ComplaintsforFundrise

• Initial Complaint

  07/11/2023

  Complaint Type:

  Service or Repair Issues

  Status:

  Answered

  More info

  We are closing on a our first home and half of our closing funds are tied up with this company. Shares have been sold but funds have not been withdrawn to my account. Our closing date is fast approaching and without funds, we will forfeit the house.

  

  Business response

  07/17/2023

  ******, 

  Thank you for giving us the opportunity to address your concerns and provide more information. 

  Our funds typically review liquidation requests toward the end of each calendar quarter. As such, any request placed between July 1st and the end of the quarter on September 30th should be reviewed and processed at the end of Q3.  Since you requested a liquidation of your shares on July 2nd, your request should be reviewed and processed in early October.

  It is important to note that we have an obligation to treat all investors seeking to liquidate the same, regardless of the circumstances. For the ******* Fund and the ****** Fund specifically, there are strict legal regulations as well as internal Fundrise policies and procedures around repurchases we must operate within. These are documented throughout the offering documents that you signed at the time of investment.

  We strive to make the illiquid nature of our investments clear to everyone by putting this information in all of our offering materials, acknowledgments an investor must attest to at the time of subscription, and through emails directed to investors. The potential for early liquidity is a feature that we chose to include in these funds, which is something many private investment funds do not offer.
  
  That said, you should be able to follow the status of your requests on the Transactions page of your dashboard, and we will be in touch around the expected review date for each fund with additional information regarding your requests. 
  
  Typically, disbursements occur within 6 to 10 business days after the effective processing date.

  Please let us know if there is anything else we can assist with by emailing [email protected].

  *************************;
  Senior Vice President of Investor Relations & Investor Operations

  Customer response

  07/19/2023

  [To assist us in bringing this matter to a close, you must give us a reason why you are rejecting the response. If no reason is received your complaint will be closed as Answered]
  
   Complaint: ********
  
  I am rejecting this response because:
  This copy/paste response shows the business doesn’t care for their customers. I’ve used Fundrise before a few years ago and didn’t have issues withdrawing my shares. This is a recently adapted “rule” that doesn’t benefit anyone. My shares are already sold and the funds are literally just sitting and no longer accruing interest or being withdrawn to me. IT’S my money and I need it to purchase my first home. Even 401k’s have a hardship system for accessibility to your own funds. It’s only $5000. It shouldn’t take a company 4 months to produce this “mediocre” amount. It’s all the money I have, on the other hand. 
  
  Regards,
  
  *******************************
  

  

  Business response

  07/27/2023

  Hi ******, 

  Thank you for following up. We appreciate you sharing your position with us. We care deeply about each and every one of our customers, and always seek to do what is in our power to provide our investors with a good experience. The illiquidity of our investments is a feature of our product that we wish for all our investors to understand and be comfortable with. Many investors invest with us specifically because of this illiquidity and its impact on potential returns. 

  Under our liquidation program all redemption requests that occur during any given quarter remain in a pending state until the end of the quarter at which time they are reviewed and given consideration within the context of all other liquidation requests that have been made, the liquidity position of the funds, and the broader macroeconomic conditions. The date that the liquidation request is made during a given quarter does not necessarily have any impact on the eventual review, as we have an obligation to make a determination based upon the facts and information available to us at that time.

  We make an extensive effort to ensure that investors are made aware of this fact by requiring investors to acknowledge the following statement as part of placing an investment: I recognize that my investment is in alternative assets which are fundamentally long-term, illiquid investments; that liquidations, if approved, are paid out quarterly for the eREITs and the funds registered under the Investment Company Act of 1940, and monthly after a minimum 60-day waiting period for the eFund; and, where possible, requests for liquidation may be suspended during periods of financial stress.

  As you can see, we intend to be straightforward about this information and not obscure it in any way. 

  Please keep in mind that during the redemption processing period, your investments are still eligible to accrue dividends. Any dividends accrued during the quarter should be paid to your primary linked bank account mid-month following the end of the quarter.  

  As always, we are available to answer any additional questions and wish you all the best. 
  
  *************************;
  Senior Vice President of Investor Relations & Investor Operations

• Initial Complaint

  06/30/2023

  Complaint Type:

  Product Issues

  Status:

  Answered

  More info

  I opened up an account November 2022 via the app. All was great funds were in the account and biweekly withdrawals from my checking to Fundrise. Then, in 2023, I checked again, the amount said $0.00! I contacted their customer service via email (the only method of communication). Fundrise said they have no account with me that listed my checking account. I showed proof of withdrawals and continued withdrawals from my checking of "Fundrise Real ES ....." to current. They still denied it and are not helpful. Fundrise also claims I am not in their system with the email I initially opened the account with! How is this even happening!? I have the welcome email form 2022 from the email I provided! This is quite the scam they have going on and after review of some other complaints on the BBB, it seems like what is happening to me has happened to other people!

  

  Business response

  07/11/2023

  ****, 

  Thank you for giving us an opportunity to address your concerns.

  A member of our Investor Relations team responded to your email on 7/5/2023 letting you know that we were able to locate your Fundrise account. 

