It's been flawless for me, also got just below 10% before taxes last year which was needless to say a challenging one for my traditional equity investments even if I did beat the market there too, I didn't get that. It's basically my primary alternative investment now, looking to get it up to maybe 10% of my investment total this year if I can, should reduce my wild tech swings somewhat with some consistent income.
For comparison and why I'm looking to hedge, my mainline equity and bond holdings last year were up 31.9% in late September, then fell to -2.9% just before Christmas to end up 6.3% for the year. Volatility is my middle name right now unfortunately, and I'm of the thought I should be reducing that somewhat.
Ah crap, I was about to go say something akin to "If they ever open up an IRA option I'm going to be all over that" and Googling suggests there is access now via Millenium Trust Company. Just filed the application, all online Docusign and everything imported from my current account, and going to wind up liquidating some bond holdings on companies that may not reach their maturity dates intact; 11% is great till you get a ratings downgrade haha, and I strongly suspect Fundrise is a safer bet than my junk bond dabbling.
@Anonymous wrote:I looked at it for diversification. Do you know much about it? I can get REITs in my normal investment account. What advantages does Fundrise offer over that route?
Most market-traded REIT's follow the market, actually if I look at the one REIT I hold in my brokerage account for the past few years it pretty much has done exactly that: not bad when looked at over said last few years, but that's not what I want right now.
Fundrise explicitly doesn't, it's more direct access to the underlying assets and for a diversification play it's simply better in my opinion. That's why I'm looking at moving some money to it frankly. There's some fees with Fundrise that aren't as clear (without reading their 200 page prospectuses) and there's some weakenss in the housing market currently in the expensive areas for various reasons which is probably something to keep in mind when talking returns.
Ultimately I think it's a good diversification play currently and that's why I am going to be shuffling 10% to maybe 20% max over time to it, but it's not going to be my primary investment strategy.
Note: the one big downside is Fundrise is not very liquid, at all, whereas a market-traded REIT is. Fundrise is a 5ish year play so don't tie up money you might need, which is why regardless of how good it turns out putting major stash there is not smart: life happens.
Equity if I understand your question correctly, receipts and appreciation much like a traditional REIT.
For smaller investors (it'd cost me too much to start portfolioing my own houses now in anywhere close to what I could manage directly, maybe if I move to College Station, TX I could buy a couple of properties and use both for investment purposes in addition to some space to live in) but if you aren't at that level where you can bankroll a couple of places something like Fundrise is fantastic for getting access to that market space, especially when talking property diversification which probably has all the same principles as investing in the stock market frankly regarding not putting all eggs in one basket.
Plus I don't have to manage anything, all passive from my point, and that's a win too.
Actually thinking about investing in Fundrise myself. I may have some questions for you @Revelate
