Crowdfunding Meets Tax Benefits as Fundrise Seeks $500 Million
- DC-based firm aims to fund real estate in ‘opportunity zones’
- Rules for tax breaks, part of last year’s cuts, remain cloudy
Photographer: David Paul Morris/Bloomberg
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Fundrise LLC helped pioneer a model of raising small amounts of money online for real estate projects around the U.S. Now it’s starting a fund to buy properties in low-income areas of the country eligible for generous tax breaks.
The company plans to open investment in the Fundrise Opportunity Fund next week, aiming to raise $500 million by the end of 2019, according to co-founder and Chief Executive Officer Ben Miller. Clients can invest as little as $10,000, he said. The money will be used for projects in census tracts throughout the U.S. that were recently designated “opportunity zones” under the new federal tax law.