Traveling is an exciting adventure that allows you to explore new places, experience different cultures, and create lasting memories. However, unexpected events can occur during your travels, making travel insurance a crucial component of any trip. This guide will help you understand the essentials of travel insurance, ensuring you stay protected on your adventures.
What is Travel Insurance?
Travel insurance is a type of insurance designed to cover the risks associated with traveling. It provides financial protection against a range of unforeseen events, including trip cancellations, medical emergencies, lost luggage, and more. Travel insurance helps mitigate the impact of unexpected disruptions, allowing you to travel with peace of mind.
Types of Travel Insurance Coverage
Travel insurance policies offer various types of coverage. Understanding these can help you choose the right policy for your needs.
1. Trip Cancellation and Interruption Insurance
This coverage reimburses you for non-refundable expenses if your trip is canceled or interrupted due to covered reasons, such as illness, injury, or unforeseen events like natural disasters. It can cover prepaid costs like flights, hotels, and tours.
2. Medical and Health Coverage
Medical coverage is essential for international travelers, as healthcare costs can be high in foreign countries. This coverage pays for medical expenses, hospital stays, and emergency medical evacuations if you become ill or injured during your trip.
3. Baggage and Personal Belongings Coverage
This coverage protects against the loss, theft, or damage of your luggage and personal belongings. It can reimburse you for the cost of replacing items such as clothing, electronics, and travel documents.
4. Travel Delay and Missed Connection Coverage
Travel delay coverage reimburses you for additional expenses incurred due to significant travel delays, such as meals and accommodations. Missed connection coverage helps cover the costs of catching up with your trip if you miss a connecting flight due to reasons beyond your control.
5. Emergency Evacuation and Repatriation Coverage
Emergency evacuation coverage pays for transportation to the nearest adequate medical facility in case of a serious illness or injury. Repatriation coverage handles the cost of returning your remains to your home country in the event of death.
6. Accidental Death and Dismemberment (AD&D) Coverage
AD&D coverage provides a benefit to your beneficiaries if you suffer a fatal accident or lose a limb or other body parts during your trip. This coverage offers financial support to your loved ones in the event of a tragic accident.
Factors to Consider When Choosing Travel Insurance
Choosing the right travel insurance policy involves evaluating your specific travel needs and preferences. Here are some key factors to consider:
1. Destination and Duration
The destination and length of your trip can influence the type and amount of coverage you need. Consider the healthcare standards and costs in your destination country, as well as the potential risks associated with the region.
2. Activities and Adventure Sports
If you plan to engage in adventure sports or high-risk activities, ensure your policy covers these activities. Standard travel insurance may exclude certain sports, so look for policies that offer coverage for activities like skiing, scuba diving, or trekking.
3. Pre-Existing Medical Conditions
If you have pre-existing medical conditions, check whether the policy covers these conditions. Some policies may exclude or require additional premiums for coverage of pre-existing conditions.
4. Coverage Limits and Exclusions
Review the policy’s coverage limits and exclusions to understand what is covered and what is not. Pay attention to limits on medical expenses, trip cancellation, and baggage coverage, as well as any exclusions for specific events or activities.
5. Policy Cost and Deductibles
Compare the cost of different policies and consider the deductibles you will need to pay out-of-pocket before the insurance kicks in. Ensure the policy offers good value for the coverage provided and fits within your budget.
Tips for Using Travel Insurance
1. Purchase Insurance Early
Buy travel insurance as soon as you book your trip to ensure you are covered for any unexpected events that may occur before your departure. Early purchase can also provide coverage for pre-trip cancellations.
2. Keep Documentation Handy
Carry a copy of your travel insurance policy, including the policy number and emergency contact information. Keep digital copies accessible on your phone or email for easy access.
3. Understand the Claims Process
Familiarize yourself with the claims process and required documentation. In case of a claim, keep all receipts, medical reports, and police reports as evidence to support your claim.
4. Contact the Insurer in Emergencies
In the event of a medical emergency or significant travel disruption, contact your insurance provider’s emergency assistance hotline immediately. They can guide you on the necessary steps and provide support.
5. Review Policy Annually
If you travel frequently, consider an annual travel insurance policy. Review the policy annually to ensure it still meets your needs and covers any new destinations or activities you plan to undertake.
Conclusion
Travel insurance is an essential safeguard for any trip, providing financial protection and peace of mind against a variety of risks. By understanding the different types of coverage, evaluating your needs, and choosing the right policy, you can ensure you are well-protected on your adventures. With the right travel insurance, you can focus on enjoying your travels, knowing you have a safety net in place for any unexpected events.
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EquityMultiple is a real estate investment platform. It offers individual investors access to commercial real estate deals. The platform allows people to invest in real estate without buying physical properties. This review will cover various aspects of EquityMultiple in 2024. We’ll look at its features, benefits, fees, investment options, and user experience. We’ll also discuss the pros and cons, as well as comparisons with other platforms.
Common equity investments: 0.5-1.5% annually, plus 10% of all profits upon exit
Time commitment
12 Months
Accreditation required
✅
Private REIT
❌
Offering types
Debt, equity, preferred equity
Property types
Commercial
Regions served
50 states
Secondary market
✅
Self-directed IRA
✅
1031 exchange
✅
Pre-vetted
✅
Pre-funded
❌
What is EquityMultiple?
EquityMultiple is an online platform. It connects investors with real estate opportunities. It was founded in 2015. The goal was to democratize real estate investing. EquityMultiple partners with experienced real estate companies. They offer a variety of deals. These include equity investments, preferred equity, and debt investments. Investors can diversify their portfolios with these options.
To start, investors need to sign up on the EquityMultiple website. The process is straightforward. Investors must provide some personal information. They also need to verify their accredited investor status. This means they must meet certain income or net worth requirements.
Once verified, investors can browse available deals. Each deal comes with detailed information. This includes the property type, location, investment strategy, projected returns, and risks. Investors can then choose which deals to invest in.
Getting started with EquityMultiple
One of the big benefits of crowdfunding platforms is the ease and convenience of investing and managing your investments online. With EquityMultiple, the entire process takes place on the online platform. It works like this:
1. Register for the platform.
2. Browse live offerings.
3. Review investment details and choose a deal that fits your investment objectives.
4. Complete your account setup and link your bank account to fund investment choices and receive distributions.
5. Complete the investment “checkout” process: E-sign documents, verify your accreditation and fund your investment.
Once you’ve invested, you can:
Monitor your investment performance on the “My Portfolio” page.
Receive regular asset management on all your investments through the “My Activity” feed.
Receive earnings directly through ACH bank transfer.
View quarterly investor updates on asset performance.
Types of Investments
EquityMultiple offers three main types of investments:
Equity Investments: Investors buy a share of the property. They earn returns from property appreciation and rental income.
Preferred Equity: Investors have a higher claim on the property’s cash flow than common equity investors. They receive fixed returns before common equity investors.
Debt Investments: Investors lend money to property developers or owners. They earn fixed interest payments. These investments are typically less risky than equity investments.
Investment Opportunities
EquityMultiple provides a variety of real estate opportunities. These include:
Commercial Properties: Office buildings, retail centers, and industrial properties.
Residential Properties: Apartment complexes and multifamily units.
Mixed-Use Properties: Buildings with both commercial and residential spaces.
Development Projects: New construction or significant property renovations.
Returns and Performance
EquityMultiple aims to provide attractive returns to investors. The returns depend on the type of investment and the performance of the property. Equity investments can offer high returns but come with higher risks. Preferred equity and debt investments offer more stable returns with lower risk.
Fees and Costs
EquityMultiple charges various fees. These include:
Origination Fees: Typically 1% to 3% of the total investment amount. This fee covers the costs of sourcing and vetting deals.
Asset Management Fees: Usually around 1% to 2% of the invested amount per year. This fee covers the costs of managing the investment.
Servicing Fees: For debt investments, there may be a small fee for managing the loan.
Investors should carefully review the fee structure for each deal. Fees can impact overall returns.
User Experience
EquityMultiple’s platform is user-friendly. The website is well-designed and easy to navigate. Investors can quickly find information about deals. The platform also offers educational resources. These help investors understand real estate investing better.
Customer Support
EquityMultiple provides good customer support. Investors can contact the support team via phone, email, or live chat. The support team is knowledgeable and responsive. They can help with any questions or issues investors may have.
Pros of EquityMultiple
Access to Commercial Real Estate: Investors can access high-quality real estate deals.
Diverse Investment Options: The platform offers equity, preferred equity, and debt investments.
User-Friendly Platform: The website is easy to use, with detailed information on each deal.
Good Customer Support: The support team is helpful and responsive.
Educational Resources: The platform offers resources to help investors learn about real estate investing.
Cons of EquityMultiple
Accredited Investors Only: Only accredited investors can invest on the platform.
Fees: The various fees can impact overall returns.
Risk: Real estate investments come with risks, and returns are not guaranteed.
Comparisons with Other Platforms
There are several other real estate investment platforms. Here’s how EquityMultiple compares:
Fundrise: Fundrise is open to non-accredited investors. It offers a lower minimum investment. However, it focuses more on residential properties.
RealtyMogul: RealtyMogul offers both commercial and residential deals. It also requires accredited investor status for certain investments.
CrowdStreet: CrowdStreet focuses on commercial real estate. It has a higher minimum investment but offers a wide variety of deals.
Conclusion
EquityMultiple is a solid option for accredited investors. It offers access to high-quality commercial real estate deals. The platform is user-friendly, and the support team is helpful. However, investors should be aware of the fees and risks involved. Overall, EquityMultiple can be a valuable addition to a diversified investment portfolio.
Frequently Asked Questions (FAQs)
1. Who can invest with EquityMultiple? Only accredited investors can invest with EquityMultiple. This means they must meet certain income or net worth requirements.
