Author Topic: Fund Rise - or similar real estate investing platforms?  (Read 1285 times)

montgomery212

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Fund Rise - or similar real estate investing platforms?
« on: March 25, 2018, 08:34:09 PM »
Anyone research Fund Rise or any of the similar real estate investing platforms -- where you can supposedly by (very small) proportional pieces of real estate investments starting for like $500 or $1000. Is this platform for real or some kind of elaborate hoax where it'd be better to go with a Vanguard/Fidelity REIT? Not necessarily pursuing an investment, but I'm interested generally and wanted to know if anyone had any intel. I went to go research it and realized that you need to create an account to read a lot of the website -- including giving them your SS number -- which I don't want to do for casual research.

chasesfish

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Re: Fund Rise - or similar real estate investing platforms?
« Reply #1 on: March 26, 2018, 05:17:03 AM »
I'm not a huge fan of most of these real estate investment platforms.  In the under $10mil loans, there is ample excess capital in the banking space to take most of the good deals.   A lot of the returns have been driven by falling cap rates, which are no longer falling.

There are some opportunities in buying syndications in larger, turnaround properties, but they aren't usually whats traded on these platforms.  Think about buying a $25mil apartment complex that needs renovations and then will get higher rents and refinance.  That's a good loan term business.

CorpRaider

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Re: Fund Rise - or similar real estate investing platforms?
« Reply #2 on: March 26, 2018, 06:51:57 AM »
I started reading through the disclosures for the "e-reit" funds a week or two back. I sort of got distracted and ended up posting about them as part of a larger point about buying things that are not being sold/promoted.

They didn't appear to be as bad as the traditional private REITs, where you are paying basically brokers a load of 5% or more up front. 

On the negative side, the funds are seemingly set up to be externally managed (which creates a lot of conflicts of interest generally as a structure) and its hard to figure out what they are being paid, because they get the 1% fee but then there are a bunch of expense reimbursements. 

I dunno, I might invest a little and mess around with it just for interest.  To me it's probably only a valid option if you can't stand quotation/volatility risk and the "marking to market" and the illiquidity will help you hodl on.
« Last Edit: March 28, 2018, 06:35:51 AM by CorpRaider »

grandep

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Re: Fund Rise - or similar real estate investing platforms?
« Reply #3 on: March 27, 2018, 06:30:01 PM »
I've looked into a little bit and Fundrise seems to be different from many of the private REITs in the past that have left a bad taste in many investors mouths. This website has a ton of info on everything related to crowdsourced real estate, and they seem to have a pretty positive opinion of Fundrise: https://www.therealestatecrowdfundingreview.com/top-14-nonaccredited-realestate. Their one main complaint is that they believe Fundrise is overly optimistic on their return projections

There are many other threads on this forum discussing Fundrise. I recommend doing a search for "fundrise" and reading through some of those.