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'We have been turning away deals,' says Fundrise CEO of new $500 million fund lending to cash-strapped landlords

Fundrise CEO Ben Miller recently announced that the company will be launching a new credit fund. Yahoo Finance Reporter Dani Romero explains how it gives investors the opportunity to invest in commercial real estate.

Video Transcript

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- Fundrise CEO, Ben Miller, recently announced that the company will be launching a new credit fund, the Opportunistic credit fund. Miller says that Fundrise has been seeing too many deals and not enough dollars in the commercial real estate market. Yahoo Finance's Dani Romero has those details for us. Dani, what are you watching?

- Fundrise is finding a bright spot. This fund is an opportunity for investors to profit off of the commercial real estate given the downturn that is happening. The firm plans to focus lending on residential landlords. The process is still in the early stages, but they're hoping to roll it out in the next 24 months.

And the current environment shows that banks are pulling back, and Fundrise is filling that gap with this fund. The firm is betting on residential landlords, given the fact that there is stable demand in apartments, also rental homes, and over the past few years, the firm has spent time accumulating apartments, also single-family rental homes.

And another side to this, specifically in the single-family rental market, rents aren't slowing down, Rochelle, yet. Invitation Homes, a leasing company, said in their earnings call that new-lease rents grew over 5%, and the company is still very bullish and has a favorable outlook ahead for this sector. So very bullish for investors when you're looking ahead in this market, Rochelle.

- All right. Well, thank you. It's an interesting update there. Dani Romero there for us.