As the US Federal Reserve reverses course and starts a cycle of rate cuts, investors are rethinking their holdings as they look for alternatives to holdings that recently generated a decent risk-adjusted return. Catering to that mentality, Fundrise, a real estate investment platform, has listed an opportunity to invest in preferred equity that is targeting a 13% gross return.
According to the company, a 343-unit multifamily development in North Augusta, SC, has been added to their Fundrise Income Real Estate Fund. The investment term is expected to be four years.
The development is said to be managed by a “seasoned developer with extensive experience across the multifamily sector in the Southeast.”
The South continues to be a popular destination for households looking for better weather and lower taxes.
Fundrise states:
“We anticipate that the yield of our Income Fund will remain robust even as interest rates begin to decline. While other income-focused products like high-yield savings accounts may see their returns diminish in the new lower interest rate environment, fixed-rate investments such as these will allow the Income Fund to continue to pay out an increasingly attractive distribution.”
Offerings listed on Fundrise are typically issued using the Reg A+ securities exemption and thus are open to both Accredited and non-Accredited Investors.
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