Four Years Ago, I Invested $1K With Fundrise - Here's What Happened (2021 Review)
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- Опубліковано 15 лип 2024
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Disclosure: I’ve been investing with Fundrise since 2017. When you sign up with my link, I earn a commission. All opinions are my own.
0:00 - Intro
0:20 - What is Fundrise?
2:40 - This is NOT a pitch for Fundrise
4:03 - Every real investment has risk
4:44 - A look at the YTD and all-time performance
5:50 - A review of all the quarterly reinvested dividends to date
6:20 - Why are the quarterly dividends getting smaller?
7:26 - Changes in how to portfolio allocation is reported
8:09 - What’s the difference between Fixed Income, Core Plus, Value Add, and Opportunistic?
9:00 - Using the interactive pie chart to look at the projects your money is invested in
9:58 - How does Fundrise decide where to reinvest your dividends?
10:54 - Looking at the historical performance of my invested dollars
11:27 - A look at the overall portfolio allocation and where my money is invested
12:09 - When does an investor get their money back?
12:28 - Is there a way for an investor to withdraw their money sooner?
12:51 - When a dividend is reinvested, how long does the investor have to wait to get that money back?
13:43 - What are my thoughts about Fundrise overall? Has this been a good investment or not?
Four years ago, I put together a video and blog post explaining how Fundrise works by investing $1,000 with this real estate investing platform.
Since then, I've been tracking the progress and returns by putting together an annual blog post and video reviewing the dividends and how much the money has grown. You can see each of those annual reviews here if you want to get caught up on where this has been.
Year 7 Review (2024): • Fundrise Review: Still...
Year 6 Review (2023): • Fundrise Review 2023 (...
Year 5 Review (2022): • 5 Years Ago, I Investe...
Year 4 Review (2021): • Four Years Ago, I Inve...
Year 3 Review (2020): • My $1,000 Fundrise Inv...
Year 2 Review (2019): • My Fundrise Investment...
Year 1 Review (2018): • My Fundrise Investment...
Original Investment (2017): • Fundrise Review: Is th...
It's been a lot of fun seeing how much engagement and attention these videos have gotten on UA-cam. Of course, my goal with these videos is not to make a case that you should be investing with Fundrise. My goal is to simply show you how the website works and most importantly, what the actual returns look like each year.
Disclaimer: The information contained herein neither constitutes an offer for nor a solicitation of interest in any securities offering; however, if an indication of interest is provided, it may be withdrawn or revoked, without obligation or commitment of any kind prior to being accepted following the qualification or effectiveness of the applicable offering document, and any offer, solicitation or sale of any securities will be made only by means of an offering circular, private placement memorandum, or prospectus. No money or other consideration is hereby being solicited, and will not be accepted without such potential investor having been provided the applicable offering document. Joining the Fundrise Platform neither constitutes an indication of interest in any offering nor involves any obligation or commitment of any kind. The publicly filed offering circulars of the issuers sponsored by Rise Companies Corp., not all of which may be currently qualified by the Securities and Exchange Commission, may be found at www.fundrise.com/oc.
Want to see the 2022 update? Check it out here! ua-cam.com/video/Ia6_jgYlC7Y/v-deo.html
I just started up an account with Fundrise myself a couple weeks ago. Just a little bit to start, but as you mentioned its an incredibly hands off way to get involved in real estate without needing to be accredited. Looking forward to seeing how this works out!
Best of luck to you, Keith!
So results how it went?
@@raheemtheinvestor Its pretty cool. The presentation on the app and website is great. Returns are slow but constant. Looking forward to seeing it grow over the years.
@@Retipster question when getting the dividends can switch where it goes, like can you choose which account it goes into like a Direct Deposit, I mean can we have control or does it require a request from them?
@@keithlewis5529 Oh good. I wonder how this goes with your taxes. Hmm.
Frank, upfront, and conversational: you did a good job on this video. Thanks!
Thanks for watching! Much appreciated.
I had put $100.00 into this about 4 months ago. I don’t remember how since all the videos I have seen today says start with $500, but this is how I started. I haven’t logged in on a computer yet. This app has made $0.52 already! Your video has answered so many questions the app does NOT and I am glad I found this video. I have “liked” this video and since you explained everything at my level, under beginner (lol), I also hit subscribe. If you can do this type of “dumbing down” on this, I am sure it can be done again with things I watch. I’ll watch some other videos too, but great video!
