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How much did you initially invest in RE crowdfunding?

Started by sfpf, July 26, 2018, 02:16:15 PM

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It depends upon the quality of the product. Because a place will develop very well in the future, we invest more in that area.


Quote from: Sam on August 19, 2018, 08:37:26 AM
I started with $10,000 in one project, and then after 6 months, decided to invest $250,000 in a fund. Then after I sold my rental house in 2017, I invested $550,000 of the proceeds because I liked what the fund was doing.

So based on that (as of when you posted), you have around $800k invested in crowdfunding real estate deals, and those are throwing off $1800 per month, per the passive income table in your site bio? Which platform(s) are you using?



Quote from: chitown-2020 on December 08, 2018, 05:25:00 PM
I love crowdfunded real estate as a concept and have worked with both RealtyMogul and then RealtyShares.   I was really disappointed when RealtyShares went belly-up, but I'm pretty confident in the concept overall.    I started slow (I was paranoid about the whole idea too in the beginning)... and added a number of deals each year since 2014.    I invest between 10-25K in each deal.   I've now participated in 30+ offerings, some of which have gone full cycle.   

I haven't had a total loss yet, but I do have a few that are on the rocks, for full disclosure.   Its been interesting and surprising that some of the ones I thought would be amazing have been near-failures and the most awful looking ones that have been at the very edge of my tolerance / investment thesis have done really well.   You just can't always know how the market and the manager will perform, which is why diversification is really important.

I look for deals that pay at least 6% cash on cash (I like to get paid while I wait) and at least 12-15% IRR, depending on overall risk.   I have stopped investing in individual home flips (and the platforms I work with have stopped offering them, from what I can tell).

My performance for the portfolio overall, to give you an idea:

2014:  5.29%
2015:  8.62%
2016:  9.71%
2017:  9.35%
2018:  11.5% (year to date)

Note that my performance has gone up as more deals have gone full cycle and I've benefited from underlying asset appreciation in a strong real estate environment.

I also fully expect this performance to deteriorate somewhat (maybe dramatically) in an economic downturn or recession.    But since these platforms didn't exist prior to 2009, there's almost no way to know exactly how they will be impacted.   The best assets will probably still perform well, and the weak ones may fail.  Hopefully I've done my homework -- and I get lucky!  :)

Hope this is helpful info for those interested.

To update my prior post, my 2019 performance has been approximately 7.76% after multiple failures at RealtyShares.     It has definitely reduced my performance, but so far has not been devastating.   Obviously I'm under performing an incredible year in the stock market, but I do like having a portion of my assets in Real Estate.

Just thought I would share.


I have been interested in real-estate investing, but not handy/brave enough to consider buying and managing a physical property.  I really like the concept of real-estate crowd funding and also wanted to diversify into something other than stocks that could generate income.

I invested $45k in 6 deals at RealtyShares.
4 of the 6 have exited and returned capital and about 8%.

I have two active, one that has only paid back ~50% of principal, but is part of the Franchisee Growth portfolio.  Hoping to get my principal back, in which case total return would be about 10%, but not without stress...

I joined the RealtyMogul platform as an accredited investor, but have not participated in any deals yet.  A little gun shy after RealtyShares.

I put $6k into Fundrise and adding $500 - $1000 per month.  At $12.1K now with $269 of dividends since 9/2019.  I like FundRise and will stick with it, would like to build upto 100K to supplement my passive income.
~$Retirement Nerd