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Updated about 6 years ago,

User Stats

52
Posts
12
Votes
Jim Truman
12
Votes |
52
Posts

Fundrise vs individual property

Jim Truman
Posted

Greetings,

I am exploring the possibility of getting started in real estate investing. My wife and I really don't have an interest in real estate but looking at the numbers, it seems like something we should pursue. 

During my research I've come across companies such as Fundrise. I'm wondering if this is a good way to receive some of the benefits of real estate investing, without the hassle of owning an actual property? I researched a bit on the forums but I'm not finding a really great comparison. What are the downsides of investing in real estate through a company like fundrise vs buying my own SFH?

From what I can tell so far, some possibilities are below, but I might not be correct....

-I don't get the tax advantages of owning a property.

-I don't have the advantage of leverage. 

Other than these what am I missing? It seems like I get shared ownership in a diverse portfolio of multiple properties. The rent/cash flow is returned to us as dividends. When the property is sold, any profits are returned to us as increased share values.

For someone who doesn't really want to deal with the full scope of owning properties, but sees real estate as a good investment, is something like fundrise somewhat comparable to actually owning property?

Thanks.

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