Author Topic: RE Crowdfunding Platforms  (Read 1490 times)

ngh101

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RE Crowdfunding Platforms
« on: August 26, 2019, 01:34:37 PM »
Greetings,

I am new to this forum, but have been reading it as a guest for a few months now.  I wanted to know if anyone here has any experience using some of the new RE crowdfunding platforms such as FundRise or Diversyfund.  Or if anyone has made any RE investments through the marketplaces such as Roofstock or HomeUnion?  I want to invest in real estate (other than REITs), but have no time or interest in active property management, so these platforms look and sound appealing.  I would like to know if anyone on this forum has used or is using platforms such as these (there are so many of them), and what your experience has been, and any lessons learned you are willing to share.

Thank you for your time.

bacchi

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Re: RE Crowdfunding Platforms
« Reply #1 on: April 10, 2020, 10:37:25 AM »
Get a brokerage account and buy VNQ or VNQI. Or you can buy REITs directly like O or ACC. There are even some nursing home REITs and medical office REITs.

Much safer and you don't have to deal with tenants.

Michael in ABQ

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Re: RE Crowdfunding Platforms
« Reply #2 on: April 10, 2020, 12:22:34 PM »
I know some of them require you to be an accredited investor.

I'd say now is probably not the best time to invest in real estate. Several months from now there might be some deals - but investing in a retail center where half the tenants are probably out of business, or an apartment complex that has 30% collection loss is not a good idea.

teltic

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Re: RE Crowdfunding Platforms
« Reply #3 on: April 14, 2020, 06:07:35 PM »
I've been using fundrise.com since June 2016.

6/1/2016 = $6500
4/14/2020 = $8416.75 (I've received $1,595.24 in dividends).

So $3,605.24 in returns from my $6500 in 4 years.

IRR is 11.79%.

I've been pleased with the overall investment.  Fun to get occasional deposits to my account.  Cool to see apartment complex's the fund is buying.

FatFI2025

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Re: RE Crowdfunding Platforms
« Reply #4 on: April 14, 2020, 06:34:35 PM »
I've been using fundrise.com since June 2016.

6/1/2016 = $6500
4/14/2020 = $8416.75 (I've received $1,595.24 in dividends).

So $3,605.24 in returns from my $6500 in 4 years.

IRR is 11.79%.

I've been pleased with the overall investment.  Fun to get occasional deposits to my account.  Cool to see apartment complex's the fund is buying.

Appreciate the info @teltic! I watched the P2P lending space crumble and I'm thinking the same might happen with the public RE syndication. 11.79% IRR is respectable, but not for the last four years we've had. If this stuff can keep spitting out 6-8% cash flow with 2-4% cap gains on top, I'll dump direct-owned real estate and transition fully over.

Question, do you get a K-1 that shows passive losses?

teltic

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Re: RE Crowdfunding Platforms
« Reply #5 on: April 15, 2020, 09:52:53 AM »
Appreciate the info @teltic! I watched the P2P lending space crumble and I'm thinking the same might happen with the public RE syndication. 11.79% IRR is respectable, but not for the last four years we've had. If this stuff can keep spitting out 6-8% cash flow with 2-4% cap gains on top, I'll dump direct-owned real estate and transition fully over.

Question, do you get a K-1 that shows passive losses?

No; I don't get a K-1.

Yeah I've played around with prosper.com (p2p loans); prosper was saying I was earning 7%ish.  I was using an lendingrobot.com that would choose my funds to invest in... Was claiming 14%... I was probably somewhere in the middle.

I'm starting to enjoy the simplicity of stocks... So I've decided to stop investing in prosper.com and fundrise.