I’ve been thinking about trying one of these 2 funds to dip my toes in real estate investing but I can’t find much information (opinions) on people’s experiences with them. My financial advisor was “so-so” about them. “Play with them if you want but don’t put the bulk of your retirement in them.”
So I’m hoping that some people here have some experiences to share with these two. Thanks!
Hi, I have a Fundrise account. My financial advisor also suggested I not keep putting money towards it. I think because it is not a liquid type of account. Not like a ROTH. But I do get a really good return on investment for the money I have there. I opened my account because I wanted to diversify for retirement.
Thanks Jenn!
I agree. There is heavy advertising for these investments but little information from the advisors that manage our portfolios.
Groundfloor is another way of investing with little cash. I think any extra cash for investment should be in Treasury Bonds.
I haven’t heard of Groundfloor, I’ll look them up, thanks.
Im glad I could help you.
I use Fundrise and have been pleased with the results. As mentioned, its not a liquid or even semi-liquid asset. Look at having it tied up for at least 5 years. However, the returns for me have been very good and the support has been outstanding. Great way to dip your toe into real estate without owning something straight up that you have to maintain.
I have a Fundrise account and I just put $10 biweekly into it. You can start with just $10. I find it interesting to see what I am invested in & they pay dividends regularly. It is not somewhere I put a ton of money but I figure it as a 5-year goal for saving a little bit at a time with a small return. So better than setting in a savings account right now!
Just curious, what sorts of returns are you guys getting for Fundrise? Mostly wanting to compare that against, say, some syndications I’m in and S&P 500 to see if I should be diversifying more.
Thanks in advance!
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@cycloned posted:
I use Fundrise and have been pleased with the results. As mentioned, its not a liquid or even semi-liquid asset. Look at having it tied up for at least 5 years. However, the returns for me have been very good and the support has been outstanding. Great way to dip your toe into real estate without owning something straight up that you have to maintain.
Ditto.
I think the “5 year rule” is a great one. I personally use it for all my investment accounts - the basic idea being never invest a dollar you might need within 5 years.
I’ve been a Fundrise investor for a year now – it’s the smallest of my investment accounts, but the returns have been solid. I invested in Fundrise primarily for diversification - I have separate taxable investment accounts with Wealthfront (robo-managed ETFs) and a Fidelity individual equities accounts that I self-manage. My FR account has met my expectations. It’s not an equity account - so you shouldn’t expect growth on par with stocks/ETFs. AND - one should keep in mind that REITs have dividend return requirements that have tax implications… i.e. your growth is likely to be less about appreciation of the asset than it is about the fact that REITs are required to pay out 90% (IIRC) in dividends, which you’ll be taxed on.
But - I completely agree with @cycloned – I think it’s a great vehicle for diversification. I wouldn’t start with it – but it’s been a great supplement to a robo-ETF account and my own individual equities account (and I’m a long-term, buy-and-hold guy, not a day trader).
I don’t think an REIT/eREIT account is appropriate for your first/initial investment - but I do think a platform like Fundrise is a really good choice if you’ve spent a couple years in equities/ETFs and are looking for diversification. I think the big thing to remember -as Fundrise and other such platforms/funds clearly state - any kind of real estate investment is, by its nature, a longterm investment.
You can take the tax hits (or tax benefits) a lot more easily for needed liquidity when it comes to a robo-ETF/ETF/equity account - but REITs, you need to think long-term and should assume your investment is illiquid for years.
Specifically to Fundrise, though? I very much love their disclosure on investments - and I’ve even self-tracked the individual market communities that my investments via the eREIT are in.
I don’t think it should be anyone’s primary investment vehicle - but I think it’s a great diversification play and I am very happy with it as a component of my overall portfolio.
…and no, I have no relationship with the company beyond my account :-)… but I think I can get a fee break so, whatever – Fundrise
thanks every one for sharing
