Fundrise – The Online Real Estate Investment Opportunity
My Review & Current Investment Experience
RESIDUAL INCOME – The King of Income Sources!
With residual sources of income finally finding its way into the spotlight, entrepreneurs now more than ever are trying to find ways to make money without having to clock “time worked.” Don’t get me wrong, residual income has been around since.. probably forever… but for some reason it has hit the media headlines like crazy over the past few years.
Re-Investment Versus Deposits
The very first question you need to ask yourself is, “Am I trying to acquire current income from my investments, withdraw as income once my monthly pay-out has reached a solid value, or is this money to be set aside strictly for retirement?” Based on how you answer that question will decide whether you should start reinvesting your money or allow the system to start making deposits.
Weighing out your options can be a hard decision. Personally for me, since I had a very small buy-in of $500.00, I decided to automate my reinvestment and have it build up as another source for retirement. I’m not too worried about another small stream of income, so this is something I wanted to start and basically forget about for a bit and just see how the market works. I might learn a bit more about this industry in order to value my investments, but at this point in time, I’m just playing the field.
Dividends and Taxes
Regardless of how you decide to receive pay via Fundrise (in a sense of re-invest or deposit), Fundrise pays your kickback in re-occurring dividends. The thing to keep in mind about these, is that dividends are seen as a source of income. Sources of income have to be reported to the IRS when it comes to tax documents and tax season. Also keep in mind, not only do you have to report anything earned, but everything is also taxed due to it’s label as a source of revenue.
My Initial Investment
As an entrepreneur and potential investor, I set out to open my first Fundrise Account and make my first very own online real estate investment. At the beginning of May, I opened my account with an investment of $500.00 (the platform minimum investment). Immediately following that investment, I was hit with an APPRECIATION FEE of 50 cents. Now, 50 cents is not a lot… But aren’t we trying to go forwards, not backwards?
After the Appreciation Fee hit, I was 50 cents down from $500 and kind of upset. But… from that day on, I had started accumulating 3 to 7 cents per day on kick-back from properties that my investment had been invested into. This started to build and I made up the 50 cents and continued to grow.
Now, at the end of June, my investment portfolio is sitting at $500.22 , with continued growth. No, this is not even close to anything worth investing in as a means of direct income. I do feel like this might have potential to grow as side income as the initial investment continues to grow and develop [One of my properties had a 12% annual rate of return last year].
Is it Worth The Investment?
Being completely honest, I literally just started this investment so I can’t completely say whether this investment is worth the risk. I also can’t give “financial advice”, but would love to share my experiences in potential residual income resources.
Are You Ready To Become An Investor?
If you are interested in joining Fundrise, and would love an opportunity to waiver certain advisory and management fees for the first 90 days of utilizing an account (no investment necessary) then CLICK HERE to learn more!