Fundrise Growth eREIT VI

Read our Advertiser Disclosure.
Contributor, Benzinga
September 22, 2022

Looking for the easiest way to start investing in real estate? Fundrise lets you start building a profitable real estate portfolio with as little as $10. Get Started

Have you ever considered an investment offering and lost the chance to buy into it because it closed while you were still doing your due diligence? Every investor has a few deals that get away. 

If you had been considering the Fundrise Growth eREIT (real estate investment trust) VI, but it closed before you could jump in, you’re in luck. The Growth eREIT VI is ramping back up and accepting investor contributions again.

  • Fundrise
    More Details
    Best For
    Beginner real estate investors
    Overall Rating
    Read Review
    securely through Fundrise's website
    More Details

The Growth eREIT VI is a growth-oriented fund that takes a different strategy than traditional private REITs. While most REITs focus on institutional-sized investments because of their earning potential, the Growth eREIT VI targets high-quality assets with growth potential that cost less than $10 million. 

This strategy allows the fund to pick assets in a far less competitive environment than most REITs operate in. Investors benefit from this strategy in two ways: 1. The assets  targeted by the fund fund are below the radar, which makes them cheaper. 2. The assets purchased by the fund still have solid upside and growth potential. Simply put, investors get a lot of bang for their buck with this strategy. 

Historical Performance

B4C54225-5915-48BF-9CD2-1A9476776D40

The Growth eREIT VI was created in December 2019 with an opening net asset value (NAV) per share of $10. For almost all of 2020, the assets in the fund were stabilizing themselves, and there was no increase in NAV value for the year. However, 2021 saw a solid gain of almost 20% resulting from strong property appreciation as the stabilized assets began performing. 

It closed that year with an NAV of $11.89. 2022 has seen continued gains, and the NAV has increased to $12.16. That means investors in the Growth eREIT VI have netted a return of 21% in just under three years. This track record is certainly strong, and as the fund ramps back up to seek new assets, investors may want to consider getting on the Growth eREIT VI train before it leaves the station again. 

Portfolio

Currently, there are no assets in the Growth eREIT VI portfolio. However, the fund is ramping back up, which means the general partners are actively scouting for deals to purchase with investor capital. 

Current Stats

Some current stats for the Growth eREIT VI:

  • Inception date: December 2019
  • Phase: Ramping up
  • Objective: Growth
  • Geographic focus: National
  • Current NAV per share: $12.16
  • Current dividend yield: 0%
  • Tax reporting: 1099-Div

Final Thoughts

The Fundrise Growth eREIT VI has already shown its ability to accomplish its key mission of growing asset value and delivering returns for investors. As the fund begins ramping up again and looks for new assets, investors who missed out on the last go around have another opportunity to put their money in a REIT with a solid performance history. 

As always, investors should carefully consider the risks of investing and remember that the Growth eREIT VI’s past performance is not a guarantee of future profits. With that said, the Growth eREIT VI’s strategy of targeting noninstitutional assets with upside is still solid. When you combine that strategy with the existing track record, the Growth eREIT VI appears to be another solid offering that is worthy of strong consideration.

Accelerate Your Wealth

Arrived Homes allows retail investors to buy shares of individual rental properties for as little as $100. Arrived Homes acquires properties in some of the fastest-growing rental markets in the country, then sells shares to individual investors who simply collect passive income while waiting for the property to appreciate in value over 5 to 7 years. When the time is right, Arrived Homes sells the property so investors can cash in on the equity they've gained over time. Offerings are available to non-accredited investors. Sign up for an account on Arrived Homes to browse available properties and add real estate to your portfolio today.