Question for Fundrise investors

[theorist]

For those of who have put money into Fundrise: how much are you comfortable investing with them? I’m happy to have arbitrary amounts with Fidelity and Vanguard. With Fundrise, I’ve gotten my toes wet, but for real estate to really move the needle in any way (for better or worse!) in my portfolio, I’d need to give them several hundred K at least. Has anyone here gotten to that level with them? It is hard for me to be sure it is a good idea to do this — their track record is quite short. (I’m not worried about prognosticating the performance of real estate — more about reliability of the firm and its solvency,)

[wolf359]

This article has a good summary of the pros and cons. https://smartasset.com/investing/fundri ... REIT%20fee.

I ended up not investing in Fundrise. It would be like having single stock risk, but in a stock that isn't publicly traded.

If I wanted to invest in a single company, I'd be more likely to invest in a publicly traded REIT like O, which has more assets, lower fees, a longer history, and is more liquid (but is in the same real estate sector).

What I actually did was invest in the Vanguard REIT index fund (VNQ).

[deikel]

Too much risk for me

Too concentrated, too much 'managed' in that sense (information needed to make good investment decisions), somewhat obscure

I am concerned hat they try to offload real estate to unsuspecting buyers (need a mall anyone, promise to convert to Dr office spaces)

There is lots of bad real estate out there that needs to go off investors books, I am not sure they choose wisely.

Does not fit my investment plan

[dacalo]

I dipped my toes into Fundrise, investing 5 figures. I also have 6 figure investment with DLP Capital. After using both for 9 months, I am withdrawing from Fundrise and moving the rest of the funds into DLP.

Reasons:

• DLP is more tax efficient (benefit of depreciation vs regular 1099 from Fundrise)

• More transparency from DLP, including audited financials, quarterly financial statements, regular Q&A from CEO himself

• More investment offerings from DLP, giving me flexibility and options down the road

None of these are Boglehead-like investments, although there are some here who do here. But I feel comfortable with my decision.