2. What types of investments does EquityMultiple offer? EquityMultiple offers equity investments, preferred equity, and debt investments.
3. What is the minimum investment amount? The minimum investment amount varies by deal but typically starts at $5,000.
4. How does EquityMultiple make money? EquityMultiple makes money through origination fees, asset management fees, and servicing fees.
5. Are there risks involved? Yes, all real estate investments come with risks. It’s important to review each deal carefully and understand the potential risks.
6. Can I sell my investment? Real estate investments on EquityMultiple are typically long-term. It may not be easy to sell your investment before the project is completed.
Final Thoughts
EquityMultiple provides a valuable opportunity for accredited investors to diversify their portfolios. The platform’s focus on commercial real estate offers potential for high returns. While there are fees and risks involved, the platform’s transparency and user-friendly design make it a compelling choice for experienced investors. As with any investment, it’s important to do your research and understand the potential risks and rewards.
Investing in real estate has always been a popular way to grow wealth. But, it can be hard for everyday people to get started. CrowdStreet aims to change that. It is a platform that allows individuals to invest in commercial real estate. In this review, we will explore CrowdStreet in 2024. We will look at its features, benefits, risks, and how it compares to other platforms.
What is CrowdStreet?
CrowdStreet is a real estate investment platform. It was founded in 2013. Its goal is to make commercial real estate investing accessible to more people. The platform connects investors with real estate developers and operators. This allows individuals to invest in commercial real estate projects without needing a lot of money.
How Does CrowdStreet Work?
CrowdStreet operates as a crowdfunding platform. Here’s how it works:
Registration: To start, you need to create an account on CrowdStreet. The process is straightforward and takes a few minutes.
Browse Deals: Once registered, you can browse the available investment opportunities. Each listing provides detailed information about the project, including the location, type of property, expected returns, and the developer’s background.
Invest: If you find a project that interests you, you can invest in it. The minimum investment amount varies, but it typically starts at $25,000.
Monitor: After investing, you can monitor the progress of your investments through the CrowdStreet platform. You will receive updates on the project’s status and performance.
Key Features of CrowdStreet
CrowdStreet offers several features that make it an attractive option for real estate investors:
Diverse Investment Opportunities: CrowdStreet offers a wide range of commercial real estate projects. This includes office buildings, apartments, retail spaces, and industrial properties. This diversity allows investors to spread their risk across different types of properties.
Detailed Information: Each investment listing on CrowdStreet provides comprehensive information. This includes financial projections, market analysis, and the developer’s track record. This transparency helps investors make informed decisions.
Investor Relations: CrowdStreet has a dedicated investor relations team. They are available to answer questions and provide support throughout the investment process.
Educational Resources: CrowdStreet offers a wealth of educational resources. These include webinars, articles, and guides on real estate investing. This is especially helpful for new investors looking to learn more about the industry.
Strong Track Record: CrowdStreet has a strong track record of successful projects. Many investors have reported positive returns on their investments.
Benefits of Investing with CrowdStreet
There are several benefits to investing with CrowdStreet:
Access to High-Quality Deals: CrowdStreet vets all the deals listed on its platform. This ensures that only high-quality projects are available to investors.
Diversification: Investing in commercial real estate can help diversify your investment portfolio. This can reduce risk and improve overall returns.
Passive Income: Many of the projects on CrowdStreet generate passive income through rental payments. This can provide a steady stream of income for investors.
Potential for High Returns: Real estate can offer higher returns compared to other types of investments. This is especially true for commercial real estate, which can generate significant rental income and appreciation.
Direct Ownership: When you invest through CrowdStreet, you often receive a direct ownership stake in the property. This can provide additional benefits, such as tax advantages.
Risks of Investing with CrowdStreet
While there are many benefits to investing with CrowdStreet, it is important to be aware of the risks:
Illiquidity: Real estate investments are generally illiquid. This means that it can be difficult to sell your investment and access your money quickly.
Market Risk: The real estate market can be volatile. Changes in the economy, interest rates, and local market conditions can impact the value of your investment.
Property Management: The success of a real estate investment often depends on the quality of property management. Poor management can lead to lower returns and increased risk.
Project Delays: Real estate projects can experience delays due to various factors, such as construction issues or regulatory approvals. This can impact the timing of returns.
Minimum Investment Requirement: The minimum investment amount on CrowdStreet is relatively high, typically starting at $25,000. This may be a barrier for some investors.
CrowdStreet is one of several real estate crowdfunding platforms. Here’s how it compares to some of its competitors:
Fundrise: Fundrise offers a lower minimum investment amount, starting at $500. This makes it more accessible to new investors. However, Fundrise focuses more on residential properties, while CrowdStreet specializes in commercial real estate.
RealtyMogul: RealtyMogul also offers a range of commercial real estate investments. It has a lower minimum investment amount, starting at $5,000. RealtyMogul provides both equity and debt investments, while CrowdStreet focuses primarily on equity investments.
YieldStreet: YieldStreet offers a variety of alternative investments, including real estate, legal finance, and art. It has a higher minimum investment amount, starting at $10,000. YieldStreet provides more diversification across different asset classes compared to CrowdStreet.
Who Should Invest with CrowdStreet?
CrowdStreet is best suited for accredited investors. These are individuals who meet certain income or net worth requirements. Specifically, you should have an annual income of at least $200,000 ($300,000 for joint income) or a net worth of over $1 million, excluding your primary residence.
CrowdStreet is ideal for investors who:
Want to diversify their portfolio with commercial real estate.
Are looking for passive income opportunities.
Have a long-term investment horizon.
Are comfortable with the risks associated with real estate investing.
Getting Started with CrowdStreet
If you are interested in investing with CrowdStreet, here are the steps to get started:
Create an Account: Visit the CrowdStreet website and create an account. You will need to provide some basic information and verify your identity.
Complete Your Investor Profile: Once your account is set up, complete your investor profile. This includes providing information about your investment goals, risk tolerance, and financial situation.
Browse Investment Opportunities: Browse the available investment opportunities on the CrowdStreet marketplace. Take your time to review the detailed information provided for each project.
Make an Investment: When you find a project that meets your criteria, make an investment. You will need to transfer funds to the platform to complete the investment process.
Monitor Your Investments: After investing, you can monitor the progress of your investments through the CrowdStreet platform. You will receive regular updates and reports on the performance of your investments.
Conclusion
CrowdStreet is a robust platform for investing in commercial real estate. It offers a diverse range of investment opportunities, detailed information, and strong investor support. While there are risks involved, the potential for high returns and passive income makes it an attractive option for accredited investors. If you meet the qualifications and are looking to diversify your investment portfolio, CrowdStreet is worth considering.
Always remember to do your research and consider your risk tolerance before making any investment decisions. Happy investing!
In today’s digital age, investing in real estate has become more accessible than ever before, thanks to platforms like RealtyMogul. Whether you’re a seasoned investor or just starting out, RealtyMogul offers opportunities to participate in real estate ventures across the United States. This review will delve into what RealtyMogul offers, how it works, its pros and cons, and whether it’s the right choice for you.
The Importance Of This RealtyMogul Review
Review is an effective way to learn about something thoroughly. So, reading the RealtyMogul review is essential if you’re considering investing smartly. It’s like a guide that helps you understand the platform better, where it came from, what it’s all about, and where it’s headed. Learning about RealtyMogul’s basic ideas and why it started shows its reliability and trustworthiness.
The RealtyMogul review talks about how This Company wants to make investing in real estate something everyone can do, not just about money stuff. This info is crucial for people wanting a platform that matches their values. The review is like a helpful tool, letting investors determine if RealtyMogul’s plans match theirs, making it easier to make intelligent choices in real estate.
Historical Background of RealtyMogul
RealtyMogul is an online platform that allows investors to pool their money together to invest in various types of real estate properties. Founded in 2013, it aims to democratize real estate investing by providing access to commercial real estate and private placements that were traditionally available only to institutional investors or high-net-worth individuals.
How RealtyMogul Works
Investment Options: RealtyMogul offers two primary investment options:
REITs (Real Estate Investment Trusts): These are portfolios of properties managed by professionals. Investors buy shares of the REIT, which owns and manages income-generating real estate.
Private Placements: These are direct investments in individual properties, such as office buildings, multifamily residences, or retail spaces. Investors can choose specific properties to invest in.
Investment Process:
Signing Up: To get started, users need to create an account on the RealtyMogul website.
Browsing Investments: Once registered, investors can browse through available investment opportunities.
Due Diligence: Each investment opportunity comes with detailed information, including property details, financial projections, and potential risks.
Investing: Investors can invest in properties by committing a minimum amount as specified for each opportunity.
Management and Returns:
Passive Income: Investors earn returns through rental income and property appreciation, which are distributed periodically.
Management: RealtyMogul handles property management and other operational aspects, reducing the hands-on involvement required from investors.
Legitimacy and Regulation
Pros of RealtyMogul
Diversification: Investors can diversify their portfolio by investing in different types of properties across various locations.
Accessibility: It allows individuals to invest in real estate with lower minimum investments compared to traditional methods.
Professional Management: Properties are managed by experienced professionals, reducing the burden on individual investors.
Transparency: RealtyMogul provides comprehensive information about each investment opportunity, helping investors make informed decisions.
Potential for Passive Income: Investors can earn regular income through rental payments and potential property appreciation.
Cons of RealtyMogul
Liquidity: Real estate investments on RealtyMogul are generally illiquid, meaning it may be challenging to sell investments quickly.
Risk Factors: As with any investment, real estate carries risks such as market fluctuations, tenant turnover, and economic downturns.
Fees: RealtyMogul charges fees for managing investments, which can affect overall returns.
Limited Control: Investors have limited control over property management decisions, relying on RealtyMogul’s management team.
Is RealtyMogul Right for You?