  As mentioned in our email, your Fundrise account was created under a different email address than the one used to contact us. Based on our teams investigation, it appears you were logging into a second account that you created, but did not fund, using a different email address. 

  Our records indicate that you were able to successfully gain access to your funded account. 

  Should you have any further questions or concerns, please feel free to reach out to us at [email protected].

  *************************;
  Senior Vice President of Investor Relations & Investor Operations

• Initial Complaint

  06/08/2023

  Complaint Type:

  Order Issues

  Status:

  Answered

  More info

  When circumstances made the Fundrise owned and controlled single-family rental home (********************) no longer suitable for my family to continue residing in, we gave written notice that we would continue to pay the agreed upon rent amount as it became due during the time it took the landlord to find a new tenant and until that new tenant moved in and started paying rent. As we have documented, the property was relet on or before May 5, 2023 - which was less than a week after our April 30, 2023 move out from the property. Shockingly, rather than follow legal obligations placed upon it as an entity afforded the privilege to conduct business as a housing provider, Fundrise instead attempted to victimize my family by demanding that we pay it nearly $5,000.00 as opposed to its actual damages which consisted of any lost rent. This was especially disappointing as we had paid Fundrise more than $45,000.00 during the eighteen months that we rented and lived in their asset. Our requests (which subsequently became a formal demand) for an accurate accounting and accurate amount owed were not answered. Instead, Fundrise and/or its agent, ******** ***********, wrongfully seized and retained a deposit entrusted to the company and threatened to harm our credit standing. For more than a month, we have requested that our former housing provider tell us the actual number of days it took to put a new rent-paying tenant in place as well as the actual amount of lost rent that we are required to pay and how that amount should be tendered. The filing of this complaint is our last attempt to resolve this matter without the involvement of state and federal regulatory agencies which we will pursue based on the unfair and deceptive trade practices (including documented inaccurate and fraudulent accounting practices as well as violations of fair debt reporting and collection laws) if this matter is not timely addressed and satisfactorily resolved by Fundrise.

  

  Business response

  06/20/2023

  Hi *******, 

  Thank you for taking the time to share your experience and giving us an opportunity to address your concerns. 

  While Fundrise is the owner of the rental complex you mentioned, we do not directly manage day-to-day operations at the property, meaning we are not directly involved with any sort of lease agreements, negotiations, or disputes. 

  To address your concerns, we encourage you to reach out directly to ******** by calling ************ or emailing ****************************** They have the authority and responsibility to handle lease-related matters and address any questions or issues you may have. 

  Should you have any further questions or concerns, please feel free to reach out to us at [email protected], and we will do our best to assist you.
  
  *************************;
  Senior Vice President of Investor Relations & Investor Operations

  Customer response

  07/06/2023

  [To assist us in bringing this matter to a close, you must give us a reason why you are rejecting the response. If no reason is received your complaint will be closed as Answered]
  
   Complaint: ********
  
  I am rejecting this response because:

  Despite acknowledging that it is the property owner, at its essence, Fundrise's response to the complaint I filed is "although we are the property owners/housing providers who received in excess of $45,000.00 from you over approximately 18 months, we are asserting that because we elect to not actively manage the residential properties through which we make enormous profits, we are not obligated to work with you to resolve the issue of which you complained." Not only is Fundrise's response directing me to engage with its agent, ******** ***********, wholly inadequate, it has no basis in fact or in law. First, as can be seen from the attached lease, I entered into a residential lease contract with **** **** ** LLC - which, via ***************************** initial response, Fundrise has acknowledged is its wholly-owned and controlled subsidiary. ******** *********** is not a party to the contract into which I entered for the rental of ********************. Accordingly, I am not in privity of contract with ******** ***********. ****************** response seems to indicate that Fundrise/**** **** ** LLC has a principal-agent or master-servant agency relationship with ******** ***********. To the extent that is the case and there is a problem that ******** ***********, as Fundrise's agent, has not sufficiently handled on behalf of its principal, it is Fundrise/**** **** *'s obligation and responsibility to ensure that the matter is addressed - either by its agent or through its own action. 
  

  In addition, because of the level of sophistication and savvy that Fundrise/**** **** * represents itself to have, I strongly suspect this company knows that there is nothing under the principles of agency that permits a principal to abrogate responsibilities or duties owed to others by simply asserting that the principal's agent failed to act. In fact, under basic agency principles, a principal is generally responsible for the actions or failures of its agent when such actions are taken within the scope of the agency relationship. 

  Further, I do not accept Fundrise/**** **** *'s response because despite my understanding that Fundrise/**** **** *, as the property owner and party to the rental contract which is the basis of my complaint, is ultimately responsible for resolving this issue, I nevertheless initially attempted to resolve the problem with its agent, ******** ***********. As can be seen from the attached documents, I made numerous attempts to work with ******** ***********, all to no avail. While acting on behalf of Fundrise/**** **** * in what appears to be an agency relationship, ******** *********** is engaging in conduct that appears to violate Tennessee laws (including TN's ***** and case law concerning liquidated damages). Fundrise/**** **** * is ultimately responsible and I do not believe telling me to go back to ******** *********** - which refuses to conduct itself in a lawful manner as it serves as Fundrise/**** **** *'s agent - is an adequate or helpful response. 

