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S
Invest in real estate or in a real estate fund like Fundrise?
My wife and I would like to invest in real estate and would definitely consider being landlords and going through all the work. But it does give us some worry and pause adding yet another thing to manage in life. We've heard of Fundrise and wondering if we should invest in real estate funds or through them. On one hand it's less work while getting the same return sounds a lot better than lots more work for the same return! We also have kids, both work, managing life as usual. Would appreciate tips one way or another?
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R
I'm invested in a Vanguard REIT as my real estate investment and personally the thought of being a landlord sounds like a headache and a lot of work.
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C
I started with them back in Jan of last year, so fairly new but have liked it. I got in right before the pandemic but was pleasantly surprised to see my account with gains during the worst part of the downturn. If you decide to invest with Fundrise, remember it's a 5 year commitment, and if you tried to pull your money out before 5 years, the fee scale is high. If your account is over 10K you will unlock additional investments, and you may get a K-1 that you'll have to file. I'm in their growth plan and of the mindset that my returns may start out low compared to the other plans offered on the platform, and holding it for the added diversification (and experience too). It's a set and forget.
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S
@Clara435 Great to know. Do you have any opinions about their direct investing?
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M
I think you've answered this for yourself. There are people who thrive on being a landlord and doing it over and over again. There are others who see it as a source of worry. If you think you'll feel remotely anxious about it, forget about it. Start with a REIT or real estate fund and then own and be a landlord when you're ready and able to do it... if it still makes sense later on!
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S
@Melvin214 lol you're right about this!
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