RealtyMogul is suitable for investors looking to diversify their portfolios with real estate assets without the complexities of direct property management. It’s ideal for those seeking passive income and potential long-term capital appreciation. However, investors should carefully consider the risks involved, understand their investment goals, and assess whether the platform aligns with their financial strategy.
Conclusion
In conclusion, RealtyMogul offers a compelling opportunity for individuals to invest in real estate through an accessible online platform. With its range of investment options, professional management, and potential for passive income, it caters to both novice and experienced investors alike. However, like any investment, it’s essential to conduct thorough research, understand the risks, and consult with financial advisors if needed before committing funds.
Whether you’re looking to diversify your investment portfolio or explore new avenues in real estate, RealtyMogul presents a modern approach to real estate investing that could align with your financial goals.
Sharestates Review is a real estate crowdfunding platform. It allows investors to invest in real estate projects. This review will provide an in-depth look at Sharestates in 2024. We will cover the platform’s features, pros, cons, and user experience. We aim to help you decide if Sharestates is right for you.
What is Sharestates?
Sharestates is a real estate investment platform. It connects investors with real estate projects. It was founded in 2014. The platform offers both debt and equity investments. Investors can start with as little as $5,000.
How Sharestates Works
Sharestates allows investors to browse and invest in various real estate projects. These projects are thoroughly vetted by the Sharestates team. Investors can choose projects based on their preferences and risk tolerance.
Types of Investments
Sharestates offers two main types of investments:
Debt Investments: These are loans provided to real estate developers. Investors earn interest on these loans.
Equity Investments: These involve owning a share of a real estate project. Investors earn returns based on the project’s performance.
Minimum Investment
The minimum investment amount on Sharestates is $5,000. This amount may vary depending on the project. This makes it accessible to many investors.
Investment Terms
Investment terms on Sharestates vary. They can range from 6 months to several years. Investors should review the terms before investing.
Returns
Returns on Sharestates can be attractive. Debt investments typically offer annual returns between 8% and 12%. Equity investments can offer even higher returns, but they come with more risk.
Features of Sharestates
Sharestates has several features that make it appealing to investors. These features include:
User-Friendly Interface
The Sharestates platform is easy to use. The interface is intuitive and user-friendly. Investors can easily navigate and find information about projects.
Thorough Vetting Process
Sharestates has a rigorous vetting process for projects. They conduct extensive due diligence. This includes background checks, financial analysis, and property inspections. This helps ensure that only high-quality projects are listed.
Diverse Investment Options
Sharestates offers a wide range of investment options. Investors can choose from residential, commercial, and mixed-use projects. This diversity allows investors to build a balanced portfolio.
Regular Updates
Investors receive regular updates on their investments. This includes progress reports and financial updates. This transparency helps investors stay informed.
Auto-Invest Feature
Sharestates offers an auto-invest feature. This allows investors to automatically invest in new projects. Investors can set their preferences and let the platform do the rest. This is convenient for busy investors.
Secondary Market
Sharestates has a secondary market. This allows investors to sell their investments before the term ends. This provides liquidity, which is not common in real estate investments.
Pros of Sharestates
Sharestates has many advantages. Here are some of the main pros:
High Returns
Sharestates offers high returns compared to traditional investments. Debt investments offer annual returns between 8% and 12%. Equity investments can offer even higher returns.
Low Minimum Investment
The minimum investment amount is $5,000. This makes Sharestates accessible to many investors.
Diverse Investment Options
Sharestates offers a wide range of projects. Investors can choose from residential, commercial, and mixed-use projects. This allows for portfolio diversification.
User-Friendly Platform
The platform is easy to use. Investors can easily navigate and find information about projects.
Regular Updates
Investors receive regular updates on their investments. This transparency helps investors stay informed.
Secondary Market
The secondary market provides liquidity. Investors can sell their investments before the term ends.
Cons of Sharestates
While Sharestates has many advantages, it also has some drawbacks. Here are some of the main cons:
Risk
Real estate investments come with risk. There is a chance of losing money. Investors should be aware of the risks before investing.
Limited Liquidity
While the secondary market provides some liquidity, it is still limited. Selling investments before the term ends may not always be possible.
Fees
Sharestates charges fees for its services. These fees can eat into returns. Investors should review the fee structure before investing.
Limited Availability
Sharestates is not available to all investors. It is currently only available to accredited investors. This limits its accessibility.
User Experience
User experience on Sharestates is generally positive. The platform is easy to use. Investors can easily find information about projects. The investment process is straightforward. Investors appreciate the regular updates and transparency.
Registration and Setup
Registering on Sharestates is easy. Investors need to provide basic information and verify their identity. Once registered, investors can browse and invest in projects.
Investing
Investing on Sharestates is simple. Investors can browse projects and view detailed information. They can then choose the projects they want to invest in. The platform provides all the necessary information to make an informed decision.
Managing Investments
Managing investments on Sharestates is easy. Investors can view their portfolio and track the performance of their investments. The platform provides regular updates and progress reports.
Customer Support
Sharestates offers good customer support. Investors can contact the support team via email or phone. The support team is responsive and helpful.
Security
Security is a top priority for Sharestates. The platform uses advanced security measures to protect investors’ information. This includes encryption and secure servers. Investors can feel confident that their information is safe.
Comparing Sharestates with Other Platforms
Sharestates is not the only real estate crowdfunding platform. Here is how it compares with other popular platforms:
Fundrise
Fundrise is another popular real estate crowdfunding platform. Like Sharestates, it offers both debt and equity investments. Fundrise has a lower minimum investment amount of $500. However, its returns are typically lower than Sharestates.
RealtyMogul
RealtyMogul is another competitor. It offers a wide range of investment options. RealtyMogul also has a rigorous vetting process. However, its minimum investment amount is higher at $10,000.
PeerStreet
PeerStreet focuses on debt investments. It offers a lower minimum investment amount of $1,000. PeerStreet’s returns are similar to Sharestates, but it does not offer equity investments.
Conclusion
Sharestates is a solid real estate crowdfunding platform. It offers high returns, a user-friendly interface, and a wide range of investment options. The platform’s thorough vetting process and regular updates provide transparency. However, it is important to be aware of the risks and fees involved. Overall, Sharestates is a good option for accredited investors looking to diversify their portfolio with real estate investments.
Final Thoughts
Investing in real estate can be a great way to diversify your portfolio. Sharestates offers a convenient way to invest in real estate projects. With its high returns and user-friendly platform, it is worth considering. However, always do your due diligence and be aware of the risks involved. Happy investing!
HappyNest is a real estate crowdfunding platform that lets you invest with just $10. With useful saving and automatic tools, it’s also great for beginners. However, a lack of investing options and limited track record are downsides.
These days, real estate crowdfunding companies are a dime a dozen. And for anyone looking to add income-generating real estate to their portfolio, this amount of choice is great news.
One of the newer players in the space is HappyNest. This crowdfunding platform lets you invest in commercial real estate with only $10 and pays monthly dividends.
But as a newer company, it doesn’t have an extensive track record for potential investors to reference. That’s why our HappyNest review is covering the pros and cons of the company, how it all works, and some alternative platforms you can also consider.
Pros
Only requires $10 to start investing
Targets 6% in annual dividend returns for investors
Early share redemption program helps with liquidity
Round-up spare change and invest automatically
Investors don’t pay commissions or monthly account fees
Cons
Limited track record since this is a newer company
Only one fund with three properties is available to invest in
No access to direct deals
What is HappyNest?
HappyNest is a real estate investing platform that began in 2017. The company was founded by Jesse Prince with the goal of making real estate investing more accessible to everyday investors.
The real estate crowdfunding space is incredibly crowded these days. But with HappyNest, anyone can begin investing with just $10. And you don’t need to be an accredited investor either, making it very beginner-friendly.
In fact, all you need is your smartphone and a few minutes to open, fund, and invest with HappyNest. Once you’re invested, you can earn up to 6% annually in dividend payments for some reliable, passive income.
Who is HappyNest for?
If you want a simple option for adding real estate to your portfolio, HappyNest is for you. It has one of the lowest funding requirements out of all crowdfunding companies out there. And its user-friendly mobile app makes investing very straightforward.
As a newer company, HappyNest doesn’t have dozens of portfolios for you to invest in or incredibly diverse REITs. So, if you want more investing selection, platforms like Fundrise are superior.
But for investing in real estate with little money, HappyNest is one of your best options.
What makes HappyNest great?
A beginner-friendly funding requirement is one of HappyNest’s main strengths. Plus, its mobile app has several other features that help you set goals and automatically invest to stay on track.
Low investment minimum
As mentioned, HappyNest has a $10 investing minimum. And since you don’t have to be an accredited investor, anyone can use HappyNest as long as they’re a U.S. citizen who is 18 or older.
Commercial real estate portfolio
Some crowdfunding companies like CrowdStreet specialize in commercial REITs. In contrast, other options like Arrived Homes focus on income-generating residential real estate.
With HappyNest, you can currently invest in its first portfolio which contains three commercial real estate properties. These are large commercial buildings that generate income from three different tenants: Bonner Carrington, CVS, and FedEx. There’s an average weighted lease term of 10 years, and HappyNest targets 6% in annual dividends.
Overall, HappyNest doesn’t provide exposure to hundreds of properties like you can find with certain REITs. And there aren’t direct deals currently available either. However, with a $10 minimum, HappyNest’s portfolio is a simple and effective way to add some commercial real estate to your portfolio.
Loose change round-ups
One newer HappyNest feature is its loose change round-up tool. This feature is similar to micro-savings apps like Acorns and rounds-up your purchases to invest the difference automatically.
For example, if you spend $8.45 on lunch, you can enable HappyNest to round-up that purchase to $9. It then takes the extra $0.55 and deposits it in a round-up pool. When that pool reaches $5, HappyNest automatically invests in more shares of its real estate portfolio.
