5 min read
Sources:
Fundrise eREIT, LLC Form 424B3, April 27, 2026; House Hack, Inc. Form 1-A/A, 1-K and 1-SA
Last reviewed:
Short answer
Different products. Fundrise is a managed fund: you buy shares of a REIT run by an outside manager that is paid a percentage of assets every year (0.85%, up to 1.00% of net asset value, per the April 2026 merger prospectus for the consolidated Fundrise eREIT) plus a 0.15% advisory fee on the account, up to 1% of each property purchase, up to 5% of development costs, up to 2% on loans it originates and up to 5% of gross receipts for affiliate property management, with a redemption plan that targets 10% of NAV a year at the manager’s discretion. Reinvest is an operating company: you buy shares of House Hack, Inc. itself, which charges no management, acquisition or disposition fee and pays its officers disclosed salaries, and which offers no way to sell at all. Fundrise uses mortgage leverage across hundreds of properties and tens of thousands of investors; Reinvest owns 38 properties with no mortgages and $38.6 million of unsecured bonds. Kevin’s angle is that fund fees are the quiet killer of real estate returns; the honest counter is that Fundrise gives you diversification, a professional manager and a door out, and Reinvest gives you none of those. The table below is from both companies’ SEC filings.
Numbers on this page are a head start for your own analysis, not a substitute for it. They were read or computed from the company’s SEC filings on a given date and may be out of date or wrong. The SEC filings control. Verify every figure on SEC EDGAR (CIK 0001945278) before relying on it.
Fundrise asset management fee: 0.85% of NAV a year, up to 1.00% at the manager’s discretion (Form 424B3, April 2026)
Reinvest sponsor fees: none; overhead was about 1.3% of assets annualized in H1 2026
Fundrise exit: redemption plan targeting 10% of NAV a year, manager may allow 20%, not guaranteed
Reinvest exit: none; no market, no redemption
Fundrise also: 0.15% advisory fee on the account (per fundrise.com); up to 5% of development costs; up to 2% on loans; up to 5% of gross receipts for property management
Verify each platform yourself. The competitor figures on this page were read from that company’s own SEC filing or website on November 6, 2026 and are quoted as found; fee schedules change, offerings get amended, and a platform may charge fees this page does not list. Before comparing anything, open each company’s current offering circular on sec.gov and its own fee page, and read the Reinvest figures against the House Hack, Inc. filings linked at the bottom. Nothing here is a recommendation of either.
Side by side, from the filings
Fundrise (Fundrise eREIT, LLC) | Reinvest (House Hack, Inc.) | |
|---|---|---|
What you own | Common shares of a non-traded REIT run by Fundrise Advisors, an outside manager | Shares of an operating company, House Hack, Inc. (non-voting common, or Series A Preferred at $1.90 that converts to non-voting common on December 31, 2029) |
Ongoing fee to the sponsor | Asset management fee: 0.85% of NAV a year, which the manager may set up to 1.00% | No acquisition fee, no asset management fee, no disposition fee, no profit share. Officers draw disclosed salaries ($344,002 for the CEO in 2025). Company overhead: G&A $1,843,704 in 2025, about 2.6% of year-end assets; $528,365 in the first half of 2026, about 1.3% of assets annualized. Preferred offering costs: 1% to the broker-dealer plus up to $1 million on its direct sales and about $250,000 of expenses |
Account-level advisory fee | 0.15% a year, charged by Fundrise Advisors on the investor’s account, as Fundrise publishes on its own site (the fund prospectus read here covers fund-level fees only) | None |
Deal fees | Acquisition fee of up to 1% of a property’s purchase price to an affiliate; debt servicing fee up to 0.15% a year of debt; development and other affiliate fees; reimbursement of about $2.9 million of organization costs | None |
Development and construction | Entitlement and development management fee of up to 5% of total development costs, hard and soft, excluding land, to an affiliate | None; renovation subcontracted at cost |
Lending and property management | Origination fee of up to 2% of any loan or fixed-income investment the fund funds; property management fee of up to 5% of gross receipts where an affiliate manages | None; management in house |
Leverage | Mortgage and other debt at the property and fund level | No mortgages. $38,612,004 of unsecured 5% bonds at the parent, convertible at $1.40 from 2027 |
Getting out | Redemption plan targeting 10% of NAV a year, manager discretion to 20%, can be suspended | None. No public market, no redemption program; the circular says hold indefinitely |
Diversification | Hundreds of properties, many markets | 38 properties, mostly Ventura County |
Who runs it | Professional manager, separate from shareholders | Founder holds 100% of voting shares |
Audit and reporting | SEC-registered, audited | Annual PCAOB audit; semiannual SEC reports |
Fundrise also charges a 0.15% a year advisory fee at the account level through Fundrise Advisors, on top of the fund’s 0.85% to 1.00%. That rate is as Fundrise publishes it on its own site; the merger prospectus read for this page covers the fund-level fees only. Together the two are about 1% a year before any acquisition, development, origination or property-management fee.
