Real estate Investment Comparison
Wondering whether Fundrise or Here is a better investment? We put them both to the test to help you compare and decide where to invest your money.
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Fundrise is a good hands-off investment option for novice real estate investors, but investors pay for it with very low liquidity, paltry rent dividends, and appreciation gains disconnected from the true value of the properties they help fund.
Makes it easy to invest in real estate with a well designed platform and low entry costs
Their stated fee structure is low, starting at just 1% per year
They've been around since 2010 and has acquired billions worth of real estate
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Expected investment time window is at least 5 years
They make a big deal about their low 1% fees. But they've disconnected the value of their REITΒ shares from the true value of the properties in their portfolio, giving them opportunities to capture returns before they appear in their investor's accounts
Typical returns of 10.70% per year is average compared with returns from other real estate investment options (typically 5-15% in rent yield per year) and the stock market (average 10% per year)
Only pays rent to investors a few times a year - much less often than other real estate investment options. This hurts cash flow and makes it harder to reinvest and access compounding returns
Here doesn't publish past investment performance or projections, and doesn't allow users to sell investments. Their beautiful marketing makes it easy to miss that it's quite a risky investment opportunity.
Makes it easy to invest in real estate with a well designed platform and low entry costs
Gives investors access to Class A properties.
Marketing materials and product design are top notch
Investors can invest as much as they like as long as it's over $100
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Expected investment period is 5 to 7 years, with no opportunity to sell
Properties lack documentation for due diligence, and properties are sold to investors for more than Here buys them for
Very short track record with complete lack of past investment performance and investment projections
Only pays rent to investors a few times a year β much less often than other real estate investment options