馃攳
Is Fundrise LEGIT? - Online Real Estate Investing Review - YouTube
Channel: Wealth Hacker - Jeff Rose
[0]
I'm gonna guess that you're someone like
[1]
me and that you want to build wealth you
[3]
want to make some money and you
[5]
recognize that real estate is one of
[6]
those ways to do that I mean it's no
[8]
coincidence that over 90 percent of all
[11]
the millionaires in the world owns some
[14]
sort of real estate but you probably
[15]
also like me and that real estate
[17]
investing can be very intimidating you
[19]
don't want to lose your but you don't
[20]
know how to get started so you don't do
[22]
anything but what if I told you that you
[24]
can become a real estate investor with
[26]
as little as five hundred dollars you
[28]
don't even have to leave your house to
[29]
get started and you can make some solid
[32]
returns yes this does exist and I'm
[35]
going to share what this real estate
[36]
investment option is with you today
[38]
let's check it out
[41]
[Music]
[57]
all right so the first thing you gotta
[58]
know I'm not a real estate investor like
[60]
I'm not this real estate investment guru
[62]
you can check out one of my other videos
[64]
where I shared seven lessons learned
[66]
from a failed real estate investment but
[68]
there's no soul video I want you to
[69]
check out that shares eight different
[71]
ways that you can become a real estate
[73]
investor without managing any properties
[76]
and I'm really excited about that video
[78]
and this is what I want to highlight
[79]
today is one of those options so one of
[82]
those options has to do with
[83]
crowdfunding crowdfunding with real
[85]
estate and this is something that has
[87]
really just blown up for the last few
[88]
years I've been a big fan of
[90]
peer-to-peer lending with Lending Club
[92]
and prosper and with this this is very
[95]
similar but it's also very exciting
[97]
because you know with peer-to-peer
[98]
lending that's something that a lot of
[100]
people don't really know much about so
[102]
you know with real estate people know
[104]
real estate people know that the
[106]
billionaires the millionaires of the
[108]
world are real estate investors but like
[111]
many of us like we don't know how to do
[113]
it we don't know how to get started in
[115]
real estate and they're just there's a
[116]
huge learning curve for a lot of people
[118]
you gotta have the right connection so a
[120]
lot of times people don't do it but
[122]
guess what you don't have to be one of
[124]
those people now you could actually
[125]
become a real estate investor and you
[128]
can do so you know all you need is a
[129]
computer a laptop an internet connection
[131]
because that is what technology is all
[134]
about now one of those options I'm going
[136]
to share with you today is called fun
[138]
rise so fund rise is an online real
[141]
estate crowdfunding platform that allows
[143]
you to become a real estate investor and
[145]
all you got to do is have $500 to get
[146]
started so that's what we're going to
[148]
talk about today let's learn more about
[150]
fund rise so let's talk a little bit
[152]
about who fund rise is so fun right is
[154]
an online real estate and investment
[156]
company that specializes in crowdfunding
[159]
now crowdfunding is something that has
[161]
grown in popularity a lot over the last
[164]
several years if you know anything about
[166]
peer-to-peer lending and have a video
[168]
where I talk about Lending Club
[169]
which is by far the largest peer-to-peer
[171]
lending company that exists that's kind
[173]
of what they're all about is
[174]
crowdfunding but instead of crowdfunding
[176]
for loans or personal loans what fund
[179]
Rises crowdfunding for is for real
[182]
estate notes or real estate investment
[184]
properties and that's what makes it
[186]
Luber exciting and a sexy for a lot of
[188]
investors because now
[189]
you can become a real estate investor
[192]
without leaving your home and that's
[194]
what it's all about so as of right now
[196]
there are over 80,000 members that are a
[198]
part of fund rise and they have invested
[200]
over 3 billion with the capital B into
[204]
real estate investment properties but as
[205]
you can see they are a force right now
[207]
making a dent in real estate investment
[210]
properties especially in the online
[212]
space by investing into fundrise
[214]
essentially you are investing into a
[216]
real estate investment trust that is
[218]
what fund rise is within their platform
[221]
they have five different reefs now you
[223]
might not know what a REIT is or a real
[225]
estate investment trust and just so I
[227]
don't get repetitive I'm going to go
[229]
ahead and cue to a previous video where
[231]
I explain what a REIT is so what a real
[233]
estate investment trust is this is a
[235]
company that specializes in real estate
[238]
and this could be across the board maybe
[241]
it's shopping centers maybe it's malls
[243]
maybe it's hospitals maybe it's home
[246]
construction all we're looking for is a
[248]
company that specializes in real estate
[250]
but just in case I butchered that
[252]
explanation of what a REIT is let me
[254]
give you the investopedia definition so
[256]
a real estate investment trust is a
[258]
company that owns and in most cases
[260]
operates income-producing real estate
[262]
reach owned many types of commercial
[264]
real estate ranging from office and
[266]
