Fundrise released a new real estate fund in early 2021. In less than two years, it reached $1.3 billion in value and awarded its investors 36.1% in cumulative returns. At the moment, it accepts new investors with a minimum investment of just $10.
Here are three good reasons why this might turn out to be a wise move this quarter:
1. He’s ready to secure millions of dollars in single-family rentals in the event of an accident
Reputable economists have recently concluded that further falls in the real estate market are likely. If true, thousands of high-yielding properties will hit the market at a fraction of their current cost. Securing these units will ensure a stable cash flow and the appreciation will skyrocket if the markets rebound (which historically has happened every time).
If you want to take advantage of the upside potential but don’t want to put hundreds of thousands of dollars on the line investing in a single property, Fundrise’s flagship real estate fund can be of great service, especially if you consider the third reason in this list.
The Fund pools millions of dollars from investors. Once market conditions are synchronized, the company can use these funds to acquire discounted properties at a price that is unattainable for most investors. The profit from these properties will then be passively distributed to investors.
2. The fund has proven it can deliver returns in tough times
The outlook was not good when the Fund opened for investors in early 2021. The economy was trying to recover from the pandemic and markets were starting to show signs of weakness.
Nevertheless, the Fund has managed to generate impressive returns for its investors.
As shown in the chart below, the Fund’s cumulative returns totaled 36.2% in December 2022.
Whatever happens, in the next few months or years, the market will stabilize at some point. When this happens, it is reasonable to assume that the bottom can produce even more impressive results.
This is what the parent company of the Fund has always provided during its years of existence.
It has left many of its competitors in the dust by posting remarkable returns since its inception. In 2022, it outperformed the S&P500 and publicly traded real estate investment trusts (REITs) by a double-digit margin.
Hence, the platform has amassed a large user base with over 371,000 investors.
3. The real estate know-how he brings will be more crucial than ever in the months to come
If a stock market crash is truly within reach, real estate values will drop dramatically. At some point, this decline will bottom out. Naturally, at that time, many rentals that currently fetch large sums will be available at much lower prices.
Knowing when this decline will occur is, of course, impossible. However, Fundrise has the resources to make the closest estimate. Nothing is left to intuition. Every year, it invests millions of dollars in market research and artificial intelligence that help minimize investment risks. In the coming months, the company will be firing on all cylinders.
If you want to take advantage of his discoveries, click here to invest in Fundrise’s flagship fund before the market crashes.
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