What Happened After Investing $5,000 in Fundrise for 18 Months?

TL;DR

After 18 months of investing $5,000 in Fundrise, I plan to increase my contributions to $2,000 per month, totaling $24,000 annually. My investment has grown steadily, highlighting the importance of diversifying into real estate through eREITs, while also noting that liquidity is not guaranteed and a minimum investment horizon of five years is recommended.

Transcript

• So, in this video today we are going to be doing a review and an update of my Fundrise investment portfolio. Now, I personally started investing in Fundrise back in June of 2018, and I've been regularly contributing to this account from that original time that I started investing. Now, here I am about a year and a half since I started this invest... Read More

Key Insights

• 🔬 The YouTuber has been investing in Fundrise for over a year and a half, starting with an initial investment of $1,000 and gradually increasing it to $5,000.
• 🌱 They plan to invest $2,000 per month into their Fundrise portfolio, totaling $24,000 per year.
• 👻 Fundrise offers portfolio-based investment options, allowing investors to purchase shares of eREITs and eFunds, diversifying their investments in real estate.
• 🚥 Liquidity is not guaranteed with Fundrise, and investors should have a minimum time horizon of five years.
• 🤱 The YouTuber's returns are shown after deducting Fundrise's 1% annual asset management fee.
• 🤱 Fundrise's fee structure is transparent, and investors can see the fees on their portfolio page.
• 🏛️ The YouTuber emphasizes the importance of diversification and investing in different asset classes.

Questions & Answers

Q: How does Fundrise work and what can you invest in?

Fundrise allows investors to purchase shares of eREITs and eFunds, which are non-traded private real estate investment options. Investors cannot select individual projects but invest in portfolio-based options such as growth-oriented, income-oriented, or balanced portfolios.

Q: Are there any fees associated with Fundrise?

Fundrise charges a 1% annual asset management fee based on the value of the account. The fee structure is transparent, displayed on the portfolio page. The YouTuber's returns shown in the video are after deducting the 1% fee.

Q: Is liquidity guaranteed with Fundrise?

Liquidity is not guaranteed with Fundrise due to the nature of investing in private real estate projects. Fundrise offers a quarterly redemption period, but early cash-outs may incur fees. Investors are advised to have a minimum time horizon of five years.

Q: What returns has the YouTuber earned from their Fundrise investment?

In 2018, with a partial year of investment, the YouTuber earned a return of 4.3%. In 2019, the overall return was 7.7%. The returns shown in the video are based on a $5,000 investment. With increased monthly contributions, the YouTuber expects more substantial returns.

Summary & Key Takeaways

• The YouTuber started investing in Fundrise in June 2018, initially investing $1,000 and later increasing it to $5,000 in April 2019.

• Currently, the YouTuber plans to invest $2,000 per month into the Fundrise portfolio, totaling $24,000 per year.

• The YouTuber shares information about Fundrise investment plans, project details, liquidity, and offers a beginner's guide to crowdfunded real estate investing.