apartment buildings to warehouses
[268]
hospitals shopping centers hotels and
[270]
timberlands ok now you have a good
[272]
understanding of what a REIT is all
[274]
right the big difference with fundrise
[275]
is that you are investing into a private
[277]
read versus a public REIT now what's the
[280]
difference between a private or a public
[282]
read so just like a publicly traded
[284]
company or a privately traded company
[287]
it's very similar now with a public reso
[290]
to divulge everything you have to share
[293]
everything that you're doing you have to
[294]
have full transparency you have to
[297]
report to shareholders and all that fun
[299]
stuff now that's not a bad thing and
[301]
there are some protective measures for
[302]
that but still I mean when you have to
[305]
share everything and you just can't go
[307]
do it that can be very time-consuming
[309]
because you're like asking for
[311]
permission before you actually make an
[313]
investment so with fundrise they are a
[315]
private reach so they can go out and do
[318]
what they do best without having to wait
[320]
for permission from shareholders from
[322]
their in bed
[323]
because they have a process they have a
[325]
certain way of doing things and that's
[327]
what works for them so what that intern
[329]
does for you the investor is that it
[331]
makes it more nimble more efficient and
[334]
also less volatile because they go do
[336]
they go do what they do well they don't
[338]
want to ask a mom and dad for permission
[339]
before they go out and make an
[341]
investment does that make sense I hope
[343]
so another item that's going to come up
[345]
when you start investing online
[347]
especially with real estate investment
[349]
options online with these online
[350]
crowdfunding platforms is if you are a
[352]
credited investor now if this doesn't
[355]
mean anything to you then it probably
[357]
doesn't apply but this is what an
[360]
accredited investor is so within the
[362]
credit Wester you have to least have a
[363]
net worth of 1 million dollars or you're
[366]
making $200,000 filing single or
[369]
$300,000 if you're filing joint so what
[372]
does that mean for you
[373]
now with fund rising you don't have to
[374]
be an accredited investor to open an
[376]
account with them so good thing is that
[378]
doesn't apply to you but there are other
[380]
real estate online platforms where you
[382]
do have to be in a credit investor so
[384]
you have to have that net worth or
[385]
income requirements just to open an
[387]
account but being an investor doesn't
[389]
just apply to crowdfunding a real estate
[391]
online platform that's why I wanted to
[393]
bring it up here because there may be
[394]
some other investment opportunities that
[396]
you are exploring where oh that sounds
[398]
really exciting oh crap I'm not an
[400]
accredited investor so I can't get in so
[402]
just be prepared so how do you actually
[404]
make money by opening account with fun
[406]
rise and investing in a real estate
[408]
because you know what you don't have to
[409]
leave your house so are you actually
[411]
making money are you getting paid yes
[414]
you are so as a real estate investment
[416]
trust company you're opening the account
[417]
with fundrise and they are going out and
[419]
finding these properties for you so
[421]
these can be apartment complexes these
[423]
could be strip malls it could be
[425]
hospitals it could be a variety of
[427]
different things so you are leaning on
[429]
them to go out and find those properties
[430]
for you so by opening account with them
[432]
they're using your money with other
[434]
people other people part of the crowd so
[437]
it's called crowdfunding and they're
[438]
pulling that money together and then
[440]
finding these properties so the two ways
[442]
that you can make money are one you can
[445]
collect your dividend which it basically
[447]
is in the form of all the rent payments
[449]
that they are getting on all their
[451]
properties that are being passed forward
[452]
to you the second way you can make money
[454]
is through price appreciation and it's
[456]
same thing like buying a stock so if
[458]
they are buying properties at a discount
[460]
and let's say different parts of the
[462]
country where they can get a good deal
[464]
and then real estate values increase
[466]
then that's how you can benefit so you
[468]
can see the net asset value or the price
[471]
of the shares that you're buying
[472]
appreciate or go up in value with fund
[474]
rise they pay out their dividends every
[477]
course so every three months you've been
[478]
a log in and see your dividend payment
[481]
I'm pretty excited to see that my
[482]
account wasn't open I just almost a few
[484]
months and I saw my first dividend
[486]
payment now it wasn't a lot of money but
[488]
he was very encouraging to see some
[490]
money being paid passively just by
[492]
opening the account and investing into
[494]
the fund rise and then for them to go
[496]
out and find those great real estate
[497]
deals as I mentioned previously fun rice
[499]
has five different REIT options so they
[501]
have a REIT that focuses on the west
[503]
coast one on the East Coast or one in
[505]
the central or their Heartland REIT they
[507]
also have a REIT that focuses on income
[509]
so looking for higher dividends higher
[511]
yields or one on growth so they're
[513]
looking more for price appreciation you
