To the ppl saying $300 in 3 years is nothing, the $1k invested is also nothing and a very minimal amount. He got an average of over 10% on his return every year so that's pretty good
A lot of people say use the 4% rule. Looks like he is getting about 8% back on dividends. Something to keep in mind is the value of each share of something like VTSAX should increase over time. W Fundrise if you invest $500,000 pocket the dividend of about $40,000 each year for say 10 years to live off of in retirement, at the end of that 10 years when you ‘sell’ or cash in, do you get just the $500,000 back? In other words it would not increase in value the way a share of VTSAX would? This may be a rudimentary question for some, but I am kind of new to this and haven’t researched it a lot yet. Thank you.
@Ryan Lacey and then what ? U might lose it all in a week again,, any kind of investment is great as long as you make $. And real estate is it ,, there is no investment better than real estate ,, stocks is bs and risky and many have lost millions in stocks and its coming soon the recession but real estate you won’t lose ever you always gonna gain profits and get the appreciation value of the property even if u wait 10 yrs u always gonna make money In real estate
I honestly don't get the gripe about the money being tied up and not super liquid. They literally state that you're not allowed to put more than 10% of your net worth into it and you have to claim not to be doing so. Of course, a person could choose to be a liar when they tick that box saying that they're not putting more than 10% of their net worth into it, but leaving aside all the liars out there, if you max out your contribution at 10% of net worth, that still leaves 90% of net worth to be put into more liquid vehicles. The ONLY reason I would ever want my money back from Fundrise would be if they stopped being able to pay out the dividends.
These returns are really not that bad. From Mar 2017 thru Mar 2020 the S&P 500 returned a total of 18.676% or 5.874% annualized. Seth's $1,000 would have grown to $1,186 before any type of 12b-1 fees. In comparison this Fundrise portfolio did pretty well
Good thoughts about the liquidity. Many people don't realize that an investment like this can't be liquid or you risk selling an apartment complex via a fire sale.
That point about direct real estate holding often being like a job is a good one. I'll add: those people who own direct real estate in such a quantity that it actually BECOMES a full-time job shouldn't compare their return to what someone else is making from Fundrise; they should compare their return to what someone is making from Fundrise PLUS what that person is making from his/ her full-time job. (And of course should include respective tax treatment in each case; real estate often has much better tax treatment than holding a job does).
Nice! I’m a real estate investor (rentals and reits) been wanting to dive into fundrise but want to learn all I can. My buddy at Hidden Freedom Investing channel talks a bit about it as well. Actual real estate has so many headaches but great returns. Great review man and keep up the good work
Excellent video and nice to see "inside". I've been contemplating an initial investment with Fundrise. It seems to be a very transparent and thoughtfully managed fund.
Returns are low now due to covid but one can invest and take the dividends quarterly. The five year criteria is difficult to tie up money but if you want to live on quarterly returns, it might be a good idea when the market gets back to normal interest rates.
It's very misleading I invested $1500 and got an annual return on 12% however again this is very misleading as it's not actually 12% of my entire $1,500 investment because your money is diversified over many properties and your dividends are paid out quarterly It averages to 2 to 3% per quarter based off of what you've invested so over the course of 1 year I made about $100 almost
The fact that they reset the 5 year clock on new deposits AND dividends is enough for me to stay away. I tried the intro period years ago and after 6 months finally got a little less than what I put in. Also if you plan on having more than 50k in fundrise beware that they will not allow you to withdraw more than 50k at a time. So if you are planning on putting your retirement here you won't be able to access it easily even in 30 years. You have money on whatever paper fundrise sends you, good luck getting it. Your NAV share price will fall significantly upon redemption. There is no rhyme or reason to their NAV share price.
Thanks Chris, as I watched more videos on Fundrise, I became more skeptical. It makes no sense for them to restart 5 years, totally makes recurring contributions totally not worth it. Might as well let your money sit in Acorns or Stash smh
I know you said automatically reinvesting your dividends will restart the 5yr cycle. But, does adding more funds into Fundrise restart the 5yr cycle as well?
I believe so. My assumption (based on how everything else works) is that any new principal added (whether it's a reinvested dividend or new money) will start the 5-year cycle over for those specific dollars.
