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FUNDRISE Blows Away Vanguard VNQ and Realty Income 2020 Returns! Big Fundrise NEWS!! - YouTube

Channel: Hidden Freedom

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hey everybody dave here in free

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investing in today's video we're going

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to go over

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the fundrise results for 2020 you know

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how do they do

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uh during the pandemic for the whole

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year and we'll kind of compare them

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against some other things

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benchmarks as well um in addition they

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also had some pretty exciting news that

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came out

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and some changes they made so let's go

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ahead and

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get started

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all right we're logged into my fundrise

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account here there's 15 888

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in there that actually is had gone down

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because of one of the changes they made

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i just decided to get out but we'll talk

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about that here

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in just a second i just got paid a

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distribution or dividend

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of 183 dollars for q4 of 2020

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and right now my debt is at 83 percent

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and equity is at 47

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like i've been talking about in previous

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videos i've been trying to keep that

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debt

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pretty high because i want bigger

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dividends so let's go ahead and take a

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look at the performance here

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and can kind of compare it and see

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what's going on here

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so here is the annual returns for 2019 i

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did a video on that one

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you can take a look at it up here if you

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want um the returns were 8.2 percent

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for 2019 and for 2020 we had returns of

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7.5 in the middle of a pandemic

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that is amazing i think earlier this

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year during the pandemic i said you know

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we'd be lucky to probably get five or

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six percent of it

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and they killed it 7.5 percent let's

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just go ahead and click on that here to

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get a breakdown and look at the dish

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individual reits and so we got 20 20

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here we had a decline in the east coast

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reit ereath there 10.6 percent growthy

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rate

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11.9 heartland e rate eight percent so

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actually was an increase there

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income e rate 7.4 west coast e rate

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their 4.3

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growthy rate um we actually had an

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increase of 7.5

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uh up to 7.5 so that's pretty good

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incoming rate a little bit of a decline

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there bouncy rate is still ramping up

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let me get the e-rate five let's see

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this ten

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fourteen jesus roman numerals uh that's

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still ramping up so there's nothing in

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there

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and we see a growthy rate three eleven

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point

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seven that was actually a humongous

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increase from last year so that was

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probably just one that was ramping up

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and then income e-rate 2019

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pretty big increase from last year

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and we've got the income era 3 there

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which is a pretty substantial increase

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as well from last year

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incoming rate five which wasn't even

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didn't even exist last year we had an

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increase of a one point

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two percent and then nationally fund um

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which we're going to talk about here

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just in a second as well

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uh 0.7 and that was obviously a major

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decline from last year but

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still 7.5 return for 2020 in the middle

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of pandemic

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i mean what there's nothing to complain

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about i mean

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i know people probably say oh 7.5 i can

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get that you know

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out of the s p 500 i can get that out of

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the qqq's i mean that is not an apple's

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doubles comparison all right that is the

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stock market

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that's the technology all right this is

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real estate okay

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so let's go ahead and compare that

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against some other real estate um

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you know i mean it's not necessary in

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apple's apple's comparison

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but it could be two different types of

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apples comparison right

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so here we're looking at the vnq on

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finviz and this was taken literally

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right there

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january 1st okay and the v and q the van

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gaard v and q is made up of a bunch of

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reits

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a ton of them actually and so this is

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just an etf full of a bunch of reits

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well guess what look at that performance

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here today

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four percent minus eight point four

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seven percent okay

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that's not even a positive number all

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right so that's minus eight percent

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where so we got

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a positive seven point five percent out

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of fun rise

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this is a good thing to bench fundrise

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against what else can you really

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benchmark fundrise against now granted

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like i said this is not an apple zeppos

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comparison

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it's more of like having a granny smith

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and a washington apple or something like

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that two different types of apples

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but they're not quite the same let's

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compare it against realty income all

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right this is our beloved freaking

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realty income corporation all right a

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monthly paying

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uh you know dividend aristocrat all

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right

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uh reit here and look at this here minus

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15.5 okay

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uh i mean there's nothing to complain

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about with a fundrise right i mean i

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know a lot of people complain about it

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the you know the returns suck or

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whatever

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but 7.5 all right all right so we're

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looking at my portfolio here and after

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comparing

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uh fundrise against those other you know

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apples to apples comparisons out there

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um you know washington state apple

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versus the granny smith or something

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like that i mean in fundraise this

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literally killed it 7.5 percent return

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you know compared to realty income or

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even vnq

[297]

vanguard bmq uh but the biggest

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complaint people have

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with fundrise is the lack of liquidity

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all right that's what i keep hearing i

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hear that in the comments

[306]

with all my other videos it's liquidity

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liquidity liquidity they were pissed off

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they couldn't get their money out

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or they had to pay a surcharge to get

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the money out well guess what

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fundrise is addressing that so we'll

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talk about that here in just a second

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look at my portfolio here and this is

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what's basically

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in all of the different e-reads here and

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you notice that there is no national

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e-fund

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in my portfolio anymore yes they did

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offer

[333]

early out back in november um to get out

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of the national league fund so i took

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that opportunity and got out of it

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all right so it was like a one-time deal

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they were going to consolidate

