ComplaintsforFundrise

• Initial Complaint

  10/23/2022

  Complaint Type:

  Order Issues

  Status:

  Answered

  More info

  On or about June 09, 2022, I requested a refund from FundRise because of my financial circumstances. FundRise responded by reiterating the benefits of keeping the account so I agreed to keep the account but I never received the refund. I continued having problems with the App such as an inability to view my balance or make any changes. As of October 23, 2022, when I open the App, no information is shown and there is a message telling me that I must re-enter all of my information to start a new account. FundRise at the same time continues to deduct monies from my bank account. At this point all I want to do now, based upon reviews seen on BBB and the questionable actions of FundRise, I need a full refund immediately and thereafter, close my account. I also want to make sure FundRise no longer has access to my bank information. I see that because of early withdrawal, I might be penalized 1% of the total amount already in my account. I expect a refund of my monies, including any interest earned after the 1% deduction deposited immediately into my existing bank account. The App does not allow for screenshots so I am not able to upload a picture as proof. I am asking BBB to please assist me with this matter.

  

  Business response

  11/01/2022

  ****, 

  Thank you for reaching out, we would be happy to assist you. 

  According to our records, you have not yet requested a liquidation of your shares. 

  That said, our Flagship Fund offers quarterly liquidity in the form of quarterly repurchase offers and there is zero penalty or cost associated with liquidating these shares. 

  To liquidate all or a portion of your shares, you can submit a request from the Advanced Options section of your account settings by clicking the redemption request link at the bottom of the page.

  If you request a liquidation any time before 12/31, your request should be reviewed and processed at the end of Q4 (early January).

  You can follow along with the status of your request on the transactions page of your dashboard and we will be in touch with more information regarding your requests around the expected review date. 

  Lastly, your account will be closed once all of your shareholdings have been liquidated and your final dividend payment has been disbursed. Once your account has been closed, any future tax documentation will be mailed to the address we have on file for you.

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

  If you have any questions at all, please feel free to contact our Investor Relations Team at [email protected]. 
  

  Kendall D********
  SVP of Investor Relations

• Initial Complaint

  10/06/2022

  Complaint Type:

  Product Issues

  Status:

  Answered

  More info

  I joined Fundrise after seeing an advertisement on social media. Upon joining, I put $1000 of my own money into the account as an "investment." After seeing the money decrease overnight, I decided to withdraw my money but was not able to do so. I then sent an email to Fundrise asking to withdraw my money, and they said they will hold on to my money until early January. My desired resolution would be to have the money in my balance sent back to me as soon as possible.

  

  Business response

  10/13/2022

  ****, 

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

  The Net Asset Value (NAV) per share represents the estimated value of one share and is based predominantly on the underlying value of real estate assets owned by the fund.

  Our ****** Fund, of which you own shares, updates its NAV per share on a daily basis. The recent changes in your account balance reflect near-term fluctuations of the funds NAV per share.

  Short-term changes in ******* Fund, value are expected and can happen for a variety of reasons. Changes in the amount of cash held by the fund, and fluctuations in the value of the funds more liquid holdings are two examples of events that may cause minor NAV changes. The ****** Fund, has recently experienced slight decreases in NAV driven by (among other things) the current macroeconomic headwinds and the impact of rising interest rates.

  We expect the vast majority of the long-term performance of the ******* Fund, to be driven by the underlying real estate holdings. As a reminder, Fundrise investments are intended to be long-term with returns evaluated over a period of years.

  Despite the slightly lower valuations for some of the ******** Fund's assets, the majority continue to perform generally as expected. Furthermore, we remain confident in the stability of the portfolio, especially relative to other assets, and continue to believe in the long-term return potential.

  With regards to liquidation, your liquidation request has been received. Our ***** Fund reviews outstanding liquidation requests towards the end of each calendar quarter. Since you requested a liquidation in October (Q4), your request should be reviewed and processed at the end of Q4 (early January).

  We strive to make the illiquid nature of our investments clear to all investors and non-investors 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.  

  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 with additional information regarding your request.

  If you have any further questions, please reach out to our team at [email protected]. 

  Kendall D.
  Senior Vice President of Investor Relations & Investor Operations

• Initial Complaint

  10/04/2022

  Complaint Type:

  Customer Service Issues

  Status:

  Answered

  More info

  Closed my portfolio on October 3 and a customer service rep said the funds would be disbursed by early January at the latest. This is ridiculous. There should be a way to expedite the funds disbursement in a matter of days - not months. Account number *******

  

  Business response

  10/13/2022

  *****, 

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

  Our ******* Fund, in which you own shares, reviews outstanding liquidation requests towards the end of each quarter. This is due to strict regulations as well as internal policies and procedures. 

  Since you requested a liquidation in October (Q4), your request should be reviewed and processed at the end of Q4 (early January).

  We strive to make the illiquid nature of our investments clear to all investors and non-investors 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. 

  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 with additional information regarding your request. Typically, disbursements occur within 6 to 10 business days after an effective processing date.

  If you have any further questions, please reach out to our team at [email protected].  