REtipster so if I start with $1000 today and invest $1000 a year later can I withdraw my initial investment after 5 years, or do I have to wait 5 years from my last deposit?
Hey Seth - I've heard you mention a couple times that you self-direct your Roth IRA. I'd love to see a video or blog post about which custodian you use, and what you are invested in/how you choose your investments. I'm considering self-directing my Roth IRA and also Solo 401k, ideally to invest in real estate.
Hey Jeff! Great question. I'm currently using Quest IRA, and I've used Equity Trust in the past as well. I use it to buy one-off vacant land properties (when I'm flipping them out-of-state) and I'm also using it to hold my coffee farm parcel in Panama: ua-cam.com/video/UiEC9feRgdE/v-deo.html
That's a great question... I wish I knew the answer. Since we still don't even have a solid read on where the real estate market will go as a whole, it's too early to say, IMO. Many people have assumed the real estate market would crash as a result of COVID19, and it might... but as of mid-June 2020, it hasn't happened yet.
Hi! Thx for this. I'm still not convinced about the Fundrise numbers. On paper their platform shows you 37%. However what's the actual net if you decide to cash out right now? (Would be great if you can call them and ask for an actual payoff of what you'll be actually receiving net). Thanks!
Thanks for watching! My understanding is that you can't just "cash out right now". You can request it, but there's no guarantee you'll get it, as you have to wait until the next 5 years cash out period.
@@Retipster Thanks for answering my question. This is precisely my and I think it's worth mentioning since button does suggest cashing out is implied as "liquid"
How are the dividends being reported on your tax return? Do you get a 1099-DIV or 1099-MISC? I am assuming these are reported as regular/non-qualified dividends.
You are sent a 1099-DIV each year. I don't see where is calls it out as qualified or non-qualified on the form though. At this point appreciation is making me more than the dividends anyway. Yes that is probably taxable once they are realized gains.
Sounds great! Transparency! Compounding Dividend! Nice graphics, but you pay on capital gains, can't depreciate the property. no liquidity and if you reinvest your dividend no liquidity. Ok so what do you have! A bunch of numbers on a graph that you can't use. So to who's benefit is all this investing going?
I enjoyed the video but I agree with you dealcandu. This is just another “sexy” investing vehicle for new investors who wouldn’t know about all the hidden fees
This recession is the cause of poor monetary policies & practices for sure. It's just that covid-19 made the impact more noticeable sooner. Our economy never really recovered from 2008.
I’m confused and new to investing. If your initial investment was $1000 but you have re-invested approximately $20 a quarter. Are you actually receiving a ROI?
Each quarter, the earnings from that original $1,000 investment are reinvested automatically (because that's what I told Fundrise to do with my earnings). This kind of automatic reinvestment is what causes the earnings to compound (earning more than the original $1,000 would've done if I hadn't reinvested the earnings). This video explains what compound interest is all about: ua-cam.com/video/2JxlNpspr2o/v-deo.html
Good question. I'm sure you can invest more, the only thing I'm not sure of is what denominations you have to invest in (if there's a minimum additional investment amount of $500 and higher, or if they'll accept literally any additional amount beyond the original $500 investment you've made). Sounds like a great question to ask them!
No too accurate about initial investment. It's a minimum of > $1000 post 2017. Please share accurate information because I too am an REIT Fundrise investor.
do you (or anyone reading this) recommend reinvesting your dividends? this seems like not a good idea, because of the 5 year liquidity rule. is there any reason it would be a good idea?
Every time you reinvest the dividends, it restarts the 5-year time clock for those specific dollars (but not the original investment you made)... that's my understanding of it, anyway.
@@Retipster ok thanks with that in mind it probably be best to do a big deposit and wait 5 year....has the annual fee went up from 1% since your original investment??
@@Quinten7EL I like how you put “swing/day” trading to let us know how technical you get. Exactly where did you study btw? Someone of your intellect must of definitely studied finance at a top tier school.