Great video! Thanks for explaining everything in detail! Best of luck in year 5
Thanks for watching!
Thanks for the clarification man👍🏽
I’m impressed with your transparency. I’m interested in land flipping and I like your approach.
Thanks for watching! I'm glad you found it helpful.
I am so pumped after finally starting mine!!! No savings account does what this does !!
This was an excellent video. Thanks
Thank you for the detailed description, subbed!
Thanks, Marcus!
Excellent video, excellent explanation and I can feel his honesty
Glad to hear that! Thanks for watching, Erik.
Great introduction into Fundrise! I started investing a lot more with my Fidelity ROTH IRA and Individual TOD, HSA (adding more to what my employer gives to max contribution), Bitcoin, TSP, some in Fundrise and a new investment in M1 Finance (currently offering $500 Bonus to invest when you deposit $1K in 10 days). I like that Fundrise is an option to invest in real estate that isn’t directly buying/selling, being a landlord/landlady, purchasing properties through Sheriff Sales or several other way to obtain property. I had also studied architecture so Fundrise provides information on projects I would not have this access to..
How is M1 Finance going? I want to invest in an REIT.
Really appreciate your explanations of how Fundrise works and what the different investment categories mean. I just opened my account two days ago, and out of the four videos i watched about Fundrise, yours is the most informative, and it answered some questions I still had.
I’m looking forward to see what my first year will be like.
That's so great to hear! Thanks for letting me know! I hope Fundrise works out well for you.
how was your first year on fundrise?
I hope you make a 2022 update about this account and i should say I'm really impressed that this company was profitable through pandemic.
Great Vid...Very thorough! 👍
Thanks! I'm glad you enjoyed it.
Dude great explain, so much info
Thanks for watching!
Thank you for the information.
Thanks for watching!
thanks for this video! very helpful
Thanks for watching!
The concept of Fundrise is alright. People just need to know that the funds from each transaction gets locked for at least 5 years after the purchase of the shares. I also found that auto-invest and dividend reinvesting were inconvenient due to this restriction. I almost feel like the best way to approach this platform is to just lump a sum upfront and chill.
Well said. I agree!
It’s not locked if you withdraw early it will be 1% fee
@@frproduction1136 They changed it to 1%
Good stuff.
Thanks for the breakdown. I'll stick to my stock market REITs in my Roth IRA.
Best of luck to you, Lewis!
great video! but $521.77 over 4 years? realistically actually thats not too terrible, roughly 13% a year average. Usually the 10% return rule is good over 12 months is what I have heard. I am no huge investor but this is what some other investor people tell me. 10% a year is a good return. Are you purposefully leaving this account with just $1000 with dividend reinvestment, you dont wish to add to the account a little bit?
again, great video! thanks for the upload!
i have a/c with them. it really growing better then stocks. i do monthly investment and hoping to get enough for retirement time.
I hope Central Texas (Austin) area is part of the Fundrise platform. It's HOT here!
I believe it. It's hot in most places right now.
Ok for extra play money but if you aren’t investing 15% of your net income into aggressive index funds for retirement do that first.
A good safe place for money with the upcoming times.
It sounded good but I didn't like the fact of waiting 5 years for each dividend received. Thanks for the informative video.
You can have the dividends sent straight to your bank account if you want to instead of reinvested
For 4 years only $ 500 dollar profit seem to be a low return ...but the return is more than most banks today ..
About how much dividends did you make? Would you take money out on a downtrend?
Seems good for fire if you want to live off the dividends. Kinda putting all your eggs in the realestate basket unless you also have a stock portfolio tho
Whenever it's time to get your money, how's taxes looking like, do they already take it or you would have to do that on your own, now looking into these, thanks.
I have a question about how are taxes filed. Do one file in several states according to property location?
Great video. Looking to sign up today. Is there a cap on how much you can contribute, weekly, yearly?
Glad you liked it, Jay! I'm not aware of any caps.
Question how do you invest your money in a project ?!
Love your content! Just watched Year 1 - Now. When you get you initial $1k back, do your dividends stop? Or do you collect dividends for the life span of those properties (like in real life)?
