Fundrise: Q1 2017 Dividends

Q1 Numbers Are In for Fundrise

I started investing in crowdfunded real estate through Fundrise at the beginning of this quarter. This is the first platform that I have found that allows unaccredited investors to participate so I was excited for the opportunity to take part. The company is young but its idea of long term investment and high-dividend payments outside of the stock market is very appealing to me so I jumped into both their Heartland eREIT and their East Coast eREIT.

They have now released their annual dividend yield for both eREITs as 8.25%. This is the kind of appreciation I was looking for from a real estate investment and I must say I'm extremely pleased (though I was holding out hope for 10%). The high rate will work well with their recent introduction of DRIP for reinvestments.

My realistic goal for a dividend yield is 3% meaning that I want all of my investments combined to provide a 3% income stream each year without selling anything. 8.25% is well outside of my best case scenario numbers and is something that will probably entice me to invest even more in Fundrise this year. I also hope that once these funds go from "Ramp Up" status the yield will grow. 8.25% for doing nothing is pretty impressive in any case.

Proceed with Caution

This is a new company and a non-standard or "alternative" investment. The company could fail and I could lose everything I have it in. Alternatives such as Fundrise and Lending Club should make up a very small portion of your portfolio. While they may offer outsized returns at times they are also the investments with the least history to prove their stability. No investment is guaranteed to succeed.

I enjoy alternative investments because I find them more interesting than buying just buying shares of stock. If they turn out to be more profitable or less profitable than other investments in the end the impact should be relatively minor because I practice good diversification.

As always, I only talk about things I do and I am convinced that Fundrise is going good places. Of course remember to do your own research and make your own informed decisions before deciding to invest in anything.