  Regards,
  
  ***********************************

  

  Business response

  08/22/2023

  Hi *******, 
  
  Thank you for following up and giving us another opportunity to further address your concerns. 
  
  As mentioned, while Fundrise is the owner of the aforementioned property, we do not directly manage day-to-day operations at the property so we are not directly involved with any sort of  lease agreements or negotiations.
  
  Since the agent managing our units is the legal party that engaged the lease agreement with you, they are also responsible for upholding the terms and conditions outlined in the lease.
  
  As the building owner, we must respect the agreements made between the agent and the tenants. We are unable to intervene directly in the enforcement of specific lease terms, including early termination fees. 
  
  To address your concerns, we strongly encourage you to reach out directly to the agent managing our units, ********. They have the authority and responsibility to handle lease-related matters and address any questions or issues you may have. You can reach them by calling ************ or emailing *****************************.
  
  We appreciate your understanding in this matter, and we hope that you can find a satisfactory resolution through direct communication with the agent managing our units. 
  
  Should you have any further questions or concerns, please feel free to reach out to us at [email protected] and we will do our best to assist you.
  
  *************************;
  Senior Vice President of Investor Relations & Investor Operations
  
  --
  *************************;
  Senior Vice President of Investor Relations & Investor Operations
  *************************************** | ************  
  ***************************************************************************************

• Initial Complaint

  06/06/2023

  Complaint Type:

  Product Issues

  Status:

  Answered

  More info

  I was investing weekly in this fund to achieve the higher level to be able to choose which investments I could put my funds in. As I was approaching that level of investment, they canceled the funds, removed the leveling system and started a monthly/yearly subscription plan to be able to invest in other accounts beyond their basic fund. With their main selling point being the ability to "level up" based on investment amount, this whole investment platform is fraudulent.I immediately requested a liquidation of my account. That was at the end of March. I am still waiting to receive my funds. This investment platform is a scam.

  

  Business response

  06/13/2023

  ***********, 

  Thank you for giving us an opportunity to address your concerns and provide more information. 

   With the introduction of Fundrise Pro, we have made changes to simplify the investment experience. Investors who were previously at our Starter and Basic account levels now have the option to select one of our three investment plans at no additional cost, which allows for greater customization of their portfolio and access to funds beyond the ******** Fund. 
  
  All investors also currently have access to a free trial of Fundrise Pro, where they can create custom investment plans along with access to other features. 

  As you can imagine, these features have higher operational costs that aren't captured by our fees. We wanted to offer a more customized product for those investors who want to utilize it, while not passing these costs along to investors who prefer to invest according to our investment plans. Fundrise Pro is completely optional and we still offer our standard Fundrise platform to investors interested in investing according to one of our plans in a more passive manner. 

  That said, I can confirm that we received your full liquidation request. The ************* reviews outstanding liquidation requests on a quarterly basis. As such, your liquidation request should be reviewed and processed in early July. You can track the status of your request from the transactions page of your Fundrise dashboard. 

  For more details, please see the "Periodic Repurchase Offers section of the ******** Real Estate Fund Prospectus. 

  Please let us know if there is anything else we can assist with by emailing [email protected].  
  
  --
  *************************;
  Senior Vice President of Investor Relations & Investor Operations

• Initial Complaint

  04/12/2023

  Complaint Type:

  Customer Service Issues

  Status:

  Resolved

  More info

  In January of 2023 I wrote the company and followed directions to close my account. Their response was that in early April I would receive my money. I have been trying to get someone live to speak with unsuccessfully. They are supposed to give me back $143.86 direct deposit to my bank account. This is money I have invested and should be able to take back. Now I am closing my bank account associated with Fundrise and cannot speak with anyone about how or when this $143.86 will be paid back to me.

  

  Business response

  05/12/2023

  Hi ********, 

  Thank you for giving us an opportunity to address your concerns and provide more information.

  According to our records, you requested a liquidation on 1/18/2023, however the request was rejected by our system when we received a chargeback from your bank.

  Subsequently, we received a new full liquidation request on 4/12/2023 for your ************* shares. The ************* reviews outstanding liquidation requests towards the end of each calendar quarter. As such, your liquidation requests should be reviewed and processed at the end of this calendar quarter (early July). You can track the status of your request from the transactions page of your Fundrise dashboard. Following the effective liquidation date at the end of the calendar quarter, typically disbursements occur within 6 to 10 business days.

  Should you desire to change your primary bank account on file, you can securely update your bank account in your settings under  “Bank Account” and mark the account as primary in order to receive future transactions to that account. 

  For more details, please see the "Periodic Repurchase Offers section of the ************************* Prospectus.

  Please let us know if there is anything else we can assist with by emailing [email protected].

  *************************;
  Senior Vice President of Investor Relations & Investor Operations

  Customer response

  05/16/2023

  [A default letter is provided here which indicates your acceptance of the business's response.  If you wish, you may update it before sending it.]
  