Thanks for watching! If I only take out the original principal, there would still be the reinvested dividends that continue earning more into the future... so theoretically, it wouldn't stop as long as I still have money at work.
@@Retipster but that would only earn dividends on whatever the balance left?
So your reinvested dividends grew your initial investment principle and paid out according to your total balance thus if removing the initial $1k would earn only from your reinvested dividends, correct?
@@lj4001 correct
Index funds in the stock market are the same as this - Passive investment. What are the fees of Fundrise?
Put $1000 into Fundrise about 14 months ago and have made about $100 bucks… not bad you know… It’s not a risky investment, but the returns are modest… might put 20k in just to diversify. Stock market scares me right now.
Just heads up though. There is an early withdraw penalty. You need to keep your money in for a minimum of 3 years to avoid the penalty.
If you withdraw the money u invested after 5 years, the money u invested is not taxed right?
Me to pal
So, what are the other competitors to Fundrise out there that offer this type of passive investing in real estate? Also, would you recommend Fundrise over a Vanguard REIT ETF or Vanguard VOO or VTI? Also, I know nothing about real estate so I would be wondering if there was a place that I could go to that would make some recommendations I where I should be investing my money. Unless you could recommend that or Fundrise does this already? Thanks.
Did you get your questions answered? Obviously not from this particular inquiry you made, but elsewhere? I'm exploring the same options and questions now as you were back then (5 months ago when you posted this).
@@HidingFromFate the only competition that I have found are the following: Groundfloor, Realty Mogul & Yield Street. I personally like Fundrise over a REIT since I can see what my money is being invested into. Yes, there is a higher expense that comes with that but I’m ok with that considering the pro’s.
@@mrderek800 Thanks, Derek, appreciate your feedback. My "gateway" to Fundrise was some modest familiarity with YieldStreet. Their Prism fund specifically, because the rest of their offerings are for accredited investors only. YieldStreet Prism has more diversification classes, but not sure how their upfront 1.5% fee translates to the bottom line of their targeted 8% yearly dividend. I'm not that good at figuring, "the maths", lol.
Anyway at first glance, Fundrise appears it *might* be a little less negatively impacted by fees. Though also more obviously concentrated into real estate. Which is fine though. I'm just looking to add some uncorrelated diversification from stock/bond investments, which by some analysts, is long overdue for a prolonged downturn.
When is the 2022 review video coming ?
Similar return as the spy except u can liquidate ur money at any second
My home has exploded in value and I'm thinking about taking out an equity loan and put my money into something extremely safe to make more money.
Why would you do that?? You not think about the risk Afford to who you can be but think about risk 1st.
Thanks! I wasnt unsure about the credibility of Fundrise, and this was very informative. Because you are reinvesting your dividends, are those to be reported on taxes? Does Fundrise send you something every year to put for taxes?
Please answer someone
Did this investor talk about the tax forms which need an account to help you file. All regular income not as a div category.
One question I have is tax related. So do you pay taxes on anything you've gained inside fundrise each year, or only after you withdraw it after 5 years as Capitol gains tax?
You won't pay tax on unrealized capital gains, but generally you will pay tax on distributions (the exception would be distributions designated as return of capital, which would lower your cost basis but not be currently taxable). And then you'll pay tax on the gains when you realize them.
Only when u withdraw your gains then u pay taxes
I put in $300 today cuz why not
Now with a starter account you can start with 10 dollars
6:00 can you specify how much money goes into fixed income,core plus, value add, opportunistic? or is that automatically selected by them.
Depends on how much you invest, higher tiers, you can balance them to your tastes
Have you done any investing with startengine?
How can you buy a rental property at a low discounted price?
Hello, I'm a noob when it comes to real estate investing. When the time comes to file the yearly taxes, is it a pain in the a$$ to figure out what to write down in the 1040 tax forms or will Fundrise help with this process?
@cclayhammer Should be a 1099-DIV for dividends paid out during the year
I put in 1000 in April im up the 1216 by December q3 was very good to me
Good to know!
So would you say it’s worth putting money into?
Did you put more money in your account?
So (1521/1000)^(1/4) would equate to a little over 11% a year return
Sounds about right.
