A financial planner put $5,000 into real estate crowdfunding and tracked every year of returns
4 min read · RealCase summary
Jeff Rose, a Certified Financial Planner who runs the blog Good Financial Cents, put $1,000 into Fundrise's Basic plan in February 2018, then added $4,000 the following month to upgrade to the Core plan so he could also participate in the company's own IPO offering. He tracked the original $5,000 real estate position separately from the IPO money and published his year-by-year returns publicly, down years included.
His net-of-fee returns were 7.4% in 2018, 9.2% in 2019, 7.6% in 2020, 23.9% in 2021, 6.4% in 2022, and a loss of 10.7% in 2023, averaging 6.9% annually over the five years. Across that period he also collected $2,471.06 in dividends.
By the time of his review, the $5,000 core real estate position had grown to $8,055.99, and his combined account balance including the separate IPO holdings stood at roughly $10,529.83.
"I know where my money is being invested at all times," Rose said, pointing to that transparency as an advantage over traditional private REITs. He described using Fundrise as the safe side of a "barbell" approach to investing, pairing it with higher-risk holdings elsewhere.
Key takeaways
- ›Invested $5,000 in Fundrise (real estate crowdfunding) starting February 2018
- ›Published exact annual returns every year, including a -10.7% year in 2023
- ›5-year annualized return of 6.9% net of fees, growing the original stake to about $8,056
Original source
Read the original (Good Financial Cents)
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