Finding the Sweet Spot in Reg A+

Brandon Jenkins is the COO of Fundrise.

LOS ANGELES—The Reg A+ investment market requires a much different investment model. For find managers, the goal is to reach as many investors as possible while providing risk-adjusted returns to those investors. Finding that balance means pinpointing an investment minimum that is simultaneously accessible and scrutinized as a serious investment. For Fundrise, an e-REIT proprietor, that amount is a $1,000 investment minimum for its current e-REIT products.

“We wanted to be as accessible as possible while still being feasible to logistically manage,” Brandon Jenkins, COO of Fundrise, tells GlobeSt.com. “We found through our history of doing this that $1,000 is certainly achievable for the average investor, but it is an amount of money that will, for lack of a better term, be taken seriously. If you get to too small of an amount, people start to confuse it as a true investment and a consumer purchase. These are investments, and they are long-term investments of real estate assets. For us it was about finding the right balance between what made it accessible to as many people as possible while also having people take it seriously.”