So if I theoretically put 1 million in fund rise I and averaged 9% per year I could live off of the $90,000 a year... as a 20 year old this sounds pretty good! I see retirement in my 30’s 😁
DONT INVEST WITH FUNDRISE. low returns less than 5% after fees and penalties when you withdraw. They charged me a 15% withdrawal fee. Dont put your money with fundrise. Buy stocks or crypto somewhere else.
I think it’s just a cool relatively easy was to diversify ur investments. I’ve always wanted to get in on real estate. I think I’m just gonna put a grand in my account. Like he did. I’m just gonna try to think of it like a savings account and not even worry about it after I put it there.
@@Retipster it says your account level is advanced but to get advanced you have to invest 10,000 you only invested 1000 so your account level should say core unless the limits were different back when you started.
To the ppl saying $300 in 3 years is nothing, the $1k invested is also nothing and a very minimal amount. He got an average of over 10% on his return every year so that's pretty good
yeah exactly with a million dollars you will make like 100k a year
A lot of people say use the 4% rule. Looks like he is getting about 8% back on dividends. Something to keep in mind is the value of each share of something like VTSAX should increase over time. W Fundrise if you invest $500,000 pocket the dividend of about $40,000 each year for say 10 years to live off of in retirement, at the end of that 10 years when you ‘sell’ or cash in, do you get just the $500,000 back? In other words it would not increase in value the way a share of VTSAX would? This may be a rudimentary question for some, but I am kind of new to this and haven’t researched it a lot yet. Thank you.
@Ryan Lacey and then what ? U might lose it all in a week again,, any kind of investment is great as long as you make $. And real estate is it ,, there is no investment better than real estate ,, stocks is bs and risky and many have lost millions in stocks and its coming soon the recession but real estate you won’t lose ever you always gonna gain profits and get the appreciation value of the property even if u wait 10 yrs u always gonna make money In real estate
"$1k is nothing"
Hey buddy, can I have a thousand dollars? Shouldn't be rough if it's such an inconsequential amount.
@Ryan Lacey its about having investments outside the market....diversification
Subbed.
I just invested a grand for fun.
See where it ends up in 3 years. 5 years. 10 years.
Let's hope it goes somewhere good! I'll be there with you for the ride. :)
I honestly don't get the gripe about the money being tied up and not super liquid. They literally state that you're not allowed to put more than 10% of your net worth into it and you have to claim not to be doing so. Of course, a person could choose to be a liar when they tick that box saying that they're not putting more than 10% of their net worth into it, but leaving aside all the liars out there, if you max out your contribution at 10% of net worth, that still leaves 90% of net worth to be put into more liquid vehicles. The ONLY reason I would ever want my money back from Fundrise would be if they stopped being able to pay out the dividends.
exactly. The purpose of it is an additional income stream
Amazing you keeps it very consistent every year.. Can't wait for the 4th and 5th year
I know! It'll be fascinating to see where it goes. :)
God bless this expert trader @carlos_1uptrade on Instagrām, I have made ten thousand dollars, in a 24hours trade investing in forex with his guidance
These returns are really not that bad. From Mar 2017 thru Mar 2020 the S&P 500 returned a total of 18.676% or 5.874% annualized. Seth's $1,000 would have grown to $1,186 before any type of 12b-1 fees. In comparison this Fundrise portfolio did pretty well
Good thoughts about the liquidity. Many people don't realize that an investment like this can't be liquid or you risk selling an apartment complex via a fire sale.
That point about direct real estate holding often being like a job is a good one. I'll add: those people who own direct real estate in such a quantity that it actually BECOMES a full-time job shouldn't compare their return to what someone else is making from Fundrise; they should compare their return to what someone is making from Fundrise PLUS what that person is making from his/ her full-time job. (And of course should include respective tax treatment in each case; real estate often has much better tax treatment than holding a job does).
That's a great point. Hard to argue with that. Thanks for chiming in. :)
Nice! I’m a real estate investor (rentals and reits) been wanting to dive into fundrise but want to learn all I can. My buddy at Hidden Freedom Investing channel talks a bit about it as well. Actual real estate has so many headaches but great returns. Great review man and keep up the good work
Thanks for watching Travis!
Excellent video and nice to see "inside". I've been contemplating an initial investment with Fundrise. It seems to be a very transparent and thoughtfully managed fund.