Rounding-up spare change won’t make an immediate, massive difference in your investments. But if you need help building good habits, this is the perfect feature to use. And with the power of compound interest, even small round-ups can make a meaningful difference for your portfolio in the long-run.
User-friendly mobile app
You have to download HappyNest’s free Android or iOS app to create an account and begin investing. This keeps things very simple, and you don’t have to scour through hundreds of real estate offerings or a complex investing dashboard to find deals you want.
The downside is you have less selection. But if you value simplicity and don’t mind using your smartphone to invest, HappyNest could be for you.
Create savings goals
Like its round-up feature, HappyNest also lets you create custom savings goals to stay on track with investing.
The Savings Goal tab lets you create automatic investing rules so you consistently add money to your investments. All you have to do is enter how much you’re investing and if you want it to be a one-time, weekly, or monthly contribution. You can also set a total investment amount you’re aiming for so HappyNest knows when to stop making automatic deposits.
You don’t have to enable auto investing for your savings goals, which lets you keep things manual if you prefer. But either way, this tool helps you create a gameplan for building your nest egg and helps you stay on track.
What are HappyNest’s drawbacks?
Despite its $10 minimum investment requirement and helpful savings tools, there are several downsides to HappyNest you should consider before investing.
Limited portfolio selection
The main drawback of HappyNest is that it only has one portfolio with three properties at the time of writing. In contrast, crowdfunding platforms like Fundrise have numerous funds you can invest in, providing far more commercial and residential real estate opportunities. Similarly, options like CrowdStreet have an ever-changing marketplace of direct deals and a few REITs as well for diversification.
Granted, HappyNest is a newer player in the market, so hopefully investing selection improves with time. But for now, it’s one of the weaknesses of the platform.
Limited track record
The other downside of HappyNest is that it has a limited track record since its a younger company. The company targets 6% annual dividend returns and pays investors with quarterly dividends. Investors can also potentially benefit from share prices increasing, but dividends are the main focus.
And if you read SEC filings, which HappyNest publishes regularly, it’s also clear that HappyNest is still in its growing phases. As of December 2021, the company had raised approximately $1.3 million. This is a drop in the bucket compared to the larger crowdfunding companies out there that are invested in hundreds or thousands of properties.
In short, HappyNest is an early-stage real estate investing play. So, this limited track record is a risk investors should consider.
HappyNest pricing and fees
One advantage of HappyNest is that it doesn’t charge broker commissions or platform fees. Instead, HappyNest makes money through asset management fees on properties. At the time of writing, the current monthly management fee is 0.0417%.
Additionally, HappyNest also pays sponsor and advisory fees. The sponsor is the entity that helps find real estate properties to invest in and then oversees the deal and property management. According to SEC filings, HappyNest pays the sponsor a maximum of 3% of all money raised.
However, Jesse Prince, HappyNest’s founder and CEO, is currently the sponsor and advisor. This means HappyNest technically pays itself with sponsor and advisory fees, although at the time of writing, Prince has deferred his rights to receive payment.
Again, this makes sense when you consider how early-stage HappyNest is. For now, the platform is fee-free, but time will tell how fees change for investors as more shares get bought.
It’s also worth noting that SEC filings state HappyNest’s sponsor can charge each HappyNest customer account with $1 per month in fees. This fee isn’t currently active according to its website, but it would create an added cost for investors if it is enabled in the future.
Liquidity
Traditionally, real estate is a highly illiquid asset. This means it’s difficult to sell your holdings if you need fast capital. Crowdfunding companies are also generally illiquid, so you should view real estate as a long-term investment.
However, some crowdfunding companies offer early redemption plans or have a secondary marketplace to help improve liquidity. For example, Fundrise can let investors sell shares early on a secondary marketplace, and there’s only a 1% fee for selling before five years.
With HappyNest, you must hold shares for at least six months. Afterwards, there’s an early redemption program that charges various fees depending on how long you’ve held shares for:
Holding period of shares
Redemption price of shares
6 months – 1 year
97%
1 year – 2 years
98%
2 years – 3 years
99%
More than 3 years
100%
Paying 3% is pretty steep for an early redemption, but it’s still a plus to have early redemptions at all.
Just note HappyNest reserves the right to decline repurchasing shares for any reason or if doing so hurts investors and operations. This is a common clause crowdfunding companies have to prevent mass selling, so liquidity isn’t as high as it seems. However, at the time of writing, HappyNest has honored 100% of share redemption requests according to its SEC filings.
How to contact HappyNest
You can contact HappyNest support by emailing info@myhappynest.com. Unfortunately, there isn’t a customer support phone number you can call.
Is HappyNest safe?
According to its website, HappyNest uses bank level security to protect your private information and data. This includes data encryption and using trusted partners like Dwolla and Plaid to manage your financial transactions.
You can also enable features like email verification or biometric logins to secure your account. Overall, HappyNest takes numerous steps to help protect its users.
That said, real estate investing still carries risks, and HappyNest doesn’t guarantee returns. And since it’s a newer player in the crowdfunding market, it has a limited track record investors should take into account.
Best alternatives
Very few real estate investing platforms let you start with just $100. And with a target of 6% in annual dividends, HappyNest provides a simple way to diversify your income with real estate.
That said, a small fund and short history are the two main downsides of this platform. And if you want more investment choices or to deploy more capital, certain HappyNest alternatives are better choices.
Fundrise is our favorite HappyNest alternative because it also has a $10 investing minimum. Plus, it lets you invest in a variety of funds for more variety, and you also get paid quarterly dividends like with HappyNest. The main difference is that Fundrise charges 1% in annual management fees but has higher returns on average.
For accredited investors, CrowdStreet is an excellent choice due to the variety of commercial real estate deals it offers. And since it’s slowly adding more REITs to the platform, investors can also diversify more easily.
Finally, RealtyMogul is a reliable alternative if you want to invest in commercial real estate and also access direct deals or REITs.
Bottom line
Over the past few years, real estate crowdfunding has become an extremely competitive space. But despite the competition, it’s promising that newer companies like HappyNest are joining the scene and catering to beginner investors.
A lack of fees and $10 investing requirement are two main advantages for HappyNest. And if the platform continues growing, we’ll hopefully see more properties added to the fund or new funds open up entirely.
For now, consider HappyNest’s limited track record carefully. If anything, you can invest some of your portfolio with this crowdfunding company while sticking with more established companies like Fundrise.
Arrived, formerly called Arrived Homes, lets you invest in residential real estate and vacation rentals with only $100 to start. It’s an excellent option for anyone looking to earn passive income with rental units. And the platform is available to non-accredited investors.
Real estate crowdfunding companies are incredibly popular these days. And for investors who want to dabble in real estate without becoming landlords themselves, crowdfunding offers a simple, effective solution.
But most crowdfunding companies focus on REITs and commercial real estate. However, Arrived, one of the newer players in the space, lets you earn quarterly dividends from residential real estate properties and vacation rental properties.
With a low investing minimum and promising early signs, Arrived is shaking up the crowdfunding market. That said, it has a limited track record, and this isn’t necessarily the best investing choice depending on your goals.
Our Arrived review covers how this new crowdfunding platform works, the fees, and how you can ultimately decide if it’s right for you.
Arrived, formerly called Arrived Homes, is a real estate crowdfunding company that lets you invest in shares of rental properties. The company began in 2019 and is quickly making a name for itself as a serious, up-and-coming investment platform.
And unlike many companies that focus on commercial real estate, Arrived provides access to residential real estate properties and vacation rentals.
According to Arrived founder Ryan Frazier, the company’s goal is to “make the wealth building potential of owning rental homes more accessible. We believe we can do that by simplifying the process, and lowering the cost to get started.”
Some of the properties that Arrived offers on its platform are leveraged (purchased with long-term loans), while others aren’t. To date, Arrived has funded over $123 million worth of property value across more than 339 properties (and counting) in over 56 active markets. And with its $100 investment minimum, it’s an excellent way to invest in real estate with little money.
Pros
Low $100 investing minimum
Earn quarterly dividends from rental income
Completely passive income
Arrived works with professional contractors and property management companies to manage properties and tenants
Low 1% annual management fee
No accreditation requirement
Cons
Sold-out listings leave investors without many options
No REIT or commercial real estate options
How we tested Arrived
We personally tested out the Arrived platform. In June 2022, we invested $500 on the platform by allocating $100 each into five different homes.
Here’s what we had to say about our experience with the website and its purchase process:
Only 15 minutes to invest in 5 different rental properties
“The Arrived concept really appealed to us so we added our name to their email list as soon as we could. It took about a month for us to receive an email invite to invest. We actually felt pretty giddy to start shopping for properties on the marketplace. The investment process couldn’t haven’t been any easier. It only took us about 15 minutes from beginning to end to invest in 5 different rental properties.”
In August, we invested $250 more in a sixth property — The Taylor. Unlike the first five homes in our portfolio, The Taylor is leveraged 50%.
Most recently, in September we invested $250 in The Mirage, a vacation rental located in Joshua Tree, CA. That now brings the total investment on the platform up to $1,000.
In of October 17, 2022, five of the six traditional properties that we invested in had been rented out while one was still seeking a tenant. We received our first rental income dividends in late October 2022.
How does Arrived work?
According to its website, Arrived uses its team’s real estate investing experience and advanced data science to identify properties with the highest potential for returns.
The platform also streamlines investing for investors; you don’t have to dig and find rental units yourself and deal with real estate agents since Arrived handles everything.
As for how you actually invest, Arrived has a straightforward four-step process.
1. Browse homes
You can browse available rental properties on the Arrived website. Listings include a variety of information about a property like:
City and address
Photos and a description of the property
Tenant status
First dividend date
First annual dividend yield
Zillow Home price trends and market information
You can also dig into the financials, which includes the property purchase price, closing costs, property improvements and cash reserves, and any fees. Arrived also outlines how many shares it’s issuing, the cost per share, and target holding period.
