Disclaimer: This is a testimonial in partnership with Fundrise. We earn commission from partner links on REtipster.com. All opinions are my own. The information contained herein does not constitute an offer or a solicitation of interest in any offering of securities; However, if an indication of interest is provided, it may be withdrawn or revoked, without obligation or commitment of any kind, prior to acceptance following the qualification or effectiveness of the applicable offering document, and any offer, solicitation or sale of any securities will be made only by means of an offering circular, private placement memorandum or prospectus. No money or other consideration is hereby requested and will not be accepted without such potential investor having been provided with the relevant offering document. Joining the Fundrise Platform does not constitute an indication of interest in any offer nor does it imply any obligation or commitment of any kind. Publicly filed offering circulars of Rise Companies Corp.-sponsored issuers, not all of which may currently be qualified by the Securities and Exchange Commission, can be found at www.fundrise.com/oc.
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In 2017, I made a video and blog post explaining how fundraising works.
As part of this review, I decided to invest $1000 of my own money into the company so people could see exactly how it worked and we could check that investment each year to see the results.
Since then, I’ve been tracking the progress and returns on that investment by compiling annual video updates showing the dividends and how much the money has grown.
My goal with these annual reviews it’s not convince anyone to invest with Fundrise. My goal is to inform you about this investment strategy and the unique fact that you do not need to be an accredited investor to participate.
What is fundraising?
Fundrise is a real estate investment platform that allows investors to invest small amounts of money not in a single property, but in “pools” of real estate.
It makes real estate investing accessible to a broader audience by allowing investors to contribute smaller amounts than traditional real estate investments.
People invest in Fundrise primarily for convenience, lower entry costs, and the ability to earn passive income through real estate. Real estate is often considered a stable investment compared to more volatile markets like stocks.
The first year without remaining capital
After withdrawing my original $1,000 principal investment in 2022, this is about the fourth year I’ve been able to see the remaining reinvested dividends perform on their own.
Of course, my investment performance does not determine YOUR returns if you decide invest with Fundrise. Each eREIT has a different performance and the performance will vary each year.
Still, this review will offer insight into how Fundrise performs as a company, specifically in comparison to other investment options such as the stock market, mutual funds, or similar websites.
It’s very fun to see the real returns about this investment and not just a theoretical picture of what is supposed to happen.
Fundrise performance update for 2026
When I first invested my $1,000 six years ago, I told Fundrise to automatically reinvest all my dividends (instead of sending them to my bank account). This is a big part of why there is $735.20 of “value” left in the account. This figure would be substantially lower if these dividends were not reinvested.
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As of April 2026, the funds left over after withdrawing my original $1,000 investment (with all dividends automatically reinvested) have been a bit of a mixed bag. Long-term performance looks decent on paper, but the last few years tell a very different story.
Rampant inflation, followed by continued higher interest rates, has taken its toll on the U.S. housing market and it shows in its performance in recent years. While previous years (especially 2017-2021) showed strong performance, 2024 was weak, 2025 was worse, and so far 2026 is not off to a great start.
In total, the account shows a return of around 75.7% in about 9 years, which equates to an annualized return of around 8.3%. Not terrible, but not particularly impressive given the time horizon either.
Another thing worth noting is that the dividends themselves have been quite small, often just a few dollars at a time, so it’s not exactly a high cash flow investment.
The screenshots above were taken in early 2026 and only represent part of the year of performance so far.
Is ~75.7% a good return over 9 years?
It depends how you look at it. On the one hand, this required no effort, which is a huge advantage. On the other hand, when inflation is taken into account (especially in recent years), the real return is probably much lower than it seems.
I certainly could have made a lot more money during this time if I had put it into my land investment business, for example, but the advantage of something like Fundrise is that it’s passive.
The trade-off here is convenience versus performance. More active real estate strategies can produce higher returns, but they also require more time, effort, and risk.
The appeal of Fundrise isn’t in the high returns. The appeal is the passive nature of this investment and the fact that it requires nothing more than the initial dollars I invested in it.
RELATED: What exactly is “passive income”?
The biggest drawbacks of fundraising
As many people have mentioned in YouTube comments over the years (and I have to agree), the biggest drawback to investing with Fundrise is the fact that I can’t quickly or easily cash out my shares before the five-year holding period unless I want to pay the penalty for redeeming the shares early.
This five-year penalty also applies every time I automatically reinvest my quarterly dividends. In other words, each reinvested dividend starts its own five-year lock-up period, which can make liquidity even more restrictive over time.
When you compare this lack of liquidity to the stock market, Fundrise looks less attractive.
Another major limitation is that you have no control over how your money is invested; It is entirely up to the fund managers to make those decisions.
On the same coin, there is something to be said for diversifying your real estate investments rather than staying strictly in the stock market, as most “normal” investors do. Even if the returns are not substantially higher, there is value in simply spreading your money across different asset classes.
Should you invest with Fundrise?
I’m not here to give you investment advice; I’m here to share my Fundrise investing story so you can understand the real-world consequences (for better or worse) of investing in this type of eREIT.
If you’re wondering if this is a good time to start fundraisingThe honest answer is: I don’t know. Like any investment, time is important and it is impossible to predict where the returns will go from now on.
Fundrise seems very aware of where things are. You can find this in their news section, where they regularly post their findings, research and explain how things are going.
It’s important to remember that while Fundrise offers an accessible and comparatively low-effort way to dive into real estate investing, it is not without risks and limitations, particularly in liquidity and fluctuating returns.
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Whether you invest with Fundrise or not, make sure it aligns with your financial goals and risk tolerance.
Stay curious, stay informed, and as always, invest wisely.