What the fee difference is worth
At 0.85% plus 0.15%, a $10,000 Fundrise position pays about $100 a year before any acquisition, development, origination or property-management fee, every year, whether the fund gains or loses. Over ten years that is about $1,000 plus compounding drag, roughly 10% of the starting stake. Reinvest charges nothing per dollar invested; instead, all shareholders share the company’s overhead, which was $1,843,704 in 2025 against $71.4 million of assets (about 2.6%) and $528,365 in the first half of 2026 against $80.1 million (about 1.3% annualized). The honest comparison is not zero versus 0.85%; it is a shrinking fixed cost versus a percentage that scales with the money.
Kevin’s angle
Kevin’s view, stated as an angle: fund fees are the quiet killer of real estate returns, and Reinvest was built as a company rather than a fund so that nobody sits between the shareholder and the houses taking a percentage. That is a design choice, and it costs the shareholder something else: there is no outside manager with a fiduciary duty, no diversification across markets, and no door out.
The honest objections
“No fees” is not “no costs.” Reinvest’s overhead is paid by shareholders through the income statement instead of a fee schedule: $1.84 million of G&A in 2025 on a $71 million balance sheet. The difference is that it is a fixed cost that shrinks as a share of assets, not a percentage that scales with them, and it is audited rather than contracted.
The platforms let you out. Reinvest does not. Every platform on this page offers some exit, with a catch. Reinvest offers none and says so.
The preferred dividend is funded from the raise. The 2026 circular says Series A dividends are expected to come from offering proceeds and other sources, not profits, and may be a return of capital. The cash page has the numbers.
Fundrise charges a percentage every year and lets you leave, slowly. Reinvest charges no percentage and does not let you leave. Pick the one whose trade-off you can live with.
Simply put
✅ Fundrise
➡️ A fund. A manager takes 0.85% to 1% of your money every year, plus deal fees.
➡️ You can ask for your money back, slowly, and they can say no.
✅ Reinvest
➡️ A company. No manager fee. Overhead comes out of profits like any business.
➡️ You cannot sell. At all. Maybe for years.
Sources
Fundrise eREIT, LLC, Form 424B3 joint information statement and prospectus, April 27, 2026: asset management fee 0.85% of NAV, up to 1.00%; acquisition fee up to 1%; debt servicing fee up to 0.15%; organization costs about $2.9 million; redemption plan 10% of NAV targeted, 20% at discretion. Open the Fundrise filing
Same Fundrise Form 424B3, Management Compensation table: entitlement/development management fee up to 5% of development costs; origination fee up to 2%; property management fee up to 5% of gross receipts. The 0.15% advisory fee is Fundrise’s published account-level rate, not in this prospectus.
House Hack, Inc. Form 1-A/A, October 28, 2026: no sponsor fees; officer compensation; offering costs; no redemption; portfolio and liquidity. Open the Form 1-A/A
House Hack, Inc. Form 1-K for 2025 and Form 1-SA for June 30, 2026: G&A $1,843,704 and $528,365; total assets $71,372,245 and $80,110,311; bonds $38,612,004. Open the Form 1-K · Open the Form 1-SA
All House Hack filings: SEC EDGAR, CIK 0001945278
Verify against the SEC record
Read this before you rely on anything above. Every number, date and quote on this page is a starting point for your own analysis. We took them from House Hack, Inc.’s public SEC filings, or computed them from those filings, as of the review date shown on this page. Filings get amended, figures get restated, and we can make mistakes in reading or arithmetic. If anything here differs from an SEC filing, the filing is right and this page is wrong. Do not make an investment decision on this page. Open the filings on SEC EDGAR (CIK 0001945278), read the risk factors, and check each figure yourself or with a licensed adviser. Nothing on this site is investment, legal or tax advice.
These anchors are the same on every page of this Library. Each line names the filing on SEC EDGAR, CIK 0001945278, where the fact can be checked.
SEC inquiry HO-15114: closed February 9, 2026, no enforcement action recommended. Record: Form 1-K (filed April 30, 2026) and Form 1-SA, Legal Proceedings. Open the Form 1-SA
Independent audit: annual, under PCAOB standards, by dbbmckennon. Record: Form 1-K, independent auditor’s report. Open the Form 1-K
Balance sheet, June 30, 2026: 38 properties, no mortgage debt, $16.3 million liquid assets, $38.6 million of 5% bonds. Record: Form 1-SA. Open the Form 1-SA
H1 2026 results: $3,174,550 revenue, $539,484 operating income, $150,608 GAAP net loss after bond interest. Record: Form 1-SA. Open the Form 1-SA
2025 option plan: $0.66 strike, no vesting before December 17, 2030, seven price and valuation hurdles. Record: Form 1-U/A. Open the EDGAR filing list
Liquidity: no public market and no redemption right for Class A shares. Record: Form 1-A offering circular. Open the Form 1-A
Founder’s personal matters: the 2023 DFPI consent order and the 2023 FTX settlement are Kevin Paffrath’s personally; House Hack, Inc. was not a party. Record: Form 1-K, Legal Proceedings. Open the Form 1-K
Company facts and numbers on this site are a head start for your own analysis, not a substitute for it. They may be out of date or wrong. The SEC filings control. Verify everything on SEC EDGAR, CIK 0001945278, before relying on it. Nothing here is investment, legal or tax advice.
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