Kris and I own 3 real estate properties. We are able to leverage our real estate assets to generate income. However, I still like to have real estate in my investment portfolio. I use a company called Fundrise. I started investing in September 2019. You have to invest $1000 to get into the program.
Fundrise has been amazing. The best part is that your portfolio does not go up and down with the stock market. It is a completely separate investment vehicle.
I choose the supplemental income portfolio, which is geared towards dividends. They pay dividends quarterly. During the March 2020 downturn, they did not pay out as much in dividends, to ensure they had proper liquidity during the crisis. That is fine with me because my principal investments did not decrease, unlike in the stock market.
I guess the only true downside is that your money is not accessible very quickly. Real Estate is a very illiquid investment, meaning it is not easy to get your money out quickly. However, that is why we have investments in High Yield Savings Accounts and Bonds. Those should be your first source of emergency income.
Overall, I truly love Fundrise. They are always upfront about issues. I read every letter from the CEO. They give detailed information about the real estate they invest in. Hopefully, over the next 5-6 years, I can get my total amount invested up to $40,000, and earn $400-$500 of dividends per quarter. That is the goal.
Disclosure: I am not a financial advisor or money manager, and any knowledge is given as guidance and not direct actionable investment advice. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.
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