Fund Rise:

Review and Ranking

What is Fund Rise?

 

Fundrise went from ranked number 1 in the 2015 review, to number 25 in the 2016 review. Since then, they have stopped producing all investments for accredited investors, so they are being removed from the rankings. However, they still are producing other investor options. Click here for an in-depth review of their nonaccredited investor options

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For historical purposes, here is their previous review:

They were ranked #1 in the 2015 review for numerous innovative and industry-leading features (including rock-bottom fees). Unfortunately, they've fallen to #25, this year due to all the changes on the site that have happened since then.

The changes seem to have happened after the unexplained resignation of their CEO near the end of 2015 (and replacement by his brother), By the end of the year, Fundrise stopped offering individual accredited investments, and instead replaced them with what it calls eREIT investments. For numerous reasons (larger fees, inadequate skin in the game, etc.), we don't feel these are appropriate for accredited investors because they have much better alternatives. However, for nonaccredited investors, they may be suitable. Click here for more information comparing Fundrise with other options for non accredited investors.
 

In late 2015, Fundrise filed a report with the SEC, accusing their former CFO of attempting to extort $1 million from the company for poor due diligence. Fundrise claimed that the due diligence on their precipice investments was solid and that a 3rd party was reviewing it. However, it does not appear that the results of this third-party review was ever made public.

 

  • Advantages: None.
     

  • Disadvantages: Mammoth fees, substantial investor dilution, and in our opinion, dangerously misleading marketing.
     

  • Accolades: None

 

For more raw data on the site (including investor and sponsor fees, legal structure etc.), or to easily compare it with the data of competitors, see the feature by feature comparison matrix.

Where can I discuss other Fund Rise deals?


You can do this with thousands of other investors in the private investor club. While the club is free, membership is restricted to investors who have no business connections to sponsors or platforms. Also, all members must agree to keep all club info confidential by signing a nondisclosure agreement. Click here to join or get more info.

 

Who are Fund Rise Competitors?


Here are the reviews and rankings for other similar sites.

 

Related:

Site ranking:

None.

The Exited (1 out of 10 stars)

Awards:

Tier:

None (out of 100+) Last year ranking: #25.

  • Code of Ethics: To maintain objectivity, I do not accept any money from any sponsor or platform for anything (including affiliate ads, advertising etc.). See code of ethics for more.
     

  • Personal opinion only: All info is my personal opinion only as an investor. I am not a registered financial advisor, attorney or accountant. Always do your own due diligence and consult with your own licensed professionals before making any investment decision. Information is believed to be correct but may have errors, so use at your own risk. If you find an error, please let me know.
     

  • Rankings/rating are general: In my opinion, every investor comes from a different risk tolerance and financial situation, so there's no such thing as a single investment or platform that's great for everyone. There are many deals that aggressive investors love, which I won't touch, and vice versa. And every investor has their own way of doing due diligence. I believe there's no one right way to do it. 

    So, the site rankings/ratings are based on criteria which I feel are important to the broadest range of investors (transparency, volume, bankruptcy protection, etc). And even though I have my own personal, conservative, due diligence method (and talk about how the site's deals measure up in the "deep dive section"), I don't use my personal criteria as a factor in the rankings. So for example, a high ranking/rating doesn't mean that I would personally invest in a site (and vice versa). Click here to see what's in my own portfolio.

Have you used the above site before? What was your experience?

About Ian Ippolito

Ian Ippolito is an investor and serial entrepreneur. He has been interviewed by the Wall Street Journal, Business Week, Forbes, TIME, Fast Company, TechCrunch, CBS News, FOX News, USA Today, Bloomberg News, Realtor.com, CoStar News, Curbed and more.

 

Ian was impressed by the potential of real estate crowdfunding, but frustrated by the lack of quality site reviews and investment analysis. He created The Real Estate Crowdfunding Review to fill that gap.

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This site has been ranked and reviewed as part of our in-depth, 100+ site industry review. All data is believed to be correct, but may have mistakes. Please contact us if you notice one. All non-data (including rankings, investor comment summaries, etc.) are my opinion only. I'm just an investor and not an attorney, accountant, or certified financial advisor. To maintain neutrality: I do not own a portion of any of the companies reviewed. 

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© 2015-2021 By Exhedra Solutions, Inc. All rights reserved. Use of this site constitutes your acceptance of it's terms and conditions.
 

Code of Ethics: I do not receive any money from any sponsor or platform for anything including guides, tutorials, postings, reviews, referring investors, affiliate leads or advertising. Nor do I negotiate special terms for myself above what I negotiate for the benefit of members. For clarity: I do receive monetary compensation in 2 ways. Site members can send donations (and a $200 donation entitles them to access my personal low-level due diligence notes on investments I've put money into). And if the club chooses to create a feeder, I take a fee as manager (and keep the excess beyond expenses). Additionally I receive the same non-monetary compensation all club members do: access to otherwise inaccessible sponsors, millions of dollars of special deals and discounts, the satisfaction of giving back and helping others, and more.

I/we are just investors expressing our opinion, and are not registered financial advisors, nor attorneys nor accountants. Always consult with your own licensed professional before making any investment decision. All information provided is personal opinion only, and does not constitute professional, financial, tax, legal or other advice.