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 * Real Estate


GOLDMAN SACHS BACKS SINGLE-FAMILY RENTAL FUND FOR SMALL INVESTORS


REAL-ESTATE FIRM FUNDRISE IS RAMPING UP ITS HOME PURCHASES

FUNDRISE RECENTLY INVESTED IN A RENTAL-HOME COMMUNITY IN SANDY SPRINGS, GA.
GOLDMAN SACHS LAST WEEK PROVIDED A $300 MILLION CREDIT FACILITY TO THE COMPANY.

Photo: Kevin McNair
By
Konrad Putzier
Close


KONRAD PUTZIER

 * Biography
 * konrad.putzier@wsj.com

June 1, 2021 8:00 am ET
 * 
   Print
 * 
   Text
 * 
   3



A startup that wants to open up the single-family home rental market to small
investors is ramping up its home purchases, after winning the backing of Goldman
Sachs Group Inc.

Real-estate firm Fundrise manages a fund that enables customers to invest as
little as $500 in homes going up in fast-growing cities such as Charlotte, N.C.,
Tampa, Fla., and San Antonio. With the dearth of homes for sale throughout the
U.S. pushing up housing prices, single-family rentals have become an
increasingly popular alternative to buying in desirable neighborhoods.

Goldman Sachs last week provided a $300 million credit facility to Fundrise, the
startup said. The deal comes as more financial firms court individual investors.
Apps such as Robinhood have turned thousands of younger and less wealthy people
into busy stock traders, leading to hopes that some of them could be drawn to
real estate, too.

Washington, D.C.-based Fundrise manages a so-called interval fund, in which
individual investors can invest small sums without going through a broker,
though they can only pull out their money at set intervals. 

The fund has raised around $200 million since its January launch, and has bought
or signed contracts to buy around 2,500 homes, said Fundrise Chief Executive Ben
Miller.

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