The Money Mustache Community
Learning, Sharing, and Teaching => Investor Alley => Topic started by: haggard on May 29, 2018, 01:29:52 PM
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Found this and a few other of these crowdfunding types for real estate. I was curious if anyone as started to use them with smaller amounts of money?
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Fundrise has been discussed quite a bit on this forum and a quick search will yield some good discussion. Crowdfunded real estate has been a little sketchy in the past so a lot of folks around here are skeptical, but Fundrise has (apparently) solved a lot of those concerns. Still it hasn't really been around long enough for anyone to say whether or not their projected returns match reality.
The Real Estate Crowdfunding Review (https://www.therealestatecrowdfundingreview.com/) has a lot of information you should read before you decide to invest.
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Yes, I started with a small modest investment a few months ago and adding some every month to test the waters. Their short track record is why I'm only adding small amount in the beginning.
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I haven't yet put money in Fundrise, but I have had some in PeerStreet and have really liked their platform. Getting between 7-10% (averaging 8%), but lately seems many of the loans are at 7%. There are still some loans available that are 8.5% but not as many. And those tend to fill with automated orders, which I use, but there are so many automated orders that often it doesn't make it to me before the loan fills.
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I have about 10% in fundrise. For about the past 2 years. I was in one of the first waves of the platform.
The returns have been in the 8-9% range. I was doing auto reinvest, but I didn't like the funds they were auto-reinvesting in. So now I'm just planning on holding my current position and using the dividends to invest elsewhere.
It hasn't been a bad investment, but I wouldn't say this is some hidden gem either.
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Found this and a few other of these crowdfunding types for real estate. I was curious if anyone as started to use them with smaller amounts of money?
It's still a non-traded REIT. Where to begin? http://investingadvicewatchdog.com/non-traded-reits.html Aside from that, non-traded REITS are like trying to reinvent the wheel. The wheel ALREADY works just fine... It's called publicly traded real estate stocks and index funds like VNQ.
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It's still a non-traded REIT. Where to begin? http://investingadvicewatchdog.com/non-traded-reits.html Aside from that, non-traded REITS are like trying to reinvent the wheel. The wheel ALREADY works just fine... It's called publicly traded real estate stocks and index funds like VNQ.
I own both VNQ and Fundrise. According to Portfolio Visualizer, VNQ had a maximum drawdown of 68.3% between February 2007 and February 2009. The correlation with the stock market was higher than I expected. I remember picking up VNQ shares just north of $20 per share during that time.
There is risk with both VNQ and Fundrise. I do believe Fundrise (Private REIT) is less correlated to the overall stock market. That’s why I choose to invest in both for diversification purposes.
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Thanks for the help guys! I might look a little closer in too that VNQ as well