  Better Business Bureau:
  
  I have reviewed the response made by the business in reference to complaint ID ********, and find that this resolution is satisfactory to me. 
  
  Regards,
  
  ***************************
  
  

• Initial Complaint

  03/28/2023

  Complaint Type:

  Customer Service Issues

  Status:

  Answered

  More info

  I cannot log into my account for weeks now. Their message says they are working on it but no response. I tried to change my password and it still gives me the same message. I have gmail not outlook and cannot contact the company and have not found an address or phone number online.

  

  Business response

  05/05/2023

  *******,

  Thank you for giving us an opportunity to address your concerns and we’d be happy to connect with you. 
  Our records show that you spoke with our team on March 28, 2023 and were able to assist you in regaining access to your account then. 
  That said, we tried calling you again on May 1, 2023 at the number you listed, and left a voicemail since we were unable to reach you. Please feel free to call us back if you’d like to speak over the phone with a member of our team. Our business hours are Monday through Friday from 9:00 AM to 5:00 PM ET. 
  You’re also welcome to contact us at any time using this form on our website or emailing us at [email protected]. If you send us an email, a member of our team should reply in the next 1-2 business days.  
  We look forward to connecting with you and helping you regain access to your account. 

  *************************;
  Senior Vice President of Investor Relations & Investor Operations

• Initial Complaint

  03/26/2023

  Complaint Type:

  Billing Issues

  Status:

  Answered

  More info

  I tried to remove my bank accounts and closed my account with this company and it’s not letting me . I don’t feel as if my bank accounts should be linked to anything I’m trying to closed almost as if this whole company is a big scam!

  

  Business response

  05/05/2023

  *******,

  Thank you for giving us an opportunity to address your concerns and provide more information. 

  According to our records, we were unable to process your investment from your bank account as the account could not be authenticated and as a result, no funds were withdrawn from your account. 

  That said, per your request, your account was closed on 4/28/2023 and you should have received an email confirmation.

  Please let us know if there is anything else we can assist with by emailing [email protected].

  *************************;
  Senior Vice President of Investor Relations & Investor Operations

• Initial Complaint

  01/18/2023

  Complaint Type:

  Order Issues

  Status:

  Answered

  More info

  My investment in Fundrise's ******** Real Estate Fund closed on December 19, 2022.  The number of shares I received in the fund was based on the NAV stated by Fundrise on that date.  The prospectus of the fund as well as the marketing and advertising materials communicated by Fundrise indicate that its NAV is updated daily.  On December 31, the NAV of the fund was updated with a decline of 7% since the date that my investment closed on the 19th (an amount that works out to an annualized amount of over 200%).  When I inquired as to the reason why there was such a large decline in such a short period of time, I was told that interest rate changes and macroeconomic factors required a year-end update.  However, there was not a large change in interest rates or macroeconomic factors from the 19th of December to the end of the year.  In addition, looking at a history of NAV's provided by Fundrise, the NAV of the fund barely moved throughout 2022, only moved at the end of the year, and then has not moved since (as I type this on January 18th, the NAV today is the same as it was at the end of the year). I therefore believe there is ample evidence to indicate that the NAV is not in fact updated daily as advertising and marketing materials indicate and as the prospectus of the fund promises.  Had I known that the NAV of the fund was not in fact updated daily, and that the macroeconomic conditions and interest rate changes of 2022 were not included in the NAV, clearly I would not have invested before those factors were fully considered as a reasonable investor would very clearly understand that those factors would significantly bring down the value.  The harm to me is that my investment was overvalued and I therefore received fewer shares than I otherwise should have.  I also believe there is broader harm to all shareholders as the NAV is clearly not updated daily as Fundrise claims and yet it allows investments to be made at those daily NAV's.

  

  Business response

  02/13/2023

  ****, 

  We appreciate a thorough and thoughtful investor. Thank you for giving us another opportunity to address your concerns and provide more information. 
  
  As discussed in our email communication over the past month, income derived from the ******** Fund’s assets rose in 2022, and more generally across the investments in our portfolio, faster than historic averages. Most key indicators, such as rent growth and occupancy, are performing at or above expectations. However, we still saw fund net asset values or “NAV” declines, in short because evidence mounted to demonstrate that cap rates expanded faster than income growth.
  
  For the ******** Fund, our NAV is calculated daily. Our calculation is designed to adhere to the requirements for computing a current net asset value in Rule 2a-4 of the Investment Company Act of 1940 (“Rule 2a-4”) which requires accounting recognition and measurement of the fund’s investments, among other assets and liabilities. The requirement for a fund’s investments states that “portfolio securities with respect to which market quotations are readily available shall be valued at current market value, and other securities and assets shall be valued at fair value as determined in good faith by the board of directors of the registered company.” Rule 2a-5 of the Investment Company Act of 1940 (“Rule 2a-5”) requires us to select and apply in a consistent manner an appropriate methodology or methodologies for determining the fair value of fund investments. In order to be “appropriate”, the selected methodology must be consistent with the principles of the valuation approaches laid out in Financial Accounting Standards Board Accounting Standards Codification 820: Fair Value Measurements (“ASC 820”).
  
