+7 votes
by (290 points)
Anyone have any experience with Fundrise? Most reviews online show solid returns with the one downside being that it’s illiquid. I have ~$30k in betterment, but I want to diversify. Don’t have the funds to buy a piece of real estate. Thoughts?  
Anyone have any experience with Fundrise?

6 Answers

+6 votes
by (860 points)
 
Best answer
If you'd have put your money in a boring S&P500 index fund you'd have gotten about a 30% return last year. Nothing wrong with real estate if you're looking to diversify though.  
by (290 points)
@quindecennial that’s where all my money is. Looking to diversify. Put that in my original post.  
by (860 points)
@administer Betterment is different than the S&P500. Betterment maintains a significant value tilt and a small cap tilt, both of which have lagged over the last decade (and trailing 12 months). Check your TWR in Betterment. It's nowhere near 30%.  
by (290 points)
@quindecennial ah gotch. Yea I’m around 15%. Feel like that wouldn’t be diversifying though. Am I wrong?  
by (860 points)
You're not wrong about that. And lots of pundits are calling for a rotation into value stocks (which has already begun really). I've had money in Betterment since 2014 and it's been very disappointing IMO.  
by (290 points)
@quindecennial what’s disappointing? Would you be better off with another company?  
+4 votes
by (280 points)
I've been investing for about 6 months and had around 2. 5-3% return. honestly been thinking about pulling out and putting it into betterment.  
+5 votes
by (4.2k points)
Andrew is big on Fundrise, but let me tell you my problem with it. Fundrise is essentially just like any other REIT. You are subject to single party risk! If you buy VNQ, you get a lower yield, but if any individual REIT goes bankrupt you still have some of your investment. If Fundrise goes bankrupt. Well, shareholders can file against the company in court to recover some losses, but if they don't have the assets to support those liabilities, your money is gone.  
by (290 points)
@toniatonic that is my biggest concern. If Fundrise goes bankrupt, all of my money is lost and unrecoverable. The stock market you can ride the wave at least.  
+5 votes
by (3.6k points)
I like fundrise as I prefer to invest in individual projects rather than REITs, and I’m currently invested in around 70 different projects. All in all about a 7-8% return in my first year. Will continue with them, and soon diversyfund once they get a mobile app
+5 votes
by (3.4k points)
I went with Groundfloor instead. I'm averaging 11. 5% returns, and mix my portfolio up a bit. I've been happy with it so far (a little over a year in), and I have auto deposits set up so it reminds me to invest it monthly. Minimum to invest in each property is $10. Some loans are paid back well before the due date (though this is rare), so I can reinvest my money a little bit faster.  
+5 votes
by (6.3k points)
I've been with it since March. Fairly happy but won't put in more than 10% of our monthly investment. 10% to fundris 10% to worthy bonds 20% to M1 regular brokerage 60% to the TSP
by (290 points)
@vegetation what’s tsp?  
by (6.3k points)
@administer thrift savings plan, the federal 401k
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