Author Topic: FundRise Supplemental Income Plan  (Read 2008 times)

pamitkumar123

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FundRise Supplemental Income Plan
« on: October 14, 2018, 04:51:14 PM »
Hi,
Given the current interest rates situation, is this a good time to start in a position in FundRise Supplemental Income Plan ? Just wanted to hear everyone's thoughts.

thanks
Amit
Thanks,
Amit

Sam

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Re: FundRise Supplemental Income Plan
« Reply #1 on: October 14, 2018, 09:12:18 PM »
Hi,
Given the current interest rates situation, is this a good time to start in a position in FundRise Supplemental Income Plan ? Just wanted to hear everyone's thoughts.

thanks
Amit

Feel free to describe what the Supplemental Income Plan exactly is. Need to give context. thx
Regards,

Sam

pamitkumar123

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Re: FundRise Supplemental Income Plan
« Reply #2 on: October 15, 2018, 08:55:06 AM »
Hi,

I am referring to this option in Advanced Plans section -
https://fundrise.com/investments/advanced-plans/supplemental-income

Per the page, it is a dividend-focused plan which holds "assets that generate predictable returns from the moment we make the investment. This could mean lending to the developer of a new property, or buying an existing building with tenants in place."

thanks

Thanks,
Amit

Cheezus

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Re: FundRise Supplemental Income Plan
« Reply #3 on: October 29, 2018, 04:26:10 PM »
Are you looking for supplemental income?  Or just trying to invest?

If you are just investing at a younger age and not income generation, then I would think the balanced plan would be more sensible due to a little more risk but higher returns.

ManInAVan

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Re: FundRise Supplemental Income Plan
« Reply #4 on: November 25, 2018, 06:45:05 PM »
I currently have some money in a few different eREITs through Fundrise's platform, but I specifically avoided the "Supplemental Income" plan because of how it allocates and redistributes your holdings. 

If you scroll down on that page
Quote
https://fundrise.com/investments/advanced-plans/supplemental-income

You'll see the allocation of the fund by percentage.  As of this post, 55% of the total investment will go to "Income eREIT II."  details here: https://fundrise.com/reits/income2-ereit/view

If you take a close look at that, you'll see that's a fund with only 2 properties in it that is "Ramping Up," which isn't where I wanted my initial investment or subsequent dividends. 

Instead, I chose to make a direct investment (look for the small link that allows you to click "make a direct investment" at the top) in these three eREITs.

1. Income eREIT: https://fundrise.com/reits/income-ereit/view
2. Growth eREIT: https://fundrise.com/reits/growth-ereit/view
3. Heartland eREIT: https://fundrise.com/reits/heartland-ereit/view

It doesn't automatically re-invest my dividends, but I can handle that.  How you allocate your money in one or acroos their eREITs is certainly up to you, but I didn't want 55% of my investment in the fund that has 2 properties that are "Ramping Up."

Hope that helps!

Dario33

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Re: FundRise Supplemental Income Plan
« Reply #5 on: November 27, 2018, 07:31:14 AM »
^ This is a helpful post and I agree, more than half the weighting tied up in the eReit II doesn't seem ideal.  I'm trying to find a list of all the eReit direct investment options there are.  Are there more than Income, Income II, Growth, East Coast, West Coast and Heartland?

ManInAVan

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Re: FundRise Supplemental Income Plan
« Reply #6 on: November 27, 2018, 06:31:45 PM »
Here's that list of all the funds:

https://fundrise.com/offerings

Most of the funds other than the original Growth and Income eREITs are either ramping up or stabilizing but they have several more properties than just the 2 in "Income II" and 3 in "Growth II."  Real estate in most cases is about playing the longer, appreciation game, but I would prefer to have my risk more diversified than 2 or 3 properties since the options are there.

zzebie

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Re: FundRise Supplemental Income Plan
« Reply #7 on: November 28, 2018, 05:54:23 AM »
Washington DC eFund is an example of one such fund. It's in the Ramping Up phase but has more than just 2 properties. I think around 20

Dario33

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Re: FundRise Supplemental Income Plan
« Reply #8 on: November 28, 2018, 06:12:07 AM »
Thanks guys.  The DC eFund is particularly interesting due to Amazon.  I was planning on limiting investments to REITs in part, to keep taxes simple with DIV forms instead of both DIV and K-1.

zzebie

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Re: FundRise Supplemental Income Plan
« Reply #9 on: November 28, 2018, 06:42:48 AM »
I have just realized, there is no customer service phone number for Fundrise? Is that right?

Sam

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Re: FundRise Supplemental Income Plan
« Reply #10 on: November 28, 2018, 12:21:56 PM »
This is great information folks. For those who have invested in various funds, how have your returns been and how has your experience been so far?

 I’m thinking about investing hundred thousand dollars in one of the fans or several for 2019. The Heartland eREIT has allocation now again it seems.
Regards,

Sam

ManInAVan

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Re: FundRise Supplemental Income Plan
« Reply #11 on: November 28, 2018, 04:44:19 PM »
The heartland eREIT hasn't appreciated at all yet, but I'm interested to see what it will look like once it starts performing. 

I'm thinking I will continue to fund the Growth one because the appreciation it experiences more than makes up for the difference in dividend from the Income fund.  Based on the stabilized funds' (Income and Growth) performance from the last 3 years, I'm not sure if the upside appreciation potential is worth putting it in a fund that isn't performing yet.

Dario33

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Re: FundRise Supplemental Income Plan
« Reply #12 on: January 12, 2019, 01:45:55 PM »
It's been a couple months on this FundRise thread so figured I'd check in.  For those invested, how's everything going. 

I'm thinking about getting my feet wet this month by investing in the following REITs: Income, Growth, Heartland

I'm tentative on the East Coast REIT, but would likely avoid West Coast.

Fat Tony

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Re: FundRise Supplemental Income Plan
« Reply #13 on: January 16, 2019, 11:36:41 PM »
One thing I realized after being with Fundrise for a while is

(1) hoo boy, this thing has great returns but is super tax inefficient - strongly consider putting your (Roth IRA) money here, rather than keeping Fundrise taxable and holding stocks/bonds in your IRA. I honestly think my returns would near-double if I had it in a tax-sheltered account

(2) "Ramping Up" eREITs are a massive drag on your returns - always try to buy eREITs/funds that are going to give dividends soon

I'm primarily in Heartland and East Coast to diversify, they've all been in the 7-8% range, except those ramping up, which are 0% sadly. I got tricked into putting money into the ramping-up funds through the "dividend reinvestment", which just targets a portfolio.