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Real estate crowdfunding ..anyone ever try


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Not much data available yet, but didn't fundrise return something like 11%, last year?

the website touts 12-14% but does that really mean anything?

 

Fundrise Investment Guidelines & Earnings Investing

Fundrise investor accounts are free, and you’ll be able to invest as an individual or as an entity. Minimums can be as little as $5K and you’ll earn returns averaging 12-14%.

Fundrise investments also feature rolling maturity dates with an average of 1-2 years, which means you’ll have periodic liquidity instead of being locked in indefinitely.

Each Fundrise investment is handled through the company’s simple and secure online process, which includes e-sign documents and the ability to transfer funds via electronic check.

Once an investment project is complete, you’ll have the ability to reinvest your earnings in future offerings.

Raising Capital

If you have a real estate project that requires funding, Fundrise can help there, too.

Your project will go through the same approval process noted above. Once you receive approval, Fundrise can fund up to 90% of your project, up-front, in as little as 2 weeks.

Fundrise’s projects can encompass single-family homes, mid-market commercial, and large transaction real estate projects, with annual rates averaging between 8% and 18%.

Before you get too excited though, will you even be able to invest in any of Fundrise’s projects?

Fundrise’s Accreditation Requirement

If you read through the main sections of the Fundrise website, you could certainly be forgiven for thinking that just about anyone can invest in their real estate projects.

It even seems like one of the main selling points on their About page is that Fundrise allows everyone “not just accredited investors—to invest for as little as $100.” You’ll even be able to invest in projects in your very own neighborhood!

According to Fundrise’s Blog though, “the majority of real estate companies will opt to use Regulation D Rule 506, a more traditional offering type, limited to accredited investors.”

What’s this mean? Unless you sign up for their mailing list and wait patiently for an unaccredited offer to come through, you’ll need to be accredited in order to investment in the vast majority of their projects. In fact, since opening their doors in 2010, Fundrise has only provided 1,200 unaccredited investors access to their projects (compared with 61,000 total members).

This means you’ll meet at least one of the following criteria:

  • Have to earn $200K+ per year as an individual, or $300K+ per year with joint spousal income.
  • Have a net worth of $1,000,000+.
  • Be a “bank, insurance company, registered investment company, business development company, or small business investment company.”
  • Be a general partner, executive officer, director or a related combination thereof for the issuer of a security being offered.
  • Be a business in which all the equity owners are accredited investors.
  • Be an employee benefit plan, a trust, charitable organization, partnership, or company with total assets in excess of $5 million.
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Not much data available yet, but didn't fundrise return something like 11%, last year?

That's what their website said. It seems like I looked at this a while ago, but can't remember much. Seems like there were a lot of conditions to be able to invest...You may have had to represent a certain amount of wealth or knowledge about investing, similar to getting margin or options approved? but it says you can get in for $1000.

 

I can't take too much risk right now, but one percent in a savings account or money market is driving me crazy. Now that I have reduced/eliminated betting for a minute, I figure it's a good time to start looking at things. I figured if there was something good going on here, WVU would know,...Maybe somebody else has some insight.

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That's what their website said. It seems like I looked at this a while ago, but can't remember much. Seems like there were a lot of conditions to be able to invest...You may have had to represent a certain amount of wealth or knowledge about investing, similar to getting margin or options approved? but it says you can get in for $1000.

 

I can't take too much risk right now, but one percent in a savings account or money market is driving me crazy. Now that I have reduced/eliminated betting for a minute, I figure it's a good time to start looking at things. I figured if there was something good going on here, WVU would know,...Maybe somebody else has some insight.

see post 7.  Ridiculous conditions listed:

  • Have to earn $200K+ per year as an individual, or $300K+ per year with joint spousal income.
  • Have a net worth of $1,000,000+.
  • Be a “bank, insurance company, registered investment company, business development company, or small business investment company.”
  • Be a general partner, executive officer, director or a related combination thereof for the issuer of a security being offered.
  • Be a business in which all the equity owners are accredited investors.
  • Be an employee benefit plan, a trust, charitable organization, partnership, or company with total assets in excess of $5 million.
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Fundrise’s projects can encompass single-family homes, mid-market commercial, and large transaction real estate projects, with annual rates averaging between 8% and 18%.[/size]

 

 

 

whoa, thats a shit ton of interest[/size]

 

Yeah it is. I don't meet the criteria for being unaccredited as stated above. I'll have to look more at it. Maybe there are other companies with not such tight criteria. I just skimmed the post. Sounds like you can still invest maybe not with the best projects though? I'll have to read again/more.

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see post 7.  Ridiculous conditions listed:

 

  • Have to earn $200K+ per year as an individual, or $300K+ per year with joint spousal income.
  • Have a net worth of $1,000,000+.
  • Be a “bank, insurance company, registered investment company, business development company, or small business investment company.”
  • Be a general partner, executive officer, director or a related combination thereof for the issuer of a security being offered.
  • Be a business in which all the equity owners are accredited investors.
  • Be an employee benefit plan, a trust, charitable organization, partnership, or company with total assets in excess of $5 million.

 

Yeah I was posting on this as you posted this. See above. Fok.

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  • 2 weeks later...

Investment in real estate projects no doubt are risky but if the project is doing well, you will recover your invested amount by way of receiving dividends. I invested in a real estate  project with the advice of my friend , who is  working with http://crowdfund.co/real-estate/   .  The project starts doing well from the starting and my invested amount is recovered within 8 months. If you are investing in any project, it will always be better to take the advice of the advisor relating to the field, as they have complete knowledge on the subject and they'll always guide you in the right direction. 

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Investment in real estate projects no doubt are risky but if the project is doing well, you will recover your invested amount by way of receiving dividends. I invested in a real estate  project with the advice of my friend , who is  working with http://crowdfund.co/real-estate/   .  The project starts doing well from the starting and my invested amount is recovered within 8 months. If you are investing in any project, it will always be better to take the advice of the advisor relating to the field, as they have complete knowledge on the subject and they'll always guide you in the right direction.

 

Sounds like bullshit to me. Your "advisor" is there to make money which means he is there to convince you to invest more and more. None of the crowd funding places I have read about will allow you to recover your invested amount in 8 months. What real estate project did you invest in? Let's get some specifics.

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  • 1 month later...

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