To diversify your portfolio, investing in real estate is often recognized as a lucrative opportunity. A potential drawback for those interested in such an investment is the lack of a deposit between 20-30% resulting in limited options for investments. Fundrise is a real estate crowdsourcing service that has recently come to the fore and made waves in the property investment space.
Many property buyers and future investors may be hard pressed to expand upon their investment portfolios in the purchase of physical property. Fortunately, an opportunity such as Fundrise makes it possible to invest with affordable real estate monthly payments. This includes properties across the country. If you have been restricted from million-dollar valued property deals in the past, you may have the chance to become part of these property investments with Fundrise.
Fundrise is suited to property buyers looking to invest inland where property prices are more affordable.
Who is Fundrise?
Fundrise is one of the fastest growing real estate crowdfunding campaigns that includes raising an impressive $40 million in funding thus far. A closer look at the company profile provides a better idea of its value.
Located in Washington D.C., Fundrise has shown exponential growth through its online public offering that occurred in 2017. Having started in 2012, the crowdfunding platform has pioneered taking commercial properties online while presenting real equity in surrounding properties.
What is Crowdsource Investing for Real Estate?
Crowdsourcing offers the fastest ways to invest in local real estate. When you visit Fundrise’s platform, you have access to investing in pre-vetted property deals. Rather than the expense and the hassle of traveling and laboring on a property site, Fundrise makes it possible to invest in real estate below $5000. The company only aligns itself with high performing operators according to their vetting practices. Based on this process, individual investors can examine each deal and determine which is best for their interests.
Even if you are a non-accredited investor, Fundrise still makes it possible to invest with them based on the introduction of eREITs. As long as there is a supply, the eREITs can be accessed by all investors. For a healthy return on overall performance, the investor has the chance to follow the strategic decisions made by the eREIT management.
Comparing Real Estate to Equities
With the impact of the NASDAQ looming since 2000, real estate steadily climbed as the fed reduced its interest rates. This encouraged more investors to place their money into hard assets.
In 2018, Fundrise made its mark on the markets. This includes its outperformance of the S&P 500, which had dropped to just over 6%.
Its impressiveness continues with an evaluation of its 5-year net returns comparison. Across this period, Fundrise’s portfolio grew by 10% compared to the growth of below 8% by Public Stocks and Public REITs.
Finding the Best Real Estate Investing Opportunities
Looking at historical trends, we see that investors who have placed a 20% fund allocation towards real estate have performed higher than those who own stocks and bonds.
Currently, investors are required to have at least $100 000 or greater to access valuable and private real estate deals. The other choice to get a piece of the real estate pie was a middleman but this often led to exorbitant fees and a cut of any earnings on the investment.
Fundrise provides the opportunity for investors to apply a minimum of $1000 to these deals and to reap the rewards. One way the average investor and property buyer can benefit with Fundrise is to become part of investment deals in “fixer-upper” properties. Before rushing in on a fixer upper deal, always invest in research into the market and the deal to avoid the stress of financial losses.
One of the major benefits of investing with Fundrise is not managing the physical ownership and the people of that property. By investing in real estate with Fundrise, you not only eliminate the conflict of poorly vetted lessees, but you can leverage the doubling of your investment in only 6 years based on the past performance indicators of Fundrise. The benefit of investing in REITs and crowdsourcing is the avoidance of the high cost of properties and critical financing.
Fundrise has opened a whole new world of financial opportunities. Consider diversifying your portfolio with Fundrise where your hard-earned cash is invested across various investment products including eREITs and eFunds. It is affordable, includes reduced tax and increases the potential for lucrative rewards.