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How to Invest in Real Estate for as Little as $500

The crowdfunded real estate company Fundrise enables you to add real estate to your portfolio without a large amount of capital. In fact, you can invest in real estate through Fundrise with as little as $500. Fundrise was founded in 2010 as one of the early crowdfunded real estate websites. The idea behind it is to enable regular investors to gain exposure to real estate assets, even if they only have a few hundred dollars to get started. Today, Fundrise primarily offers electronic real estate investment trusts (eREITs) and electronic funds (eFunds) to investors. Both are types of alternative investments available exclusively and directly through Fundrise, without brokers or selling commissions, according to the company. An eREIT, as Fundrise describes it, “is a professionally managed, diversified portfolio of commercial real estate assets.” Such assets can include apartments, hotels, shopping centers and office buildings across the country. An eFund, on the other hand, “is a professionally managed, diversified portfolio of residential real estate assets.” These assets can include single-family homes and condominiums. There are costs associated with your portfolio. They generally include a 0.85 percent annual asset management fee and a 0.15 percent annual investment advisory fee — for a total cost of 1 percent.
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