How much would you have made if you invested into the company itself the same amount of money after 4 years
So these returns is just with a $1000 Intial investment? No monthly contributions?
I am thinking to invest with them. Something I am not yet clear, my aim is more towards high dividends. Not really bothered to increase my value appreciation. Any idea how much % wise I can get on annual basis (base on historical data) on dividends on my investment?
You can choose to have your investments geared to provide you with maximum secondary income. This will still provide some increase through asset growth but I’ve received 6%-9% quarterly dividends (although I think there is a quarter lag). YMMV.
Ticker symbol RA or PDI. They pay out monthly dividends. Average 10 to 12% yearly
Fast forward to 4:48 for account information.
I like your formula but can I add money weekly, ill take 1000 initially but id also like to invest say an additional 100/200 weekly is that possible??
yes. i started with $1k initial, and i auto invest $100 every month, as well as reinvest my dividends. i'm currently at a $2840 balance.
I’m from the Netherlands Can I also invest with euro’s, or do you have to be a US citizen in order to invest in fundrize.
I believe you have to be a US citizen.
US citizen or permanent resident can be eligible for Fundriser
When you mention your return on investment percentage is that including the dividends?
Yep, I believe so.
So you put say 10k in, you cant withdraw that 10k for 5 years. Any earnings you can payout to yourself but if you reinvest, that reinvestent has to stay for 5 years. Correct?
Question, can you pick which projects and locations you wish to invest in?
You can pick which eREIT you want to put your money into, which does focus on a specific region of the country, but this doesn't give you much control over which properties or specific locations end up being dealt with.
Can you do automatic reinvest at first and then change it later?
yes. i've paused my auto invest twice, when i had a month i needed the funds for something else. you can just click to resume when you are ready.
I have Fundrise but $500 in four years just wouldn’t be good enough for me. I’d rather test the equity markets
Test and let us know please
Look at REIT ETFs
Here's a question, since I really don't understand real estate, would it be wise to invest when the properties are appreciating or wait for depreciation to make my next investment? sorry for the silly question but something I feel I should consider.
This begs the question of whether you can accurately predict whether real estate will continue to go up or is about to go down. If you have that skill, then by all means use it. Sadly, I don't have that skill. For that reason, as with the stock market, I buy ever single month regardless of the market.
With this time of investment you're not really owning anything they are so it's puppies are decreasing you mean to do dividends ect. We'll go down. But I have to wait depending on what kind of commercial properties that they're buying if it's big collecting money off the rent not the property value when they sell, do your do diligence
And by all means I'm not investor at all so
Averagely 13% yearly increase
What i don't like is the whole point of real estate is leverage and this takes that way it is paying you only on what you invested instead of the leveraged amount. For example 1k as a down payment of 3% would leverage you to about 34k. So now you make appreciation and income of 34k property. Instead in 4 years they gave you 500 dollars for using your money.
What benefit I get when i use your link?
You get $225, what I will get?
Please do a 5 years video.
You bet I will! Keep an eye out for it in April 2022.
Why you have to bee a citicen what about permanet resident .
Fundrise should just build a skyscraper already... They've got north of $250 million worth of real estate already and continue growing everyday...
If I was looking to have this as a supplemental income, something maybe to handle minor Bill's to free up my work income.
Yeah, I suppose it could work. You'd probably need to put a lot of money in and not reinvest the dividends, but it seems like it could be a viable option.
I did not know nothing about it
yo as time goes on can you invest more into the same portfolio
I got better returns in 2 years then you did in 4 years.
I went extremely risky with less dividends more appreciation
521$ in four years. Not really impressive. But at least you didn't lose any money.
What would the return be on your money just sitting in a bank account?
how to sell?
Seemed OK until the end where you say you cant even withdraw the money until after 5 years lol, with early withdrawal fees and bleh bleh. The lack of liquidity is a major downside.
Yep, it's definitely a drawback to consider.
You have to view it like a bank CD
I mean that's real estate. If you bought a house and sold it the next year you will lose money
@@NerdSnipingBatman You've obviously never flipped a house.
I have not, for good reason. 1.) A lot of beginner flippers typically are breaking even or actually lose money because they don't find the right undervalued house, either that or the spend too much on renovations and don't get enough ROI. Lol Zillow just killed their ibuyer program because they were bleeding money. 2.) Once you account for all the sweat equity: you time and effort, you don't make that much on a flip. To me it isn't worth it.
