in this video we're gonna help you decide if you should invest in Fundrise
I'm going to tell you about my experience and I'm going to compare the
numbers of my Fundrise earnings versus my actual physical rental property
earnings so you can just kind of get a ballpark for how the to compare and then
you can make your own decision so if that sounds good just hang tight and
we're just about to start
and if we haven't met my name is Bob Lotich I'm super
glad you're here and in this channel what we do is we give you practical tips
and strategies on how to put more money in your pocket and then we also talk
about some of the timeless Biblical principles on how to manage that money
wisely so if that sounds good definitely hit that subscribe button so you can
hear from us as you create new content and as we're going through this if you
have any comments or questions about it and about my experience definitely leave
them down in the comment section down below I will get back to you and answer
you as soon as possible and I'd love to just kind of make that comment section a
good resource for other people who are just kind of investigating Fundrise
and trying to figure out if it's actually a good investment so before we dive into
my current kind of earnings with Fundrise and comparing them to a rental
property let me step back just a little bit so basically in 2015 we lived in St. Louis
and we moved to Nashville we kept our old house in St. Louis and we turned
it into a rental property that was my first kind of stab at having a rental
property and trying to see if we could earn some passive income from doing that
because I wanted to be passive we hired a property manager who took 10% of all
the monthly rents that way I was able to completely step out of it I didn't have
to deal with don't call in the middle the night when the plumbing broke or any
of that stuff yeah and so he took care of all that he took care of finding a
good tenant which he actually did did a great job found somebody who paid every
single month and all was really good with that and it was super passive and
it was really convenient so from 2015 to 2017 we had that rental
property there and in 2017 I decided you know I should actually calculate the
returns and see we're actually earning from this property but the amount of
cash we have invested in it see what the actual return is so it took some time
just kind of adding everything up and figuring out what the total expenses
were what the income was kind of getting that and then figuring out our actual
return and so after I calculated it all up I determined that our earnings were
about 5.4% on the cash that we had invested
into the property now somehow in my mind I had been thinking that we were earning
about 10% on our cash invested and it must be because there were more expenses
I'm not really sure why but I was just way off and we were actually only
earning 5.4 percent on that investment obviously we didn't pick this rental
property because it was one of the best earning ones it was because it was the
easiest it was our property we already owned it was easy to just transfer it
into a rental property and I do know that we could have bought another
property that could have had a higher ROI but this is what we had and this is
what we started with and this is what we're now in the middle of 2017 I
decided to open a Fundrise account and just out of curiosity and I kind of
wanted to take the rent payments that I was getting and I would just start
reinvesting the rent payments into Fundrise and then once I had enough to buy
another property I would do that and when I've opened my Fundrised account
I believe I needed to have $10,000 in order to open the account and they've
since lowered that to like 500 I think and as you would expect from one of
these new kind of financial startups the account opening process was super easy
super quick and it was just a really really good experience just kind of
opening the count and and honestly just getting started with them was really
easy so I don't know exactly what I was thinking in terms of earnings from fund
rise when I signed up I'm really I was just trying to reinvest some of the
money that was coming from my rental property but they pay out every quarter
and as these payment started coming in it's like this kind of fun we're
actually earning some money here and I should also note that Fundrise has
three different investment options that you can choose from so they have the
supplemental income which is kind of the lower risk one and the balanced
investing which is the middle risk and then the long-term growth which is a
little bit of a higher risk one and I opted for the balanced investing option
with mine so here's a look at their projected returns for the balanced
investing option so as you can see this is way better than my rental property
was and so I decided to actually calculate the returns that I was getting
from Fundrise and so once I went back and actually ran the numbers on this I
actually found that my earnings from the dividends only with Fundrise was 6%
6.0% versus the 5.4% on my rental property
so in both of those scenarios appreciation is not really taken into
consideration but my hunch is is that appreciation for a lot of the properties
that Fundrise is investing in is actually going to be considerably
better than my property and the location that that our property was on
additionally I should add that with Fundrise I can always change my
investment option over to the higher risk one and higher reward one and in
theory increase those earnings even higher and so for us once I kind of
discovered this and just kind of saw the simplicity of Fundrise and how easy it
is and how much easier it is then having our rental property and all the work
that comes with that because the thing that I didn't realize being a new
property owners that even with a property manager who takes care of
almost everything there's still stuff that comes up there's still things that
I have to deal with you know taxes and there's having to have a separate LLC to
house it and just like a lot of just random stuff that comes up that it's
just something I have to think about that with Fundrise I don't so long story
short we have sold off our rental property and we now use Fundrise as our
primary means of investing in real estate and for us I probably will get
back into physical real estate at some point but for right now the simplicity
of using Fundrise it's just really attractive to me and so that's why we're
kind of focused on that it's just a great way for people who want to get
started investing real estate but don't want to take on the huge risk of
actually buying a property and dealing with all the stuff that comes with that
like I said before if you have any questions about fund rise that you think
I can answer I'm happy to answer down in the comments and you can definitely
check out their website and find a whole lot more we'll have a link to it down
below as well if you found this helpful we'd love it if you leave us a thumbs up
down below but that is all we have for this video so stay tuned for the next
video and I will see you there