Wow what a crazy year 2020 has been. From the start of the year I chose to let my Fundrise portfolio ride without additional principle added. Obviously with Covid-19 the performance in real estate slowed significantly. The 2nd quarter saw a freeze in redemptions, reduced dividends and very little appreciation. The 3rd quarter improved on all metrics but is still not at 2018-2019 levels. Let’s take a look.
October 2020 Portfolio:
As of the end of 3rd Quarter 2020, my portfolio includes 190 active projects. This is an increase of only 3 projects over my last update. My account has shifted into more equity based projects by about ~500bps. This shift is driven by Fundrise’s change in focus during Covid-19, and the reinvestment of dividends. With 3 months remaining in the calendar year, my year to date returns are at 3.5%. My total annual returns are at 6.4%. This is expected as Covid-19 slowed my 2020 returns significantly. I expect that the next 12 months will be choppy depending on the eviction crisis and Covid-19. Of all of the REIT options out there I find that Fundrise has the most insulated position and will fare well if a negative real estate event happens.
Top Performing Position
My top performing eREIT for 2019 is the East Coast eREIT. This investment’s YTD return rate is already at 6.7% and growing. The growth I am seeing is about 1/3 dividends and 2/3 appreciation. Fundrise explains that this fund acquires a balance of both debt and equity in commercial real estate located in the East Coast region of the United States. This investment intends to obtain a fixed rate of return that maximizes current income and equity.
My main goal with this investment platform is to maximize for long term growth. Fundrise provides an easy route to grow your portfolio. They disperse dividends every quarter and I have selected to automatically reinvest those dividends. My dividend reinvestment’s follow the Long-Term Grown Plus investment plan that Fundrise provides. The intent of the plan is to provide maximum returns over the long run.
If you would like to join me on this real estate investment journey, click the link below. Both of us will receive 90 days of zero advisory fees.
*I am not a financial planner and all of the above is personal opinion and performance. Your performance and experiences may differ.