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all their national funds or their um

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those e-funds or whatever they're called

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they had a bunch of them i was only in

[350]

one i was in the national league fund

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they actually offered a one-time

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grandfathered hey

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you want to get out we're going to let

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you get out and we're not going to

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charge you a penalty

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or nothing so i got 1700 out of that

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fund and the main reason i got out of

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that e fund is because i didn't want to

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deal that k1 anymore

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so this year i will have a k1 but that's

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the last year i'm going to get a k1 so

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no more k1s i'm out of that

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that 1700 bucks actually did not put

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back into the platform

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actually went into my dividend portfolio

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if you want to look at my dividend

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portfolio take a look at that up here

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i pretty much do a monthly video on it

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so these are all of the portfolio

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positions right now

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and like i said that national refund is

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gone but there's an addition of this

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interval fund here

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that is brand new and let's go ahead and

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talk about that so just recently

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fundrise introduced this

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fundrise real estate interval fund here

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i'm not going to read everything on here

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i'm going to try to read

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just the the things that are important

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or something like that but it is pretty

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exciting a new fund to become our

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flagship fund

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aiming to provide investors with greater

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diversification

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lower overall costs and improved access

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to liquidity okay

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so they listen they listen to what

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people say they're tired of people

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complaining probably about the lack of

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liquidity

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and the reason why they hit fundrise or

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something like that so they're trying to

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address that

[438]

key takeaways new fundrise real estate

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interval fund to become flagship fund

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aiming to provide investors with

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greater okay that's just what we read up

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above

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no action is needed new investments will

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automatically

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allocated to the interval fund based on

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investors account level and plan type

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we're excited to announce a major

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upgrade coming in your portfolio this

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year which it's already active now

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the launch of the interval fund new

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flagship blah blah

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power of core investment portfolios

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going forward if you've been investing

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with us for a while then you know we are

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consistently working to improve the

[471]

overall fundrise experience all right

[473]

using

[474]

technology to reduce costs cut out

[476]

unnecessary middleman

[478]

and make investing simpler and more

[479]

efficient as a result

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we've created an almost entirely

[483]

independent ecosystem built around our

[485]

proprietary investment

[487]

funds which acts as a building blocks to

[489]

each investor's portfolio the funds are

[491]

unique to fundrise platform and designed

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to seamlessly connect

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our technology platform or other

[497]

investment strategies

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this means that unlike most other

[501]

investing apps where regardless of which

[504]

one you choose you are ultimately

[505]

investing the same subset of underlying

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stocks in

[508]

in index funds when you invest with

[511]

fundrise you are truly investing in

[513]

something different you cannot get

[515]

anywhere

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else

[520]

over the years we have continuously

[522]

pioneered new investment models working

[524]

through and various complex regulatory

[526]

processes can create

[527]

to create first of their kind investment

[530]

opportunities that are specifically

[531]

designed to offer

[532]

a growing community and individual

[534]

investors today with more over 150

[536]

000 strong better access to ins uh

[539]

institutional quality and

[541]

investments we are therefore pleased to

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announce that after nearly two years it

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worked to make it possible we expect to

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launch the fundrise real estate

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investment fund as core port of our

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investment allocations beginning in

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january

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like i said it is already active right

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now i'm actually in it

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let's go and look at some of the key

[558]

things here what makes it different from

[560]

our other funds it is bigger

[561]

the normal fund has target initial

[563]

offering of 1 billion with no cap on its

[565]

initial offering capacity

[568]

this means the interval fund is capable

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of holding more assets than our other

[571]

funds which

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should translate to greater overall

[573]

diversification

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and with a single investment it offers

[577]

improved access to liquidity the

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interval fund will offer

[580]

quarterly liquidity in the form of

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quarterly repurchase offers with

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zero penalty or costs associated

[587]

associated with

[588]

liquidity liquidating interval fund

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additionally the interval fund is

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required to hold a minority of its

[595]

assets in

[596]

liquid securities in an amount

[598]

sufficient to meet its standard

[600]

uh stated quarterly repurchase threshold

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so that's

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uh part of the reason why it's a little

[605]

bit bigger there and we've talked about

[606]

this in other videos it's part of the

[608]

reason why they didn't have liquidity in

[609]

the past because all those funds are

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pretty much in investments all right so

[613]

they're required to hold some

[614]

cash here for the liquidity purposes

[617]

that

[618]

technically should really draw down some

[620]

of the returns but

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it is what it is you want liquidity

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there's a cost to that right