[515]
basically have a say in which reap do
[517]
you want do you want to put all your
[518]
money into one rate or do you want to
[520]
diversify and spread it out all the
[522]
different reach that they have since I
[524]
just started investing with them I just
[526]
wanted to kind of play around and see
[527]
what they offer so I went with a starter
[530]
portfolio and just spread it out amongst
[532]
all the different reach that they had
[533]
one of the cool features that I loved
[534]
about fund rise was after I made my
[537]
initial investment and they went out and
[538]
started buying those properties where I
[540]
can see them in my account you can see
[542]
the actual properties that you own
[545]
there's a Google map that shows a
[547]
location it shows how much that they
[549]
have put down on this property they also
[551]
have a rating like a report card rating
[554]
you know how aggressive or how risky is
[556]
this property versus other properties so
[558]
they give you so much information about
[560]
what you own to where if you are in that
[561]
area you actually drive by and see the
[564]
property that you own I think that's
[566]
pretty cool okay let's talk about
[567]
competition obviously fund rise is not
[570]
the only crowdfunding a real estate
[572]
online platform that exists as the
[574]
FinTech air hub explode you're gonna see
[577]
a lot more options become available so
[579]
with fund rise with their competition
[581]
the one or few that I'll highlight the
[583]
first one is rich uncle's so rich
[585]
uncle's is very similar to fund rise so
[587]
they only have a $500
[589]
so that's awesome you don't have to be
[592]
an accredited investor to open account
[593]
so that's also awesome but the big
[595]
differences with rich uncles versus
[597]
fundrise is this right now if you want
[599]
to sell your notes within rich uncle's
[601]
or you know sell your real estate
[602]
investment property the the fractional
[604]
ownership that you have currently a rich
[606]
uncle's doesn't have a platform that
[608]
allows you to do so so this is a
[610]
long-term investment with them so if you
[612]
are investing with them you are stuck
[614]
with them are you're basically getting
[615]
married so just keep that in mind the
[617]
other issue with rich uncle's is that
[618]
the way that they make their investments
[620]
they are putting 50% down in cash on all
[623]
their properties now that could be a
[624]
good thing you know for foreclosures and
[627]
just protecting you but that also could
[629]
mean that your dividend payments aren't
[631]
going to be consistent if there are
[633]
foreclosures now the other big issue
[635]
with rich uncle's is that they're only
[636]
available in a small number of states at
[639]
the time of this recording when I went
[640]
to the website it blocked me because I
[643]
guess it recognized I was in the state
[644]
of Tennessee so I couldn't even continue
[646]
on on their side you have to check their
[648]
website to see what is the updated list
[649]
of the states that there are currently
[651]
approved or another competitor that I'll
[652]
mention is realty shares now the big
[654]
difference between realty shares with
[657]
fundrise and also rich uncle's is that
[659]
one you have to have at least $1,000 to
[662]
get started so immediately you're
[664]
looking at twice the minimum value just
[666]
to open the account and the other big
[668]
difference which this is going to be a
[669]
killer for many is that you have to be
[671]
an accredited investor so that means if
[673]
you don't have a million-dollar net
[674]
worth and making 200 G's per year single
[678]
or 300 G's if you're married then you've
[681]
got no business going to Realty shares
[683]
right now now this could change you know
[684]
FinTech is always changing technology's
[687]
always changing so they could change the
[689]
minimum requirements and also if you
[690]
have to be a credit investor so you want
[692]
to check their website to see but right
[693]
now these are the big differences I see
[695]
and there are other options as I was in
[697]
my research for this video I found
[698]
realty mogul it seemed very comparable
[701]
to the other platforms I just outlined
[702]
so just keep that in mind there are
[704]
other ones that exist and there will be
[706]
more popping up all right so let's ask
[707]
the question that you know that your
[709]
grandmother is going to ask you or your
[710]
parents are going to ask you is it safe
[713]
is my money safe in that investment my
[716]
money better be safe like any investment
[718]
you're gonna have to waive the risks
[719]
first of the return and see if this is
[721]
right for you
[722]
now am I going to open up account with
[724]
fun rice and put all of my money into it
[726]
am I gonna take my 401 K and roll that
[728]
over into a fund rise account no I'm not
[731]
gonna do that
[732]
don't you even think about doing that so
[734]
if you watch my Lending Club investment
[736]
video in that video I shared where I
[738]
don't think that you should put any more
[740]
than five to ten percent in any of these
[742]
online platforms so with fund rise let's
[744]
say that you have $100,000 in your
[746]
portfolio and you want to put half you
[748]
want to put $50,000 into your fund rise
[751]
account you just need to take a breath
[753]
you just need to pause a minute reflect
[755]
and just think do what is this safe is
