Question for Fundrise investors

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theorist
Posts: 1086
Joined: Sat Sep 28, 2019 11:39 am

Question for Fundrise investors

Post by 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
Posts: 2824
Joined: Sun Mar 15, 2015 8:47 am

Re: Question for Fundrise investors

Post by 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
Posts: 1385
Joined: Sat Jan 25, 2014 7:13 pm

Re: Question for Fundrise investors

Post by 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
Everything you read in this post is my personal opinion. If you disagree with this disclaimer, please un-read the text immediately and destroy any copy or remembrance of it.
dacalo
Posts: 155
Joined: Mon Mar 28, 2016 11:09 pm

Re: Question for Fundrise investors

Post by 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.
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