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Fundrise:Direct Investment Strategy

Started by jimmoney, November 26, 2020, 12:34:16 PM

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Hello Folks,

Is there anyone out there investing directly into specific Fundrise eREITs as opposed to letting one of the three Fundrise plans (Supplemental, Balance, Growth) do it for you automatically?

I believe there is a post somewhere on this forum explaining what I mean by "investing directly." So, I won't spend much time explaining it, but I do want to provide some quick context. For those of you unaware, Fundrise allows investors who have an account level of at least advanced ($10,000 min account balance), to directly invest in their funds rather than adding funds and letting Fundrise decide where to allocate them. You can do so by going to and clicking on "view details" where you may see a link to make a direct investment. I say may because only a subset of all their funds will be available for this. When I questioned Fundrise about this their response was:
QuotePursuant to SEC regulations, our funds are limited to raising $50 million per 12-month rolling period. To comply with regulations, we may periodically suspend investing in funds that are nearing their limit.

Until recently, I let Fundrise allocate my funds. After seeing where funds were being allocated for a while, and after feeling for too long that they were putting too much into funds that were "ramping up," I pulled the plug on automatic monthly investments. Their "ramping up" funds produce little to no growth or dividends and who wants that? So, last month I made direct investments into available funds I felt would produce more growth/dividends. At that time the funds available were Income eREITs 1 & 2, Growth eREITs 1, 2, & 2019, West Coast eREIT, and eREIT XIV. I think that remains true today but haven't checked again so it could have changed. Based on my purpose for investing with Fundrise (grow my recurring passive income) I chose to invest as follows:

  • 40%: Income eREIT
  • 30%: Growth eREIT
  • 20%: Income II eREIT
  • 10%: Growth II eREIT
I have three questions for anyone interested in responding:

  • If you regularly invest with Fundrise, are you letting them allocate your funds or do you directly invest?
  • What is your rationale for doing whatever your answer to the first question is?
  • If you do invest directly or just have an opinion based on your sage wisdom :D, what do you or would you invest in and why?
Through reading Sam's blog and forum posts I know he is keen on the Heartland. I agree that is a good place to invest and would have liked to include their Heartland eREIT but unfortunately, right now they don't allow direct investment into that fund. The limitation on available funds gave me pause on taking this approach but obviously I decided it was worth it anyway and pulled the trigger.

I hope it has been worth your time reading this post and I look forward to hearing from all the savvy investors I know take part in this forum!

Oh, and Happy Thanksgiving for those of you out there celebrating it!