  As described in the prospectus provided to you prior to making your investment, the majority of the investments our funds hold do not have readily available market quotations and so, in accordance with the requirement in Rule 2a-4, these investments are fair valued in good faith. Rule 2a-5 established a consistent, principles-based framework for boards of directors, or their designee, to use in creating their own specific process in order to determine fair values in good faith. We have used this framework to develop a robust process to determine the fair value of our funds’ investments. We determine such fair value measurements generally using proprietary models that rely on what the fair value hierarchy, defined in ASC 820, calls “level 3 inputs.” Level 3 inputs may include information derived through extrapolation or interpolation that cannot be directly corroborated by observable market data, and as such, may ultimately be determined on a different timeframe than is obvious based on observed timing of related market events, including because information from multiple external sources may be utilized to conclude upon the appropriate input that management believes a market participant would use. We monitor relevant and reliable market and investment specific information as it is available to us, and utilize that information to determine appropriate inputs used in our fair value measurements. 
  
  In calculating NAV, there are certain intervals during the year, including year end, when we receive a significant amount of new information from both the market and our investments that are utilized as inputs into or which impact the assumptions utilized in the fair value measurements we make. As also noted in the prospectus, it may be difficult to reflect fully and accurately rapidly changing market conditions or material events that may impact the value of our funds' investments between valuations, or to obtain complete information regarding any such events in a timely manner. For example, an unexpected termination or renewal of a material lease, a material increase or decrease in vacancies, an unanticipated structural or environmental event at a property or material changes in market, economic and political conditions globally and in the jurisdictions and sectors in which a property operates, may cause the value of a property to change materially, yet obtaining sufficient relevant information after the occurrence has come to light and/or analyzing fully the financial impact of such an event may be difficult to do and may require some time. As a result, the fund’s NAV per share may not reflect a material event until such time as sufficient information is available and the impact of such an event on a property’s valuation is evaluated, such that the fund’s NAV may be appropriately updated in accordance with the fund’s valuation guidelines.
  
  Regardless, our fair value measurement objective is to reflect an exit price at the measurement date from the perspective of a market participant that holds the investment. With investments that are valued in reliance on level 3 inputs, there can be a range of acceptable measurements that result from such efforts.
  
  We also want to make clear that the annual financial statements of the ******** Fund, as well as all of our funds, are audited annually by a ***** registered audit firm. You may find our audited financial statements filed on the SEC’s website for all historical periods for which audits are complete. For the ******** Fund, the annual audited financial statements are filed on Form N-CSR and include the required statements covering activity throughout the year, including the financial highlights that include our year end NAV calculation as well as the fair value measurement disclosures required by U.S. GAAP. We expect the annual audited financial statements for the year ended 12/31/22 will be available upon completion of the audit in late Q1 as required by law.
  Given the rigorous nature of the NAV process for the ******** Fund and more fully in our prospectus, we feel confident in the prices at which all investors have had the opportunity to transact on our platform.
  
  Fundrise investments are intended to be long term investments, as you know, and we maintain a positive outlook on our long-term portfolio strategy. While future performance cannot be guaranteed, we expect the core of our portfolio, primarily residential and last mile industrial properties in the Sunbelt, to remain resilient and generate positive income growth.
  
  Please let us know if there is anything else we can assist with by emailing [email protected]. 
  *************************;
  Senior Vice President of Investor Relations & Investor Operations

  Customer response

  02/27/2023

  [To assist us in bringing this matter to a close, you must give us a reason why you are rejecting the response. If no reason is received your complaint will be closed as Answered]
  
   Complaint: ********
  
  I am rejecting this response because: This does not address the concern that I have raised.  There was no material new market information between the time my investment closed and the end of the year. It is very clear that my investment was not appropriately valued on the date that it was closed by Fundrise.  I invested under the terms of the prospectus and marketing and advertising materials provided by Fundrise that indicate that its NAV is updated daily.  I believe there is demonstratable evidence to prove that Fundrise does not in fact update its NAV daily and therefore that my investment was not appropriately valued. 
  
  Again I would reiterate that the NAV at which my investment was valued when it closed on December 19, 2022 was the same NAV at the end of November 2022 indicating there had been no movement since then.  At the end of the year, the NAV suddenly dropped to $12.41.  That NAV has not been updated since as at the end of January 2023, the NAV continues to be valued at $12.41.  This is ample evidence of a NAV that is not updated daily indicating that my investment was not appropriately valued.
  
  NAV on date my investment closed: $13.37 (same as it was at end of November 2022)
  
  NAV at end of the year: $12.41
  
  Nav at end of January 2023:  $12.41
  
  I maintain my request that my investment is refunded in full or re-valued at the year-end NAV which is reflective of the fair value on the date that it closed.

  Regards,

  *********************

  

  Business response

  03/06/2023

  ****,  
  
  Thank you again for following up.
  
  The ******** Fund’s NAV is priced daily. There are certain intervals during the year, including year end, when we receive a significant amount of new information from both the market and our investments that are utilized as inputs into or which impact the assumptions utilized in the fair value measurements we make which is why you saw a change in value at the end of the year.  
  
