Real estate investment platform raises funds to lower the barrier to entry for a new category of investors
Real estate investment platform Fund raising recently revealed that it is lowering the barrier to entry for a new class of investors, which means “higher potential for the next generation”.
CEO of fundraising Ben miller notes that the platform remained committed to making the “best alternative investments” in the world accessible to almost all individual investors – “true democratization”.
The Fundrise team writes in a blog post that it relaunches the Starter portfolio, now specifically developed for people who may be new to investing. Relaunched startup portfolio offers lowest minimum investment “ever at $ 10”, access to their Flagship Fund, an emphasis on investor education and “quarterly liquidity, without penalty”.
Fundrise says its goal is to provide a ‘tailor-made’ experience for investors of ‘all net worth’ and all experience levels, ‘whether you are making your first investment or investing tens, thousands or millions of dollars “.
Since launching Fundrise almost 10 years ago, they have pushed “to grow our business with one fundamental aspiration in mind: to make the world’s best alternative investments available to every individual investor”.
As stated in the Fundrise update:
“Transforming the status quo in one of the most entrenched asset classes in history – private market real estate – requires near constant innovation: in technology, in our application of financial solutions and in the way of which we help the general public to visualize their own portfolios. . And we’ve made significant progress: Fundrise manages more than $ 1.5 billion on behalf of our more than 150,000 active investors, making us the largest direct-to-investor real estate investment platform in the United States.
Company CEO Miller added that he was happy to share another change to the Fundrise platform. One that they believe should help unlock an “entirely new” level of accessibility.
Miller confirmed that they are relaunching the startup portfolio, now “specially designed for new investors.”
Over the past year, they have seen an “surge of interest” in alternative investments from young investors “in particular,” Miller revealed while noting that they are a “passionate group.” by investment and eager to know more. Time is one of their most valuable assets (everyone hails the miracle of compound interest).
The new starter portfolio offers:
- Our lowest minimum investment ever: “A minimum of $ 10 opens the door for millions of new investors to immediately start developing their portfolios. (The startup portfolio previously required a minimum of $ 500.) ”
- Access to our flagship fund: Investors will be “fully allocated to our flagship fund, which already has more than $ 250 million in real estate assets across the country, ranging from the bustling single-family rental market to the largest last-mile e-commerce logistics centers. “.
- A focus on investor education: “We are working with some of the most well-known figures in the financial education field to develop programs aimed at demystifying the world of alternative investing. “
- Quarterly liquidity, without penalty: Fundrise is “always unambiguously designed for long-term investors”. However, the structure of our flagship fund “allows us to offer a penalty free redemption process each quarter if investors are forced to liquidate unexpectedly.”
Over the past few years, Fundrise says it has consistently noticed that investors attracted to their platform are “exceptionally patient, resilient and forward looking.”
Company management noted that just because an investor does not yet have “great net worth” to invest in private market real estate does not mean that he does not understand the value that “the long-term thinking “and planning can bring” when you have time to thrive.
As Fundrise noted, a small investment “added to a small investment added to a small investment, etc., will end up being a lot – especially with the potential for a good annual compound return in the mix.”
Company management added that small investors have been “historically blocked” from investing in real estate. Real estate investing in the private equity world typically thrives around managing a relatively small number of “massive transactions on behalf of a few institutions,” Fundrise noted.
They also mentioned that the barrier to entry is high, “partly because this type of investment typically involves dozens of manual (ie expensive) processes that take a long time.”
“Step into the transformative power of technology. Our proprietary software allows us to efficiently manage millions of transactions on behalf of hundreds of thousands of investors today at near zero marginal cost. We believe the new Starter Portfolio will open our platform to millions more.
The Fundrise team further noted that their goal is to provide a tailored investor experience for investors of all net worth and all experience levels, “whether you are investing tens, thousands or millions of dollars. . In total, Fundrise offers five account levels: Starter, Basic, Core, Advanced and Premium.
Fundrise has confirmed that investors can upgrade to a higher account level “at any time as their account balance increases”.
The CEO of the company added:
“While today’s announcement primarily benefits the rising generation of new investors, investors with more experience and higher net worth should not feel left out. We have more innovations in development that I hope to share with you in the months to come.