There’s even more information as well, including documents explaining the use of proceeds and risk factors. Overall, investors get plenty of transparency to help with their due diligence.
At the time of writing, all 339+ listings on Arrived are fully-funded, so new investors can’t invest. But you can opt-in to the mailing list to learn when new properties are listed, which happens frequently.
2. Select shares
Arrived has a $100 investing minimum. This is one of the lowest requirements in the crowdfunding world alongside companies like Fundrise, which has a $10 minimum. But many companies require at least $5,000 to start investing and are only open to accredited investors.
Most shares start at $10 per share, and Arrived lists how many shares are in circulation for a property. Simply enter how many shares you want to purchase when you find a property you’re interested in.
After you select your shares, you have to review Arrived’s terms, sign a contract, and fund the investment by linking your bank account. This is a similar process to other real estate crowdfunding companies, and again, there’s plenty of documentation you can review to help with due diligence.
As for account types, Arrived supports:
Individual accounts
Entity accounts (LLC, Trust, or Corporation)
Checkbook IRAs and Solo 401(k) accounts
Note that Arrived partners with Rocket Dollar, an alternative IRA investing platform. Reach out to Rocket Dollar directly for next steps.
4. Earn passive rental income
Once you own shares in an Arrived property, you get paid quarterly dividends from rental income. You can also benefit from your shares appreciating if property value goes up.
What makes Arrived appealing to investors is that it’s completely passive. Once funding is complete, Arrived takes over all aspects of property management. This means working with its network of contractors to complete renovations. This helps increase property value and also decreases maintenance expenses. The company also works with local property managers to vet and manage tenants.
There’s even an operations team that monitors properties for issues and helps tenants with customer service. This means things like repairs, damages, and issues with tenants are completely off your plate.
And since Arrived does this all at scale, it helps lower fees and increase efficiency. The company works with professional property managers, can find quality tenants faster, and then generate consistent rental income.
Arrived has paid 3.1% to 7.4% in annual dividends to investors. You get paid dividend payments quarterly. You can cash out your dividends or look for additional shares to invest in if you want to keep diversifying your portfolio.
At launch, the then-called Arrived Homes, focused solely on traditional rentals. However, on August 1, 2022, Arrived announced that they planned to launch vacation rentals as well. In September, Arrived’s first vacation rentals became available for investment. Now, it’s a dedicated section of their platform.
Beyond the main categories of traditional vs. vacation rentals, you can also screen the listings on Arrived by a variety of filters, including:
Leveraged
Appreciation focused
Great schools
Leased
Newly built
As their name suggests, Great Schools are properties that are located in highly-rated school districts. Because these areas are more desirable for families, they’re likely to attract higher rents.
Newly Built homes are another interesting option as Arrived may have purchased them pre-construction and they may have “baked-in equity.” For example, The Eagle was purchased from the builder back in 2021 for $270k. But after it was built and ready to be rented out, it appraised at $336k. That translated to an instant share appreciation of 24% for investors (36% when you consider that The Eagle was 50% leveraged).
Arrived fees and pricing
Arrived makes money in three main ways:
Agent rebates: The previous owner of the property pays a real estate agent rebate to Arrived when it purchases a rental property.
Sourcing fee: This is a one-time fee Arrived charges to help cover the work required to source properties and costs of holding properties while preparing them for investment. Listings outline the sourcing fee so you know exactly how much Arrived is taking.
This upfront and ongoing fee formula isn’t new to crowdfunding. For example, Streitwise charges investors 3% upfront and then 2% on an ongoing basis.
And paying 1% in annual management fees is on the low-end for crowdfunding. Sites like Fundrise also charge 1% annually, but many competitors charge 2% or more per year.
Update: Arrived returns and historical performance
Since its inception, Arrived has paid from 3.2% to 7.2% in annual dividends for investors. And after selling 173 properties, the all-time appreciation has been high as 117.5% in Northwest Arkansas, and as low as -22.2% in Tuscaloosa, Alabama with an average appreciation of 11.98% across all sales.
The average total returns from these 173 sold properties is 18.60%, with an average of 17.27 months held before sale.
For the homes we invested in, our total returns were -0.78% with an all-time appreciation of -4.28% averaged between the 6 homes that had been sold as of November 30, 2023.
To be fully transparent, Arrived has a full list of returns on its site, which you can see, even if you’re not an Arrived investor.
The Arrived Bezos connection
The company also raised $25 million in a Series A round in May 2022, including investments from notable groups like Jeff Bezos’ company Bezos Expeditions and Spencer Rascoff, the former CEO of Zillow. This funding should help expand investment opportunities which is great news for investors currently waiting on the sidelines.
Liquidating shares
Most listings on Arrived have a target holding period of five to seven years. This makes sense since real estate is typically a long-term investment.
However, Arrived lets investors liquidate their shares on a quarterly basis if they’ve held shares for at least six months. But it’s still a little unclear what this secondary marketplace looks like. According to Arrived, there may be penalties for liquidating shares, and it can’t guarantee redeeming shares is even possible. It also states it will disclose potential fees and penalties when you try and sell your shares.
This is similar to Fundrise which lets you liquidate shares before five years for a 1% penalty. Fundrise also doesn’t guarantee you can sell shares. Crowdfunding companies do this to protect the larger pool of investors from mass selling, so during tough market or business periods, you might not have the liquidity you think you do.
That said, most crowdfunding companies don’t have secondary marketplaces or liquidation windows. The fact a new company like Arrived Homes is even offering this is a plus.
Are these Arrived homes a good investment?
If you want to earn regular rental income and keep things completely passive, Arrived is a legitimate real estate crowdfunding company. And the fact it has such a low investment minimum makes it excellent if you’re investing with little money.
Furthermore, Arrived has fairly low annual fees. The upfront fee is a bit high but not uncommon in the world of crowdfunding. And when you factor in quarterly dividends and potentially appreciation, you can make solid returns with what Arrived has shown so far. The amount of information you get to help with due diligence on properties is also a plus.
Finally, one of the most unique aspects of Arrived Homes is that it lets homeowners and tenants get skin in the game. The platform lets tenants become co-investors by buying shares in their rental property. This incentivizes them to care about their home’s condition more, theoretically resulting in lower maintenance costs. You can also sell your home to Arrived and keep up to 10% of shares as equity, so it’s truly a platform that creates win-win scenarios for tenants, investors, and homeowners alike.
Where Arrived could improve
Right now, the main downside of Arrived is that it still needs more listings. There’s a lot of investor demand, but not enough supply to keep up. And sometimes, you’re only able to invest $100 in a property since Arrived wants to let as many investors as possible get in on the action.
This demand is a good sign, but if you want to invest $50,000 in real estate tomorrow, Arrived can’t handle that amount of cash at this time. Hopefully, its Series A can help expand offerings.
It would also be nice for Arrived to offer some sort of REIT or bundle of properties to help with diversification. This isn’t a huge concern since the low $100 minimum requirement makes it easy to invest in numerous properties anyway. But, it would be a nice-to-have option.
Is Arrived Homes legit?
Like any investment, real estate investing carries some risk. So the real question is how does Arrived mitigate risk for investors?
For starters, every home is owned through an independent LLC. This means shareholders and protected from personal liability. So, if a tenant slips and hurts themselves or has some problem with the property, you’re not going to get sued.
As for protecting cash slow, Arrived also has practices in place. It looks for two year leases out of the gate, which helps reduce tenant turnover and periods of no rental income. It also works with professional property management companies to find quality tenants faster. This also includes the regular tenant screening process, like verifying income and running background checks.
In the event of negative cash flow because of zero tenant income, Arrived relies on a cash reserve. This reserve is typically 2% of the total home value which can help cover the lack of income for a short period. If the negative cash flow exceeds the reserve, Arrived makes a short-term loan from its corporation. This means investors don’t have to fork over more money. However, this strategy would lower future returns until the loan is repaid.
Overall, Arrived takes numerous steps to reduce volatility and protect investors. It’s still a new company, so time will tell how the track record plays out. But as it stands, Arrived appears as safe as other crowdfunding companies.
With Arrived, you get easy access to residential real estate properties. We like the low $100 requirement, and the fact there are several practices in place to protect investors and find quality tenants are perks.
However, Arrived is a newer player in this space, so it doesn’t have a long track record. And some Arrived alternatives provide a broader range of investment opportunities that may be of interest.
We like Fundrise as the best Arrived alternative because of its $10 minimum and low 1% annual management fee. It also has a variety of portfolios to choose from and provides diversification for investors.
RealtyMogul is another excellent alternative if you want the flexibility to invest in commercial REITs or direct deals. This is quite different from Arrived’s residential and vacation rental focus, so using both platforms could provide a nice mix of real estate investments.
The bottom line on Arrived
It seems as if new real estate crowdfunding companies are popping up every year. But while many are lacklustre and eventually stall, the future certainly looks bright for Arrived.
Few companies specialize in residential real estate and have such a low investing minimum. And the fact Arrived works with professional contractors and property managers keeps things passive. Plus, practices like its cash reserve fund help protect investors and reduce risk.
And with its successful Series A, we’ll hopefully see even more investment opportunities get added to the marketplace. Until then, consider signing up for Arrived and joining its waitlist so you’re ready to invest when the time comes.
Invest online in commercial real estate via eREITs and eFunds. Gain access to real estate deals starting with just $10 and without being an accredited investor or paying expensive fees.
This is a testimonial in partnership with Fundrise. We earn a commission from partner links on Moneywise. All opinions are our own.
Fundrise is one of the pioneers of online real estate crowdfunding. Founded in 2010, the platform has had some of the earliest successes in this space, allowing everyday investors the opportunity to profit from real estate offerings starting with just $10.
But Fundrise isn’t the only real estate crowdfunding option on the market. And it’s critical to understand how its fee structure works and what the process is like to redeem shares.