Glad you enjoyed it Eric! Thanks for watching.
Can't wait to see the 2021 update!
solid returns bro. keep rolling let it grow
Thanks Jeremy!
Looking forward to your 2021 update Seth
It'll be coming out in the next 30 days! Thanks for your interest. :)
Great review. Thank you for taking the time to present this to us. Could you pls do a follow up since it has been a year now?
Yes! I should have an update published in the next few weeks. Stay tuned!
Returns are low now due to covid but one can invest and take the dividends quarterly. The five year criteria is difficult to tie up money but if you want to live on quarterly returns, it might be a good idea when the market gets back to normal interest rates.
Makes sense to me. Thanks for sharing!
It's very misleading I invested $1500 and got an annual return on 12% however again this is very misleading as it's not actually 12% of my entire $1,500 investment because your money is diversified over many properties and your dividends are paid out quarterly It averages to 2 to 3% per quarter based off of what you've invested so over the course of 1 year I made about $100 almost
Hope u got a video coming on investment in property in these trying times!
I'm workin' on it Benny!
Thank you for the review!
Wait, is the company FDIC insured? What if the company goes under and I have 60k invested? Do I just lose all that money?
No it is not FDIC insured
You will lose every last dime - yes . But that’s with stocks and any investment for that matter -
The fact that they reset the 5 year clock on new deposits AND dividends is enough for me to stay away. I tried the intro period years ago and after 6 months finally got a little less than what I put in. Also if you plan on having more than 50k in fundrise beware that they will not allow you to withdraw more than 50k at a time. So if you are planning on putting your retirement here you won't be able to access it easily even in 30 years. You have money on whatever paper fundrise sends you, good luck getting it. Your NAV share price will fall significantly upon redemption. There is no rhyme or reason to their NAV share price.
Thanks Chris, as I watched more videos on Fundrise, I became more skeptical. It makes no sense for them to restart 5 years, totally makes recurring contributions totally not worth it. Might as well let your money sit in Acorns or Stash smh
vudoo accounting
Thanks bro. I love your channel!
I know you said automatically reinvesting your dividends will restart the 5yr cycle. But, does adding more funds into Fundrise restart the 5yr cycle as well?
I believe so. My assumption (based on how everything else works) is that any new principal added (whether it's a reinvested dividend or new money) will start the 5-year cycle over for those specific dollars.
REtipster so if I start with $1000 today and invest $1000 a year later can I withdraw my initial investment after 5 years, or do I have to wait 5 years from my last deposit?
@@youssoufahmed1788 withdrawal before 5 years and one losses a percentage. watch the video again, he showed a chart on the system for early withdrawal
Hey Seth - I've heard you mention a couple times that you self-direct your Roth IRA. I'd love to see a video or blog post about which custodian you use, and what you are invested in/how you choose your investments. I'm considering self-directing my Roth IRA and also Solo 401k, ideally to invest in real estate.
Hey Jeff! Great question. I'm currently using Quest IRA, and I've used Equity Trust in the past as well. I use it to buy one-off vacant land properties (when I'm flipping them out-of-state) and I'm also using it to hold my coffee farm parcel in Panama: ua-cam.com/video/UiEC9feRgdE/v-deo.html
Do you have an updated video after most a year of COVID
My next update will happen in March of 2021 - stay tuned!
Great way to diversify wealth
Great video. Thanks for the review!
Are the fees extra money separate of what i invest out of my bank account ? So will they take out more then what I invest each time?
Do you think we should still continually invest with fundrise even during the pandemic. You opinion sir.
That's a great question... I wish I knew the answer. Since we still don't even have a solid read on where the real estate market will go as a whole, it's too early to say, IMO. Many people have assumed the real estate market would crash as a result of COVID19, and it might... but as of mid-June 2020, it hasn't happened yet.
@@Retipster how's your Fundrise account now that we are in November 2020? What's your return %YTD?
Hi! Thx for this. I'm still not convinced about the Fundrise numbers. On paper their platform shows you 37%. However what's the actual net if you decide to cash out right now? (Would be great if you can call them and ask for an actual payoff of what you'll be actually receiving net). Thanks!
