Passive income investing: Are crowd-funded online real estate sites worth the investment?

Hello everyone, a brief intro on the discussion before I dig into the facts and performance summary of my Fundrise Online Real Estate Investments! In May of 2019, I invested $500 into a crowd funded real estate online investment site. Crowd funded means the platform takes the investments of multiple (basically hundreds and thousands) of investors and throws them into an investment pool to fund the creation of a project. The start-up cost for a basic/beginner package is $500, which was the maximum I was willing to spend on something that I just heard about and without anyone’s referral that I knew of. With that being said, yes I paid the 5 x $100, or 10 x $50, or well.. basically 50 x ten dollar bills to a website I just heard of! Just kidding 🙂 I did some online research and with extra cash that I would’ve spent on fitness supplements or something, I decided to invest it into potentially a source of passive income for myself for the future.

I provided a screenshot of my dashboard to show that I indeed invested in May of 2019, and began with the starter level pack.

Okay! The Fun Part! Analyzing the worth of your investment…

So, $500 can be looked at as $500 spent or $500 invested. An investment is a purchase in which you intend to receive the initial investment plus a profit, correct? I mean, why even invest if you aren’t going to profit? The dashboard of Fundrise will show display your portfolio performance, dividends, appreciation, etc. Basically, it will show how much you are making off of your investment like such:

As you can see, my account value is always increasing over time. It seems to be progressing at a constant pace, but does demonstrate a jump in value around January. That is become, since I have my dividends and payout set to re-invest, I had re-invested in new projects that were completed around that time.

The best part about the site, is that you have professionals who already do the calculating, analyzing, and investing for you. I didn’t have to select anything other than which investment package, and what investing approach and style I would like for my profile.

Here, I will show you how the dashboard displays your portfolio, presenting your portfolio worth, active projects, and investment format (equity or debt).

Taking this breakdown and considering if the investment is worth it, let’s look at the day to day investing.

It took about 3-5 months after my initial investment to start making 3-6 cents per day ($0.03-0.06). Now, I am making about 13-15 cents per day ($0.13-0.15). At this rate, accumulating approximately $3.90-$4.50/month or $46.80-$54.00/year. That would be accurate if I was not re-investing into the system. This means I will increase my daily value from week to week, so by the end of 2020, I might be collecting 20-30 cents per day. With that logic, maybe by 2030 I could be collecting $5-15 per day… and the pattern continues on and on….

Even if my daily re-investments were transitioned to direct deposit and my investment value stayed at a set number, I would still make my initial investment back in about 3-4 years of just letting it sit… which makes no sense to just make back the cash you invested, so why not let it re-invest and make you initial investment back and then some.

The concept is, possibly by the time I am 40 or 50 years of age, I could be receiving a monthly deposit for passive income from the Fundrise crowd funded source for $100-500. It will not be a anything close to full-time income or anything that you can solely live off of, but anything helps when it comes to acquiring multiple sources of passive income.

Feel free to post any comment, questions, or concerns! I am always looking at new perspectives, new ideas on investments, and interested in meeting like-minded individuals.

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