[758]
this the right thing to do no but if you
[760]
have a hundred thousand dollars and you
[761]
want to put say five thousand dollars in
[763]
it because you want to test it out and
[765]
you're okay taking some risk then then
[767]
okay then maybe that makes sense for you
[769]
initially I opened my account with a
[771]
thousand dollars and then I added four
[773]
thousand to make it five thousand
[774]
dollars total now why that number well
[776]
you're gonna find out here pretty soon
[777]
because I opened up that Lending Club
[779]
account with also five thousand dollars
[781]
and I wanted to do a comparison analysis
[784]
between the two see how they perform
[785]
over a period of time so check back to
[788]
the channel later on because I'm gonna
[790]
share those results in the next six and
[791]
nine months okay a few more clicks about
[793]
fund rise so we can wrap this video up
[795]
first let's also talk about taxes
[797]
because you know what nobody likes to
[799]
pay taxes how does taxes work on this
[801]
type of investment so it fundrise you're
[803]
either going to pay 1099 dividends or
[806]
you're going to get return of capital
[807]
now when I was on the phone with fun
[809]
rice asking this they were very what
[812]
shall I say they do you want to talk
[814]
about taxes so much because you know
[816]
they're not a tax advisor but they did
[818]
say that you know you can expect to pay
[820]
ordinary income so whatever income
[822]
bracket that you're in whatever tax
[823]
bracket that you're in you're going to
[825]
be paying those taxes there may be some
[826]
return of capital but don't hold your
[828]
breath on that so what I would just tell
[830]
you that be prepared to pay the highest
[833]
tax that you can so if you are in the 39
[835]
percent tax bracket then you're gonna be
[836]
paying thirty nine percent on any income
[838]
that you make unless that's an IRA which
[840]
I'll talk about here in a second how do
[842]
you get your money out let's say that
[843]
you open to your account with fundrise
[844]
and you're done you're like give me my
[846]
money back give it back to me how does
[848]
this work as I mentioned with rich
[850]
uncle's they don't allow you to sell
[852]
your note they don't have a platform
[854]
that allows that fund rise
[856]
but here's another cool thing that fun
[858]
rice offers is they have a 90 day
[860]
basically a money-back guarantee so if
[863]
you open an account with them and you're
[864]
not happy you can get your money back
[867]
within 90 days money-back guarantees now
[869]
what they did say that if you are trying
[871]
to liquidate in that first 90 days you
[873]
might have to wait 60 days to get your
[875]
money back and the reason is that we're
[877]
buying real estate we are buying real
[880]
estate property so these aren't these
[881]
super liquid investments that you can go
[884]
sell at the local grocery store or
[886]
cashed out at your bank so you may have
[888]
to wait 60 days
[889]
now after that 90 day period you can
[891]
sell but they do have a Redemption fee
[893]
so they have a 3% Redemption fee for
[896]
anything that is sold after that 90 day
[899]
period and up to three years after the
[901]
three-year mark that fee goes down to 2%
[903]
and after the next year it goes down to
[905]
1% then after that there is no
[908]
redemption fee but the cool thing is
[910]
like okay yeah you paying a small
[911]
Redemption fee but at least you have
[913]
access to the money it's not tied up
[915]
into some 15-year note where you have to
[917]
wait a decade and a half to get your
[919]
money out you can get it you just put in
[922]
this out order and wait about 60 days
[923]
and boom there's your money got it back
[925]
all right so that's my fun the Rhys
[927]
review it's that online platform that
[928]
I'm very excited about anytime I get it
[930]
invest into real estate and not have to
[932]
do much other than open account I mean
[934]
that's pretty exciting I will still be
[936]
keeping an eye out on the competition
[937]
I'll be looking at Realty shares Realty
[940]
mobile rich uncles and any others that
[942]
come into the space because you know
[943]
what they could come out with something
[945]
some sort of feature that Trump's what
[947]
fun rice has to offer
[948]
or maybe fundrise raised their game and
[950]
they just keep stiff arm of the
[952]
competition all right now I want to hear
[954]
from you have you invested into any of
[956]
these online crowdfunding platforms is
[958]
this something that you would feel safe
[960]
putting your hard-earned money into I'm
[962]
curious I want to hear from you let me
[964]
know in the comments if this is
[965]
something that you would invest your
[967]
money into and as always if you like
[969]
this video you know what to do give me
[971]
the thumbs up boom boom boom share it
[973]
with your friends if you think this is
[975]
add value to them and also please
[977]
subscribe you do not hit the
[978]
notifications tab button whatever that
[980]
thing is ding ding ding ring that bell
[982]
so that you know when the latest video
[984]
is dropping because it's dropping like
[987]
it's Haughton
[989]
that doesn't make any sense anyway
[990]
thanks for subscribing thanks for liking
[992]
thanks for watching this thank you thank
[995]
you thank you
[996]
peace out
[998]
[Music]
Most Recent Videos:
You can go back to the homepage right here: Homepage