Thanks for watching! My understanding is that you can't just "cash out right now". You can request it, but there's no guarantee you'll get it, as you have to wait until the next 5 years cash out period.
@@Retipster Thanks for answering my question. This is precisely my and I think it's worth mentioning since button does suggest cashing out is implied as "liquid"
How are the dividends being reported on your tax return? Do you get a 1099-DIV or 1099-MISC? I am assuming these are reported as regular/non-qualified dividends.
You are sent a 1099-DIV each year. I don't see where is calls it out as qualified or non-qualified on the form though. At this point appreciation is making me more than the dividends anyway. Yes that is probably taxable once they are realized gains.
Nice video. Very helpful information.
Thanks for watching!
8 months ago: We're in the 'middle' of this coronavirus fiasco.
Today:
Today we can finally see the light at the end of the tunnel
Two years later: lol
How come you didn't add more money over the past 2.5 years?
Because I've got higher-yield places to put my money. :)
@@Retipster Yea, speak up please lol
@@Retipster what are those higher-yield places?
@@Retipster like where?
@@Retipster please do tell
300 is great
Trusting in the Management and Distribution of Funds reserved
Just opted in to the $500 level. Looking for reasons to move up to 1000. Hoping it will pay off in 10 years...
Good luck! I hope it works out well for you.
Can you pull out any time or is the money locked with them for a certain period?
Not liquid friendly.
Sounds great! Transparency! Compounding Dividend! Nice graphics, but you pay on capital gains, can't depreciate the property. no liquidity and if you reinvest your dividend no liquidity. Ok so what do you have! A bunch of numbers on a graph that you can't use. So to who's benefit is all this investing going?
I enjoyed the video but I agree with you dealcandu. This is just another “sexy” investing vehicle for new investors who wouldn’t know about all the hidden fees
1 year in with a $1,000 invested. I only had a 3% return. I'm beging to think it's a bs scam.
Probably hard to judge considering this past year.
Can you continue to add money after the initial deposit?
Yes
This recession is the cause of poor monetary policies & practices for sure. It's just that covid-19 made the impact more noticeable sooner. Our economy never really recovered from 2008.
I invested 1000 dollars. Only to get 5 projects why is that?
Great info
Thank you for sharing this.
I’m confused and new to investing. If your initial investment was $1000 but you have re-invested approximately $20 a quarter. Are you actually receiving a ROI?
Each quarter, the earnings from that original $1,000 investment are reinvested automatically (because that's what I told Fundrise to do with my earnings). This kind of automatic reinvestment is what causes the earnings to compound (earning more than the original $1,000 would've done if I hadn't reinvested the earnings). This video explains what compound interest is all about: ua-cam.com/video/2JxlNpspr2o/v-deo.html
Great Video! Thank you!
Does it work as if the more money I put in the more return?
Are you able to choose the percent of how much of the dividend that you want to reinvest?
I don't believe so, I think it's all or nothing.
Can you add extra money to your fundrise to invest? Or is your initial amount the only amount you can use for investing?
Good question. I'm sure you can invest more, the only thing I'm not sure of is what denominations you have to invest in (if there's a minimum additional investment amount of $500 and higher, or if they'll accept literally any additional amount beyond the original $500 investment you've made). Sounds like a great question to ask them!
Yes you can. There is an option to auto invest too.
Yes you can add additional funds. If you already own the specific eReit, the minimum is $10. If you don’t own it, the minimum is $1,000.
So....the 5yrs mark resets with each dividend investment? Is that pertaining to the dividend portion or the entire amount of the portfolio?
That's pertaining to each dividend portion, not the entire portfolio.
No too accurate about initial investment. It's a minimum of > $1000 post 2017. Please share accurate information because I too am an REIT Fundrise investor.
Girl you’re a liar. It’s a minimum of $500 because I opened my account in 2020 and only has to put in $500.
what the hell after 3 years u earn only 376? why don't u buy stocks, crypto or fx tread u can get this moeny with in one month
do you (or anyone reading this) recommend reinvesting your dividends? this seems like not a good idea, because of the 5 year liquidity rule. is there any reason it would be a good idea?
