Investing in private real estate (or real estate crowdfunding syndication) is one of my favorite ways to generate passive income. Real estate is also my favorite asset class to build wealth for the average person.
I’ve been investing in private real estate since 2016 to build more wealth, capture strong demographic trends, and diversify my expensive coastal real estate holdings. Investing in the sunbelt / heartland is a multi-decade investment trend I want to ride.
Real estate is a tangible asset that is less volatile, provides shelter, and generates income. As a result, I've spend hundreds of hours creating the real estate crowdfunding learning center for all potential investors. For the typical American, building wealth through real estate is one of the best ways to go.
I've currently invested about $1 million since 2016 in real estate crowdfunding to help me generate more passive income. My preferred platform and longtime sponsor is Fundrise, where I've invested over $300,000 so far with them.
Video Intro From Sam Dogen On Investing In Private Real Estate
Favorite Private Real Estate Platform
My favorite private real estate crowdfunding platform is Fundrise due to its diversified funds. Fundrise invests primarily in residential and industrial properties in the Sunbelt, where valuations are cheaper and yields are higher.
For most people, investing in a diversified real estate fund is the way to go as opposed to investing in individual deals. Given I believe in Fundrise's investment thesis and product offering, I agreed to form an affiliate partnership with the company and invested $143,000 in Fundrise. I believe we're past the bottom of the real estate cycle with higher prices ahead in 2025 and beyond.
Below is a chart highlighting that I've received $624,270.53 in distributions so far from a private real estate fund. I expect far more passive income distributions as life gets back to normal post pandemic.
Further, I expect there to be a greater influx of foreign capital investing in U.S. real estate. The pandemic served to throttle foreign real estate demand for 2-3 years. But now the wave of foreign capital is coming. As a result, I believe its wise to stay long and strong U.S. real estate.
Currently, over 50% of my passive income comes from real estate so my wife and I can remain free from work.
Real Estate Is My Preferred Asset Class
In my 20s and early 30s, I accumulated three properties in San Francisco and one property in Lake Tahoe. It was a great ride that earned me a small fortune. I put in a lot of sweat equity to remodel several fixers as well.
But after I turned 40 and became a father, I no longer wanted to spend time dealing with tenants or remodeling headaches. Maintenance issues and property taxes were also a bear. As a result, I sold one rental property to simplify life.
With the ~$1,800,000 in proceeds, I re-invested $550,000 in real estate crowdfunding. My goal was to earn passive income from lower valued heartland real estate with much higher net rental yields.
Due to the remote work trend, especially after the pandemic, I strongly believe there will be a permanent long-term demographic shift towards lower cost areas of the country.
Steady Rate Of Return With Less Volatility
Since 2016, I've earned an internal rate of return of 8-10% a year from my real estate crowdfunding equity investments around the country, with much less volatility than stocks. The private real estate investments have provided for a solid way to diversify my real estate portfolio away from expensive San Francisco and Honolulu real estate.
What's better, I've spent ZERO time having to deal with the properties after my investments were made. What a blessing, especially as a father of two young children now. In fact, real estate crowdfunding makes up over $100,000 out of my estimated $300,000 in passive income for 2025.
By crowdfunding capital, investors can now easily own a portion of multi-million dollar commercial real estate projects in promising cities with lower valuations, strong job growth, and higher net rental yields that were once unavailable. You no longer have to only invest in your backyard, which is great for diversification purposes.
Real Estate Opportunities Today
Once you're neutral real estate by owning your primary residence, one of the easiest ways to go long real estate is to invest in private real estate funds. Fundrise specializes in diversified private real estate funds where the investment managers do all the work so you don't have to.
As a result, it is more efficient and can pass on its savings to you. Further, I've spoken to Ben Miller, the CEO multiple times and he is much more conservative than the average CEO. This is what you want in the steward of your capital.
I believe the best value is in residential commercial real estate at the moment. Prices have declined almost as much as they did during the 2008 Global Financial Crisis due to aggressive rate hikes. But inflation and interest rates are gradually coming down and the economy and household balances sheets are much stronger today. Unlike the stock market, residential commercial real estate offers great value.
Private Real Estate Crowdfunding Learning Center
Below are some detailed articles I've put together over years of research. Once you've read all the articles, you'll have more confidence making better real estate investment decisions.
The key to investing properly is to understand what you are investing in, determine your risk exposure, and invest according to your risk exposure. There is no guaranteed returns with any investment. Therefore, you must do your due diligence.
