Investing With Fundrise eReits in 2020: 3 Basic Things to Know

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ts directly. Similar to when you buy a house, you cannot simply pull money out the next day. You need to wait until you sell it to cash out. This makes Fundrise less liquid but can give share price more stability.</p><p id="9f89">2.) Fundrise gives frequent updates on the properties and you can see how much each property is expected to return as well as how much money Fundrise has invested in each property. This is a nice feature because you feel more involved in the process. You get a chance to see where your investments are and how they are performing. With public Reits, you don’t get this kind of daily involvement.</p><p id="5894">You can also customize your portfolio to focus on growth or income. You can even blend the two! My current portfolio has 51 projects which is mostly growth but I also picked up a few income focused Reits to increase my cash flow.</p><figure id="48d9"><img src="https://cdn-images-1.readmedium.com/v2/resize:fit:800/1*[email protected]"><figcaption></figcaption></figure><figure id="97eb"><img src="https://cdn-images-1.readmedium.com/v2/resize:fit:800/1*[email protected]"><figcaption>Credit:Screenshot from author’s phone</figcaption></figure><p id="e36d">3.) Fundrise<a href="https://fundrise.com/historical-performance"> historical returns</a> have been between 8.7% — 12.4% as of this writing (June 2020). That is above the stock market average. Consistent returns has allowed the platform to grow exponentially to 130k investors in just a few years. Since Fundrise is a crowdfunding platform, the more investors they have the more investments they can do.</p><figure id="5e58"><img src="https://cdn-images-1.readmedium.com/v2/resize:fit:800/1*[email protected]"><figcaption></figcaption></figure><h1 id="425d">Is Fundrise safe?</h1><p id="ac85">While Fundrise is a relatively new platform, it is a legitimate platform. As of 2020, Fundrise has done almost 5 billion in asset transaction value and has 130k active investors. This growth has been spu

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rred by their high and consistent returns as more investors become interested as they see the potential for higher returns as well as diversification.</p><p id="a6c1">The eReits carry their own set of risk that should be considered when evaluating the investment. Crowdfunded real estate has some similarities to public Reits but many differences. One of those differences being how much they are required to disclose to the public.</p><h1 id="6300">Summary</h1><p id="34a0">Fundrise is a new way to invest in real estate. It is a crowdfunding platform where investors without thousands of dollar can get involved in real estate investing. While the investment isn’t liquid, the historical returns have been above average. Investors can choose how they want their portfolios to be focused ( growth vs income ).<a href="http://fundrise.com/r/zvvxr4"> If your interested in getting started, you can use this link to get your fees waived for 90 days.</a></p><p id="e669">If you have enjoyed this, you might also like</p><div id="3083" class="link-block"> <a href="https://readmedium.com/streamline-your-finances-with-m1-finance-investing-and-banking-in-one-app-6776615e938a"> <div> <div> <h2>Streamline Your Finances with M1 Finance: Investing and Banking in One App</h2> <div><h3>Want to make your finances easier to manage? M1 Finance will help streamline your finances for easier management.</h3></div> <div><p>medium.com</p></div> </div> <div> <div style="background-image: url(https://miro.readmedium.com/v2/resize:fit:320/1*[email protected])"></div> </div> </div> </a> </div><p id="eec8">Disclosure: This post may contain affiliate links which may provide compensation to me if you sign up through them at no cost to you.</p><p id="5c34">This writing is an opinion based piece and should not be considered investment advice.</p></article></body>

What is Fundrise?

Fundrise is a crowdfunding platform for investing in Real Estate. On Fundrise, you can invest in eReits (trademark term by Fundrise) through crowdfunding with other investors. These are non-traded Reits that make money by either buying and holding properties and charging tenants rent or doing loans and making money on interest. They are similar to public Reits you buy on platforms like M1 although they are less liquids. Below I will list a few things to know about Fundrise. If you are interested in investing through the platform when you finish reading, here is a referral link that will waive the fees for the first 90 days on Fundrise.

1.) Fundrise eReits are private investments. This means they are not liquid like the Reits on the stock market. On the stock market, you can trade in and out daily where as Fundrise has windows for share redemption. This is because with Fundrise, they are taking investor money and purchasing assets directly. Similar to when you buy a house, you cannot simply pull money out the next day. You need to wait until you sell it to cash out. This makes Fundrise less liquid but can give share price more stability.

2.) Fundrise gives frequent updates on the properties and you can see how much each property is expected to return as well as how much money Fundrise has invested in each property. This is a nice feature because you feel more involved in the process. You get a chance to see where your investments are and how they are performing. With public Reits, you don’t get this kind of daily involvement.

You can also customize your portfolio to focus on growth or income. You can even blend the two! My current portfolio has 51 projects which is mostly growth but I also picked up a few income focused Reits to increase my cash flow.

Credit:Screenshot from author’s phone

3.) Fundrise historical returns have been between 8.7% — 12.4% as of this writing (June 2020). That is above the stock market average. Consistent returns has allowed the platform to grow exponentially to 130k investors in just a few years. Since Fundrise is a crowdfunding platform, the more investors they have the more investments they can do.

Is Fundrise safe?

While Fundrise is a relatively new platform, it is a legitimate platform. As of 2020, Fundrise has done almost 5 billion in asset transaction value and has 130k active investors. This growth has been spurred by their high and consistent returns as more investors become interested as they see the potential for higher returns as well as diversification.

The eReits carry their own set of risk that should be considered when evaluating the investment. Crowdfunded real estate has some similarities to public Reits but many differences. One of those differences being how much they are required to disclose to the public.