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Isn’t fundrise just an independent platform that allows private real estate developers / investors to interact? If so, you’re really just investing in individuals or small teams who are running their own real estate offerings, which means that they will likely only pay what they have to pay. If you’re a small time house flipper, I’d only want to pay 8% to 12%, not 20% to 25%. It’s basically a peer-to-peer network for private equity specifically related to real estate, so there’s likely little to no oversight over actual performance.
I don’t know if Fundrise gives you any information that allows you to vet and do your own due diligence on the individual operators ahead of investing, but with little to no oversight, I’d say any investment is highly risky with little to no chance of seeing outsized returns. There are a lot of private lenders who will give pretty respectable interest rates to the more successful real estate developers / flippers, so anyone who’s resorting to Fundrise either doesn’t have a track record, doesn’t know how to find private lenders, or has burned private lenders in the past and is looking for new people who don’t about the past to invest in them.
Personally, I wouldn’t take that risk.
hi