I have roughly 50% of my net worth in real estate and real estate crowdfunding. I plan to stay long real estate for at least the next decade as the millennial generation is firmly in its prime home buying years.
The real estate crowdfunding learning center is here to answer all your real estate-related questions. Again, I have over $1 million invested in private real estate, hence it is very important I stay on top of the space.
Why Invest In Private Real Estate Opportunities
Learn How Real Estate Crowdfunding (Syndication) Works
Why Real Estate Crowdfunding Is An Attractive Investment
The Main Reasons To Invest In Commercial Real Estate (CRE)
How To Evaluate Online Real Estate Investing Platforms
How To Choose The Best Private Real Estate Investment
Private Real Estate Crowdfunding Fundamentals
The Different Types Of Property Classes To Be Aware Of
The Difference Between Real Estate Crowdfunding And REITs
Understanding The Capital Stack When Investing In Commercial Real Estate
Tax Documents For Investing In Real Estate Crowdfunding
Private Real Estate Crowdfunding Investing
Real Estate Crowdfunding Investment Guidelines For Potentially Higher Returns
Equity Or Debt Investing? An Investment Allocation Guide
Why Multifamily Is An Attractive Investment
How Do Real Estate Crowdfunding Platforms Deal With Underperforming Assets
Real Estate Crowdfunding Risks To Be Aware Of (including platform risk and sponsor risk)
Fundrise Returns Compared To Public REITs And Stocks
Private Real Estate Crowdfunding Trends
Focus On Trends: Why I'm Investing In The Heartland Of America
Buy Utility, Rent Luxury: The Real Estate Investing Rule To Follow
The Best Cities To Buy Real Estate Today (based on demographics)
The Best States To Buy Real Estate Today (valuations and tax rates)
How Is Real Estate Crowdfunding Getting Affected By The Pandemic?
The Best Places To Invest In Commercial Real Estate
Top Real Estate Crowdfunding Platform Reviews
It's important to stick with the top real estate crowdfunding platforms. The largest real estate crowdfunding platforms will garner the most amount of funding. They will also attract the best deals and have the strongest underwriting.
As we saw with RealtyShares and PeerStreet closing their doors, there is platform risk. However, all deals are their own LLCs that will operate regardless of the platform once the deal closes.
Most real estate crowdfunding companies investing in equity and preferred equity set up LLCs and operating companies for the specific purpose of managing our investments. Therefore, investments continue to perform regardless of what happens to the platform.
As with any investment, only invest what you can afford to lose. Private real estate investing is an illiquid investment compared to stocks, and carries risks like all investments.
Utilize each platform to thoroughly analyze each deal. Carefully analyze the sponsor. Diversify your holdings so that you have at least five investments if you are investing in individual deals. Building wealth is about investing for the long-term, and I believe real estate crowdfunding is here to stay.
The Best Real Estate Crowdfunding Platform
Fundrise is my favorite platform because they have diversified funds that invest in residential and industrial properties in the Sunbelt. For most people, investing in a diversified real estate fund is the most appropriate way to gain real estate exposure.
Fundrise has been around since 2012 and is the oldest and largest real estate crowdfunding platform with more than 350,000 investors and almost $3 billion in assets under management. Investors can invest as little as $10 on the Fundrise platform. Returns have been very steady over the years, even during down years in the stock market.
Below is an interview I had with Ben Miller, CEO of Fundrise, about his real estate, stock market, and economic outlook for 2025. You can hear on the podcast interview how he thinks about risk, recessions, sourcing deals, and investing in mega trends.
I highly encourage you to listen to episode before investing. This way, you can gain comfort and better understanding about how Fundrise works, its investment process, and its goals.
To get rich, you must identify long-term trends and invest. Thanks to technology, real estate crowdfunding, and the rise of 1099 freelance work, I believe investing in the heartland/sunbelt is going to be a multi-decade trend that is going to make investors money.
About the Author
Sam bought his first property in San Francisco on his 26th birthday in 2003. He liked real estate investing so much that he bought three more properties in San Francisco. Real estate and real estate crowdfunding now makes up roughly 50% of Sam's net worth. The rest is in stocks, bonds, private equity, and his business.
In 2012, Sam was able leave Corporate America at the age of 34 largely due to his investments that now generate roughly $310,000 a year in passive income. He spends time playing tennis, taking care of his baby boy, and writing online to help others achieve financial freedom.
Sam is the WSJ bestselling author of Buy This Not (2022)That and the author of the latest book, Millionaire Milestones: Simple Steps To Seven Figures (2025). Both are with the top non-fiction publisher, Portfolio Penguin.
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