Fundrise, a digital marketplace for real estate investments, is distributing an email touting platform returns.
Fundrise started as a single property investment crowdfunding platform that has since migrated over to an unlisted REIT platform offering a diverse group of “eREITs” or funds targeting different sectors of the real estate market. These securities are issued using the Reg A+ exemption on a rolling basis.
The offerings generate both income and capital gains and an investor can select which side of the dial they would like their money to go.
Reg A+ was originally promoted as a path for smaller to mid-sized firms to raise capital in a “mini-IPO” type offering but, perhaps, the real estate market may be the biggest beneficiary. Real estate tends to be less risky than early-stage firms and under Reg A+, both accredited and non-accredited investors may participate in an offering.
Fundrise reports that during the past five year period, the platform portfolio has averaged a 10.79% return. In comparison, Vanguard’s Total Stock Market ETF and Real Estate ETF produced average returns of 7.92% and 7.40%, respectively, states Fundrise.
Of course, historic returns are no guarantee of future performance but a good number of real estate investment platforms are now providing access to an investment class that was previously unattainable for smaller investors.