Complaints

This profile includes complaints for Fundrise's headquarters and its corporate-owned locations. To view all corporate locations, see Find Local Branches.

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  Fundrise

  11 DuPont Cir NW Fl 9 Washington, DC 20036-1207

  
• 

  Fundrise

  1601 Connecticut Ave NW Ste 300 Washington, DC 20009-1076

  
• 

  Fundrise

  1519 Connecticut Ave NW Ste 200 Washington, DC 20036-1121

  

The complaint text that is displayed might not represent all complaints filed with BBB. 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.

• Initial Complaint

  Date:03/26/2023

  Type:Billing Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  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

  Date: 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process your investment from your bank account as the account could not be authenticated and as a result, no funds were withdrawn from your account.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

  Date:01/18/2023

  Type:Order Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  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

  Date: 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 Answer

  Date: 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

  Date: 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 Answer

  Date: 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

  Date:01/14/2023

  Type:Sales and Advertising Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  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

  Date: 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 Answer

  Date: 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

  Date: 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 Answer

  Date: 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

  Date: 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

  Date:01/10/2023

  Type:Order Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  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

  Date: 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 Answer

  Date: 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

  Date: 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 Answer

  Date: 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,
  
  *********************
  

• Initial Complaint

  Date:01/04/2023

  Type:Sales and Advertising Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  Invested $5,000 with Fundrise. I requested to take the money out on 11/25/2022 and they said the request cannot be processed till early January. I was given the $10 promotion for joining and had also earned about $8 then, so I had not "lost" anything. My understanding was that my balance is now LOCKED/FROZEN since I want OUT - should not be earning or losing anything... Suddenly, as January hit (and it was time to process my request), my funds went down to $4,653.74 - There is no number to call and emailing their support, I only received paragraphs and paragraphs of liquidation policy; them basically saying there is nothing they can do. I am requesting for my $346.26 to be refunded.

  Customer Answer

  Date: 01/26/2023

  Full Name: *********************

  

  Business Response

  Date: 03/01/2023

  ****, 

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

  We do not have a guaranteed return as all investments on Fundrise involve risk. 

  The changes in your account balance towards the end of the quarter were driven mainly by the *************s updated net asset value (***). 

  As you can find in the *************s Prospectus: "The *** 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 *** 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 ************* 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 *** 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 wed 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.

  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

• Initial Complaint

  Date:12/24/2022

  Type:Product Issues
  Status:

  ResolvedMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  I have an online account with a company called Fundrise (****************************************) and I have submitted a request for redemption of funds. Then I plan to deactivate my account. They have frozen my account and are refusing to redeem shares. I have an attorney and general understanding of law. I plan to contact him if they don't comply after my barrage of email requests. They have 3-5 days quoted as how long it takes to redeem shares and it's been 2 weeks or so now. As far as I am aware, if I demand they immediately redeem my shares, they are obligated to comply (not sure what the law states on the time limit from that demand). The amount of funds is small but I have an issue with the principle here. At least you know they don't practice good business, and I think they might be a scam.

  

  Business Response

  Date: 01/18/2023

  ******, 

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

  Our Flagship Fund which made up 100% of your portfolio, reviews outstanding liquidation requests towards the end of each calendar quarter. This is due to strict legal regulations as well as internal Fundrise policies and procedures, and is 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 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. 

  According to our records, you requested a full liquidation of your shares on 12/18/2022.  Your liquidation request was reviewed and processed in early January 2023 (following the end of Q4 2022). 

  Depending on the *** processing time at your bank, the funds can take up to two weeks to settle. That said, we confirmed the funds settled in your primary bank account on 01/13/2023. 

  Additionally, per your requests on December 15th and December 16th, we scheduled the closure of your account, which is why your account is frozen. Your account will be fully closed once your final dividend payment has settled in your bank account (in the next 5 business days).
  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 ********************************. 
  
  *************************;
  Senior Vice President of Investor Relations & Investor Operations

  Customer Answer

  Date: 01/27/2023

  [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

  Date:10/23/2022

  Type:Order Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  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

  Date: 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

  Date:10/06/2022

  Type:Product Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  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

  Date: 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

  Date:10/04/2022

  Type:Customer Service Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  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

  Date: 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 Answer

  Date: 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

  Date:09/26/2022

  Type:Billing Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  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

  Date: 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