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

  Customer response

  10/20/2022

  [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 information about funds liquidation was not information that was obvious in the agreements. You need to find an alternate solution. 
  
  Regards,
  
  *******************
  

• Initial Complaint

  09/26/2022

  Complaint Type:

  Billing Issues

  Status:

  Answered

  More info

  I requested to have my investment account closed with them months ago. They never closed the account and I still do not have my money.

  

  Business response

  10/13/2022

  ******,

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

  Our ******* Fund reviews outstanding liquidation requests towards the end of each calendar quarter. Since you requested a liquidation in July (Q3), your request was reviewed and processed at the end of Q3 (early October). 

  I confirmed that as of October 10, 2022 the funds are currently settling in your bank account. Please allow five business days for the transactions to complete. 

  Additionally, your account will be closed once all of your shareholdings have been liquidated and your final dividend payment has been disbursed (which is expected to occur in mid-October). In the meantime, you will have access to your account to retrieve any records or update your information.

  Once your account has been closed, 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].

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

• Initial Complaint

  04/24/2022

  Complaint Type:

  Billing Issues

  Status:

  Answered

  More info

  I learned more about investment details. I am concerned with the illiquid nature of the investment. My complaint is related to Fundrises structure of their website and App. There is no way for me to remove or edit existing checking account information. As you can see in the attached doc I provided, there is no way to edit or remove my banking account information on Fundrises website. To me, this is predatory business practice. I am no longer interested in pursuing a business relationship with Fundrise. My banking account information needs to be removed and permanently deleted from any of their computer databases.

  

  Business response

  05/17/2022

  ****, 
  
  Thank you for giving us the opportunity to address your concerns. We appreciate your feedback and would be happy to assist you. 
  
  You should be able to request to delete your account by clicking the “Delete account” button under the User Settings section of our ****** app which will initiate the process with our Investor Relations team. 
  
  If you run into any issues with this process, please feel free to email [email protected] and we would be happy to assist in closing your account. 
  
  In regards to the illiquid nature of our funds, like all private real estate investments, investments in Fundrise should be viewed as long-term (5+ year), however, the majority of our funds offer quarterly liquidity upon request. 
  
  I hope this information is helpful and please feel free to reach out to our team any time. 
  
  Kendall D****
  SVP of Investor Relations
  

  Customer response

  05/28/2022

  [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:
  There is no User Settings with a Delete Button in the ****** app to close my account. I'm beginning to believe this is a phishing scam.
  
  Regards,
  
  *********************
  

  

  Business response

  06/15/2022

  Hi ****,
  
  Thank you for following up. I confirmed that you spoke with a member of our support team on May 31, 2022 and your account is now closed. 
  
  For future reference, please ensure you have the most up to date version of our app installed on your phone. 
  
  After logging into your account, you can click on the three horizontal lines in the top left hand corner of the app. On the bottom of this menu, you can find “User settings” as the third option. 
  
  Once you are in your “User settings,” the “Delete account” button is the last option. 
  
  I hope this information is helpful and please let us know if you have any further questions. 
  
  Kendall D****
  SVP of Investor Relations & Investor Operations

• Initial Complaint

  04/22/2022

  Complaint Type:

  Customer Service Issues

  Status:

  Answered

  More info

  Started 03/2022 I sold some of my shares and was told by early April they will let me know if it's approved.04/20/2022 I see the money is pending. Their email says update bank info.04/22/2022 My wife and I go to the bank and add myself to the bank account I figured maybe it's because of the name, so now I'm a joint holder which is what I end up seeing in an Email that came today. I get an email saying we will be glad to authenticate your account manually if you send us a voided check. I get the direct deposit slip and upload it to their website via a secure link. Hours later they say my account is invalid. I'm shopping online with this account but they say it's invalid. It's a bank account that my wife set up when she became an active duty member for the **** ****. Now I'm here seeing others with the same issue. How is it possible that this many people have issues and they are still going. Can I have my money please? I have added screenshots showing that my account was fine as I had to sign in with my username and password in their system by plaid. If my account was invalid I'm sure plaid would have given me an error message not a SUCCESS.

  

  Business response

  05/17/2022

  *****,

  Thank you for giving us an opportunity to address your concerns, I would be happy to explain.

  Our records show that on March 7, 2022 you requested a partial liquidation of your shareholdings. This request was approved to be processed in early April, however, as you mentioned, we were initially unable to verify your new bank account to distribute the proceeds to you. 

  We appreciate you sending the requested documentation to verify your account, and upon confirming your banking information in late April, we reinitiated the transactions to the primary bank account on your Fundrise account. 

  Our systems show that your liquidations were successfully distributed to your bank account on April 25th and settled in your primary bank account on or around May 1st. You should have also received an email from our team on April 25th confirming the transactions had been initiated.

  As a reminder, each fund that you own shares of is a separate legal entity, which must initiate its own transaction to process your liquidations. This is why you should see multiple transactions around the end of April or early May in your bank account. 
  If you're not seeing these transactions, please feel free to email us at [email protected] and wed be happy to help you locate them. 

