“We invented a way for the public to go into these real assets, pretty much directly”
Ben Miller is the Co-founder and CEO of one of the hottest new investment products available today – Fundrise. Commonly classed as Fin-Tech, and described as crowd funding real estate, their platform gives unaccredited investors the opportunity to invest directly in big property deals with as little as $1,000. By being a low cost model with the additional requirement of paying out 90% of income, their eREIT provides high yielding returns to investors on a quarterly basis.
Ben comes on the show to discuss his 17 years of real estate and tech experience and how the combination of those skills has lead to the creation of Fundrise. This episode goes into extensive detail around all forms of real estate investing and will appeal to anyone who is interested in the broader category.
**disclosure, Sam is currently invested in their Growth eREIT
Listen to ILAB 12 on iTunes here or subscribe on your favorite podcast app.
ILAB 12 Show Notes
Relevant links for guest:
Ben’s Twitter – http://twitter.com/BenMillerise
Where are we:
Ben Miller: Washington DC.
Discussed (relevant links):
Time Stamp – Topic:
05:45 – What Fundrise is
06:30 – What is a eREIT?
07:50 – Difference in income REIT and growth REIT
09:00 – Ben’s 17 years of experience in Real Estate
12:30 – Getting great mortgage rates
13:10 – Surviving downturns in property and stock markets
14:30 – The appeal of REITs as a cash flow investment
15:15 – Fundrise vs a public REIT
17:00 – How many properties will the REITs invest in
19:30 – Investment windows for Fundrise
22:30 – FAT built into public REITs
23:00 – Finding high yielding REITs
23:45 – Find properties to add to the eREITs
26:00 – Fundrise vs. big institutions
26:00 – Managing property operators
26:30 – What markets do you find hot?
27:30 – Why being small gives you an advantage
30:00 – REITs paying out 90% of income
32:30 – Investing for non accredited investors
32:45 – The JOBS Act relevance to Fundrise
35:45 – Minimum investments and average investor
38:00 – Can non US citizens invest through Fundrise
40:00 – When do REITs cap out?
42:30 – Appreciate / depreciation potential
44:15 – Valuing the REITs each quarter by a 3rd party
48:20 – What is an ideal length of time to invest in a REIT?
50:30 – Listener questions
53:30 – Owning Fundrise vs. buying an investment property
57:45 – What happens if Fundrise gets nuked
58:05 – Find out more about Fundrise
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