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I Invested $5,000 In Fundrise And Here's What Happened (18 Month Update) - YouTube
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so in this video today we are going to
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be doing a review and an update of my
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fund rise investment portfolio now I
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personally started investing in fund
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rise back in June of 2018 and I've been
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regularly contributing to this account
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from that original time that I started
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investing now Here I am about a year and
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a half since I started this investment
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and I have now decided to ramp up my
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investment yet again and so I will be
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investing two thousand dollars every
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single month into my fund rise
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investment portfolio now that being said
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guys if you do want to see me do a
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quarterly update of my fund rise
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investment and my returns let me know
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down in the comment section below and I
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would be happy to do that for you guys
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now Before we jump into my computer and
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take a look at my actual fund rise
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portfolio I just want to cover two
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things real quick first of all if you're
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looking to learn more about these
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different crowdfunding real estate
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investing platforms and you want to
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compare them side-by-side I put together
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a really good article over on my blog
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investing simple calm where we analyze
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the top 10 best crowdfunded real estate
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investing platforms out there and
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provide a good description of what each
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one of these offers the investor that's
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going to be linked up down in the
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description below and then second of all
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if you're new to crowdfunded real estate
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investing and you want to learn more
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about it as a beginner I do have a
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beginner's guide to crowdfunded real
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estate investing it's a free ebook I put
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together and I will send that to you via
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email if you are interested that's going
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to be the top link down in the
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description below all you have to do is
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drop your name and your email and I will
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shoot that right over to you and I'll
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give you my beginner's guide to
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crowdfunded real estate investing
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completely free and also at the end of
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this video if you guys do decide that
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you want to sign up for fundrise if you
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want to support me for putting this
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video together my link is in the
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description I am affiliated with fund
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rise so I do earn a small Commission if
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you do decide to use my link and of
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course I thank you for that support but
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that being said guys let's dive into my
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fund rise portfolio and I will update
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you on what that has looked like over
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the last year and a half alright guys so
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here we are inside of my fund rise
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portfolio and the first thing I want to
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show you here is just how the
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contributions to this portfolio have
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changed so as you can see here I have
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been investing in fund rise since June
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of 2018 and I started off with an
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initial investment here of $1,000 and I
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must have earned some dividends or
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appreciation there because the first
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dollar amount on the chart here is one
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thousand six and thirty nine cents so
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from that point up until April I left
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that $1,000 in there and that grew to a
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value of 1,050 $9.19 now at that point
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in time since I was more comfortable
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with the platform having invested for a
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number of months I decided to scale up
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my investment and go from $1,000 up to
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$5,000 in April of 2019 and then I
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essentially left that $5,000 there
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didn't touch it didn't add any more
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money so then we fast-forward to this
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point here where I was up to a value of
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about 53 70 somewhere around there and
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now since I have been investing in this
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platform for a year and a half I've
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decided to begin investing $1,000 twice
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a month on the 1st and the 15th so I
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will be contributing $2,000 per month
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into this fundrise portfolio so the
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first $1,000 hit my account here in the
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end of January and then obviously
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February 1st February 15th and then
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every 1st in the 15th of months going
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forward I will be doing an additional
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$1,000 into this portfolio which is
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$24,000 per year and that is a pretty
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substantial amount of money to be
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investing in any given investment out
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there but as I'm sure you guys see I
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make a lot of passive income on my
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channel and so I try to direct that
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money into buying other assets and I'd
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like to be well diversified across you
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know physical real estate passive real
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estate
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the stock market and even cryptocurrency
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as well and at some point in the near
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future I will be revealing my
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cryptocurrency portfolio for you guys as
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well since that was very heavily
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requested now as far as the different
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investment plans out there I am
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personally in the balanced investing
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plan which is going to be a blend of
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both growth and income and if we click
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over to the portfolio tab here it's
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gonna tell me about my portfolio so
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essentially what happens when you invest
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in fundrise is you're purchasing shares
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of what is called an e-rate and there's
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also something else called an e fund and
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these are non traded so these do not
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trade on the Nasdaq or the New York
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Stock Exchange they are a private REIT
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and therefore you can only buy and sell
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them through the fund rise platform now
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that is something you do have to be
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comfortable with and familiar with as a
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private real estate investor is that
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liquidity here is not guaranteed with
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fund rise and that is largely because
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your money is being used for actual real
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estate projects just like these right
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here within my portfolio I have 188
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active projects over here you can see
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what the risk spread is of these
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different projects and right now I'm in
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a 40% debt 60% equity split based on my
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portfolio so fundrise does offer a
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quarterly Redemption period where you
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can sell your shares of your REITs that
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you own within this portfolio but
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liquidity is not guaranteed and fundrise
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says right on their website you should
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have a minimum time horizon of 5 years
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before you invest and if you do cash out
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early there may be some fees incurred
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with cashing out so if you're on the
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fence about it or if you're a short term
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investor I'm gonna be straight up with
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you guys this is not going to be the
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option for you but if you are more of a
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long-term investor and you're looking to
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diversify outside of the stock market
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personally I have found it to be a very
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interesting investment and I have been
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very happy so far now as far as the
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portfolios go here guys you have
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basically four different options number
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one you have the starter portfolio with
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a $500 minimum or you have the
