Author Topic: Any thoughts on crowdfunded REITs?  (Read 589 times)

marymurphy

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Any thoughts on crowdfunded REITs?
« on: February 13, 2019, 02:21:55 PM »
A few months ago I opened up an account with Fundrise. So far I really like the investment because I don't have to vet properties or individual investments. Yesterday I came across the article below about potential liquidity issues and it made me question how much I want to invest with this strategy. Anyone who's been investing this way for a while have any thoughts?

https://www.dadsmakingcents.com/liquidating-my-crowdfunded-reits/

CoffeeR

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Re: Any thoughts on crowdfunded REITs?
« Reply #1 on: February 13, 2019, 04:23:28 PM »
A few months ago I opened up an account with Fundrise. So far I really like the investment because I don't have to vet properties or individual investments. Yesterday I came across the article below about potential liquidity issues and it made me question how much I want to invest with this strategy. Anyone who's been investing this way for a while have any thoughts?

https://www.dadsmakingcents.com/liquidating-my-crowdfunded-reits/
A really slick web site. My red flags are going up.

They charge a 1.0% management fee and have steep redemption penalties for funds held less than 5 years. Why would anyone invest in this over a traditional REIT is not clear to me. I am not even sure you need a REIT, but that is another discussion. I would pull my money and invest in traditional investment vehicles (total market index, total and/or intermediary term bonds).

How much of you money is in this fund? If it is a small amount, then that is one thing. If it is a substantial amount, then I would *run* *run* away from this.

waltworks

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Re: Any thoughts on crowdfunded REITs?
« Reply #2 on: February 13, 2019, 07:09:42 PM »
Bwahaha...

"So far I really like the investment because I don't have to vet properties or individual investments"

If you like giving away your money, by all means do crowdfunded RE investing.

-W

marymurphy

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Re: Any thoughts on crowdfunded REITs?
« Reply #3 on: February 20, 2019, 08:31:07 AM »
Quote
A really slick web site. My red flags are going up.

They charge a 1.0% management fee and have steep redemption penalties for funds held less than 5 years. Why would anyone invest in this over a traditional REIT is not clear to me. I am not even sure you need a REIT, but that is another discussion. I would pull my money and invest in traditional investment vehicles (total market index, total and/or intermediary term bonds).

How much of you money is in this fund? If it is a small amount, then that is one thing. If it is a substantial amount, then I would *run* *run* away from this.

I have a small percentage of net worth invested there now (less than 2%). I don't really want to invest in more traditional vehicles. I already have the majority of my money in index funds.