In case you haven’t heard, crowdfunded real estate is here to stay. And there are so many options out there it can be hard to narrow down your choices.
Fundrise makes it clear up front that you should not invest money you think you might need in the next 3-5 years, and there are penalties for withdrawing funds within the first 5 years.
Real estate crowdfunding is not a new concept. It’s been around in some form for decades, particularly for high-net worth individuals with the right connections.
Each loan you invest in also has a minimum investment of $10. So if you want to diversify your investment across 5 different loans, you would need $50 ($10 per loan).
While real estate obviously has risk and no returns are guaranteed, Groundfloor has published that their average investment return in the past has been 10%.