Our Fundrise review covers the pros and cons, features, account types, and liquidity concerns for this platform so you can decide if it’s right for you.
Commercial real estate investing can be an excellent way to grow your nest egg, although it’s not without risks.
The big risk? Commercial real estate requires large amounts of upfront capital to purchase a property. To properly diversify your portfolio, you should own multiple properties, various types of features (e.g., apartment complexes, strip malls, office space, etc.) and properties in various locations.
However, one avenue for the small investor who wishes to invest in commercial real estate is through a REIT (real estate investment trust). Luckily for investors, there’s an online platform that can simplify investing in REITs.
It’s called Fundrise, and we think it’s one of the best real estate investment services in the market today. Let’s take a closer look to find out how it works, how you can utilize it, and if it’s for you.
How does Fundrise work?
When you sign up for Fundrise, you can invest in its Starter Portfolio with just $10. Alternatively, Fundrise offers four different portfolio plans that have varying minimum investing minimums and grant you more control over the types of funds you invest in.
Whichever one you pick, Fundrise invests your money in an assortment of eREITs, and eFunds consisting of private real estate assets located across the U.S. Fundrise will tailor your specific allocation based on your personal investment needs.
Although your results will vary according to your plan, Fundrise pays investors in two ways:
1.Quarterly dividend distributions
2.Appreciation in asset value at the end of that asset’s investment term. Keep in mind, though, that Fundrise’s portfolios are meant to be long-term in nature so that it won’t happen overnight! (Also, these returns can’t be guaranteed.)
Fundrise has changed significantly as a platform since its inception. These days, investors have far more control over the types of investing accounts they use and their overall portfolio strategy.
Some of Fundrise’s main features include:
Self-Directed IRA (New) – Now, you can invest in Fundrise with pre-tax dollars and use for retirement planning. (Note that, currently, self-directed IRAs can be used only for eREIT offerings.)
Goal-Based Investing (New) – Via the Fundrise 2.0 platform, invest in real estate based upon your goals rather than types of investment or location. Goals include supplemental income, balanced investing, and long-term growth.
eREIT – A non-traded REIT that invests in multiple commercial real estates. Compared to traditional REITs, cuts out the middleman saving you on commissions.
eFund – A private fund that invests in multiple commercial real estate properties that, unlike Fundrise’s eREITs, focuses on growth rather than income.
Standard & Plus Plans (New) – Once you invest $10,000 or more, you can choose between Standard or Plus plans. Both plans let you choose different investing goals. Standard plans mostly invest in eREITS and commercial real estate funds. In contrast, Plus plans can invest in more specialized real estate strategies that Fundrise’s team identifies in the market.
Direct investments – By investing in Fundrise eFunds, you get to actually invest in specific real estate projects. For example, the Fundrise eFund targets debt and equity investments in homes and condos in the Los Angeles area.
Fundrise iPO (New) – Fundrise is getting ready to sell shares in the company itself via an “internet Public Offering” (IPO). To be eligible for this investment, you must have at least $1,000 in your Fundrise account and have selected one of the advanced plans. You can invest up to 25% of your total account balance in this offering
Minimum requirements to invest in Fundrise
Fundrise requires a minimum starting investment of just $10. This amount gets you the service’s Starter Portfolio, a diversified mix of eREITS and eFunds with underlying real estate projects located throughout the U.S. You receive returns via quarterly dividends, as well as appreciation in the value of your shares.
With an investment of $1,000, you upgrade to the Basic Portfolio which opens up Fundrise retirement accounts, investment goal planning, and access to Fundrise iPO. And if you invest $5,000, you upgrade to the Core Portfolio which lets you choose different investing plans to match your goals.
Different investing plans Fundrise offers include:
1.
Supplemental Income: A steady income stream with a focus on dividends.
2.
Balanced Investing: A diversified portfolio made for greater wealth-building.
3.
Long-Term Growth: Designed for potentially superior returns over the long term.
If you are unsure which one is right for you, Fundrise offers a three-step questionnaire that can help determine how you should invest.
You can also compare all of Fundrise’s different account levels and perks to decide which plan is right for you:
Highlights
Starter
Basic
Core
Advanced
Premium
Minimum investment
$10
$1,000
$5,000
$10,000
$100,000
Standard plans
No
No
Yes
Yes
Yes
Plus plans
No
No
Yes
Yes
Yes
Potential iPO access
No
Yes
Yes
Yes
Yes
Auto-invest option
Yes
Yes
Yes
Yes
Yes
Investor goals
Limited
Yes
Yes
Yes
Yes
Direct investment into open funds
No
No
Yes
Yes
Yes
But the fact that it only takes $10 to begin investing in income-generating real estate is one of Fundrise’s main strengths. And after investing $5,000, you have more control over the types of investing plans you use.
How has Fundrise performed?
Fundrise publishes historical performance reports every year as well as quarterly reports. To date, it’s had 21 positive quarters and zero negative quarters, with the worst quarter returning 1.15% and the best quarter returning 9.40% for investors.
Fundrise vs public REITs vs. S&P 500
Year
Fundrise
Public U.S. REITs
S&P 500
2022 Q1
3.49%
-5.27%
-4.60%
2021
22.99%
39.88%
28.71%
2020
7.31%
-5.86%
18.40%
2019
9.16%
28.07%
31.49%
2018
8.81%
-4.10%
-4.38%
2017
10.63%
9.27%
21.83%
As you can see, both public U.S. REITs and the S&P 500 have had quarters with higher returns. But they’ve also had worse quarters than Fundrise as well, so there’s more volatility.
That said, always remember that past performance doesn’t guarantee future performance.
Fundrise charges an annual asset management fee of 0.85%, in addition to a 0.15% advisory fee. These add up to 1.0% annually. You don’t pay transaction fees or sales commissions either.
However, the company can charge other miscellaneous fees like development or liquidation fees that that can add up to 2%. But for many long-term investors, Fundrise only charges 1% annually in fees.
Pros
Low minimum – The minimum investment to start with Fundrise is $10.
Low fees – Fundrise charges only a 0.85% asset management fee per year.
No accreditation – Fundrise is open to any investor in the United States, regardless of income or net worth.
Diversification – Fundrise eREITs have a pool of many properties that could smooth out returns.
Commercial real estate access – Commercial real estate is typically a high-dollar investment, whereas Fundrise allows you to invest with little money.
Passive investment – Unlike owning your own commercial real estate outright, Fundrise investments are truly passive.
Quarterly redemptions and distributions – The Fundrise eREIT has adopted a quarterly redemption plan to provide periodic liquidity; however, distributions are not guaranteed.
Variety of investing goals – Fundrise lets you choose different portfolio goals like supplemental income, balanced investing, and long-term growth.
Cons
Investment liquidity – Fundrise eREITs are not publicly traded. Once you make an investment, you are pretty much committed to the investment for the term. You can sell shares before a five-year holding period, but you pay a 1% fee in many cases.
Tax consequences – Distributions are taxed as ordinary income, as opposed to the 15% tax rate on qualified dividends.
How to redeem Fundrise shares
When it comes to investing in real estate, liquidation is one crucial factor to consider. After all, real estate properties are less liquid than investing in stocks, ETFs, or even cryptocurrency in most cases.
Thankfully, Fundrise has made some positive changes to make its shares more liquid. For eREITS and the Fundrise eFund, you can request partial or full redemption of shares without paying penalties if you’ve held shares for 5 years or more. For shares under 5 years, you pay a 1% penalty.
As for Fundrise’s Real Estate Fund and Income Real Estate Fund, there’s a quarterly liquidation window in the form of quarterly repurchase-offers that carry zero penalties.
Note: In extremely volatile market conditions and tough times, Fundrise reserves the right to suspend its redemption program so investors can’t sell shares.
Overall, Fundrise is a long-term investment play because of the 5 year requirement for avoiding penalties. And just note that shares aren’t as liquid as other assets like stocks and ETFs.
Is Fundrise safe?
Very few investments can be considered truly “safe” — that is, with a guaranteed return. However, less-liquid real estate investments tend to give better protection from downturns in the broader market than securities such as stocks and mutual funds.
And Fundrise’s portfolios of eREITs and eFunds are about as safe as you can find in the real estate space.
Non-traded REITs and eREITs are registered investments, and while they’re subject to the same SEC requirements that an exchange-traded REIT must meet, they’re not directly correlated with stock market fluctuations. Two downsides: There isn’t the same liquidity since they’re not traded on the markets, and front-end fees are higher than exchange-traded REITs.
eREIT vs. non-traded REIT vs. publicly traded REIT
Type
EREITs
Non-Traded REITs
Exchange-Traded REITs
Publicly traded
No
No
Yes
Secondary market
No
Typically No
Yes
Front-end fees
None
0-15%
0-7% + broker commission
The minimum investment is just $10 for Fundrise eREITs, and you don’t have to be an accredited investor to participate. Shares of the eREITs are purchased exclusively online, and Fundrise members receive notifications when new assets are added to the eREITs.
Is Fundrise legit?
Fundrise is a legitimate real estate investment platform and is registered with the Securities and Exchange Commission as an investment adviser under the Investment Advisers Act of 1940.
It also has a low investing requirement and strong track record. However, Fundrise correctly discloses that past performance isn’t a guarantee of future results or expected returns.
Fundrise alternatives
Fundrise is one of the best real estate investing platforms because of its $10 investing minimum. Few platforms offer such a beginner-friendly way to invest in real estate. And with its positive track record and variety of investing plans and funds, Fundrise has a lot going for it.
That said, some Fundrise alternatives like RealtyMogul and Streitwise may be superior to Fundrise depending on your investing goals and starting investment amount.
