You might be earning a considerable amount of money right now that supports your lifestyle. However, somewhere along the way, you’ll be needing a lot more things, such as houses or cars, most especially if you have a family.
That’s why it’s important to invest and grow your money in the future; when they say time is gold, this is what they mean. With the help of Fundrise, you can use the time to grow your money.
Fundrise is actually a real estate company that has an online platform. The online platform allows individuals to invest in residential and private commercial properties by pooling funds from different individuals. The model is similar to mutual funds, except you’re pooling funds to invest in properties instead of equity markets.
The main product of Fundrise is real estate investment trust funds, which will be discussed later on in this article. In simple words, real estate investment trust funds are similar to crowdfunding.
The minimum investment amount is $500. Save up this much, and you can start investing with Fundrise with a limited fee of just 1 percent.
How to Grow your Money?
To grow your money, you need to put it in investment products or tools. This is also one of the best ways to invest a million dollars.
Here are some ways on how to grow your money for the future with the help of Fundrise.
- Real Estate Investment Trust (REIT)
Fundrise specializes in an investment product called the Real Estate Investment Trust (REIT). REIT is a fund that has the same model as a mutual fund. It’s a company that owns, takes care of the operations, and manages finances of a kind of real estate that earns income. It can be a building that’s being rented out, a hotel, retail space, or even an office building.
In REITs, capital is pooled in from different investors – both individuals and corporations. This pooled money will be used to purchase land and develop real estate with the goal of earning. It’ll take some time before you can get some returns on your investment, but it’ll surely be a substantial amount. This also allows individuals to take part in earning from real estate investments without having to purchase and operate any of the properties themselves.
As a REIT investor, you’ll earn as the value of the land or real estate appreciates. Over time, real estate is one of the very few investments that only appreciate in value. In fact, average returns on Fundrise were north of 10%. But, again, it’ll take some time. So, this is one of the considerations that you must make – the element of time.
On the other hand, Fundrise also offers eFunds as one of its investment products. With eFunds, the model is a little different from REIT. Still, this is another avenue where you can grow your money for the future without having to wait too long.
Instead of having the goal to develop and operate the establishment, eFunds will pool the investor’s money and use it to buy land. Then, it’ll develop the land and sell it once done. Investors can then reap the return on their investments once it’s sold. You’ll spend less time waiting for your investments to give you some value.
As an investor in the products of Fundrise, you will be entitled to quarterly payouts in the form of dividends. This means that when your investments earn from tenants’ rentals, you also get a cut from it. The percentage of earnings you get is called dividends.
Many of the investment products of Fundrise generate returns on a regular basis. Investing in some of the products of Fundrise will allow you to have a stream of passive income, which is another way to get additional earnings while you sleep. This is the beauty of passive income, and it’ll be rewarding in the long run. You can even reinvest the money you get from dividends.
Investing and growing your money with Fundrise will not be fast. In fact, you need to be in it for the long run with these kinds of investments, but it’ll all be worth it.
If you’re young or have money that you’ll not be touching for a long time, you might as well put it in an investment fund with Fundrise rather than keeping it untouched and losing value in a bank account. This can serve as your retirement fund in the future.