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>Hang on. Are you claiming the real estate market's collapse wouldn't have affected stuff like Realtyshares? How so? Some impact sure, but let's take an averag
by baccredited 9y ago
>Hang on. Are you claiming the real estate market's collapse wouldn't have affected stuff like Realtyshares? How so?
Some impact sure, but let's take an average Fundrise investment. They buy an apartment complex for $20 million and it is at 90% occupancy. They plan to sell it after holding for 10 yrs. If the market was terrible at that time they could hold it a bit longer, and in the interim it is still at 90% occupancy and generating income.
- ceejayoz 9y agoYou don't think occupancy rates and per-tenant income levels go down during a massive recession? You can hold onto the REIT just like you can hold onto the apartment building.
- astura 9y agoHold on, how is that at all different from an REIT? Equity REITs also generate income from rents/occupancy and are required to distribute at least 90% of that income in the form of dividends to shareholders. The big difference is you get to choose to sell or not with a REIT but not with Fundrise. (not to mention occupancy and rental rates are affected during a housing crash)