I reinvested mine, but I kind of wish I hadn't, mainly because of the 5-year rule you pointed out.
so wait is the reinvestment restarting my intial investment or is it starting anew date for the reinvestments i.e divideds??
Every time you reinvest the dividends, it restarts the 5-year time clock for those specific dollars (but not the original investment you made)... that's my understanding of it, anyway.
@@Retipster ok thanks with that in mind it probably be best to do a big deposit and wait 5 year....has the annual fee went up from 1% since your original investment??
would this look different from a "long term growth" investment plan??
And then on your 5th year when you try to pull your money out, all of a sudden they had a down year.
You can't loose more than your investment?
I made more than that in a week in bitcoin and about that much in swing/day trading, so why is this a good investment?
Want a cookie warren buffet?
@@Quinten7EL I like how you put “swing/day” trading to let us know how technical you get. Exactly where did you study btw? Someone of your intellect must of definitely studied finance at a top tier school.
@@Quinten7EL no need for sob stories that deviates from the topic. I’ve had it worst. I just don’t need to state it. Your story is not unique.
@@Quinten7EL take care Buddy. No pity here.
@@Quinten7EL read it back boo boo. Read it back.
How much can you contribute say every paycheck?
So if I theoretically put 1 million in fund rise I and averaged 9% per year I could live off of the $90,000 a year... as a 20 year old this sounds pretty good! I see retirement in my 30’s 😁
Or keep reinvesting for 10 years. And live off the 240k ish a year and retire in my 40’s 🤩
After your initial deposit, what's the minimum amount you can invest after?
$100
@@Cechronicles That’s not true. You can invest as much or as little as you want I believe.
E M that’s your reality not mine
I couldn't take it after the first 3 minutes of jibber-jabber.
Redemption maybe taxable? Lawl, it will be.
Say after 10 years invested in Fundrise, how do you cash out of it?
That's my plan.
You go into settings etc. You can pull out but it took ab two weeks for them to finalize me leaving and then they took a percentage
dude theres a shitload of information in this video
Thanks for noticing! That's how I try to make 'em. :)
You working with them , so we already no the account is fake
the world has seen this about 100 years ago
37% in 3 years? I'm up 35% in two months.
Good for you!
@@Retipster of course I can't take all the credit. Much of my gains were picks from Banyan Hill. Definitely worth the $4/month.
Please can someone outside America invest in Fundrise Investment? I need to be guided i am from west African country
You need to be a US citizen to invest with Fundrise.
DONT INVEST WITH FUNDRISE. low returns less than 5% after fees and penalties when you withdraw.
They charged me a 15% withdrawal fee.
Dont put your money with fundrise. Buy stocks or crypto somewhere else.
300 dollar return in 3 years?
not very enticing tho...
i invested 1000 too and its been 4 months with only 2 dollar return,
You invested during a bad time. And how is 300 dollar gain from only 1000 not enticing? That's about 10% return every year
It depends on where your funds were allocated and if the eReit was stabilized or just ramping up.
I’d rather risk 1k on crypto
invested 1,000 dollars three years ago and only return was 376.57 dollars? definitely not worth it thanks for the perspective.
Happy to help!
I see it as a 37% ROI, that’s great!
I think it’s just a cool relatively easy was to diversify ur investments. I’ve always wanted to get in on real estate. I think I’m just gonna put a grand in my account. Like he did. I’m just gonna try to think of it like a savings account and not even worry about it after I put it there.
If you have a way to make a passive 37% return I'd love to know lol
Lol that’s a massive return for passive investing
When you have to pay the advisory fee's is it automatically taken out?
I believe so.
This is good
Thanks for watching!
300 in 3 years you can collect cans and save more than that
Lmfaoooo
So given the choice between $300 for collecting cans and $300 for doing nothing, you would rather do the first one
can I haveBad credit?
I believe so. I don't recall them asking anything about credit history.
how are you advanced level with a 1000 bucks
I'm not sure I understand your question.
@@Retipster it says your account level is advanced but to get advanced you have to invest 10,000 you only invested 1000 so your account level should say core unless the limits were different back when you started.