Fundrise: Doubling My Monthly Investment | Real Estate Investing

Fundrise, Real Estate Investing, Crowdfunding

Investing into cash producing assets isn’t always easy.  Especially when the stock market is hitting all-time highs and the world is acting, occasionally, that COVID-19 is no longer.  Luckily, there is a great real estate platform in Fundrise, which we have been a part of for 2 years.

Given that the market continues to surge, yields continue to plummet and drop.  Further, trying to fund undervalued investments becomes an adventure, as well as noticing you may be extremely exposed to the stock market, in general.

My wife & I made the decision to increase our monthly contribution to Fundrise – the Real Estate Investing Platform!

In this article, I will go over the following:

First, the background on Fundrise.

Then, our current investment and what our goal was in the last article.

Third, our new goal for 2021 and for the months 12-24.

Fundrise: brief background

Fundrise has been around since 2012, investing over $4.9 billion of real estate holdings and transactions.  They are a premier, real estate crowdfunding investment platform.

Fundrise has 3 (Starter Plan no longer!) different categories of Investors for you to choose from:

  1. Core Plan: Start with a $1,000 initial Investment. Choose between a Supplemental Income, Balanced Investing and a Long-Term Growth plan. You can see the breakdown of each below, as I talk about how we selected the Supplemental Income plan.
  2. Advanced Plan: Available to investors with $10,000+ invested. This plan has a more variety, as well as sophisticated and specific investment strategies.
  3. Premium: Available to those investors with $100,000+ invested.  Even longer-holding periods, with greater potential for returns.  For some reason, I just can’t find the $100,000 underneath that couch cushion I thought I had…  Details on the Premium investment class is below.

Their fees are approximately 1.00% but can be waived through generation of referrals.

You can review Fundrise service and approach to investing here.

The three plans within the Core Investment Category are listed below and you know we chose the Supplemental Income plan!

Fundrise, real estate investing, REIT

For further details on my investment and background, see – Fundrise Review – A New Investment, Pros & Cons

our current fundrise investment

Here is a re-cap that I was able to take to summarize the positions as of February 23, 2021 – the timing of this article.

What you’ll also notice is the $1,006.25 from the Fundrise Investment Internet Public Offering (iPO).  As an investor on the platform, you receive an opportunity to own shares in Fundrise, the company.  I took the opportunity and based on my holdings, was able to invest $1,006.25.  Since the purchase of shares into Fundrise, the shares are worth $1,192.50, actually (nice little 18% unrealized gain!).  Extremely curious as to what may occur at the end with the iPO!

Related: Fundrise iPO, Say What?!

You maybe wondering,what does the $3,640.90 actually yield for this Dividend Diplomat?  The answer to what my Fundrise yields, varies, but I would safely say the yield is between 5.50%-7.00%.  This is almost 2x my portfolio yield, at this time.

However, I am investing not for the dividend yield, but for the diversification as an alternative asset from the stock market.  The investment I have with Fundrise doesn’t track an index. In fact, here is how Fundrise performed in 2020 relative to the REIT index:

First, definitely is wise to point out – Fundrise trailed the stock market.  However, the second, main point, is that it also didn’t track with the public REITs index, crushing the performance during the pandemic.

In addition, I also wanted my wife and I to take a hard look at our concentration with Fundrise, in relation to our networth and assets.  At $3.6K, this represented < 1% of our net worth.  We both said we would be comfortable if this alternative, cash flowing asset grow to 1-5%, with the aim to build it up to 1%, quicker.

Lastly, instead of owning real estate properties, this gives us a little bit of a taste of owning real estate properties, passively, automatically and technologically.

On the Fundrise year-end update article, we said we would continue with $100 per month until the end of Q1 2021.

2021 Fundrise Goals and Beyond

Goals and plans are made to be changed, for the better, of course!  Therefore, with our passion to reach financial freedom, my wife and I decided to up our current $100/month to $200/month, effective immediately.

Starting March 2021, we will be contributing $200 into the Fundrise platform on a monthly basis.  We are moving this up a full month earlier than planned for 2021.  Therefore, we stand to add $2,000 from March through the end of 2021 into Fundrise.

We wanted to get to $5,000 with our Fundrise investment.  Therefore, staying at $100 wasn’t going to get us there and we wanted to be sure we were going to cross it.  In addition, this will help us in achieving our 1% minimum goal for Fundrise.  However, this will obviously be subject to change with our other investments in the stock market and cash balances.

We are excited to make 2021 a strong investment year and what better time to start, than now.  The next 10 months will be an exciting time and 2021 goals will be achieved and exceeded!

Beyond 2021 is where it becomes even more exciting.  If 2021 goes well, we do plan on increasing to $250 in January 2022, equating to a $3,000 investment expectation in 2022.

Over the next 22 months, we stand to look at $5,000 in additional investments.  Barring market valuation fluctuations, the investment balance will be over $8,000 with an income project of at/around $500 per year.

Conclusion

In conclusion, we are happy about our investment with Fundrise and are even more excited for March to start!

We cannot wait to add more to the investments and create additional, forward income.  In summary here are the stats and updates:

1.) Current Investment Balance: $3.6K

2.) Prior Monthly Contribution, Automatically: $100/month

3.) New Monthly Contribution, Automatically: $200/month (100% increase)

4.) 2021 Goal: To Cross $5,000

5.) 2022 Goal: To cross $8,000 with $500 in projected income

How about you?  Invest with Fundrise or now are looking to invest/check them out further?  Check out the links in the article to my year-end update and to their platform itself, as they really go into detail with how their platform works.  Their transparency is one of my favorite reasons why I invest with Fundrise.

Thank you again for stopping by, appreciate the feedback and look forward to all of your comments!

-Lanny

5 thoughts on “Fundrise: Doubling My Monthly Investment | Real Estate Investing

  1. Lanny,

    Congrats on your decision to bump up the Fundrise contributions to $200/month. I’m not invested in Fundrise at this point, but it’s worth examining given it’s strong performance to publicly traded REITs in 2020.

    • Kody –

      I have absolutely loved it. In fact, I’m able to have access to owning even more of Fundrise, the actual platform, and will be acquiring shares there. When I see this not correlating to the market year, after year – that is the exact reason why I have it. If you are interested and have any questions about the experience – let me know!!

      -Lanny

  2. Please make two YouTube videos, of before and after you cross into the Core Plan of $5K. It will be interesting to see if there are differences in the dividend yields between the plans. Alternatively, you could do your famous WWE “vs” and do comparisons between Stock REITs and Fundrise.

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