  In regards to the liquidation requests that you submitted earlier this month, we expect to review those in early July, since the majority of our funds review liquidation requests on a quarterly basis. We should be in touch closer to the expected review date with additional information. 

  You can find a full list of your completed and pending transactions on your investor dashboard. 

  If you have any additional questions, please feel free to reach us at [email protected].

  Kendall D********
  SVP of Investor Relations

• Initial Complaint

  12/24/2021

  Complaint Type:

  Product Issues

  Status:

  Answered

  More info

  I believe this company has stolen my money I have sent requests after request for months to for them to return my money they have not they haven't sent me an email concerning or any of my complaints

  

  Business response

  01/06/2022

  *******,

  Thank you for allowing us to address your concerns. 

  After a detailed review of our records, it appears that we have responded to several of your emails over the past month, including on December 15 and 27.  Please check your spam folder if for some reason you did not receive them. 

  We also called and left you a voicemail at your phone number on file on December 16 at 12:04pm ET in an effort to ensure you had received our prior emails. 

  As we communicated in our prior emails, our eREITs typically review outstanding redemption requests towards the end of each calendar quarter, and the ****** Fund expects to make repurchases quarterly. We have an obligation to treat all investors seeking to redeem the same, regardless of the circumstances. For the ****** Fund specifically, there are strict regulations around repurchases which we must operate within.

  We strive to make the illiquid nature of our investments clear to all investors and non-investors 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. This illiquidity is a feature of our product that we wish for our investors to understand and be comfortable with. The vast majority of our investors seek out our investment product specifically for the stability that comes with an illiquid, non-tradable asset such as real property.

  As the end of the quarter has just passed, I confirmed that your eREIT and ***** Fund liquidations have been processed.  They are currently in the process of settling in your primary bank account on file. Please allow at least 5 business days for the transactions to settle. 

  You can find a full list of your redeemed funds on the transactions tab of your investor dashboard. 

  If you have additional questions, please contact us at [email protected].

  Best regards,

  Kendall D******,
  SVP of Investor Relations

• Initial Complaint

  12/08/2021

  Complaint Type:

  Product Issues

  Status:

  Answered

  More info

  Dear SVP of Investments at Fundrise,I requested a withdrawal on November 7, 2021. I have not received a payment to date. I would like to know the best steps to access the money in my account.

  

  Business response

  12/15/2021

  *****,

  Thank you for giving us the opportunity to address your concerns. I can confirm that, as of this writing, we have your full redemption request on file. You can track the status of your request from the Transactions section of your Fundrise dashboard.

  For context, under our redemption program, all redemption requests that are made during any given quarter, regardless of when the request is made, remain in a pending state until the end of the quarter at which time they are expected to be reviewed and processed.

  We make an extensive effort to ensure that investors are made aware of our redemption program and the relative illiquidity of our investments prior to placing an investment with us. For example, as part of the process of placing an investment, each investor is required to acknowledge the following: I recognize that my investment is in real property, which is fundamentally a long-term, illiquid investment; that liquidations, if approved, are paid out quarterly for the eREITs and Interval Fund, and monthly after a minimum 60-day waiting period for the eFund; and requests for liquidation for the eREITs and eFund may be suspended during periods of financial stress.

  Well be certain to follow up with you soon regarding the status of your liquidation request. If you have any questions, please feel free to reach us at [email protected].

  Kendall D*******,
  SVP of Investor Relations
  Fundrise

• Initial Complaint

  09/07/2021

  Complaint Type:

  Customer Service Issues

  Status:

  Answered

  More info

  Moved in apartment owned by fundrise and they promised will repair kitchen lights before moving in and clean the apartment. Upon moving in we requested over dozen times finally got a letter to stop abusing employees since they refused to repair anything . Got another offer they will pay $25 to complete SELF cleaning since they will never ever complete any work. I refused . We got the wrong mailbox key and its been 3 months they are holding our mail hostage including my baby's SSN.

  

  Business response

  09/16/2021

  *****,

  Thank you for taking the time to share your experiences. Were sorry to hear that your unit did not meet your expectations. 

  As you mentioned, Fundrise is the owner of the apartment complex you reside in; however, we do not directly manage day-to-day maintenance requests or lease negotiations. As a result, the property manager should be able to provide you with more immediate ongoing assistance. Please feel free to reach out to them at any time through the online portal at theridleyapts.com.  

  That said, we are in touch with the apartments property manager who has confirmed that your unit does not have any outstanding work orders or requests. They indicated that they have reached out to you via email should you still need to schedule a repair. 

  Regarding your mailbox key, the property manager indicated that the request to obtain a new key was denied because someone other than the sole leaseholder requested it. For tenants security, only tenants listed on the lease may request apartment or mailbox keys.  As the leaseholder, you should be able to request a new key. You should also be able to work with the property manager to add another individual to the apartments lease should that be required.  

  We appreciate the opportunity to address your concerns and assist you in providing this information. As always, we are available to answer any additional questions at [email protected].
  

  Kendall D****
  SVP of Investments

*Some consumers may elect to not publish the details of their complaints, some complaints may not meet BBB's standards for publication, or BBB may display a portion of complaints when a high volume is received for a particular business. ↩