Two recent filings with the Securities and Exchange Commission (SEC) have provided some insight into the progress of Fundrise’s eFunds. Last year, Fundrise launched two eFunds – both targeting “For Sale Housing” in two different markets: Washington, DC and Los Angeles. These new funds were predicated based on the fact management believes there is an opportunity to capitalize on the Millennial generations growing need for homes. The two eFunds were created using Reg A+ and any funds raised were to acquire property and develop single family housing. Investors earn a return when th4e fund pays distributions from cash flow from operations.
According to the recent filing for Washington, DC, Fundrise has raised an aggregate of approximately $11.3 million since the offering commenced. All of this money has been used to invest in the acquisition of property for the development and sale of For-Sale Housing.
For the LA eFund, Fundrise has done better having raised more than $17.3 million as of the end of April. The updated Offering Circle states that as of the end of the year approximately 128% of the proceeds raised in our offering have been committed.
Overall, as of the end of last year Fundrise has raised approximately $339 million, consisting of approximately $105 million of commercial real estate loan assets, $132 million of investments in commercial real estate, and $102 million of commercial real estate common equity investments.
So what does an investor get if they back an eFund? Lower fees as the process is largely automated and no outside broker dealers are used and perhaps a solid rate of return if you are patient.
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