not mean that he does not understand the value that “long-term thinking” and planning can bring. ” … when there will be time for prosperity. “

As Fundrise notes, small investments “added to small investments, added to small investments, etc., will end up being quite a lot – especially given the potential for healthy annualized returns combined.”

The company’s management added that small investors have been “historically blocked” from investing in real estate. Real estate investment in the private equity world typically revolves around managing a relatively small number of “large transactions on behalf of multiple organizations,” notes Fundrise.

They also noted that the barrier to entry is high, “in part because this type of investment typically involves dozens of time-consuming, manual (that is, costly) processes.”

They continued:

“Discover the transformative power of technology. Our proprietary software enables us today to efficiently manage millions of transactions on behalf of hundreds of thousands of investors at near zero marginal cost. We believe the new launch portfolio will open our platform to millions of others. ”

The Fundrise team further noted that their goal is to offer a personalized approach to investors of all levels of capital and experience, “whether you are investing tens, thousands or millions of dollars. Overall, Fundrise offers five account tiers: Beginner, Basic, Basic, Advanced and Premium. “

Fundrise confirmed that investors can upgrade to a higher account tier “anytime as their account balances grow.”

The CEO of the company added:

“While today’s announcement primarily benefits the younger generation of new investors, more experienced and wealthier investors should not feel left out. We have more design innovations that I hope to share with you in the coming months. ”


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