  Our ******** Fund’s financial statements, including required statements that disclose our year end NAV calculation as well as activity throughout the year, are audited annually. Given the rigorous nature of our NAV process, which is designed to adhere to the requirements for computing a current net asset value in rule 2a-4 of the Investment Company Act of 1940, and all of the many inputs that are involved, we feel confident in the prices at which all investors have had the opportunity to transact on our platform.
  
  For supplemental information, feel free to review the ******** Fund’s prospectus as well as all publicly available information on the SEC website.
  
  Please let us know if there is anything else we can assist with by emailing [email protected].
  

  *************************;
  Senior Vice President of Investor Relations & Investor Operations

  Customer response

  03/14/2023

  [To assist us in bringing this matter to a close, you must give us a reason why you are rejecting the response. If no reason is received your complaint will be closed as Answered]
  
   Complaint: ********
  
  You have indicated that there was a significant amount of new information at the end of the year that gave rise to the change in the valuation between the time my investment closed on December 19th and year-end, December 31.  Please confirm what these changes were as I see no changes in the macroeconomic environment in that period that would give rise to an annualized decline of over 200%.  Further, please confirm that there were no changes in the same variables that you used to determine the year-end NAV between the period of September and December 19th as the NAV moved by $0.02 during that time vs. a movement of $0.96 in the time between when my investment closed and the end of the year. 
  
  To reiterate, I invested with the full understanding that my investment would be made at a fairly valued net asset value of the fund (noted in the prospectus I relied on in making my investment).  This would include all information that come to course over the entirety of 2022 up until December 19th.  Because the NAV barely moved over the course of 2022 and then took a deep dive right at the end of December, it very much appears to me that Fundrise did not appropriately update its NAV throughout the year and instead did a large 'catch-up' at the end of December 2022.  For an investor like myself that invested under the terms of the prospectus which indicates that the NAV is updated daily, this would be false and misleading and a clear overpayment based on an out of date valuation that gave rise to me receiving a large loss.  
  
  I maintain my position that there is more than sufficient evidence that the NAV at which my investment was valued was overvalued and I therefore was alloted fewer shares than I otherwise should have received.
  

  Regards,
  
  *********************

• Initial Complaint

  01/14/2023

  Complaint Type:

  Sales and Advertising Issues

  Status:

  Answered

  More info

  When I had requested liquidation of this account from Fundrise, the balance all of a sudden dropped from $1763.07 on December, 29, 2022 to $1636.72 the next day Dec, 30, 2022 for no apparent reason other than my request to liquidate! I had seen only pluses the whole time Ive had the account open since March, 2022 as you can see in the other photos. I would like my money back they took from me around $126.35.

  

  Business response

  01/31/2023

  ********,

  Thank you for giving us an opportunity to address your concerns and provide more information. 

  To start, we do not have a guaranteed return as all investments on Fundrise involve risk. 

  Transparency is of the utmost importance to us so we would be happy to provide you with more information on your investment. 

  The recent changes in your account balance were driven mainly by the Flagship Fund’s recently updated net asset value (NAV). As you can find in the Flagship Real Estate Fund’s Prospectus: "The NAV of Shares tendered in a repurchase offer may fluctuate between the date a Shareholder submits a repurchase request and the Repurchase Request Deadline, and to the extent there is any delay between the Repurchase Request Deadline and the Repurchase Pricing Date. The NAV on the Repurchase Request Deadline or the Repurchase Pricing Date may be higher or lower than on the date a Shareholder submits a repurchase request." (page 12)
  For context on recent performance, within the Flagship Fund and more generally across the board, Fundrise property income rose in 2022, growing faster than even historic averages. Every key indicator, such as rent growth and occupancy, is performing at or above expectations. However, we still saw NAV declines because cap rates expanded faster than income growth.
  That said, on a relative basis, the fund continues to outperform public stocks (down ~18% for 2022) and public REITs (down ~25% for 2022).  
  While future performance cannot be guaranteed, we remain as confident as ever in our overall strategy and the quality of our assets. Technical factors such as rising interest rates are not something we’d generally expect to impact performance over a longer time horizon. 
  We also published our 2022 Year-End Letter to investors on your dashboard with more information about the performance of our funds and our general thoughts on the market.
  With that said, your account has been closed and any future tax documentation will be mailed to the address we have on file for you.
  Please let us know if there is anything else we can assist with by emailing [email protected]. 
  
  *************************;
  Senior Vice President of Investor Relations & Investor Operations

  Customer response

  02/19/2023

  [To assist us in bringing this matter to a close, you must give us a reason why you are rejecting the response. If no reason is received your complaint will be closed as Answered]
  
   Complaint: ********
  
  I am rejecting this response because:
  This company took money out of my account for no reason saying some lame excuse, but in one day they took over $100 out of my account. I had only had additions to my account in a year, but all of a sudden when I want to take money out they steal over $100 due to my cancelling with them!  They also cancelled my account and I do not have access to my account, they did this to hide the fact they took money from me and scammed me!! This company is horrible and I feel I was taken advantage of with their supposed investments. I want the money they took from my account returned to me immediately!
  
