In the past, real estate investing, especially institutional-quality real estate, was only available for the very wealthy.
Examples of institutional quality real estate investments include multifamily housing and apartment communities that have more than 200 units. Many of these are valued at more than $25 million.
Among the biggest benefits of investing in institutional-quality properties is being able to access tangible, recession-proof assets. Single-family, multifamily and apartment communities are especially recession resistant because everyone needs a place to live.
Many of these large buildings can have 100 or even 200 or more units, which provides diversification, consolidated property management and a lower cost per unit.
These types of real estate investments can provide higher yields and greater stability if they’re structured as a public, nontraded real estate investment trust (REIT). A public nontraded REIT doesn’t trade on major stock exchanges but must comply with extensive background checks and regulations because it’s registered with the SEC.
Being SEC-registered makes public, nontraded REITs more transparent than their private counterparts. Another huge advantage is that their values are backed by their Net Asset Value (NAV), providing more stability and protection from volatile stock markets.
Fundrise’s Leading REIT Offering, Flagship Real Estate Fund, Provides Positive Returns — Despite Plunging Markets
Fundrise is one of the leading real estate crowdfunding platforms. It gives both nonaccredited and accredited investors access to a wide variety of real estate investments including retail, office, multifamily, single-family and mixed use.
As a public, non-traded REIT, it provides the ideal blend between transparency, liquidity and diversification from typical markets.
One of Fundrise’s main offerings is the Flagship Real Estate Fund. The fund has 59 active projects, with many of these being single-family homes, apartment complexes, prebuilt apartments and industrial properties. With the Fundrise Starter Account, you can start investing in the Flagship Real Estate Fund for only $10.
Most of the holdings under the Flagship Real Estate Fund fall under the core plus strategy.
The four main risk profiles of commercial real estate investments are core, core plus, value add and opportunistic.
Core investments are the most conservative category and provide the lowest returns, while opportunistic investments are the riskiest category with the highest potential returns. Core plus properties can be seen as low- to medium-risk investments and offer a healthy mix of both growth and income potential.
The Flagship Real Estate Fund returned an impressive 29%, including a 1.2% yield, in 2021. Despite tanking markets, it has a 6.1% — including a 0.9% yield — return year to date. Fundrise offers other investments aside from its Flagship Fund, and its total annual returns as a platform have ranged from 7.31% to 22.99%, including an average yield of 5.42%.
Add Top Notch, Institutional Commercial Real Estate to Your Portfolio With Fundrise
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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