Fundrise: Internet Public Offering (iPO) Round 2 – Adding $900 to My Fundrise Investment
The past week I received the lovely investing news that I am able to join in on the next round of Fundrise and their internet public offering, or iPO as they call it. I have absolutely been loving the Fundrise investing platform, as it’s offered a great alternative real estate investment for us and has added to the passive / dividend income stream! See what I plan on doing with this next round of investing in the company itself – Fundrise.
Fundrise: brief background
Fundrise has been around since 2012, investing over $5.1 billion of real estate holdings and transactions. They are a premier, real estate crowdfunding investment platform.
Fundrise has 4 Plans (they brought back different categories of Investors for you to choose from:
- Starter Plan: Start with $1,000 initial investment. They have once removed this plan, but appear they have brought this plan back into the fold.
- Core Plan: Start with a $5,000 initial Investment. Choose between a Supplemental Income, Balanced Investing and a Long-Term Growth plan. You can see the breakdown of each below, as I talk about how we selected the Supplemental Income plan.
- Advanced Plan: Available to investors with $10,000+ invested. This plan has a more variety, as well as sophisticated and specific investment strategies.
- Premium: Available to those investors with $100,000+ invested. Even longer-holding periods, with greater potential for returns. For some reason, I just can’t find the $100,000 underneath that couch cushion I thought I had… Details on the Premium investment class is below.
Their fees are approximately 1.00% but can be waived through generation of referrals.
You can review Fundrise service and approach to investing here.
The three plans within the Core Investment Category are listed below and you know we chose the Supplemental Income plan!
For further details on my investment and background, see:
First Article: Fundrise Review – A New Investment, Pros & Cons
Second Article: Fundrise – Doubling my Monthly Investment
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Now, you may be wonder, what is their iPO that Fundrise keeps touting? Well this real estate investment platform is offering their investors on the platform a chance to own part of the parent company that owns Fundrise!
The parent company is called Rise Companies Corp.. Therefore, Fundrise is offering a chance to investors to grab a piece of the company that owns them, themselves. This would then allow you to be an owner before any initial public offering, i.e. before the public can own/trade the stock. Why would one do this? For a chance to own a special platform and potential earn a return on owning a product you use and love.
Therefore, you are given the opportunity to invest a specific amount into Rise Companies, as a percent of your portfolio that you have on the Fundrise real estate investing platform. As you saw in my latest article above, this mean I would be able to do:
My Fundrise iPO INvestment
You better believe I am investing into the Fundrise Platform. Here are my 3 reasons why:
- As said before, I use and love the Fundrise real estate investing platform. I am sure this article sounds very sell-like, but it’s purely how much I enjoy this. SO much that I even doubled my monthly investment to $200. Our plan is to continue investing at least this much per month into the real estate investments, creating more of a dividend income stream going forward.
- Investing in a platform I use and enjoy. There is always something to be said about owning a company that is part of your plan/life/strategy. Some may invest into AT&T Stock (we do) that has a dividend large enough to pay for the monthly bill. Some even invest into the main community bank that they use, receiving a nice quarterly dividend check as a part-owner. This is no different, outside of the dividend, and being a private investor in Fundrise before any future IPO is a very intriguing proposition.
- The Fundrise real estate investing platform does as I would expect them to do. Fundrise does not correlate the REIT index nor the stock market, which was my goal with this alternative investment asset. In addition, they held steady during the global COVID-19 pandemic. Given other crowdfunding platforms have shut down their shops, Fundrise has remained to be a great platform, weathering an economic crisis storm.
Evidence of not tracking the stock market:
This will not be my first investment into the company/platform itself. Back in late summer/early fall of 2019 I was able to make my first investment of just over $1k into the company.
Now, they are allowing us investors to invest an amount that is equivalent to approximately 25% of our portfolio value. Therefore, $877.68 is going into The Rise Companies Corp., and (without including any appreciation), my total investment into the company will be $1,884.
In addition, if you are like me and cannot find undervalued dividend stocks for the life of me, this is a great, additional, alternative investment. I do highly recommend looking into this real estate investing platform, as it may offer you exposure and a different form of income than you have experienced before. If you do use it and/or end up signing up and enjoy the platform, then the iPO investment route would be a way to own what you love.
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Do I have any idea where the Fundrise real estate investing platform will go? No, but I am very excited to see them continue to grow. Investing has become more and more passive and with the stock market becoming completely saturated, this can offer that different method to keep investing.
Will Fundrise be acquired or go public at some point? More than likely yes, one of those two will probably occur in the next decade, I would believe. However, maybe they’ll fool me wrong and Fundrise will be the only real estate, crowdfunding platform everyone chooses to use to add to their passive investment portfolio.
Do you own Fundrise? If so – are you jumping in on this next iPO round? If so – what are your reasons? If you aren’t investing in the iPO – can you let us know what your reasons to not, would be?
All in all – I look forward to increasing my ownership with Fundrise and using their online, passive form of real estate investing. Good luck and happy investing!
-Lanny
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