Findrise is unable to repay my Investment
I requested to redeem the funds I had invested over at "Fundrise" back in January 2020 (before the pandemic) for a Capital Expenditure budgeted for March.... Still waiting!!!!
Now they send me this:
Fundrise Advisors, in our capacity as Manager of the eREITs and eFunds, has determined that it is necessary at this time to suspend the processing and fulfillment of redemption requests.
While under normal market conditions, we seek to provide investors with the ability to redeem their investments on a regular basis, during times of financial crisis or extreme uncertainty, it is absolutely critical that we suspend redemptions in order to protect the interests of all our investors.
As Manager, we have an obligation to make decisions based upon what is best for the entire Fundrise investor community and must always put the priorities of the whole above any one individual.
Fundamentally, Fundrise investors own real property, which is simply not liquid. In conditions such as those we face today, fulfilling redemption requests would require us to either substantially deplete vital cash reserves, or, even worse, potentially sell assets into a down market, likely at a price far below actual value. We believe that either of these actions would materially increase the risk of unnecessary loss or otherwise avoidable problems for the vast majority of our investors who have not requested to redeem and intend to stay invested for the long term.
We recognize that the current coronavirus pandemic is evolving every day and therefore the situation may change rapidly. Accordingly, once we conclude the risk from the crisis has receded and the market has returned to more normal conditions, we expect to resume processing redemptions. However, at this time, ensuring that the portfolios are strongly positioned to weather even the most severe downturn is the prudent decision.
We are aware of the fact that this may be a difficult time for some of our investors and want to reiterate that this was not a decision we have taken lightly. As always, we are available to answer any questions at (email address here)