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Jul 12, 2019
12:55:04pm
Gente_Boa Playmaker
fundrise, crowdstreet, etc. are terrible ideas
Investing in companies like that leaves you with a huge liquidity problem. Very difficult to sell and recoup your investment on your timetable, you have to wait until whenever they decide to sell the investment. I know some of those platforms are trying to increase liquidity by allowing you to sell your shares to another user, but it still seems like it is difficult to exit and get your money out. And I'm not convinced there is a very large secondary market for their shares.

IMO you are better off investing in a publicly traded REIT where you can get your money out right away should you need it. And by need it I don't just mean unexpected bills, but maybe you accumulate enough that you want to sell your shares and buy a property directly. Or switch your investment into index funds and out of real estate. Whatever the reason might be its definitely better to be able to have control of your own money, and with the crowdfunding sites you do not have control. My advice, stay away from crowd funded investment companies.

REITs are a good way to get started as you can start with as there is no minimum investment amount except for the share price. Direct ownership has more benefits as you'll be able to shield your income through depreciation and you can take advantage of leverage. The downside of direct ownership is you won't be as diversified.
Gente_Boa
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Gente_Boa
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