Anyone use Patch of Land / RealtyShares / etc? At a high level it's the equivalent of LendingClub for peer-to-peer personal loans

2/22/2017 7:45:29 AM

I am getting offers on single family homes from that huge portfolio investor "American Homes 4 Rent" again. Is this where they get their money?

2/22/2017 8:43:28 AM

Fairly certain they don't get their money from crowdfunding - unless you consider the stock market to be a form of crowdfunding.

http://finance.yahoo.com/quote/amh?ltr=1

2/22/2017 10:20:32 AM

Interesting.

2/22/2017 6:50:34 PM

If these things are for buy & hold I feel like they are getting to the party pretty late. The deals were all 4-5 years ago. AH4R is paying top dollar for properties now...like offering as much as the owner occupant buyers but with a fast close and no repairs. The thing is if they get over leveraged and the rents start to trend downward they won't be making any money. They have debt. They have to have a lot of maintenance cost because they buy detached homes that are spread all over the place in various condition.

Rents were pathetic in the time leading up to the bubble bursting. The loose lending made any fool with a pulse qualify for a no money down mortgage. This meant there were not enough renters to keep demand high & rents high for rental properties. Rents dropped and vacancies were a problem. Investors have been buying up properties around here like crazy and I am already seeing rental properties sit on the market for rent longer than they were a year ago.

There has been much talk about repealing dodd-frank and other lending regulations which could mean the loose lending comes back, values baloon, homeownership rate jumps up, rents drop, and then it all comes crashing down again if all these people do not really have the income to pay for the loans they have taken out. (go ahead and assume the predatory sub-prime lending comes back too)

The other side of it would be the portfolio investors can sell the homes off once the market heats up and make fat profit...but that is only if they got a good deal to begin with and get out at the right time. If they hold them too long they run the risk of getting killed by major maintenance & repair costs and a shift in the rental market.

Rents have been stupid high for most of Obamas presidency but if the lending loosens up anymore people are not going to pay the high rents. The lending guidelines have been loosening up during the obama years anyway but the stuff the new government wants to do could put us right back to how it was 11 years ago. Mortgages for everyone, just if you have bad credit you get way worse terms and an ARM.

2/23/2017 2:42:35 AM

I've invested some in 3 of Fundrise's eReits and more with their online IPO ... hasn't been long enough to figure out if anything is going to pay out but they do have some minimum payout guarantees on the eReits

2/24/2017 10:49:01 AM

why this instead of REITs?

2/25/2017 9:22:26 AM

A bit more involved than REITs - can pick and choose what you want to invest in

2/25/2017 4:19:38 PM

sure, but with some of these REIT ETFs nowadays, you could probably buy a share of a tent city in the Congo if you wanted to.

2/25/2017 8:29:29 PM

The fees are much lower for Fundrise, and since you're investing in a smaller pool of real estate the upside for higher returns on maturity is bigger (and yes, riskier)

2/27/2017 10:23:44 AM

If you want to invest in real estate save up 20% down and buy you some.

2/27/2017 4:08:07 PM

thinking about investing in fundrise...anyone care to share your experiences?

2/21/2018 3:16:54 PM

I threw 2500 into a fundrise account about a month ago and I've made ~9$ so far. I get a return rate of like 30c a day.

3/7/2018 9:24:36 PM

Like Lending Club I imagine there must be better places to park your money.

3/8/2018 12:00:09 AM

too early to tell on some of my equity investments but the debt ones have paid off just as expected

3/8/2018 9:29:58 AM

Does fundrise let you choose equity/debt projects? I only see three investment choices

3/8/2018 2:46:38 PM

You invest by geo and those geo REITs are broken down into a portfolio of different project types. There are debt vehicles included in the portfolios, but you can't choose to heavy up on just that type.

3/9/2018 8:37:41 AM

Thanks I will look more into it this weekend.

3/9/2018 1:38:33 PM

yea my credit sucks but hear me out...

3/13/2018 7:14:07 PM

go back to chitchat?

3/14/2018 2:07:29 PM

i think its a fair comment. lending club stuff I saw was sob stories with low credit scores

3/15/2018 8:46:28 PM