Real estate has been one of the main interest for every one but the high investment requirements and the high costs involved in owning a piece of real estate always kept us at bay. Internet and social media has revolutionized fundraising and created limitless investment opportunities that the different crowdfunding platforms have created for individuals. One such online real estate crowdfunding portal that made investment in real estate easy for individuals is Fundrise eREIT. REIT stands for Real Estate Investment Trust.
How does it work? Fundrise pools relatively small amounts from individuals and use those funds to buy commercial/rental properties, or finance projects in commercial real estate. They provide 2 types of investments, Income eREIT and Growth eREIT. Income eREIT focuses on providing stable quarterly income stream whereas Growth eREIT focuses on providing moderate returns during the life of the investment, with the potential for much higher returns paid out at the end of the investment. Every individual has the opportunity to chose which eREIT to invest in.
In short here is how you can start investing:
- Open an account with Fundrise.com
- Link your bank account
- Start investing in Income eREIT or Growth eREIT (minimum to invest is $1000)
- Investment will be approved and all legal documentation regarding investment will be available online in 3-4 days.
My experiment: I invested $2000 in Income eREIT at the beginning of this year on which I received $20 return (directly deposited into my bank account) for the first quarter of this year and I am awaiting to see the return for second quarter of the year. I also invested $2000 in Growth eREIT in April 2016 and I am awaiting first return in early July 2016. Online website experience and account management experience is not bad. Once you have an account you have access to the investments they have made so far including location, asset type, risk and return profile. All the transactions are entirely online including legal documents, funds transfer, ownership recording etc.
Interesting part about Fundrise is, investments are open to non-accredited investors as well. I see this very rarely in crowdfunding world where investment options are strictly open to accredited investors only. The fact of owning a piece of commercial real estate for relatively small amounts is exciting but at the same time you should be cautious about the risks involved. I strongly suggest every one to read and understand their FAQ (mainly exit strategy) before investing.
Disclosure: Please note that I stated my experiment numbers and experiences here just to give you an idea. In no way I am suggesting that this is a better investment. Every one should understand that this carries higher risk and that is one of the main reason why I am experimenting with relatively small amounts.
If you find this interesting, please consider social sharing. Thanks!
How does it work? Fundrise pools relatively small amounts from individuals and use those funds to buy commercial/rental properties, or finance projects in commercial real estate. They provide 2 types of investments, Income eREIT and Growth eREIT. Income eREIT focuses on providing stable quarterly income stream whereas Growth eREIT focuses on providing moderate returns during the life of the investment, with the potential for much higher returns paid out at the end of the investment. Every individual has the opportunity to chose which eREIT to invest in.
In short here is how you can start investing:
- Open an account with Fundrise.com
- Link your bank account
- Start investing in Income eREIT or Growth eREIT (minimum to invest is $1000)
- Investment will be approved and all legal documentation regarding investment will be available online in 3-4 days.
My experiment: I invested $2000 in Income eREIT at the beginning of this year on which I received $20 return (directly deposited into my bank account) for the first quarter of this year and I am awaiting to see the return for second quarter of the year. I also invested $2000 in Growth eREIT in April 2016 and I am awaiting first return in early July 2016. Online website experience and account management experience is not bad. Once you have an account you have access to the investments they have made so far including location, asset type, risk and return profile. All the transactions are entirely online including legal documents, funds transfer, ownership recording etc.
Interesting part about Fundrise is, investments are open to non-accredited investors as well. I see this very rarely in crowdfunding world where investment options are strictly open to accredited investors only. The fact of owning a piece of commercial real estate for relatively small amounts is exciting but at the same time you should be cautious about the risks involved. I strongly suggest every one to read and understand their FAQ (mainly exit strategy) before investing.
Disclosure: Please note that I stated my experiment numbers and experiences here just to give you an idea. In no way I am suggesting that this is a better investment. Every one should understand that this carries higher risk and that is one of the main reason why I am experimenting with relatively small amounts.
If you find this interesting, please consider social sharing. Thanks!
Good.
ReplyDeleteEmail update from Fundrise regarding Q2 Growth eREIT dividends: "Yesterday we announced that the Growth eREIT™ will be making its first quarterly distribution next month paying an 8% annualized gross dividend. You can expect to receive your distribution in mid-July..."
ReplyDeleteEmail update from Fundrise regarding Q2 Income eREIT dividend: "Yesterday we announced that the Income eREIT™ will be making a distribution for the second quarter of 2016 – paying a gross dividend of 10% annualized. You can expect to receive your distribution in mid-July and will be notified via email."
ReplyDeleteEmail update from Fundrise regarding Q3 dividends: "Both the Income eREIT™ and the Growth eREIT™ will be making distributions for the third quarter of 2016. The Income eREIT™ will be paying a gross dividend of approximately 11% annualized, while the Growth eREIT™ will be paying a gross dividend of approximately 8% annualized."
ReplyDeleteeven i invested in fundrise,its been over close to 2 quarters lets see how it goes.
ReplyDelete