Author Topic: Fundrise or other diversification?  (Read 840 times)

NewDay1

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Fundrise or other diversification?
« on: January 12, 2018, 05:46:44 PM »
Hello community,

I'm a 40-something SF Bay Area person, renting, and not in a position to buy anything.  I got a late start in the saving/investing world. I do have a 401K and just moved some savings in an Index Fund (yes at the top of this 10-year bull run, but considering what I've been through, I'm proud of myself for even getting this far).  :-)

I feel concern of only have money in stocks/bonds & a savings account.  For those of us that cannot afford real estate to diversify investments, not sure what else to do???

I read about https://fundrise.com/  and curious if any of you have tried it out, or have any thoughts about it?

Thoughts welcomed - thanks so much!


Rob_bob

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Re: Fundrise or other diversification?
« Reply #1 on: January 12, 2018, 07:32:17 PM »
I invest in real estate through ETF's that invest in REITS, lots of diversification that way and I know I can sell anytime the stock market is open.  I also own a closed end fund, CEF, that invests in RE.

Something like Fundrise looks interesting but I don't think you get much diversification compared to an ETF.  It's probably less liquid too.  If I bought it it would be a very small % of my portfolio.

Mighty-Dollar

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Re: Fundrise or other diversification?
« Reply #2 on: January 12, 2018, 07:36:44 PM »
Never invest in non-traded REITS. PERIOD! Too many reasons to list in one post.
http://investingadvicewatchdog.com/non-traded-reits.html
If you're in love with real estate then invest in VNQ the index fund.

joonifloofeefloo

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Re: Fundrise or other diversification?
« Reply #3 on: January 12, 2018, 07:46:38 PM »
Which index fund? Because an index fund can give you heaps and heaps of diversification!

Depending on the fund, you might want to focus next on diversification of stocks via geography, sector, etc.
You can also buy bonds.
You could do real estate via an investment share in a single, local property, mixer mortgage on same, etc.
You could put $200 into starting up a side gig (i.e., invest in your own business).

NewDay1

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Re: Fundrise or other diversification?
« Reply #4 on: January 16, 2018, 09:44:47 AM »
Thanks for the feedback everyone.

@jooniFLORisploo - When you say real estate investment share, could you please elaborate on that?  (Also, I clicked on the website link at the end of your message.  Is that your story?  Much appreciate for your sharing.)

joonifloofeefloo

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Re: Fundrise or other diversification?
« Reply #5 on: January 16, 2018, 10:09:08 AM »
Hi NewDay1, yes, that's my website (blog, book, etc). Thank you for checking it out :)

re: Share in property, I mean you can co-purchase with others. So, maybe one person alone doesn't have the money for a property or doesn't want sole financial (or other) responsibility for it... You might buy a property with one, three, six, twelve other people. You would own a percentage and gain from appreciation (if that occurred), being responsible for a proportionate amount of ongoing ownership costs (taxes, utilities, etc).

Examples:

1. Three people buy one condo or house together and live inside it together, as co-owners (or one owner lives inside it and pays a rent to the others).

2. Three people buy a house together, convert each floor to its own suite, each owner has one level/suite.

In these, one might use a mixer mortgage -unrelated people having mortgages on the same property, adding up to the total buying price, each responsible for their own mortgage.

3. Five people form a business or co-op and buy land or dwelling together.

4. Twenty people build a cohousing development, presumably reducing cost per unit (but not if they do an expensive build).

In each case, a person can buy into real estate with less money. If it appreciates, one or more sells their portion and takes their portion of the gain.

If going one of these paths, definitely have a legal contract in place via a lawyer, all contingencies considered. When that's in place, it can work very well!