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advanced portfolios that have a $1,000
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minimum and then you have a
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growth-oriented portfolio an income
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oriented portfolio and then the balanced
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one which is right in the middle that is
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the one I am invested in and in every
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portfolio you have these different
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projects and fundrise will be sending
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you updates via email on these projects
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when ones are completed or whatever
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happens or if there's any sales involved
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and you can click on every single
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project and learn about what is going on
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what is the money being used for as well
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as you know the risk rating how much
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money is invested is this debt or equity
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and then your projected annual return
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and you can get a lot of information on
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each one of these projects it all
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depends on how deep you want to go with
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this investment if you want to be
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totally passive you can just set it and
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forget it and give fundrise your money
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for them to invest on your behalf or you
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can scour through each one of these
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projects just to understand what your
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money is invested in now that being said
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the only option through fund rise is to
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invest in portfolios meaning you can't
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pick and choose individual real estate
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projects to invest in one of the main
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reasons for that is because if they were
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allowing people to pick and choose
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individual projects that will be
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considered a private placement and you
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would have to be an accredited investor
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because of the portfolio based investing
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you do not need to be an accredited
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investor to invest with fundrise so that
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being said guys now what I want to do is
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jump over and look at the performance of
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my portfolio over the last 18 months all
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right guys so what we are looking at
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here is the returns from my fund rise
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portfolio after fees and we're looking
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at the percentages and then we will look
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at the dollar amount so as you guys know
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in 2018 that was a partial year for me
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as I only began investing basically in
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the month of July that money hit my
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account and in those last six months of
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2018 I earned a return of 4.3 percent in
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2019
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I earned overall return of 7.7% and all
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time I'm at 7.7 now you may be saying
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to yourself well wait a second you know
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the stock market did a lot better in
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2019 than my fund rise investment but at
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the end of the day I don't want to be
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fully involved with the stock market
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because what will be really interesting
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to see is how my fund rise investment
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performs during a bad time in the stock
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market when we either have a recession
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or some kind of bear market it'll be
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interesting to see what the return is
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like and that is why people invest in
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different asset classes they'll invest
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in bonds and gold and stocks and
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physical real estate because you just
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don't want to have all of your eggs in
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one basket now as far as the dollar
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value in 2018 I had a thousand dollars
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invested for half the year I made forty
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three eighty nine in 2019 I made three
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eleven fifty for 2020 I made 19 dollars
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and thirty nine cents and it can break
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it down and show you based on the
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different REITs and if you want to look
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at the percentages what ones return the
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most obviously the growth REITs are
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gonna be more substantial so you can be
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really granular with the data here if
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you want to or you can just look at the
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overall big picture of your overall
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portfolio return so as I'm sure you guys
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can imagine here these returns and
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dividends earned are based on a
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relatively small account value here of
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five thousand dollars now that I'm
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putting two thousand dollars in here
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every single month that's going to be
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putting this account to probably about
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thirty thousand dollars by this time
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next year so then the dividends and the
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growth of the portfolio is going to be a
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lot more substantial so I'm definitely
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excited for that one other thing I want
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to show you guys here if we go to
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transactions you can see where my auto
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invest is right here a thousand dollars
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on the 15th and it's going to be a
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thousand on the 1st and 15th of every
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month and you can also see where I'm
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earning my dividends every single
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quarter and what I'm doing is taking
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advantage of the auto and best feature
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so as soon as I earn a dividend in this
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portfolio as you can see right here
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sixty dollars and five cents on four
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quarter three 2019 automatically
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reinvested that dividend back into my
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portfolio this is offered for free you
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do pay your fund rise fees which we'll
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talk about in a second here but the auto
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invest feech
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itself has no fees associated with it
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for using it meaning you can
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automatically reinvest those dividends
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to earn that compound interest now the
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last thing I want to talk about here is
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the fees associated with fund rise they
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have a very transparent fee structure
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which is all in 1 percent per year based
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on the value of your account or a 1%
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annual asset management fee a lot of
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these different sites out there for
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crowd funded real estate have different
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structures and a lot of them are not
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very transparent about the fees they are
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charging so I really like fund rise
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because they tell you flat out what your
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fees are and they're also not burying it
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you know in like the fifth page of some
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document right on the home page of your
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portfolio you can see your returns to
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date and down here it shows you what
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you've earned from dividends what you've
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earned from asset appreciation and
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exactly how much money you paid in
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advisory fees so they're very
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transparent about that fee structure and
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obviously guys looking at my performance
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here these returns are what I actually
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earned after I paid that 1% fee to fund
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rise so anyways guys that's going to
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wrap up this portfolio update here let
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me know down in the comment section
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below if you want to see me do a
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quarterly update of this portfolio or
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how often you guys want me to update you
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on the balance and the growth of this
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portfolio like I said if you want to
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learn more about crowdfunded real estate
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investing I have a free beginners ebook
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down in the description below and then
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of course if you do want to support me
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for putting this video together you can
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feel free to use my link to sign up for
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fundrise where I will earn a small
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Commission in the process as I am
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affiliated with fund rise but thanks so
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much for watching this video guys I hope
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you enjoyed it and I will see you in the
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next one
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