fundrise

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investuntilimrich
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fundrise

Post by investuntilimrich »

It's been a year since I put money into this. I logged in today to see how it's done and I gained 2.4% in dividends and just over 20% in appreciation. Several people have asked about this fund so I figured I'd do a yearly update.
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abuss368
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Re: fundrise

Post by abuss368 »

investuntilimrich wrote: Sat Jan 08, 2022 6:46 am It's been a year since I put money into this. I logged in today to see how it's done and I gained 2.4% in dividends and just over 20% in appreciation. Several people have asked about this fund so I figured I'd do a yearly update.
That is incredible. I have read a lot about Fundrise but have not invested. One Boglehead, Nate79, has experience with them and appears happy.

What fund did you invest in or which platform?

Best.
Tony
Last edited by abuss368 on Sat Dec 10, 2022 4:17 pm, edited 2 times in total.
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Fran K
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Re: fundrise

Post by Fran K »

Thanks for posting. How is this treated from a tax perspective? Is it similar to a REIT? Any information about how this compares to a typical experience or past years? I know in my area 20% appreciation of real estate wouldn't have been hard to hit last year.
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Nate79
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Re: fundrise

Post by Nate79 »

As mentioned above you can search on BH for my posts on reviews. I think I posted this previously but my 2020 return was 7.7% and 2021 was 27.3% (these are with regular monthly contributions so it is not like lump sum investment return). I'm in the aggressive growth portfolio with 14 different REIT funds. You get 1099's (available now) and K-1 (available mid March). I don't use Turbotax but it says they can import directly the forms. I currently have 9 1099's to enter and it will be a small few # of K-1's once they arrive. I use Freetaxusa and just enter the information, not that difficult.
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abuss368
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Re: fundrise

Post by abuss368 »

Fran K wrote: Thu Feb 03, 2022 1:22 pm Thanks for posting. How is this treated from a tax perspective? Is it similar to a REIT? Any information about how this compares to a typical experience or past years? I know in my area 20% appreciation of real estate wouldn't have been hard to hit last year.
From what I was able to understand and gather reading a lot of their information, the investments with Fundrise are REITs. They would be considered public non-traded REITs. That is, there is no secondary market (stock exchange) in which to actively trade.

This is more direct ownership in real estate. Essentially one buys into the e-REITs who own the physical properties. Compared to buying shares in Vanguard REIT, which buys shares in public REIT companies, which the public REIT companies buy the buildings.

Best.
Tony
John C. Bogle: “Simplicity is the master key to financial success."
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abuss368
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Re: fundrise

Post by abuss368 »

Nate79 wrote: Thu Feb 03, 2022 1:47 pm As mentioned above you can search on BH for my posts on reviews. I think I posted this previously but my 2020 return was 7.7% and 2021 was 27.3% (these are with regular monthly contributions so it is not like lump sum investment return). I'm in the aggressive growth portfolio with 14 different REIT funds. You get 1099's (available now) and K-1 (available mid March). I don't use Turbotax but it says they can import directly the forms. I currently have 9 1099's to enter and it will be a small few # of K-1's once they arrive. I use Freetaxusa and just enter the information, not that difficult.
Hi Nate -

I use Free Tax USA as well and filing is very easy. No cost for Federal and state is a nominal amount.

Best.
Tony
John C. Bogle: “Simplicity is the master key to financial success."
Gecko10x
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Re: fundrise

Post by Gecko10x »

I've been considering Fundrise, but one thing I can't figure out is this: can you invest only in the projects of your choosing? Or can you be fairly granular in your project preferences? For instance, if I wanted to stick with only residential projects and not invest in commercial, is that possible?
Nate7out
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Re: fundrise

Post by Nate7out »

No. You cannot invest in projects of your choosing. Your first contribution may get default invested into the interval fund and possibly something else (not waiting in cash for you to choose). You can invest in the fund(s) of your choosing once you have a certain account level. Each fund has certain projects, you invest in all of a fund's projects.

Check fundrise/offerings to review the funds.

ETA:. With the primary strategy at Fundrise being build to rent, it would be pretty easy to be 95% residential.
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abuss368
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Re: fundrise

Post by abuss368 »

Gecko10x wrote: Tue Apr 19, 2022 5:05 pm I've been considering Fundrise, but one thing I can't figure out is this: can you invest only in the projects of your choosing? Or can you be fairly granular in your project preferences? For instance, if I wanted to stick with only residential projects and not invest in commercial, is that possible?
Yes and no. They started as a firm with syndication deals. I believe that has declined in volume in terms of offerings if at all. However, their e-REITs are largely residential homes, apartments, and some small office & industrial. Appears to be majority residential and apartments.

Hopefully that helps.
Tony
John C. Bogle: “Simplicity is the master key to financial success."
Gecko10x
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Re: fundrise

Post by Gecko10x »

Thanks for the responses. I figured it was something like that.
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ClevrChico
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Re: fundrise

Post by ClevrChico »

The returns sound interesting, but then I compared it to my personal boring three fund portfolio at Vanguard. The three fund generally does better.

And this doesn't look spectacular.

https://fundrise.com/client-returns
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abuss368
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Re: fundrise

Post by abuss368 »

An enjoyable article from Bloomberg regarding Fundrises project in Los Angeles.

https://fundrise.com/investor-update/628/view

Best.
Tony
John C. Bogle: “Simplicity is the master key to financial success."
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