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Fundrise investment experience

Frequent Contributor

Fundrise investment experience

Hello guys,

 

Have you investing using Fundrise?

How has your experience been?

 

Thanks!

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Message 1 of 9
8 REPLIES
Frequent Contributor

Re: Fundrise investment experience

Anyone? *sob sob, anyone?

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Message 2 of 9
Moderator Emeritus

Re: Fundrise investment experience

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.




        
Message 3 of 9
Frequent Contributor

Re: Fundrise investment experience

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?




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Message 4 of 9
Moderator Emeritus

Re: Fundrise investment experience


@Workin4abetterFICO 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.




        
Message 5 of 9
Frequent Contributor

Re: Fundrise investment experience

Excellent! Thanks guys!

I think its time to spread out from VNQ.

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Message 6 of 9
Senior Contributor

Re: Fundrise investment experience

Would you be an equity investor in Fundrise deals? Debt only?

 

I expect there may be some adverse selection at play. Experienced owners/developers with good credit considering a financially sound deal often can get credit for a lot less than 10%. I hear 10% and I think "desperate borrower" or "some clown with nothing to lose"...not "great opportunity".

 

I own two REITs, but I have not owned a REIT index like VNQ for many years.

 

One benefit that accompanies VNQ's liquidity is the ability to sell options (covered calls and cash-covered puts) to generate additional income. Of course, options come with lots of risks of their own and many brokerages will limit what newer investors can do.

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Message 7 of 9
Moderator Emeritus

Re: Fundrise investment experience

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.

 




        
Message 8 of 9
Senior Contributor

Re: Fundrise investment experience


@Revelate wrote:

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.

 


So when you invest, does your allocation work as:

 

"I want $1500 in that Denver housing project, and $3500 in the Houston commercial space."

or

"I want $5000 in your Supplemental Income fund." ?

 

Is it one megafund per strategy, with new investors buying out old investors, and 2017 deals mixing with 2019 deals? Or they do vintages, raising $X in 2016 for a strategy, and someone investing in 2017 invests in different pool of assets?

Major spend: CSR, BBP, Costco
Rewards/AAoA ballast: CF, CFU, Discover, ED, BCE, Arrival, DoubleCash
Perks: Schwab Platinum, IHG49, Hyatt75
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Message 9 of 9