[626]

it prices daily unlike some of our other

[628]

funds that generally update their net

[630]

asset value

[631]

nav on either a quarterly or semi-annual

[634]

basis

[635]

the interval fund has a daily nav

[637]

pricing with purchase price

[638]

and repurchase price for shares

[640]

addressing to adjusting

[642]

to match the fund's nav all the funds

[646]

you currently enjoy we expect the

[647]

interval fund to become poor

[649]

piece of our poor uh investment profile

[652]

with an investor's allocation being

[655]

based upon their individual account

[656]

level and plan let's see here low fees

[658]

annual fund will have

[660]

uh the same 0.85 annual asset management

[664]

fees or other funds with no additional

[666]

performance fees

[667]

carried interest or promote whatever

[670]

promote is not sure what that is

[671]

quarterly distributions and investors

[674]

should expect to continue to receive

[675]

distributions following the end of each

[678]

quarter

[679]

the dividend reinvestment preference

[680]

okay so you can means you can have it

[682]

reinvest the

[683]

dividend if you want or you can take

[685]

that money out and then reinvest

[687]

reinvest it how you want back in the

[689]

platform you don't have to reinvest it

[690]

if you don't want to

[692]

regular asset updates track your

[693]

performance and watch as we acquire

[695]

improve and operate properties across

[697]

the country on your behalf

[699]

hassle tax-free and reporting this is

[701]

the best part about it all right

[703]

like many of our other funds internal

[705]

fund intends to elect to be

[707]

treated as a real estate investment

[708]

trust reit for tax purposes uh so

[711]

investors should expect to receive a

[713]

1099 dmv

[715]

div so that 1099 div is

[718]

obviously unqualified dividends but it

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is not a k1 so that is a step

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up in my opinion so i'm not going to

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really read these

[727]

frequently asked questions here these

[728]

faqs all right what is in the intro font

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how does the

[732]

launch impact you know what is the bubba

[734]

i'm not going to read that stuff

[736]

but i'll put this link right here um

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down in the description if you want to

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take a look at that

[741]

um you can directly invest into this fun

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okay

[744]

now it's kind of funny how you get there

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but if you click on this right here

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it'll bring up this and then you can go

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to fun details

[753]

and you can just go to this link right

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here if you want at the top

[757]

all right i'll put that down in the

[758]

description as well you can click on

[759]

invest here if you want to

[760]

invest in this fun and then you have the

[763]

option to invest in the fun right here

[765]

now granted right now

[767]

the minimum is a thousand dollars to

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invest in this and i've talked to the

[771]

guy

[772]

um you know and he says it should be

[775]

less than 50

[776]

it should be less than a thousand

[777]

dollars but it's not quite working for

[779]

me for some reason so i don't really

[780]

understand

[782]

um so what i ended up doing was just

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making a standard

[785]

investment by going up here to overview

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and then did add funds and when i

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clicked on the add funds i just

[793]

went ahead and added in uh whatever my

[796]

last dividend was 180 something dollars

[798]

i had 187 dollars here 183

[800]

or whatever it was and it tells you hey

[803]

it's going you know 162 is going to

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interval fund so

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i don't know how you invest directly in

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the fund less than 100

[810]

or excuse me less than a thousand

[811]

dollars at this time

[813]

but i mean still you can get into it

[815]

right now

[816]

obviously it's kind of a work in

[818]

progress i just got into myself so

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unfortunately i don't have any more

[822]

information on i don't know how the

[824]

distributions work

[825]

i don't know how the liquidity works or

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anything like that so just wanted to

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bring some of that information to you

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um it is pretty good change that they

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made in my opinion now obviously it's

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it's a work in progress it's not really

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it's so new to me and i don't even know

[839]

everything to bring to you i just wanted

[840]

to read directly out of their

[841]

documentation

[843]

just in case you're looking at getting

[844]

into fundrise there's you know you have

[846]

information available to you

[848]

so let's look at the transition

[849]

transactions real quick here so

[851]

just to look at the transactions here

[853]

i've been adding in

[855]

you know 60 bucks 50 bucks 50 bucks 50

[857]

bucks here and there that is the

[858]

national league fund redemption that i

[860]

had there that did not get reinvested

[862]

back into the platform

[863]

so all these other ones here um these 50

[866]

bucks basically come out of my lending

[867]

club so i am reducing that lending club

[869]

which is still about 1400

[870]

left in there that will be going into

[872]

fundrise as well

[874]

there's that dividend payout that i just

[875]

had there 183 dollars i elected to not

[878]

reinvest dividends with fundrise anymore

[881]

so i take the distribution out it goes

[882]

into my checking account and then i

[884]

immediately turn back

[885]

around and then deposit that money back

[888]

into fundrise

[889]

into the investments that i want to

[891]

invest them in

[893]

and that's specifically because i'm

[894]

trying to raise the debt up because i

[895]

want more dividends

[898]

and right now i'm going to be trying to

[899]

get more and money into

[902]

that interval fund there so there's been

[904]

a little fun there

[905]

obviously that was just in my

[907]

supplemental income plan

[909]

but a lot of that went into that

[910]

interval plan there or interval fun plan

[912]

so i'm actually pretty excited about

[914]

that so so i pretty much try to always

[916]

do at least a quarterly video on

[918]

fundrise if there is any other news

[920]

that's

[920]

i think is important i will put a video

[922]

out you know mid-quarter or something

[924]

like that or when the information comes

[926]

out

[926]

um fundrise in my opinion they killed a

[929]

7.5

[930]

return this year at least for me so i

[932]

don't know what you had out of your

[933]

platform go and leave a comment below

[935]

and what you had on your return for 2020

[938]

i'm kind of curious to compare mine

[939]

against yours and if you have any

[941]

comments questions or concerns go and

[943]