I'm a little behind on posting this but back on December 22 my portfolio acquired stake in another property. In the update I received from Fundrise they give some background information about the property itself and the area it is in, the business plan of the borrower (in this particular instance it is a loan provided by Fundrise), and some reasons why Fundrise agreed to invest in the property.
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Just opened an account with Fundrise...
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Don’t know much about Fundrise and the benefits over standard REITs, but RE has had a great run this year despite the pandemic. I have about 5% allocated to RE.
On a related note, I was looking to buy my first Roofstock property this year but the pandemic sorta spooked me out of being a (remote) landlord. So instead I did the next smartest thing, I bought a weekend-fun car.
On a related note, I was looking to buy my first Roofstock property this year but the pandemic sorta spooked me out of being a (remote) landlord. So instead I did the next smartest thing, I bought a weekend-fun car.
I'm a bit leary of any commercial real estate investments at the present time. Since Covid, businesses who leased office space have learned that they no longer need to do so. Everyone working from home and it's business as usual (not referring to restaurants and such) businesses have determined that they don't need that 10 story (or more) office building anymore. They can lease 1 floor and have employees stop in to use shared spaces versus having dedicated office space. The commercial real estate market is undergoing drastic changes and none of them good for owners of commercial space.
This new property is residential real estate, i.e. apartment complexes. Here is an excerpt of what was in the update I received.
"In an economy where remote work becomes the norm for more and more people, and there is consequently less of a premium placed on living close to major downtown employment centers, we believe that demand for residential real estate has the potential to grow."
Edited to add that I went back through the projects I am participating in and all but one are residential. I had no hand in how these were selected. That was just how the chips fell.
"In an economy where remote work becomes the norm for more and more people, and there is consequently less of a premium placed on living close to major downtown employment centers, we believe that demand for residential real estate has the potential to grow."
Edited to add that I went back through the projects I am participating in and all but one are residential. I had no hand in how these were selected. That was just how the chips fell.
So since my last post there have been a few changes. My portfolio has acquired 4 new properties and 2 have exited upon completion of their respective loan payments. The biggest change happened on February 16, 2021 where I was sent an update about how Fundrise is reorganizing everyone's portfolio by real estate strategies. The two charts are shown below.
All this to have earned a whopping $2.99 this year. Now to be fair it is still early in the year and I only invested $500 but I'm capable of earning that in minutes in other investments.
All this to have earned a whopping $2.99 this year. Now to be fair it is still early in the year and I only invested $500 but I'm capable of earning that in minutes in other investments.
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Looks like its a long term thing. I like my investments like I like my women - cheap, fast, screws me over and leaves me before I know what happened.
So I got an email from Fundrise yesterday congratulating me for being an account holder for 6 months. Not a lot else to report other than Fundrise is involved with 31 properties in Georgia and has been active in and completed properties in 25 states across the US. I started with $500 in their basic/starter portfolio and I'm currently up to $527.44 as of this morning. If this continues as it has I should be looking at a 10% gain for the year. If I don't compare it to what I get from the cryptocurrency market, I'm actually rather happy with my results.
Okay, time for an update. Based on the email I received yesterday it looks like Fundrise has made some changes. Most notable being they lowered the minimum investment from $500 to $10 for the Starter Portfolio. The other things they mention are a renewed focus on investor education, access to their Flagship Fund, and quarterly liquidity, penalty free. I will have to do some research on what exactly the Flagship Fund is. The quarterly, penalty free liquidity seems to be tied to it as well as they say it makes it possible for them to offer that redemption process every quarter should investors be forced to unexpectedly liquidate.
P.S. - I'm up to $544.87 as of today so it appears I will do better than 10% for the year.
P.S. - I'm up to $544.87 as of today so it appears I will do better than 10% for the year.
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