As we are entering into a bear market and recession, it is more important to diversify your financial portfolio. The S&P 500 declined by almost 20% in the past year. On the other hand, real estate has increased by 200%. As a result, REIT and eREIT are now great ways to diversify your portfolio. REITs are publically traded real estate funds, and eREIT is a crowd-funded platform that allows you to dip your feet into the real estate market without all the hassle of owning properties. Put money into an eREIT company like Fundrise, and you can avoid being the landlord who takes care of all the property repairs. You will earn dividends at least three to four times yearly. And it will diversify your portfolio in a bear market like the one we are experiencing now. Don’t forget! You will need to report any capital gain if you sell or make money from REIT and eREIT. And I am not responsible for any of your financial losses. But my goal is to break down how Fundrise can be a good platform for investing in real estate without buying individual properties.
Here is why I use Fundrise as my eREIT platform,
1. It is easy to use and invest in Fundrise.
Fundrise is extremely easy to use, and it requires only minimally 500 dollars to start. It has a friendly user interface that displays the number of investments. It also has a calculator that identifies how much money you need to invest monthly. For example, if I am interested in making 1 million dollars in 30 years at retirement, I will need to invest 500 dollars from 30 to 65. It also optimizes its algorithm for your risk tolerance. If you are interested in long-term gain, they will place you into real estate properties that allow you to earn extra income but with less liquidity. Because of its versatility, this platform has become very popular among new generation investors. They also have a mobile application that lets you check your investments daily. You will generally receive a daily capital gain with appreciation monthly in your profile. However, you will need to invest five years on this platform before they allow you to withdraw without penalty.
2. Fundrise has an outstanding track record of positive ROI.
If you have not heard about Fundrise’s return on investment, you are missing out! They have done exceptionally well since the start of their company in 2010. Although the S&P 500 has outperformed this investment category for the past five years, Fundrise performs better than the same indexes during this bear market. Fundrise has averaged a 9% return since the beginning of 2010. Last year, I received an 18% gain from the Fundrise real estate investment. At the beginning of 2022, while the S&P500 has been declining over 20 percent, I continue to make over 5% profit in the first five months.
On top of that, you will receive dividends every three to four months. As long as the real estate market is strong, you will continue to profit via Fundrise. The company is now worth 5.1 billion dollars worth of real estate in the United States. This company is rising fast, and investment in this will likely result in a very positive light in your portfolio.
3. Fundrise is transparent, and they let you see what they are investing in.
Lastly, they break down all your investments and provide pictures of them across different cities. As a result, you get to see where your money is going, and they also provide you with bi-weekly or monthly updates on your investments. They generally invest in 200+ projects simultaneously, so your money is further diversified within the real estate class. This minimizes your risk in the market, and I think they do an excellent job. However, once you have invested more than 10,000 dollars/Fundrise shares, you will have to file a K1 to the IRS, which is an extra step on your report. In 2022, they also announced to be involved with the industrial assets, which will further increase your diversity.
Fundrise is getting very popular, and it is one of the great ways to diversify your income via eREIT. If cryptocurrency is too risky for you, you can consider using this platform. I hope this article has been helpful for you. If you are interested in joining Fundrise, please consider using the link below!
You can join Fundrise with my affiliate link below:
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