Fundrise Tax Minimization Strategy

[Martin Sterling]

Greetings, I want to know if there are any suggested tax minimization strategies when investing in places like Fundrise or Prosper. From my understanding, your returns are taxed at ordinary income rates which is not ideal. Has anyone found a way to avoid this? Thanks in advance.

[Mohammed Rahman]

Hey @Martin Sterling - correct, you're investing in funds not actually partnering into syndications or joint ventures. 

So you're not going to get the tax benefits of actually owning real estate, but your tradeoff is that you'll be more hands off and have a somewhat stable return expectation.