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I invested over 40K with RealtyShares and made over 7K. I will NOT be investing with them any further. Problem is that there is no transparency on the old deals
by baccredited 9y ago
I invested over 40K with RealtyShares and made over 7K. I will NOT be investing with them any further. Problem is that there is no transparency on the old deals, so you can't see which ones failed or (more likely) locked up your capital many months after they were predicted to end.
I have over 50K with both fundrise.com and realtymogul.com and would consider investing more with both of them.
I also like peerstreet.com as an alternative to lendingclub. I have been slowly draining all my money from lendingclub over the last few years. Returns are simply too low for the risk you take on. Also, with peerstreet your P2P loans are backed by real assets which can be seized and sold to recover your principal if the borrower defaults.
Better than all of these are stock market index funds, which are over 50% of my portfolio.
Any questions? Ask me anything.
- dante_dev 9y agoWhat do you recommend to read to understand better market index funds?
- baccredited 9y agohttps://www.bogleheads.org/wiki/Three-fund_portfolio https://www.bogleheads.org/wiki/Three-fund_portfolio If you prefer a book The Simple Path to Wealth by JL Collins is pretty good.
- ShannonAlther 9y agoOver what period did you have your investment in RealtyShares?
- baccredited 9y ago2015 to 2017
- koolba 9y agoAny thoughts on REIT ETFs like VNQ?
- baccredited 9y agoI'm not opposed to them but I don't think of them as real estate investments. REITs are stocks, so they tend to rise and fall with the overall stock market. Take a look at what happened to VNQ in 2008 (when the SP500 was down over 36%). VNQ got crushed as well.
- buxtehude 9y agoAnd real estate prices didn't get crushed in 2008?
- baccredited 9y agoTell you what. Next time the market is down over 20% I'll tweet how much my fundrise and realtymogul quarterly distributions have gone down. @baccredited
- gk1 9y agoThat's helpful, thanks. Could you explain why you prefer fundrise.com and realtymogul? I gave RealtyShares as an example but had Fundrise in mind as well.
- baccredited 9y agoWith fundrise and realtymogul I feel more like a partner in the investment. I'll talk about the fundrise Income eREIT for a second. The returns are solid with better transparency and diversity. With a single 50K investment I'm exposed to many properties. If some of those properties had poor returns fund performance would suffer and so would Fundrise's reputation. And part of it is deal size too. You think RealtyShares is gonna pursue that default on a 500K borrower the same way Fundrise is going to think about their $30 million investment in an apartment complex?
- astura 9y agoWhich ones do you have to be an accredited investor to invest in?
- mywittyname 9y ago> Also, with peerstreet your P2P loans are backed by real assets which can be seized and sold to recover your principal if the borrower defaults. Who handles this, and who is responsible for the legal bills?
- brettpeerstreet 9y agoPeerStreet handles the workout situation. Foreclosure fees are applied against gain on sale, which is why PeerStreet has kept LTV (loan to value) under 75%.