The Money Mustache Community
Learning, Sharing, and Teaching => Real Estate and Landlording => Topic started by: marymurphy on February 13, 2019, 02:21:55 PM
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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/
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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.
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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
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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.