RealtyMogul has similar fees to Fundrise. But one main difference is that many equity investments have target holding periods of three to five years, which is shorter than Fundrise. The $5,000 investment minimum is much higher, but RealtyMogul focuses on investing in real estate that’s generating cash flow and offers REITs and a 1031 exchange.
As for Streitwise, you pay 2% annually, which is higher than Fundrise. But Streitwise focuses on providing steady dividend income. According to its website, Streitwise has returned 8% or higher in annualized returns since 2017.
Overall, Fundrise is a well-rounded and beginner-friendly option for real estate investing. And the fact you can choose investing goals with its Basic Plan is a plus. But don’t be afraid to look at some alternatives if you want more investment selection or dividend income.
Bottom line
Real estate as an asset class is a long-term investment. This includes REITs, whether they’re publicly traded, non-traded or eREITs. The opportunities for capital appreciation, portfolio diversification, and regular distributions are alluring; however, distributions are never guaranteed.
While not the same as investing in real estate directly, REITs are much more passive and allow you to invest in properties outside your geographic location. Fundrise can be a way to diversify into real estate without the massive amounts of capital or management headaches involved when doing it yourself.
While I am a real estate investor, REITs have never appealed to me for several reasons — primarily because of the front-end load and ongoing fees. Fundrise takes the sting out of those investing fees with its 0.85% asset management fee.
And the fact that Fundrise only takes $10 to get started makes it an excellent way for investors to dip their toes into real estate investing.
Start real estate investingDisclaimer: The information contained herein neither constitutes an offer for nor a solicitation of interest in any securities offering; however, if an indication of interest is provided, it may be withdrawn or revoked, without obligation or commitment of any kind prior to being accepted following the qualification or effectiveness of the applicable offering document, and any offer, solicitation or sale of any securities will be made only by means of an offering circular, private placement memorandum, or prospectus. No money or other consideration is hereby being solicited and will not be accepted without such potential investor having been provided the applicable offering document. Joining the Fundrise Platform neither constitutes an indication of interest in any offering nor involves any obligation or commitment of any kind.
In the past, it was nearly impossible for everyday people to invest in private equity. To get in on venture capital (VC) deals, you usually need immense capital and the right connections. And even if you find platforms that support equity-based investing, they’re usually reserved for accredited investors.
But with SeedInvest, every investor can get in on some private equity action. With a $1,000 minimum investment amount and in-depth vetting process, this crowdfunding site provides access to quality startups you can add to your portfolio.
However, startup investing is incredibly risky. Our SeedInvest review is covering these risks, the pros and cons, and how to decide if this crowdfunding platform is worth using.
SeedInvest is a private equity crowdfunding platform that’s available to non-accredited and accredited investors. It lets you invest in top-tier startups and also has an auto investing feature for more passive investors.
Pros
Open to non-accredited investors
A $1,000 minimum investment requirement, which is low for equity-investing
No active management fees for investors
Auto invest lets you invest on autopilot
Cons
Only a few opportunities are available at a given time
Investments are extremely illiquid and there’s no secondary marketplace
What is Seedinvest?
SeedInvest is an equity crowdfunding company that began in 2012 with the goal of making private equity investments more accessible to everyday investors. Since then, the platform has grown to over 600,000 investors and helped 250+ companies raise over $410 million.
Historically, investing in startups has required working in venture capital and having an immense amount of funds at your disposal. But SeedInvest has a $1,000 minimum investment requirement for many deals, making the world of private equity significantly more beginner-friendly.
Who is SeedInvest for?
If you want to invest in vetted startups at the same terms as major VCs and angel investors, SeedInvest is for you.
Furthermore, the platform has investing options for both accredited and non-accredited investors, which isn’t common for private equity. Non-accredited investors can face lower total investment limits than accredited investors that vary by deal, but SeedInvest is still more accessible than many alternative investment platforms.
Note that SeedInvest says it supports investors from around the world but depending on your local laws, you might not be able to invest with the platform. For example, Canadians aren’t eligible to invest through SeedInvest currently, so it might not be available in your country.
How does SeedInvest work?
Startups pitch SeedInvest for the opportunity to raise funds. This lets companies access a pool of accredited investors, angel investors, family offices, venture capital firms, and institutional investors.
According to its website, companies have to pass a vetting and due dilligence stage to get listed on SeedInvest. Only 1% or so of companies make it, so the companies you find as an investor are the top-tier startups out there. And there are two different ways you can start investing.
Invest in individual startups
The SeedInvest website lets you browse available startups you can invest in. At the time of writing, there are seven opportunities and one upcoming startup.
What’s nice about SeedInvest is that you find startups from a variety of sectors. For example, here are some of the current startup investing opportunities on the platform.
Cytonics Corporation: A biopharmaceutical company that’s developing medications for osteoarthritis and other inflammatory conditions.
Drink Monday: A beverage brand that makes alcohol-free cocktails.
Fresh Bellies: A snack brand that creates healthy, savory snacks that are culturally-inspired.
iPost: A marketing automation company that focuses on franchises, associations, and publishers.
WAGE: A digital job networking platform for gig workers and their employers.
When you click on a listing, you can dive into additional information about the company to help with due diligence. For example, you see the amount raised, minimum investment requirement, and pre-money valuation. You can also read the terms sheet and information about previous fundraising, the pitch deck, founding team, and how proceeds will be used.
Of course, doing your own due diligence also makes sense since SeedInvest takes a cut from raises, so it has an interest in promoting these companies as best as possible. This means reading news reports, press releases, and doing as much investigative research as possible.
But at the end of the day, SeedInvest presents plenty of interesting startups to invest in. And its rigorous vetting process helps ensure you’re only considering top candidates.
Invest on autopilot
SeedInvest’s most unique feature is its Auto Invest feature that lets you create a diverse portfolio of startups. It’s almost like a robo-advisor, just for private equity, which isn’t something you can find too easily.
Here’s how Auto Invest from SeedInvest works:
1.Minimum deposit: Start with a $1,000 minimum deposit.
2.Invest: Automatically invest in startups when they meet certain thresholds for their raise ($250,000 if under Regulation D/CF or $2 million if under Regulation A+). There’s a minimum investment amount per-investment of $200, so your starting deposit can theoretically invest in five different companies with this starting amount.
3.Allocate Funds: SeedInvest lets you set-up predetermined rules for how much you want to invest in new companies.
4.Grow Your Portfolio: Steadily invest in a diverse portfolio of startups the longer you use Auto Invest.
You can pause or restart Auto Invest as well. And if there’s a company you want to invest more money in, you can always invest through the main deal page. There aren’t fees for using Auto Invest. However, you pay the standard SeedInvest 2% processing fee, capped up to $300 per trade.
SeedInvest fees and pricing
Investors pay a 2% transaction fee on SeedInvest that’s capped at $300. This fee is returned if you invest in a company that doesn’t end up completing its raise. And you don’t pay management fees, carried interest, or administrative fees, which is different from most crowdfunding platforms.
The reason investors don’t pay other fees is because SeedInvest charges startups a 7.5% cash fee of the value of securities purchased in a raise and a 5% convertible note or equity fee. For example, if a company raises $200,000 on SeedInvest on a $10 million cap crowd note, SeedInvest earns $15,000 in cash fees and $10,000 of the crowd cap note.
Historical performance
Since its inception, SeedInvest has helped over 250 startups raise capital. And if you read its case study page, you find some major success stories like Heliogen, which raised $1.6 million on SeedInvest in 2017 at a $20 million valuation and ended up going public in 2021 at a $2 billion valuation. There’s also plenty of smaller companies that didn’t reach unicorn status but still generated significant returns.
And when you look at some of the other investors in these companies, you find names like Bill Gates, Mark Cuban, and numerous VC funds.
In short, the companies that list on SeedInvest are within the very best startups out there. But as SeedInvest explains on its investor risk page, startup investing doesn’t guarantee returns. In fact, there are significant risks, including complete loss of capital, dilution, and complete business failure.
Alternative asset investing like investing in startups is more exciting than sticking with stocks or ETFs. But you need to understand your risk tolerance and what percentage of your portfolio you want to potentially invest in startup equity. And never invest money you can’t afford to lose since this is an incredibly risky investment, even if companies seem solid.
Liquidity
Your investments through SeedInvest are highly-illiquid investments. Startups are privately held companies, so you can’t sell your shares through a public stock exchange. And SeedInvest doesn’t have a secondary marketplace for selling shares either. Plus, companies don’t have a requirement to pay dividends, so you might not see returns for a significant period of time until the company potentially goes public or buys back shares.
In other words, don’t invest money into SeedInvest that you might need in the short term. This is a long-term investing strategy that is both risky and highly illiquid.
How to contact SeedInvest
You can contact SeedInvest by emailing contactus@seedinvest.com. There’s also a live chat widget on its website once you create an account and login. Customer support is available from 9am to 6pm EST, Monday through Friday.
How to open an account
You open an account by entering your full name and email. You also have to confirm you’re an accredited investor. The two most common ways to achieve accreditation status include:
Having a net worth of at least $1 million (excluding your primary residence).
Having an earned income of at least $200,000 (or $300,000 with a spouse) for the previous two years and a similar income expectation for the current year.
Investors also verify their account to unlock the full platform. This means entering your address, phone number, date of birth, and information about your employment status. Your funding activity is placed on hold until SeedInvest’s compliance team verifies the information you submit.
Best alternatives
We like SeedInvest as a startup investing platform because of its vetting process and low fees for investors. But it’s far from the only startup-focused crowdfunding site out there. And depending on your goals, several alternatives could be better options.
Like SeedInvest, OurCrowd is another crowdfunding platform that lets you invest in vetted, fast-growing startups. OurCrowd is also available to investors from around the world. And the unique selling point is that OurCrowd lets you invest in numerous startup funds so you can diversify your portfolio more easily.
