Have you been investing in real estate through Fundrise and now need to pull some cash out? You’re not alone. Many people turn to platforms like Fundrise for passive income, but life happens, and sometimes you need access to your funds.
Withdrawing money from Fundrise isn’t as straightforward as checking your bank app, but it’s doable if you follow the right steps. W’ll walk you through the process in a simple way, so you can make informed decisions without the headache.
Table of Contents
Why Withdraw from Fundrise?
Before we get into the how-to, think about why you’re withdrawing. Maybe you’re buying a house, paying off debt, or just rebalancing your portfolio. Fundrise investments are designed to be held for at least five years to avoid penalties and maximize returns.
If you’re pulling out early, you might face fees or tax hits. But if it’s necessary, knowing the process helps you avoid surprises.
One thing to note: Fundrise isn’t like stocks where you sell instantly. It’s more like private real estate funds, so liquidity is limited. That means withdrawals happen on a schedule, not on demand.
The Basics of Fundrise Withdrawals
Withdrawing money means redeeming or liquidating your shares in Fundrise’s funds, like eREITs or eFunds. These are private investments, so the platform reviews requests quarterly.
This setup protects the overall fund stability, too many people cashing out at once could hurt everyone.
According to Fundrise’s guidelines, you can request to liquidate all or part of your holdings. But there are timelines and potential costs involved. Let’s look at the key elements.
Quarterly Review Windows
Fundrise processes liquidation requests four times a year, typically at the end of each quarter:
- January (for requests reviewed after December)
- April (after March)
- July (after June)
- October (after September)
You submit your request anytime, but it’s reviewed in the next quarterly window.
For example, if you request in May, it might wait until July. Some users report that the actual payout happens shortly after the review, often in the following month.
Redemption Periods
There’s a specific redemption period each quarter, lasting about 30 days, when you can submit requests. During this time, log into your account and initiate the process. Missing the window means waiting for the next one.
Step-by-Step Guide to Withdrawing Money
Ready to start? Here’s how to withdraw from Fundrise, broken down into clear steps. I’ll assume you have an active account, if not, sign up first, but that’s another topic.
- Log Into Your Fundrise Account: Head to fundrise.com and sign in. Use your email and password, or whatever method you set up. If you’ve forgotten your details, use the recovery option.
- Navigate to the Liquidation Section: Once logged in, go to your dashboard. Look for the “Settings” or “Account” tab. From there, find the option for “Liquidation” or “Redeem Shares.” It’s not always obvious, but Fundrise has made it user-friendly over the years.
- Submit Your Liquidation Request: Choose how much you want to withdraw—partial or full amount. You’ll need to specify the fund if you have multiple. Confirm your bank details for the transfer. Fundrise uses ACH for payouts, so ensure your linked bank is correct.
- Review and Confirm: Double-check everything. You’ll see any potential penalties or fees here. Hit submit, and you’ll get a confirmation email.
- Wait for Processing: After submission, your request goes into the queue for the next quarterly review. You won’t get the money right away—expect it after the quarter ends.
- Monitor Your Status: Check your account or emails for updates. Fundrise sends notifications when your request is approved and when funds are disbursed. If there’s an issue, contact support.
Some users on forums report getting funds in multiple deposits if they’re from different plans. For instance, one person got most of their money on April 4th and 6th, with the rest a week later.
Timelines and What to Expect
Timing is everything with Fundrise withdrawals.
Here’s a quick table to visualize the process:
| Quarter End | Review Month | Typical Payout Time |
|---|---|---|
| March | April | Early April |
| June | July | Early July |
| September | October | Early October |
| December | January | Early January |
Processing can take a few days to a couple of weeks after approval, depending on volume.
In busy times or market downturns, it might stretch longer. During COVID, Fundrise paused withdrawals temporarily, so keep an eye on economic conditions.
Once approved, funds hit your bank via ACH. No checks or wires, just direct deposit.
Fees and Penalties Involved
Nobody likes fees, but they’re part of the deal for early withdrawals. If you’ve held your shares for less than five years, expect a 1% penalty on the total share value.
After five years, it’s usually fee-free.
There might also be other costs:
- Administrative Fees: Minimal, but check your account.
- Tax Implications: Withdrawals could trigger capital gains taxes. Consult a tax advisor, as this varies by your situation.
No hidden charges beyond that, but always review the offering documents for your specific fund.
Important Considerations Before Withdrawing
Withdrawing isn’t always the best move.
Here are some things to think about:
- Liquidity Needs: If you need money fast, Fundrise might not be ideal. Consider emergency funds elsewhere.
- Market Conditions: Real estate markets fluctuate. Withdrawing during a dip could mean selling low.
- Minimum Balances: Some accounts require a minimum investment to stay active. Withdrawing too much might force a full close.
- Alternatives: Instead of liquidating, look into dividends or NAV distributions. Fundrise often pays quarterly dividends, which you can withdraw without penalties.
- Suspension Risks: In rare cases, like economic crises, requests might be delayed or denied to protect the fund.
Many investors share stories of smooth withdrawals after the five-year mark, with no issues. Patience is key, rushing could cost you.
Tips for a Smooth Withdrawal
To make things easier:
- Plan ahead: Submit early in the quarter to catch the next review.
- Keep records: Save emails and confirmations.
- Update your info: Ensure your bank and contact details are current.
- Reach out to support: If stuck, Fundrise’s customer service is helpful via email or chat.
If you’re closing your account entirely, liquidate all shares first, then request closure through settings.
Common Challenges and Solutions
Sometimes things don’t go perfectly. High request volumes can delay processing. If your request is partial, Fundrise might approve only part of it if fund liquidity is low.
Solution: Start small if testing the waters.
Tax forms might arrive after withdrawal, so factor that in for filing.
FAQs: How to Withdraw Money from Fundrise
Q. Can I withdraw from Fundrise anytime?
A. No, withdrawals are processed quarterly. You can submit a request anytime, but it’s reviewed at the end of the next quarter.
Q. Is there a penalty for early withdrawal?
A. Yes, typically 1% if you’ve held shares less than five years. After that, it’s usually free.
Q. How long does it take to get my money?
A. After approval, funds arrive in your bank within a few days to weeks, often right after the quarterly review.
Conclusion
Withdrawing money from Fundrise is a structured process that rewards patient investors. By understanding the quarterly timelines, steps, and potential costs, you can navigate it confidently.
Remember, Fundrise is built for long-term growth, so weigh your options carefully. If you’re in it for the passive real estate perks, sticking around might pay off more.
Disclaimer: This article is for informational purposes only and not financial advice. Always consult a professional advisor before making investment decisions. Information is based on available sources as of September 2025 and may change.
About The Author
