Invest in private assets
Invest in farmland
Investments
$10
Fundrise allows a minimum investment of $10 for taxable accounts and $1,000 for IRAs.
Investments
$15,000
The minimum investment on AcreTrader varies by listing, generally starting at $15,000, with some past deals ranging from $3,000 to $100,000. This range is determined by factors such as the size of the offering and the price per acre.
Moderate Risk
3/5
Investing with Fundrise involves risks such as limited liquidity, potential modifications to the share repurchase program, market volatility affecting asset values, the possibility of total investment loss, and regulatory changes impacting operations.
Moderate Risk
3/5
Investing in AcreTrader involves risks like casualty, condemnation, and eminent domain, common to real estate investments.
Minimum Liquidity
1/5
Fundrise offers liquidity through its share repurchase program, allowing investors to redeem shares quarterly with no penalties or costs.
Minimum Liquidity
1/5
AcreTrader investments are considered illiquid, meaning investors should be prepared to hold their investments for the specified duration. While it may be possible to sell shares in a private transaction after this period, there is no established market for them, making resale uncertain.
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Low Return
4.81 %
Investors on Fundrise can expect returns through dividends and appreciation, with an average income return of 4.81% over 7 years.
High Return
9.4-30.3 %
The returns from investing in AcreTrader vary, with historical examples showing realized internal rates of return (IRR) ranging from 9.4% to 30.3% over holding periods between 1.7 and 4.2 years. These variations highlight the potential for both moderate and significant returns, depending on the specific investment and market conditions.
Long-term Investment
5+ years
Fundrise is designed for long-term investments, ideally for a period of 5 or more years, due to its focus on strategies aimed at long-term return potential.
Long-term Investment
3-10 years
AcreTrader investments target hold periods of 3 to 10 years, though this can vary based on market conditions and sale opportunities. Properties may sell earlier or extend beyond the target period, depending on whether favorable buying offers arise or if market conditions dictate a longer hold.
Who can invest
United States
To be eligible to invest with Fundrise, individuals must meet several criteria: they must be at least 18 years old, have permanent residency in the United States, possess a valid U.S. tax ID, and file taxes in the U.S. The platform is open to both accredited and non-accredited investors.
Who can invest
United States
Investing on the AcreTrader platform is limited to accredited investors, as defined by SEC regulations. Non-U.S. citizens can invest if they are legal residents of the United States.
Moderate Volatility
3/5
Assets on the Fundrise platform, such as private real estate and venture capital, typically show lower volatility compared to public stocks and bonds, due to less frequent valuation updates and reduced exposure to daily market swings.
Moderate Volatility
3/5
Farmland assets on AcreTrader typically exhibit lower volatility compared to stocks and bonds, offering a more stable investment option due to the steady demand for agricultural products and the land's intrinsic value.
Regulation and audits
SEC Regulated
Fundrise is regulated by the SEC and must comply with strict reporting, disclosure, and operational standards. It undergoes regular independent audits to verify financial accuracy, legal compliance, and the effectiveness of its internal controls, ensuring transparency and integrity in its operations for investor protection.
Regulation and audits
SEC Regulated
AcreTrader is regulated by the Securities Exchange Act of 1934, SEC rules, FINRA rules, and state laws, reflecting its commitment to transparency and investor protection. As a registered Broker-Dealer, it must adhere to strict financial standards, undergo regular audits, and comply with ethical practices to maintain its standing and ensure the security of its investors' assets.
Insurance
No
Investments on Fundrise, including real estate and alternative assets, are not insured by the FDIC or any other government agency, exposing investors to the risk of loss without insurance protection.
Insurance
Yes
AcreTrader does not explicitly mention specific insurance coverage for investments on its platform. Generally, real estate investments, including farmland, are insured against risks like natural disasters and fire to protect investment value.
Payouts
Dividends
Dividends are paid quarterly, based on income from portfolio projects, and can be either reinvested or cashed out. Appreciation comes from increases in the value of the investment, reflected in the net asset value (NAV) of shares. Returns start accruing after investment settlement, typically within 5 business days, and can be tracked on the Investor Dashboard.
Payouts
Dividends
AcreTrader may distribute net cash from annual income to investors after operating expenses, typically once a year in December. These distributions, based on pro rata ownership, are not guaranteed. If distributed, funds go to the investor's AcreTrader wallet or, for SDIRA or IRA accounts, to the custodian.
Withdrawals
To withdraw funds from Fundrise, investors must submit a liquidation request. Liquidations are reviewed quarterly for most funds, with a waiting period for the eFund. No penalty is charged for liquidating shares from the Flagship, Income, or Innovation Funds, but eREIT and eFund shares held for less than five years may incur a penalty. Liquidations are processed on a "First in, first out" basis.
Withdrawals
Investors can typically get their money back when the property they've invested in is sold at the end of its expected hold period, which may range from 3 to 10 years.
Extra Fees
Yes
Fundrise charges a 0.15% annual advisory fee, a 0.85% management fee for real estate funds, and a 1.85% management fee for the Innovation Fund. Early liquidation of eREIT or eFund shares before 5 years incurs a 1% penalty.
Extra Fees
Yes
AcreTrader charges investors initial closing costs around 2% of the offering value and an annual 0.75% servicing fee of the land's value for management. The primary revenue comes from a 5% commission on the farm's sale, charged to the seller. There are no “carried interest fees.” Fee structures vary by deal, so reviewing offering documents is recommended for specifics.
Taxes
Tax Form
Fundrise investors can expect Form 1099-DIV for eREITs or interval funds with distributions over $10, Schedule K-1 for eFund shares, and Form 1099-B for liquidated shares. Tax documents are issued at the end of January for 1099-DIVs and mid-March for K-1s, available on the investor dashboard. Multiple funds in a portfolio may result in receiving multiple tax forms.
Taxes
Tax Form
AcreTrader aims to provide K-1 tax forms electronically by early March, although delays can occur due to external reporting needs. Tax treatment varies: gains on land sold within a year are taxed at ordinary income rates, while longer holdings are taxed at capital gains rates. Depreciation on buildings or equipment may affect taxes.