Fundrise CEO Ben Miller: Democratizing Private Investing
Jun 25, 2024
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Fundrise CEO Ben Miller discusses democratizing private investing, SEC regulations, real estate data, and the convergence of public/private markets. Topics include technology, data centers, warehouses, single family rentals, economic indicators, housing shortage, and challenging conventional wisdom on following one's passion.
Fundrise enables retail investors to access private assets like real estate and venture capital.
Convergence of public and private markets driven by technological advancements.
Balancing traditional real estate practices with innovative models like prefab housing remains a challenge.
Deep dives
Democratizing Investment Opportunities for the Average Retail Investor
Fundrise, an online real estate investment platform founded by Ben, manages over $7 billion in real estate and has introduced initiatives to democratize venture capital investing. This trend aligns with historical shifts towards democratization, where technological advancements have increased access to investment opportunities for the general public.
Convergence of Public and Private Markets through Technological Advancements
The evolution of investment markets parallels the convergence of public and private markets, exemplified by the rise of platforms like Fundrise. Technological innovations have facilitated increased access and reduced costs in investment markets, similar to trends seen in public markets over the years. These advancements indicate a potential future where public and private markets seamlessly integrate.
Challenges and Advantages of Real Estate Investment Trusts (REITs)
While REITs offer opportunities for retail investors to access real estate assets, Ben distinguishes his platform by focusing on a crossover investment approach between public and private markets. This strategy aims to optimize investment returns by navigating between public and private assets, emphasizing flexibility and the potential for generating alpha.
The Future of Real Estate Investment and the Impact of Technology on Market Dynamics
The real estate industry's adaptation to technological advancements has been relatively sluggish, hindering the adoption of innovative models like prefab housing. Although the concept of prefabricated housing seems promising for efficiency, regulatory constraints, on-site assembly requirements, and cost implications have limited its widespread adoption. The industry continues to grapple with balancing traditional practices with modern technological advancements.
Critical Analysis of Conventional Wisdom: 'Follow Your Bliss'
Ben challenges the notion of 'follow your passion' by emphasizing that success and fulfillment often entail a path of suffering and perseverance. He asserts that idealizing a seamless journey towards passion-driven success overlooks the essential role of embracing challenges and difficulties in achieving meaningful accomplishments. This critical perspective highlights the importance of resilience and endurance in navigating personal and professional growth.
Ben Miller is the co-founder and CEO of Fundrise, an online investment platform that gives retail investors access to private assets like real estate and venture capital. Fundrise has invested over $7B in real estate and has 385,000+ investors on its platform.
In this episode, Auren and Ben discuss:
Real estate data adoption
Public/private market convergence
“Soft” SEC regulations on retail investment
Data centers, warehouses & single family rental
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