Hello,
I am curious if anyone had thoughts or experience with the new company Fundrise.com? I think I'll probably stick with my vanguard reit index, but the fact that this is crowdfunding commercial real estate, intrigued me a bit. Especially when they aren't having any management fees for the next 2 years unless it beats 15%. Still seems like the fees (upfront etc) might be higher than Vanguard, even though they are claiming to be much lower than the industry average.
Just curious if there were thoughts. Too good to be true? Doomed to fail? Something worth throwing some "fun money" at?
Thanks!
Hi,
I'm an accredited investor with Fundrise and invested in their specific projects.
Up to now they never had a default and things look good.
These projects are different then exchange traded REITS because you don't get distributed rental income but you lend money so property objects can be established/optimized/upgraded... Its currently mostly preferred equity, which means you come behind senior debt but before normal equity in terms of risk.
What I like specifically about the business model is that they put their money in the same projects than you, so there is a high chance those projects are really well chosen (Different to Lending Club, where you have to take care by yourself and scan with own parameters)
As part of a broadly diversified portfolio I'm allocating 5-8% of my net worth with them and an additional 5-10% with Lending Club (with some tested/optimized lending parameters).
Have a nice day!