Hey, everyone! I haven't written about our real estate crowdfunding investments in a while. There are some developments. We have some good news and some bad news. Apartment and premium living performed well.
On the other hand, office investments are underperforming. We may lose a large portion of our investment. Please continue reading for more details.
Performance
This is the performance of all the real estate projects I invest in.
I have 4 active projects and 7 completed projects. Today, I will focus on active investment. You can read more about completed projects here.
Active projects
- crowd WA Apartment – This is going well. The developer continues to upgrade apartments and raise rents to market prices. They pay regularly. Recently, they refinanced and returned $12,000 of capital to investors. Very happy to get some money back. I reinvented it to our home. Mrs. RB40 wants a better kitchen…
- Crowdstreet Chicago Office Building – This is in trouble. They have finished the remodel, but they are working hard to fill the office space. Before the pandemic, office buildings might have been a good investment, but now they are terrible. Developers have issued some massive calls because they have to refinance in a high interest environment. The last thing I heard was that they convert a portion of the building into a data center. To do this, they raised funds from private sources and diluted the stock of the original investors. I didn't send money to the Metropolitan phone so I've been diluted. At this point, I just hope they pack it up and sell the building. Hopefully we can make up for 50% of our investments. It was bad during the pandemic and never recovered. Additionally, developers are terrible about communications and documentation. They have not submitted a 2024 K-1. I'm waiting for it to complete the tax.
- Crowdsourcing Advanced Living Fund – The fund performed well. Last year, they returned some capital (about 10%). Advanced life is a good department. We should exit with good returns within a year or two.
- crowd NC Apartment – This is going well. They pay regularly.
wrap up
All in all, we are leading the way in real estate crowdfunding. However, when interest rates are lower, this is a better investment. Now, it is even more difficult to generate good returns due to high interest and high construction costs. Once the building is completed, the developer must refinance its construction loan as a permanent loan. Higher interest rates mean higher fees for investors. it's complicated. I think the apartment and premium living are still great.
Once these 4 active projects are completed, I plan to take a few years off from crowdfunding and dividend investment. RB40JR will start college in 2029 and we hope to reduce the AGI of FAFSA. Crowdfunding takes 3-5 years to complete. When my son went to college, I didn't want to pay a huge amount of expenses as this could increase our AGI. After graduation, I will come back and raise the crowdfunding again.
Do you want to invest in real estate? What is your strategy?
register
If you are interested in real estate crowdfunding, please register With the crowd View items in their marketplace. I will focus on apartment renovations. These items usually work well.
*Accredited investors Over the past two years, you need to have more than $200,000 in revenue, otherwise your net worth is more than $1 million.
*Disclosure. If you register the above website, we may receive a referral fee.
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Passive income is the key to early retirement. This year, Joe is investing in commercial real estate with CrowdStreet. They have many projects all over the United States, so check it out!
Joe also strongly recommends providing personal capital to DIY investors. They have many useful tools that can help you achieve financial independence.
