Fundrise IPO?

Skap13's picture
Rank: Monkey | 61

Hi Monkeys,

I'm thinking about investing in the Fundrise IPO. I've invested in the platform and so far it's been going well and I've received relatively consistent returns to my portfolio. I also think crowdfunding is super interesting and that the industry is getting wiser about it (re: the collapse of RealtyShares). I've also invested in GroundFloor.

What are your thoughts?

Comments (9)

May 15, 2019

Seems like a good idea in theory but extraordinarily unproven business model. I think their value pitch is super low fees and serving consumers the most direct, cheap and flexible access to a product, similar to Uber (corny comparison, I know). Allowing their RE investors to also be their corporate investors ensures that large financial institutions they would traditionally raise capital through wouldn't try to steer them away from that mission in favor of greater profitability. The problem with this all however, is that it turns out (see: collapse of Uber's stock) that serving consumers the cheapest and most flexible options isn't as profitable as raking your consumers over the coals like Verizon. Also, there's something to be said for having smart, sophisticated, established shareholders with voting rights backing you and giving you guidance to steer towards scaling the business profitably.

May 16, 2019

Valid points. I guess we'll that's a risk I (and other early adopters) will have to take. Thanks for the insight!

May 16, 2019

I would put a lot of thought into what effects a downturn would have on them. We are late in the cycle, and they've never experienced a down-cycle.

May 16, 2019

True. What I like about them is that they have assets across the spectrum of appreciation vs. yield play and have assets all over the country. So I'd like to think that they'd still be able to perform relatively well during the downturn. But of course, we'll see.

May 16, 2019

Just curious - what have your returns been from investing in their platforms?

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May 16, 2019

I'm in their "Balanced Portfolio" (you can choose from their Growth or Value portfolio) and it's only been about 6 months since I started. So far I'd say that I have about a 2-3% return or so.

May 16, 2019

They advertise some returns of 10%+, but from what I've heard they rarely can return that to investors.

Why not put your money in a REIT or REIT ETF that would have more diversification, liquidity, and a higher dividend?

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May 16, 2019

Do they invest into projects themselves or provide financing to real estate companies?

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May 18, 2019