Fundrise has morphed from a single property crowdfunding platform to a diversified real estate investment marketplace with the launch of their eREIT offerings. Fundrise has gone back to their Reg A roots by leveraging the updated securities exemption allowing any investor the option to purchase shares in non-listed eREITs.
Fundrise first created two eREITs: a Growth eREIT and Income eREIT. We shared late last month that the Income eREIT was nearly sold out. Today we can update you on all five of the Fundrise eREITS.
According to public information, both the Income and Growth eREIT’s are sold out indicating Fundrise has closed on $100 million under Tier II of Reg A+.
As for the newer, geographically targeted eREITs, the most recent information shows the following:
- East Coast: approximately $5.00M
- Heartland: approximately $4.51M
- West Coast: approximately $5.44M
Using Reg A+ to create non-listed REIT’s has been successful enough that other real estate companies have emulated the strategy. Fundrise has published trailing returns that have been pretty impressive and a low bar to entry of just $1000. On top of the decent returns, Fundrise claims 90% lower fees than “traditional channels”. While Fundrise is not quite ready to share their 2017 plans, expect new filings indicating their intent to grow their eREIT business in the near future.
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