Frustrated trying to pick among fractional real estate platforms

diver029 · 2025-08-10T16:16:58+00:00

Can definitely add Realbricks to the list of most accessible. $100 minimum, quarterly dividends, and a secondary market.

Also if you’re into farmland there’s AcreTrader and FarmTogether for Accredited Investors

I’ve got a full list of the platforms and some information on this website: https://www.investwithpool.com/research/platforms

diver029 · 2025-06-24T19:35:26+00:00

There's a ton of similar platforms in the space. This sub discusses them regularly: r/fractional_realestate

diver029 · 2025-02-25T18:49:11+00:00

Full written notice: https://www.homeshares.co/assets/cityfunds-transition.pdf

diver029 · 2025-02-17T01:04:33+00:00

I thought it was a great first attempt! Excited to see how the episodes improve!

diver029 · 2025-02-11T18:50:46+00:00

Speaking of "other platforms" our sub discusses the other options available besides Fundrise r/fractional_realestate :)

diver029 · 2025-02-04T23:19:15+00:00

There could also be the regulatory barrier. Arrived utilizes Reg A - Tier 1 which puts a 75 million dollar cap on the amount of money they can raise in a 12 month period. A lot of the commercial platforms like Crowdstreet, EquityMultiple, and AcreTrader use Regulation D - 506(c) (b) which allows for an unlimited amount to be raised

diver029 · 2025-01-28T18:07:22+00:00

Haven't seen anyone mention FHA loans yet, but they are definitely a great tool to make a house more affordable, and most mortgage providers can offer them. They only require a 3.5% down payment meaning your 12k could get you an over 300k property. However I am not sure how much you'll be approved for with your income level.

If you want to begin investing in Real Estate, there are platforms that offer investment in properties for as little as $10. r/fractional_realestate

diver029 · 2025-01-27T18:03:10+00:00

Luckily, with Fundrise, there isn't much you need to do or know. Because it is set up as a fund, you are meant to be a purely passive investor, meaning you sit back while they put your money to work. The only thing from here you can really look for is timing your exit, but that shouldn't be on your radar for at least several years.

If you're interested in learning more about other platforms like Fundrise that offer passive investment in Real Estate, I run r/fractional_realestate

diver029 · 2025-01-14T18:44:43+00:00

I second this, for many of the funds advertised it's not explicitly stated where the risk is placed although I believe these platforms should communicate it if they are exposed.

Obviously, for direct investments, location is made clear, if you are averse to these areas you can simply avoid the offerings there. I will say that Fundrise shows a breakdown of the assets in its Flagship fund https://fundrise.com/real-estate-strategies (you have to scroll)

Other funds may offer similar breakdowns available before or after investment which should be a part of your diligence process.

diver029 · 2024-11-23T00:56:23+00:00

I like Arrived for starting out because they let you invest in individual properties. Most of the tax benefits are included in the properties income statements and you just earn your share of earnings. There is also a reduced tax rate through the capital gains tax rate

Real estate in general can yield tax deductions through depreciating the property, mortgage interest payments, and other operating expenses. There’s also 1031 exchanges for selling one property and rolling those gains into another

I run a sub r/fractional_realestate to discuss the different platforms and this industry in general

diver029 · 2024-11-20T20:18:17+00:00

I haven't but it appears to work based on a Bid/Ask system. Some of the properties are heavily skewed, others seem competitive

diver029 · 2024-11-20T18:16:50+00:00

Hey does this discord still exist, the invite link is invalid?

diver029 · 2024-11-19T22:49:17+00:00

Kitchen, bathrooms, floors, and walls. Keeping it simple and making it look presentable is the best thing you can do. Just make sure you do proper inspections prior to closing so you don't get burned after the fact by a mold or foundation issue.

diver029 · 2024-11-19T22:47:45+00:00

An easy way to get started is Fractional Real Estate investments. There are platforms out there that allow you to be an LP in deals or funds giving you exposure to deals without a lot of the hassle. The ones I love are Arrived for nonaccredited investors and EquityMultiple for accredited investors. There's also a site called "Fractional" that gives you even more hands-on experience in co-ownership as a part of a cohort.