You have to be an accredited investor to sign up, so keep this in mind. There’s also a $10,000 investing minimum for individual deals; 10x higher than SeedInvest’s minimum. But you get more selection, and OurCrowd has a strict vetting process and only accepts around 1% to 2% of applicants.
Note that OurCrowd charges investors variable management and administrative fees plus carried interest on profits. You can read our OurCrowd review for the complete breakdown.
Yieldstreet is an alternative assets investing platform that sometimes includes offerings like pre-IPO investments. It also lets members invest in asset classes like artwork, debt, real estate, and crypto. There’s a $2,500 entry-level fund that’s available to non-accredited investors. Other offerings require accreditation and usually have a $10,000 to $15,000 minimum investment requirement.
We like Yieldstreet because it provides so many different asset classes to consider. If you want equity plus numerous other asset classes to move away from traditional investments, it could be the perfect platform.
The platform has seen a 9.71% net annualized return (IRR) since inception in 2014. Annual management fees vary by investment but can reach up to 2.5%, so this is one downside versus SeedInvest.
While Mainvest provides debt-based investing opportunities rather than equity-based investments, it’s still an excellent alternative to SeedInvest for diversifying your portfolio.
With Mainvest, you help fund growing small businesses across the United States. In return, you receive regular interest payments from businesses until your loan is paid back and then some. Mainvest targets 10% to 25% returns for investors and only has a $100 minimum investment requirement.
The types of businesses you find on the platform typically includes breweries, cafes, restaurants, and other small local businesses. These aren’t startups looking to reach a unicorn valuation. But you can still use Mainvest to diversify your portfolio and create a new income stream.
The bottom line
If you’re looking for quality startups to invest in, SeedInvest is one of the best crowdfunding platforms out there. It’s hard to find options that are available to non-accredited investors. Plus, the $1,000 minimum for many offerings means almost anyone can start investing. When you add in innovative features like Auto Invest, it’s clear why SeedInvest is so popular.
Just remember: private equity investments are both extremely risky and illiquid. You should never invest money you need in the short term or money you can’t afford to lose. And if you need guidance, don’t hesitate to ask a financial advisor for more personalized advice.
Why? Because chances are your old 401k isn’t doing as much for you as it could be. By getting it out of the clutches of an old-school financial institution or insurance company, you can reduce fees and ensure that your retirement dollars are working even more effectively on your behalf.
That’s where Capitalize comes in. Their goal is to turn the formerly arduous task of rolling over your old 401k to an IRA into a breeze.
Capitalize is an awesome fintech company that helps people roll over their previous employer 401k or 403b accounts into more efficient investment vehicles. They launched in 2019, and are headquartered in New York City.
How Does Capitalize Work?
Capitalize helps you:
Find your old 401k accounts. There are approximately 25 million forgotten 401k accounts in the USA! This is a huge problem.
Choose a new investment account. Whether it’s a traditional IRA or a Roth IRA, Capitalize helps you identify the right brokerage account that fits your personal needs.
Manage the rollover process. Rolling over a 401k to an IRA is a long, manual process, which can have big consequences if it’s screwed up. Capitalize use proprietary technology and helpful customer service reps to help manage the process for you.
Does Capitalize Work With 403b Rollovers?
Yep! While 401k accounts are the most popular workplace retirement account, folks who have an old 403b can also benefit by having Capitalize roll it over on their behalf.
The reality is that 403b accounts often come with higher fees than their 401k counterparts. So it’s often even more important for a person with one of these accounts to consider making this move.
Where The Heck Is Your Old 401k?
That might be your first question. You might have completely forgotten about a retirement account that you had years ago with a previous employer. You could even have tens of thousands of dollars stashed away that you don’t even remember investing!
It could be time-consuming to track down that account. And where would you even start?
Well, another great thing about the service Capitalize offers is that they’ll do the digging and find it for you. Even if your company went insolvent years ago, even if it no longer exists, Capitalize is like a bloodhound that will help you nab that old account.
Where Should I Roll Over My 401k?
When you initiate a 401k rollover, you’ll be turning it into an IRA. There are some minor differences between these two accounts, but most folks will be served just as well by having their money in this new IRA, particularly if their current retirement account is with a company that charges high fees.
Capitalize works with a number of different investing companies, including some of our all-time favorite low-cost investment firms. You can roll your old 401k over so that you’re now doing business with Vanguard, Fidelity, or Schwab. (Or if you have an existing IRA, they can help consolidate accounts so your money is all pooled together)
All three of these are wonderful options because of how fierce each of them has been about massively reducing fees for consumers.
That begs the question, how rotten are fees when it comes to your retirement dollars? They can be pretty gruesome. Check out this example below 👇👇👇
You could also opt for a fairly low-cost robo-advisor like Betterment or Wealthfront.
It’s not just that Capitalize makes it easy to initiate the rollover, they’re keen on making sure that your money is being placed with a reputable low-cost IRA provider.
How Does Capitalize Make Money?
You might be asking, “so what’s the catch?” I’ve been told that there’s never a free lunch. And you’re right. That mailer you got for a ‘free’ steak dinner is going to come with a masterful sales pitch attempting to get you to buy a financial product or hire a financial advisor that likely isn’t in your best interest.
Capitalize makes money because the IRA providers they do business with pay them each time they land them a new customer. Here’s how they put it on their website, “if you choose to open up an IRA with one of the providers on our platform then we may be compensated.”
But the beautiful thing is that there are no losers in this arrangement. Capitalize gets paid by the investment company for landing them a new customer. Customer acquisition isn’t cheap!
Capitalize is essentially playing the role of matchmaker. They’re holding your hand, helping you ditch an inferior company so that your money is working more effectively on your behalf.
They’ll even help you move your 401k to companies that don’t pay them a dime, which is cool. Here’s the language on their site: “no matter where you decide to move your old 401k, we’ll help you do it – for free.”
And, as we noted previously, the vast majority of the companies that Capitalize partners with are ones we’ve recommended for years because of how much they prioritize offering low-cost funds to their customers.
How Does Rolling Over A 401k Work?
You don’t necessarily need Capitalize. You could choose to perform this rollover on your own. It’s not terribly complicated. Although there are severe penalties if you don’t do it correctly.
You have two options if you choose to go the DIY route.
First, you can opt for an indirect rollover, where you have a check made out to you from your 401k provider, and then send that check over to the new provider that you want to open your IRA with. That’s a scary proposition because the clock starts ticking once you receive the check. You’ve gotta deposit it at your new institution within 60 days. If you fail to do so, that maneuver now counts as a 401k withdrawal and you’re subject to tax and penalties. The stakes are too high to go this route.
A superior DIY option would be to initiate a direct rollover. This takes most of the human error elements out of the equation You’ll need to contact your investment plan’s current administrator as well as the new IRA custodian you’re looking to now do business with.
While this process comes with fewer pitfalls, it can still be time-consuming. Still, it’s nice to know that you can make this happen on your own if you choose.
Capitalize Review: My Personal Experience
There are folks all over the internet giving you recommendations for something or other. It’s hard to know who to trust. When I first heard about Capitalize I was floored. It seemed great. But I had some reservations. So I opted to give it a go myself before writing about the benefits.
My wife had an old 401k with about $18,000 in it. It was still sitting with a company she left quite a few years ago. We knew that we should roll it over. But we just never got around to it. Even financial nerds like me have bouts of apathy that prevent us from taking appropriate action!
This was the perfect opportunity for us to try Capitalize in order to see if the results matched the pitch.
First, we initiated the rollover on the website. With just a few clicks we began the process. But, although Capitalize has an extensive database of 401k providers they work with, they didn’t have my wife’s 401k manager listed in their system. That’s understandable because it was being managed by a really small company.
Typically, they can perform the rollover without needing anything else from you. That initial prompt is all you’ll need to do. Very chill. However, we had to hop on a brief Zoom call with a Capitalize rep who helped us initiate the rollover ourselves.
This won’t be the experience for most folks, but it was great to see that Capitalize has an excellent strategy for helping customers who encounter an issue during the process. Customer service was top notch and it felt great to have an expert walk us through the necessary steps.
On that phone call, we opted to send those 401k dollars to an IRA that my wife has with Fidelity. The whole process took very little time, and I’d say that even with the tiny wrench that impacted our situation, the process was seamless.
Does Capitalize do Roth Conversions?
The short answer is: they will take you half of the way.
Converting an old 401(k) to a Roth IRA is typically a 2 step process. First you move money from the old 401(k) to a traditional IRA (Capitalize helps with this bit), then you work with your IRA provider to perform a “conversion”.
Be really careful here. Converting IRA funds from traditional to Roth is considered a taxable event by the IRS. You’ll need cash on hand to pay the tax bill (you can’t just withdraw funds from the IRA to cover taxes) so make sure it’s planned carefully! Here’s a handful of things to consider when doing Roth conversions.
Is Capitalize Legit?
Absolutely. They have hundreds of 5 star reviews on TrustPilot, with an average rating of 4.9! Like I mentioned with my wife’s personal experience, we loved the speedy service and expertise of the Capitalize team. (And that’s why we’re writing such a positive Capitalize review!)
(Reviews from the capitalize website)
Bottom Line: Capitalize Will Save You Time And Hassle
Most of us don’t change the oil in our cars. We hire a specialist. That comes at a cost. The cool thing is that hiring the specialists at Capitalize to roll over your old 401k won’t cost you a dime. In fact, over the years, it could save you a bundle. And you don’t have to be an expert investor.
There aren’t many companies offering a 401k rollover service like this – and certainly not for free! Don’t just take my word for it. Capitalize gets impressive customer experience reviews and has a great reputation in the personal finance community.
Hopefully, the item that I added to your to-do list at the beginning of this Capitalize review is actually far less daunting than it originally seemed.
Rolling over an old 401k might not even have been on your radar! Hopefully, it is now. And It can’t hurt to head over to the Capitalize website in order to let them to crush this task for you.