  Regards,
  
  *****************************
  

  

  Business response

  03/01/2023

  ********,

  We would be happy to provide you with more information on our valuation process as well as the timing of your liquidation request.

  To start, future performance cannot be guaranteed, and we are unable to predict precisely what the NAV of the Flagship Fund will be in the future. This is something we strive to make clear to all current and prospective investors, including those who request a liquidation, by having this information in our offering documents as well as acknowledgments investors must attest to, among other places.
  It may also be worth noting that the NAV and any adjustments in NAV are the same for all shareholders, regardless of whether they have a pending liquidation request.
  To provide some additional details, the Flagship Fund, which made up 100% of your portfolio, calculates its NAV daily. Our calculation is designed to adhere to the rules and requirements in the Investment Company Act of 1940, such as Rule 2a-4 of the Investment Company Act of 1940 (“Rule 2a-4”) and Rule 2a-5 of the Investment Company Act of 1940 (“Rule 2a-5").
  In calculating NAV, there are certain intervals during the year, including year-end, when we receive a significant amount of new information from both the market and our investments that are utilized as inputs into or which impact the assumptions utilized in the fair value measurements we make. As also noted in the prospectus, it may be difficult to reflect fully and accurately rapidly changing market conditions or material events that may impact the value of our funds’ investments between valuations, or to obtain complete information regarding any such events in a timely manner. For example, an unexpected termination or renewal of a material lease, a material increase or decrease in vacancies, an unanticipated structural or environmental event at a property, or material changes in the market, economic and political conditions globally and in the jurisdictions and sectors in which a property operates, may cause the value of a property to change materially, yet obtaining sufficient relevant information after the occurrence has come to light and/or analyzing fully the financial impact of such an event may be difficult to do and may require some time. As a result, the fund’s NAV per share may not reflect a material event until such time as sufficient information is available and the impact of such an event on a property’s valuation is evaluated, such that the fund’s NAV may be appropriately updated in accordance with the fund’s valuation guidelines.
  Given the rigorous nature of the NAV process for the Flagship Fund and more fully in our prospectus, we feel confident in the prices at which all investors have had the opportunity to transact on our platform.
  As a reminder, Fundrise investments are intended to be long-term investments, and we maintain a positive outlook on our long-term portfolio strategy. While future performance cannot be guaranteed, we expect the core of our portfolio, primarily residential and last-mile industrial properties in the Sunbelt, to remain resilient and generate positive income growth.
  
  Lastly, your account was closed per your email request to our support team on January 6th requesting that we close your account. 
  
  Please let us know if there is anything else we can assist with by emailing [email protected].
  
  
  *************************;
  Senior Vice President of Investor Relations & Investor Operations

  Customer response

  03/19/2023

  [To assist us in bringing this matter to a close, you must give us a reason why you are rejecting the response. If no reason is received your complaint will be closed as Answered]
  
   Complaint: ********
  
  I am rejecting this response because:
    You can try to justify this all you want, but it won't change the fact you stole money from me when I liquidated this account. It was making steady gains, not once decreasing in value, and you stole $125.00 out of my account when I liquidated. I WANT MY MONEY BACK YOU STOLE FROM ME!!! 
  
  Regards,
  
  *****************************
  

  

  Business response

  03/27/2023

  ********, 

  The Flagship Fund’s Net Asset Value is priced daily so it is expected that your account value will fluctuate with adjustments to NAV. As with any investment, there is a risk of loss and no guaranteed return. 
  
  There are certain intervals during the year, including year end, when we receive a significant amount of new information from both the market and our investments that are utilized as inputs into or which impact the assumptions utilized in the fair value measurements we make which is why you saw a change in value at the end of the year. It’s worth reiterating that these changes impact all shareholders in a given fund, regardless of whether or not they are redeeming off the platform. 
  
  Our Flagship Fund’s financial statements, including required statements that disclose our year end NAV calculation as well as activity throughout the year, are audited annually. For supplemental information on the valuation process, feel free to review the Flagship Fund’s prospectus. Additional publicly available information may be found here on the SEC website: ****************************************************
  
  Please let us know if there is anything else we can assist with by emailing [email protected]. 
  *************************;
  Senior Vice President of Investor Relations & Investor Operations

• Initial Complaint

  01/10/2023

  Complaint Type:

  Order Issues

  Status:

  Answered

  More info

  I invested in fundrise under the impression that there was transparency with my investment. I recently had an unforeseen financial situation that forced me to pull out my ~$2450. During the liquidation process, they conveniently dropped their net asset value (NAV) and deposited $2313 in my account. I believe that they have committed fraud in this sense and have not consistently updated me on the status of my investments, as means to get me to continue to invest. This lack of transparency has been misleading and forced me to report their action.

  

  Business response

  01/30/2023

  ******,

  Thank you for giving us an opportunity to address your concerns and provide more information. Transparency is of the utmost importance to us. 
  
  The recent changes in your account balance were driven mainly by the ******** Fund’s recently updated net asset value (NAV). 
  
