FundriseHi Travis,
Do you have any thoughts on real estate crowdfunding like Fundrise.
Thanks
This is a discussion topic or guest posting submitted by a Stock Gumshoe reader. The content has not been edited or reviewed by Stock Gumshoe, and any opinions expressed are those of the author alone.
The ones I’ve looked at often seem
relatively appealing, and I did put a little money into Fundrise a few years ago and have let it compound. The returns are a little higher than with listed REITs, but there is a significant cost to that — redemption is not guaranteed on any particular timeline, so you can’t quickly get your money out. And there’s no real public pressure that shareholders can easily bring on bad actors in the private REITs space, like you can with public REITs, so my primary concern with private REITs is that they often have high expenses and poor governance. I haven’t looked at many of them lately, or checked the latest returns from Fundrise in any detail.
Thanks
What are best listed REITs we can invest? I am just thinking about to start investing in REITs, so, I am pondering between Fundrise vs listed REITs
Private REITs like Fundrise often have somewhat higher yields than comparable publicly traded REITs… but they also come with the risk of illiquidity, there’s generally no guarantee that you can sell or withdraw your capital at any given time. I have a little money in Fundrise, and this year they’re on pace to have a dividend yield of just about 4%, though a lot of their returns also tend to take the form of “appreciation,” which can sometimes be pretty squishy if they’re relying on the assessed rising value of their portfolio. Their reported total return was about 10% in 2020 and 20% in 2021. I haven’t ever tried to take money out, my recollection is that they typically offer quarterly liquidity… but at times they’ve also been clear that withdrawals might be restricted if the market or their portfolio is in rough shape.