Fundrise is a great way of getting started in Real Estate, without having to get your hands dirty.
Real Estate can be really exciting, but it can also wear, and tear you down. Finding tenets, securing payment, fixing broken things that you may not have a skill for, or outputting money for repairs. This can be quite a headache, especially if you are still holding a job down or focusing on another hustle.
Fundrise gets you into the Real Estate game without all of the headaches. You simply throw some of your extra money into the account and watch as it grows over time. You are paid in dividends as well as appreciation. The dividends come quite often, and it might not some like much at first, but you also need to realize that your money is making more money, and that’s more than what it would be doing in a basic savings account.
Now on a real note, it really depends on the market, interest rates, and housing cycles, because it is possible to have depreciation. Just like stocks, the longer you buy and hold, the better the outcome. If you hold, eventually the interest rates will normalize, the market will pick back up, and those properties you’ve been adding to over time will appreciate.
Real Estate is one of the “safest” investments, because of the value typically doesn’t go down, and if it does, it doesn’t stay down. I wanted to get into Real Estate, but I don’t have the time or skills necessary at this time to get into physical Real Estate, so I was looking for the best alternatives. I started and invested in a few REITS on the stock market, and I’ve been enjoying the dividends from that, but it’s hard to keep up to what properties are being bought, sold, or appreciated. With Fundrise, they send you updates on whatever is going on with the properties that your money has been used for.
I have not tried myself, but I have also heard that Fundrise is not as liquid as say a REIT on the stock market. They typically work quarterly, so if you are needing your money back, it may take some time. This is why you should only invest money you are comfortable with risking, as it ties up your money for the long haul. Think of this as an added weapon to your arsenal of investment products.
I have been using Fundrise for 2 years now, and although it’s taken a while to get into the next “package” it’s been worth it to unlock the next level investment properties. You can set a goal for yourself, whether it be long term or short term, and it keeps track of that goal.
So far, even though I have dealt with some depreciation, I understand with the credit and interest issues going on, there isn’t much to do about it. So I keep my money in, allowing it to amass more and more shares, so when the market eventually does turn around, we will be smooth sailing.
Let us know your thoughts on Fundrise!
Thrifty Investing 