For some, the real value is in owning rental properties. The tax advantages, rental income, and appreciation are great. But it's not passive income: there's a lot of work being a landlord. Also you have to essentially find a good deal on a rental that needs some improvements: so you have to still put in a lot of sweat equity before you can rent it out. Otherwise if you buy a move in ready rental, you likely won't have positive cash flow for a while. And again it isn't passive.
With fundrise, yes I don't get all the tax benefits you all get with owning rentals. But I also get to have returns completely passive. I literally don't have to lift a finger and I've been getting a 20% return this year.
On liquidity: fundrise recently launched a new fund recently called the "interval fund". This one is a bit different from the deals in the past. They're structuring it so that shares are more liquid and you can cash out more quickly. The interval fund offers quarterly repurchase offers with zero penalty. So the 5 years thing no longer applies.
The interval fund is their main fund now, and it is structured more similar to a mutual fund than a REIT.
I would give them a second look if I were you.
What money do I get out of it
Is it fair to say the return for you was comparable to s&p500 during the same timeframe?
Over 4 years idk. I made 5x this in a year in the market
@@briandeluca6908 can you elaborate? Is the 5x return from fundrise? What percent return was it?
@@Omikoshi78 your not going to get 5x return on fundraise in a year what so ever. I was using stocks and crypto
@@briandeluca6908 ok I have zero interest in crypto. Still made 800k ytd via s&p500. Stability > short term hyper gains.
@@Omikoshi78 which wont be getting with investing in this type of investment
Er, more than 4 years and a 50% return? That's quite low
Lol exactly
Around 11% per year? Not bad at all. I'd take it, if for nothing else as a diversification. Especially when plenty of analysts have been saying that the stock market is overdue for a prolonged downturn.
Yeah but let's say you want to sell fundrise has the authority to tell you you're not allowed to have your money back
How can you be an Advanced level if you only have $1.5K in your account?
Referrals I think....
So… can you lose your money when the market crashes?
I wonder why this question was not answered.
how often are dividends paid out? and what percentage is the dividend return?
Every quarter. The percentage varies from quarter to quarter, but I've usually seen it in the 9 - 11% range.
@@Retipster that’s really good!!!! it’s much better than my bank savings account! would you say it’s safe to invest all your money into this?
I wouldn't call this getting "involved" with real-estate.... I would recommend this for no One... but I would recommend starting a business just like this and collect everyone's money and invest in the stock market and flips with other people's money and make the real returns of wealth just like they are and just like banks do and give peanuts back compared to the returns they get... it's almost hysterical 🤗😊
Are dividends paid out quarterly?
Yes.
YOUR ALL TIME FEES LESS THAN $10???
Nice review, but just $500 gains over 4 years?
I'd invest that $1000 somewhere else
like where?
Where
Your Opportunistic portion is double mine and your annualized return is also double mine. Interesting.
That is interesting. When did you start investing, Josh? Which eREIT(s) did you put your money into?
@@Retipster end of 2018. The initial investment was divided 50/50 in income and growth reit. Doesn't seem to show geography though.
You don't need to be a US citizen, just be in the US legally.
I put 1K into it last October. It's only $1279 now.
If you've seen that much growth in one year, it sounds like you're doing better than me so far!
@@Retipster really? So should I reup it?
You don't need to be a citizen .. you just have to have a legal right to work in the u.s or pay taxes
Can you go in and put more money into your portfolio?
Of course, they will gladly take more of your money.
I started my account a couple of weeks ago I was able to start with $10.00
How's it looking right now?
I have invested 200.00 I am slowly moving up.
@@VincentSchulte same here lol I made 48 cents in dividends
What's the difference between this and just investing in a reit?
Great question. I'm honestly not sure. Seems like a pretty similar concept.
Is there any risk? If the company we are investiving with lose money on real estate, does that mean we lose our invested money too?
Yes, there is risk in any investment.
I have to stop investing in this because I'm assuming every single time we make a deposit, we have to wait 5 years to liquidate that investment. 🤔
Real estate is typically a long term investment. If you’re looking for a quick buck REITs are a better bet.