Our assessment
The Rendity Rating is an assessment system ranging from A to E.
It enabled investors to quickly compare projects across the platform.
A
B
C
D
E
The Rendity Rating measures the relative risk-adjusted return of the individual projects. B-rated projects will have a higher inherent risk than A-rated projects. Thus, B-rated projects will generally have a higher return than A-rated projects due its relatively higher risk. The rating does not imply that investing in one project is fundamentally better, worse, or better suited for an individual investor.
Risk Assessment
A project’s Rendity Rating matches its quantitative project assessment. The project assessment is a numerical method evaluating eight major criteria of real estate investments. Every criterion is separately evaluated, resulting in a total score ranging from 6 to 20. A score between 6 and 8, will result in A rating, between 9 and 11 in a B rating and so on.
6 | 7 | 8
9 | 10 | 11
12 | 13 | 14
15 | 16 | 17
18 | 19 | 20
| Location |
Notes |
Points |
| Primary |
Central location in Top 12 European Cities (A-City) |
1 |
| Secondary |
Suburban location or central location in B-Cities |
2 |
| Tertiary |
Rural location or emerging market |
3 |
| Vacancy |
Notes |
Points |
| Occupied |
90%+ leased with continuous income |
1 |
| Partially leased |
Partially vacant with some income |
2 |
| Vacant |
No leases and no income |
3 |
| Development Stage |
Notes |
Points |
| Management |
Stabilized asset, requires no major improvements |
1 |
| Rehab |
Value-Add to existing asset |
2 |
| New Construction |
Empty land plot, construction of the entire building |
3 |
| Track Record |
Notes |
Points |
| More than € 250 million developed |
— |
1 |
| €50-249 million developed |
— |
2 |
| Less than €50 million developed |
— |
3 |
| Asset Type |
Notes |
Points |
| Residential |
Residential use of asset |
0 |
| Commercial |
Commercial use of asset |
1 |
| Duration |
Notes |
Points |
| Up to 18 months |
— |
1 |
| 18-36 months |
— |
2 |
| 36 months or more |
— |
3 |
| Pre Sales |
Notes |
Points |
| >20% |
— |
1 |
| 10-20% |
— |
2 |
| 0-9,9% |
— |
3 |
| Existing Bank Financing |
Notes |
Points |
| Yes |
The bank has already been audited |
0 |
| No |
There is no bank financing |
1 |
The Rendity Rating is not a measure of the quality or suitability of the investment and is NOT meant to serve as a replacement for individual due diligence. Importantly, the Fundrise Rating system is NOT similar or comparable to ratings from agencies such as Standard and Poor’s or Moody’s.
Das Rendity Rating are for informational purposes only. Each rating is impersonal and not individualized for any specific investor's financial situation and is not investment advice. These ratings are not intended to be, nor should you interpret them to be, a prediction of how a particular investment will actually perform. Each investor should always carefully consider investments in any security and be comfortable with his/her understanding of the investment.
Risk notice: An investor may also consider consulting investment professionals due to the potential risk.
