Advanced Investing

• Modernizing Modern Portfolio Theory to Withstand Today’s Financial Markets

  Markowitz's Mordern Portfolio Theory was suited for markets of prior decades. Our research shows that investors in today's market require a new investment model to meet their needs.
• Why Public Stocks Underperform Private Investments

  Imagine if you lost 50% of the value of your investments overnight? How would you feel? Undoubtedly upset, concerned, and disillusioned over the stock markets. While most people assume this scenario is unlikely, the truth is this value slashing happens every day without you even realizing it. In fact, it happens every time you buy a stock or bond for the long-term. You are charged a huge hidden cost and don’t even know it.
• Why Private Market Investing Means Higher Returns: The Upside to Inefficiency

  If you’re looking to boost your portfolio returns, the key may lie in targeting private markets, which offer opportunities to earn higher returns than public markets like the stock market. Commercial real estate offers a prime example of how structural inefficiencies in private markets can position investors to earn superior returns by leveraging operational and informational advantages.
• How To Value Real Estate

  When it comes to determining an investment property's value most professionals first use one of two methods: (1) price per unit; and (2) income relative to price.
• How to Avoid the Common Pitfalls of Cap Rates

  Many people don’t understand the limitations of relying on cap rates and can often end up using them to justify poor investment decisions.
• Should I Buy an Investment Property?

  Purchasing an investment property isn’t a decision to take lightly and it certainly isn’t the right choice for every investor. We’ve outlined a few key considerations to help you determine if buying an investment property is right for you.
• Understanding Cap Rates: What Smart Investors Should Know

  The Capitalization Rate, better known as the “Cap Rate,” is arguably one of the most fundamental concepts in real estate investing, but often the most widely misunderstood.
• The Difference Between Internal Rate of Return (IRR) & Return on Investment (ROI)

  Internal Rate of Return (IRR) and Return on Investment (ROI) are two of the most commonly used metrics for evaluating the potential profitability of a real estate investment. While they serve a similar function and are sometimes used interchangeably, there are critical differences between the two.
• The Limitations of Internal Rate of Return (IRR) for Predicting Investment Success

  One should remember that the projected IRR is only as reliable as the underlying assumptions that go into that calculation.
• Evaluating Alternatives: The Dark Side of REITs & TICs

  Traditional real estate investment vehicles such as REITs and TICs offer real estate exposure to retail investors, but they also come with high fees and low transparency. Fundrise strives to create a better real estate investing alternative for the average investor.
• Hard Assets: Using Real Estate to Hedge Against Inflation

  Is inflation eating away the value of your investments? Hard assets are typically an excellent hedge against rising prices. Other investments, especially bonds and similar fixed-income debt instruments, can lose value as price levels increase.