What do you think about private real estate investments services?

Do you guys have experience with services like fundrise.com? If I would like real estate in my portfolio, I would use REITs, but I see more and more people using services like this for it, which I find it less regulated and less secured, for not much more returns. But maybe I dont see the whole picture. Do you have experience / have advises about services like these?

I have no clue but here’s an interesting positive article on it:

And here’s a more negative one:

I am not a fan of these services precisely because it is not regulated. The resell once of your investment is quite questionable as well as the way the property is managed and maintained. Last but not least how can you expect a good return with the actual price of real estate. Even for pension fund it is difficult today to make new investment in the stone with a decent return.
One technical difference between these services and the traditional traded REIT is that a REIT is a closed fund (the asset of the fund is what you see in the yearly report) while in the eREIT it works more like an open fund (they should invest in stone once you put your cash on the table). The difficulty is how do you make an open fund in a illiquid market like real estate?
Any true experience welcomed.

Personnaly, I invest in swiss RE listed funds and companies. There is some for everybody in term of geographical diversification and percentage of commercial/housing. I made a spreadsheet with the price I am willing to pay for every fund and company.

Could you share names of these funds and your price estimates please? Thanks in advance.

I can’t really give you a price, because it depends of your wealth tax and income tax rates. Especially because some funds own directly the buildings and it is not part of your fiscal wealth anymore (ex : market value = 140 and fiscal value = 0.3). And you must calculate every 6 month when the new report is out. Basically I look at the reports and I use the net asset value, the NAV growth and the dividend after taxes. You must have a different discount rate for commercial and housing.

The list of funds and companies are found here : https://www.six-group.com/exchanges/indices/data_centre/real_estate/sxi_realfunds_fr.html https://www.six-group.com/exchanges/indices/data_centre/real_estate/sxi_realallshares_en.html

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