2023 Update about My Passive Real Estate Investment Returns

My first investment in passive real estate was made in July of 2013 when I bought shares of Vanguard’s Real Estate Index Fund (VGSLX), a collection of publicly traded REITs (Real Estate Investment Trusts).

As I continued to become more familiar with my investment options and the platforms offering them, I broadened my scope to include larger investments in crowdfunded syndications and real estate funds. As of early 2022, these various passive real estate investments represent about 10% of our investment portfolio.

Why So Many Real Estate Investments?

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I’m now at the point where I’ve been comfortable making a six-figure investment in a real estate fund with a single operator, but I don’t know that I would have gotten there without slowly wading into these waters. I don’t think jumping into the deep end of the real estate pool to either sink or swim is a good approach for most people, and it was certainly not for me.

Most of the platforms and operators have offered dozens, if not hundreds, of real estate investments to potential investors. Some deals overperform their projections, some underperform, and my one or two investments on a platform should NOT be taken as a representative sample.

DISCLAIMER

One individual’s investment’s returns are not necessarily representative of a platform. My single deal with Alpha Investing gave an outstanding return; my returns on my single investment with EquityMultiple were only slightly positive. That doesn’t mean one company is better than the other.

Since these investments have not yet gone full circle, reporting my total return to date can be challenging. Where an up-to-date NAV (net asset value) is provided by the platform / operator / sponsor, I will use it, but keep in mind this is only an estimate of the current value.

Ongoing Deals

I’ll start with the smaller deals that I started with to get comfortable investing in this asset class. Next, I’ll discuss the four-figure investments I’ve made and finally, the six-figure investments that I’ve made in recent years.

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