I am looking to make my first contributions to Fundrise and am curious how others have interpreted and moved forward with $10k+ investments considering the return profiles provided on their site. At this dollar amount you have the option of investing in the 'Standard' or 'Plus' offerings. The Plus offerings seem suggestive as a more advanced option to choose, but the data points make me think otherwise... there is higher diversification which is viewed as positive, additional tax forms and probably additional cost of filing, and lower expected returns.
Has anyone moved forward with one over the other? What was it that led you make that decision? Looking forward to hearing what you think. Let me know if there is more information that I can provide to help.
Balanced Standard Profile
- Dividends - 4.2% - 4.7%
- Appreciation - 4.6 - 7.7%
- Total Return - 8.8 - 12.4%
- Diversification across 76 projects, 100% eREITs
Balanced Plus Profile
- Additional Tax requirements, K-1 form to be expected
- Dividends - 2.8 – 3.1%
- Appreciation - 4.4 – 8.9%
- Total Return - 7.2 – 12.0%
- Diversification across 157 active projects, 70% eREITs and 30% eFunds
Interesting. I started with a 5K investment in the Supplemental Income plan. I have auto-invest on and was planning to upgrade to Advanced, but I avoid K1s, so may stick with the Standard. When I have done other real-estate crowd funding (with RealtyShares), I only did debt deals...
I also joined Realty Mogul, but haven't invested yet, waiting for my remaining RealtyShares deals to close (hopefully recouping all my principal).
On a side note, I got an update from Fundrise that one investment (Agoura Hills, CA) was in default. Not great news, but I was pleased with Fundrise's communication and response, esp after dealing with a lack of communication from RealtyShares until recently.
Thanks for the reply and detail, @berkel. I read about the Agoura Hills debacle with Fundrise. Some real shady business from the developer. At least Fundrise is confident and hopeful to recover all losses after the legal proceedings wrap up.