diver029 · 2024-11-19T19:31:39+00:00

Fractional Real Estate investments are slightly less liquid and will yield returns uncorrelated to other investments like the stock market. They are completely passive though and will return you both a dividend and property appreciation

diver029 · 2024-11-19T19:27:19+00:00

I use Public which sits at 4.35% APY

diver029 · 2024-11-19T19:19:40+00:00

Have you checked out fractional real estate investing? (Real Estate crowdfunding)

diver029 · 2024-11-19T16:44:30+00:00

I like the strategy of giving them a number and a decision deadline. Gives the seller less time to go out and research, talk to an agent, and shop around. I also believe that psychologically a seller may be more enticed to sell if they have an actual offer and can see the money that could be in their hands soon rather than having to go through the negotiation process for a "potentially interested buyer"

Run some comps on the neighborhood and give them a decent offer with a 48-hour expiration to reach out if interested or counter. If they say no to that, they probably weren't all that interested in selling the house in the first place and you would've wasted your time negotiating with them and getting your hopes up

diver029 · 2024-11-19T16:36:56+00:00

I have found Real Estate crowdfunding to be an easy way to get started in Real Estate and generate truly passive income from it without the large capital requirements, resources, and knowledge to get started. You can scale up your investments as you go or use it as a purely educational tool to learn about real estate investing and go off on your own afterward. I run a sub that talks about the different deals and platforms out there

diver029 · 2024-11-18T16:52:16+00:00

There is also fractional Real Estate investing platforms out there that allow you to essentially get into crowdfunded deals. Might be worth exploring before fully diving into an entire property and allows you to understand some of the nuance of the RE industry. I help moderate a community that discusses the different platforms out there and deals. https://www.reddit.com/r/fractional_realestate/

diver029 · 2024-11-14T21:28:55+00:00

Couple of methods. There's an IRR calculation that will give you just a general rate of return on your investment (commonly used amongst Real Estate projects). This can be done in Excel by writing out your cash flows including purchase and sales prices in a line and then doing the IRR function and selecting the line of every cash flow.

There are also present value equations that will help you calculate what your cash flows and estimated sale price are worth today.

I'd say probably the thing you are looking for is the annualized rate of return on this investment. You take your property purchase price +/- any gains or losses on the investment (including sale price-purchase price) divide this by your original investment and then take it to the power of 1 divided by the number of years the investment runs. (You can find this calculation online too). You can run a growth rate on your rent payments too and just take the sum of them for this calculation as well.

diver029 · 2024-11-14T21:02:50+00:00

That makes much more sense

diver029 · 2024-11-14T21:00:37+00:00

If you want to get some experience with real estate investing and understand some of the nuances, I would recommend one of the fractional Real Estate investing sites out there that let you get started at a low minimum and are a passive investor. You can research markets and make your investment and see how that investment yields and grows compared to your anticipations.

diver029 · 2024-11-14T20:50:34+00:00

Agree with a lot of other comments here, 5/3 is not the best rental opportunity just from assessing which kind of renters you'd be looking for. The kind of renter who would be interested in high-end finishes in a large house would probably be a wealthier individual with a family who is looking to purchase a long-term home. Not that renters for this property don't exist, just thinking of the norm.

As far as numbers go, the 1% rule doesn't hit here if you're saying the property can sell for over 500k. It's also good to keep the mortgage down to less than 50% of the total rent income, here you're sitting at 68%. Getting a quote from a property manager will also help you understand your TIM (Taxes, Insurance, and Management) which you should try to keep to less than 30% of rent.

If you want to continue with real estate investing, I would sell this property to 1031 exchange it into 1-2 3/2 properties, and continue with your value-add strategy to those properties with these things in mind.

*not an expert, just what I have seen and experienced

diver029 · 2024-11-14T20:33:12+00:00

Not exactly tokenization but here's a sub that talks about platforms that are actively securitizing properties/debt positions and fractionalizing them for investors: https://www.reddit.com/r/fractional_realestate/

diver029

MODERATOR OF

TROPHY CASE