Have you ever considered an investment offer and lost the chance to sign up for it because it was closed while you were still doing your due diligence? Every investor has a few deals that get away with it.
If you had considered Fundrise Growth eREIT (real estate investment trust) VI, but it closed before you could get started, you’re in luck. The Growth eREIT VI restarts and accepts investor contributions again.
Novice Real Estate Investors
The Growth eREIT VI is a growth-oriented fund that adopts a different strategy than traditional private REITs. While most REITs focus on institutional-sized investments because of their upside potential, the Growth eREIT VI targets high-quality assets with growth potential that cost less than $10 million.
This strategy allows the fund to select assets in a much less competitive environment than most REITs. Investors benefit from this strategy in two ways: 1. The assets targeted by the fund are under the radar, which makes them cheaper. 2. Assets purchased by the fund still have strong upside and growth potential. Simply put, investors get what they pay for with this strategy.
The Growth eREIT VI was launched in December 2019 with an opening net asset value (NAV) per share of $10. For most of 2020, the fund’s assets stabilized and there was no increase in net asset value for the year. However, 2021 saw a solid gain of almost 20% resulting from strong real estate appreciation as stabilized assets started to work.
It closed that year with an NAV of $11.89. 2022 saw continued gains and the NAV rose to $12.16. This means that Growth eREIT VI investors have earned a 21% return in just under three years. That track record is certainly strong, and as the fund rallies to seek new assets, investors might consider jumping on the Growth eREIT VI train before it leaves the station again.
Currently, there are no assets in the Growth eREIT VI portfolio. However, the fund is recovering, which means that the general partners are actively seeking purchase agreements with investor capital.
Some current stats for the Growth eREIT VI:
- Creation date: December 2019
- Phase: Ramp-up
- Objective: Growth
- Geographic orientation: National
- Current net asset value per share: $12.16
- Current dividend yield: 0%
- Tax declaration: 1099-Div
The Fundrise Growth eREIT VI fund has already demonstrated its ability to achieve its key mission of increasing asset value and generating returns for investors. As the fund begins to ramp up again and searches for new assets, investors who missed the last round have another opportunity to put their money into a REIT with a solid track record.
As always, investors should carefully consider investment risks and remember that Growth eREIT VI’s past performance is not a guarantee of future profits. That said, the Growth eREIT VI’s strategy of targeting positive potential non-institutional assets remains solid. When you combine this strategy with the existing track record, the Growth eREIT VI appears to be another solid offering that deserves some serious consideration.