  As you can find in the ******** Fund’s Prospectus: "The NAV of Shares tendered in a repurchase offer may fluctuate between the date a Shareholder submits a repurchase request and the Repurchase Request Deadline, and to the extent there is any delay between the Repurchase Request Deadline and the Repurchase Pricing Date. The NAV on the Repurchase Request Deadline or the Repurchase Pricing Date may be higher or lower than on the date a Shareholder submits a repurchase request." (page 12)
  
  For context on recent performance, within the ******** Fund and more generally across the board, Fundrise property income rose in 2022, growing faster than even historic averages. Every key indicator, such as rent growth and occupancy, is performing at or above expectations. However, we still saw NAV declines because cap rates expanded faster than income growth.
  
  That said, on a relative basis, the fund continues to outperform public stocks (down ~18% for 2022) and public REITs (down ~25% for 2022).  
  
  While future performance cannot be guaranteed, we remain as confident as ever in our overall strategy and the quality of our assets. Technical factors such as rising interest rates are not something we’d generally expect to impact performance over a longer time horizon. 
  
  We published our 2022 Year-End Letter to Investors on your dashboard with more information about the performance of our funds and our general thoughts on the market.
  
  Please let us know if there is anything else we can assist with by emailing [email protected].
  
  ******* ***** 
  Senior Vice President of Investor Relations & Investor Operations

  Customer response

  02/04/2023

  [To assist us in bringing this matter to a close, you must give us a reason why you are rejecting the response. If no reason is received your complaint will be closed as Answered]
  
   Complaint: ********
  
  I am rejecting this response because this was the same generic message sent to me via email upon my initial response. Therefore, I can only conclude that you copied and pasted this information with actually looking at my account. In the past, the net asset value of the flagship fund has dropped less substantially and the management has communicated this information in advance. This time, however, as I'm requesting a withdrawal of funds, they conveniently dropped the net asset value substantially without notice, just prior to the company returning my funds. My only conclusion is that they arbitrarily adjusted this value to my account so that they could hold onto the rest of my funds and maintain their own profit. I'm only seeking my original value prior to the adjusted net asset value adjustment back, which was roughly $150.
  
  Regards,
  
  *********************
  

  

  Business response

  02/16/2023

  ******,

  We would be happy to provide you with more information on our valuation process as well as the timing of your liquidation request.
  
  To start, future performance cannot be guaranteed, and we are unable to predict precisely what the NAV of the ************* will be in the future. This is something we strive to make clear to all current and prospective investors, including those who request a liquidation, by having this information in our offering documents as well as acknowledgments investors must attest to, among other places.
  
  It may also be worth noting that the NAV and any adjustments in NAV are the same for all shareholders, regardless of whether they have a pending liquidation request.
  
  To provide some additional details, the Flagship Fund, which made up 100% of your portfolio, calculates its NAV daily. Our calculation is designed to adhere to the rules and requirements in the Investment Company Act of 1940, such as Rule 2a-4 of the Investment Company Act of 1940 (“Rule 2a-4”) and Rule 2a-5 of the Investment Company Act of 1940 (“Rule 2a-5").
  In calculating NAV, there are certain intervals during the year, including year-end, when we receive a significant amount of new information from both the market and our investments that are utilized as inputs into or which impact the assumptions utilized in the fair value measurements we make. As also noted in the prospectus, it may be difficult to reflect fully and accurately rapidly changing market conditions or material events that may impact the value of our funds’ investments between valuations, or to obtain complete information regarding any such events in a timely manner. For example, an unexpected termination or renewal of a material lease, a material increase or decrease in vacancies, an unanticipated structural or environmental event at a property, or material changes in the market, economic and political conditions globally and in the jurisdictions and sectors in which a property operates, may cause the value of a property to change materially, yet obtaining sufficient relevant information after the occurrence has come to light and/or analyzing fully the financial impact of such an event may be difficult to do and may require some time. As a result, the fund’s NAV per share may not reflect a material event until such time as sufficient information is available and the impact of such an event on a property’s valuation is evaluated, such that the fund’s NAV may be appropriately updated in accordance with the fund’s valuation guidelines.
  
  Given the rigorous nature of the NAV process for the ******** Fund and more fully in our prospectus, we feel confident in the prices at which all investors have had the opportunity to transact on our platform.
  
  As a reminder, Fundrise investments are intended to be long-term investments, and we maintain a positive outlook on our long-term portfolio strategy. While future performance cannot be guaranteed, we expect the core of our portfolio, primarily residential and last-mile industrial properties in the Sunbelt, to remain resilient and generate positive income growth.
  
  Please let us know if there is anything else we can assist with by emailing [email protected].

  *************************;
  Senior Vice President of Investor Relations & Investor Operations

  Customer response

  03/14/2023

  [To assist us in bringing this matter to a close, you must give us a reason why you are rejecting the response. If no reason is received your complaint will be closed as Answered]
  
   Complaint: ********
  
  I am rejecting this response because they are not addressing the misinformation leading up to my devaluation nor the convenience of the devaluation just prior to my withdrawal. Fundrise continues to reply with their own policy and valuation information relative to the market. However, they are neglecting the convenient timing for my transaction, which clearly favored them.
  
  Regards,
  
  *********************
  

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