00:00 Lincoln What's up guys in today's video, we're going to talk about Fundrise. It's for real estate crowdfunding. Is it worth it? Is it good? Is it bad? How does it work? Um, just an overall review and actually whether or not I decided to invest in it. So let's jump into it. So Fundrise launched in 2012. It's a, it's kind of a unique real estate investment opportunity. And note, this is not a recommendation to buy or sell any security or whether to or to not invest in Fundrise, just kind of my overall opinion. So you've been disclaimed. But Fundrise came out in 2012 and they originally started targeting accredited investors, just like private real estate funds. But now you can actually invest in Fundrise for as little as $10. So just a reminder on some of our other videos, we talked about it. There's, you know, private real estate funds, and then there's REITs. Fundrise fits in the middle. So private real estate funds usually have to be an accredited investor or net worth of, you know, a million dollars, $200,000 or $300,000 net income annually. But it's a private fund basically reserved for accredited investors. And then on REITs, anybody can buy a REIT on the public market. And they are kind of like a security, right? They are open-ended so you can buy and sell and you can trade them every single day. Private real estate funds, you know, they have typically lock up periods of like five, seven, 10 years, very illiquid. REITs, liquid. Fundrise, right in the middle. Okay. So it's crowdfunding. It's under, you know, Reg A or Reg CF, and you can raise from anybody you want. You can advertise, you can have check sizes of as little as 10 bucks. So they actually have 220,000 investors on this platform. In terms of liquidity, when you invest in Fundrise, you are investing in actual real estate assets. You can redeem your shares every quarter if you want, but there's also penalties you can request for your funds back. So if you want your principal investment back, you can submit a request to Fundrise and they may or may not give it back to you depending on liquidity. Cause you're still investing in real estate, right? So yeah, Fundrise fits right in the middle. It's been pretty cool. If you look on their website, you know, it shows kind of some of their projects that they've invested in. You know, they have different programs for how much, depending on the amount that you invest, if you go over to client returns, they publish their returns, which I think is pretty cool. So it talks about, you know, Fundrise over the years, public REITs versus public stocks. So they've actually done pretty good. If you look at their returns over the past five years, you know, between seven to eight, 10% for years 17 through 20. But then last year they had like a 23% return, you know, it's good to keep in mind that every investor is an expert in a bull market and they're great, right? Cause everything goes up. So what we haven't seen from Fundrise yet is, you know, how they perform in a downturn, but you know, it's a really clean platform. I envision Fundrise like, uh, it's very similar to like Robinhood gets retail investors on, you know, trading stocks and buying stocks. I think this is Fundrise is for the retail investor investing into real estate. So yeah, I mean, they're pretty transparent about all these things. They actually have to disclose it. They are, you know, regulated as a REIT. They have to redistribute 90% of their net income every quarter. So it's very high dividend. You can kind of select though, you know, if you go to their strategy, you know, so they'll ask you, you know, they'll ask you some questions about, you know, when you're signing up on the platform, they'll ask you some questions about, you know, how much money you're planning on investing? What are your objectives? What does that look like? And, uh, they kind of have four strategies. I'll quickly walk through those. They kind of have this graph here on potential return versus, uh, you know, the relative, the risk level. So at the bottom, they got fixed income. That's kind of like debt securities. You know, any sort of debt on real estate. So it's lending, right on commercial or residential, whatever that is. Core plus is when they go out and they buy a, you know, an asset that was just built. Uh, usually it's nice. It's like usually class a, class B. And, you know, you're focusing on the rental income value add pretty self explanatory where they're, they're going out and they're buying an undervalued property and redoing the carpets and the floors and the drapes, whatever. They're redoing the property and forcing appreciation there. And then opportunistic is also pretty self explanatory there. But yeah, so, you know, the lower you invest, I think they just, uh, they automatically give you a sign, you a portfolio, the more money you invest, the more you can kind of cater to your portfolio moment of truth. I decided to sign up for it. I was like, yeah, what the heck? So I just threw a little bit of money in here just, and I'll kind of, I'll keep you guys updated on how the performance. So I just threw five grand in and they've got a clean portal. I don't really have too much data yet. Like I said, I can keep you guys updated over the, over the coming months, years. And if things are looking good, then I'll start putting more money in. Um, but it assigned me, you know, based on how I answered my questions, you know, core plus portion to value add a portion to opportunistic, but you know, it's very clear that you can kind of go in here and you can see the projects that you're investing in, you know, you can get into, you know, more details, but pretty overall, very clean interface, impressed with the interface here, you know, your performance over time, obviously I just signed up, so I have no performance yet. But yeah, overall, I think it's a very clean platform. I am hopeful. Um, it's, it's, you know, posted really good returns. They have great traction so far. They're not the only one that's doing this, right? There's crowd street. There's others out there that are kind of capitalizing on this real estate crowdfunding market. I'll probably test out some other ones in future weeks. Overall, I think it's a pretty solid product. I think it's here to stay. We'll see how they, how they act in a, you know, moment of a market volatility, right? One last thing I might also mention is that if you are an accredited investor, they do have, you know, resources for you. You can kind of get special direct access to new deals, but I think overall really cool things that they're doing, they have been doing for the last almost 10 years now, and I think this is only going to become more common as, uh, you know, the real estate landscape, uh, you know, digitizes and tokenizes and, you know, just becomes more integrated with tech. So let me know your thoughts on this video. Uh, curious to know if any of you guys have invested in your thoughts as well, but, uh, hope you guys have a good one.