Real estate is a hard asset. And of course, since they are not making any anymore - it is scarce. Cities are growing and the demand for real estate is increasing all the time with it. Unlike stocks, commercial real estate generates consistent cash flow from rent. So, those investors who need regular cash flow can avail it but at lower rates.
For many years though, individuals have only been able to invest in public stocks and bonds because of bad access. Fundrise, a company based out of Washington D.C. is making investing in this lucrative asset class possible for people from any income bracket. The company is finally making it possible for investors to diversify their portfolios by investing in private market real estate.
Fundrise was founded in 2010 by the brother Ben and Dan Miller. The brothers founded Fundrise with the idea of letting the citizens of the D.C. area invest in real estate. Real estate has been one of the best investment classes traditionally but things have changed with better technology coming to the fore. Fundrise wanted to deviate from the traditional approach of real estate investment to reduce the investment costs which are eaten up by inefficiency, overhead and middlemen. Through a breakthrough use of technology the company is redefining how people invest in real estate today.
Such a fresh approach to real estate investment has not been seen before and is lowering the costs substantially along with giving people the access they need make investments from distant locations.
But Fundrise hasn’t had it all easy. The company had its share of sceptics early on as the industry professionals and bigwigs banking on their traditional knowledge wrote off Fundrise’s idea. But with time, Fundrise proved them wrong.
They had to work through audits and multiple filings with the SEC before getting to launch their first offering in 2012. But after this first online investment offering, there was no turning back. The company built a unique system which was well ahead of its time and stood out in a largely conventional industry. Their stand-out offering naturally brought down the costs and reduced the possibility of poor incentives which is a status quo in the industry.
Invest like Institutions investors
Most investors invest in the public stock markets which are bought by the investment advisors in an auction environment where prices are heavily bid up. But Fundrise is changing things by helping you, by keeping the prices as low as possible which remarkably lessens the pressure.
For long the institutional investors have dominated over the public markets by investing in assets like private market real estate. But Fundrise is making it possible for the low income investor to invest in this once-unattainable asset class.
The team at Fundrise draws from over 75 years and $7.5 billion of combined experience to give the investors the best results. Their investing strategy is clear – buying investments for less than what their replacement cost is and improving upon the real estate through the expertise of management and partnership with local operators. Through a direct investment strategy, Fundrise portfolios consistently earn higher annual current income than public-income investments.
Today, with over 500,000 members, the company has invested in roughly $2.5 billion worth of real estate all over the country which includes apartments and retail in Washington D.C, Townhomes in suburban Seattle to offices in California. The company’s idea is simple and it has found backing. The company with its efficient platform has ushered the future of investing in real estate.
The Real Estate Aficionado
Ben Miller, CEO and Co-Founder
Mr. Miller has over 19 years of experience in real estate. In this time, he has financed more than $500 million worth of property as Managing Partner of WestMill Capital Partners and President of Western Development Corporation. He began his career as an analyst for Lubert-Adler, a private equity real estate fund.
He graduated from the University of Pennsylvania and is on the board of National Center for Children and Families.
Praises in the Press
“Fundrise has a history of making it easier for ordinary investors to put money to work.”-TechCrunch
“Fundrise is a pioneer in real estate crowdfunding, allowing individuals to directly invest in hotels, apartment buildings and other development projects.”-The New York Times
“What really sets Fundrise apart is that it backs each and every deal itself. The quality hasn’t gone unnoticed: one of Fundrise’s last deals sold out in 20 minutes.”-Forbes
“We follow a value investing strategy of buying investments for less than what we believe is their replacement cost, then improving the real estate through hands-on management and partnership with local operators.”
“Our team draws on over 75 years and $7.5 billion of combined experience to pursue the best results for our investors.”
“We’re on a mission to revolutionize real estate investing.”