UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 1-U

CURRENT REPORT

Pursuant Regulation A of the Securities Act of 1933

January 4, 2018

(Date of Report (Date of earliest event reported))

FUNDRISE FOR-SALE HOUSING EFUND – LOS ANGELES CA, LLC

(Exact name of registrant as specified in its charter)

Delaware	61-1775059
(State or other jurisdiction of incorporation)	(IRS Employer Identification No.)

1601 Connecticut Ave., Suite 300, Washington, DC	20009
(Address of principal executive offices)	(ZIP Code)

(202) 584-0550

(Registrant’s telephone number, including area code)

Common Shares

(Title of each class of securities issued pursuant to Regulation A)

Item 9. Other Events

Asset Acquisition

Acquisition of Controlled Subsidiary Investment – Fundrise eFUND – R14 - Controlled Subsidiary

On January 4, 2018, we directly acquired ownership of a “majority-owned subsidiary” (the “Fundrise eFUND – R14 - Controlled Subsidiary”), for an initial purchase price of $1,137,882 which is the initial stated value of our equity interest in the Fundrise eFUND – R14 - Controlled Subsidiary (the “R14 Investment”). The Fundrise eFUND – R14 - Controlled Subsidiary used the proceeds to acquire an existing 2,994 SF triplex located on a 6,730 square foot lot in the Greater Echo Park neighborhood of North East Los Angeles (the “R14 Property”). The closing of both the R14 Investment and the R14 Property occurred concurrently.  

The R14 Investment was funded with $850,000 in proceeds from that certain Promissory Grid Note by and between us and the sponsor.

The Fundrise eFUND – R14 - Controlled Subsidiary is managed by us and it is anticipated that the controlled subsidiary will transfer or turn into a joint venture in the future.

Pursuant to the agreements governing the R14 Investment (the “R14 Operative Agreements”), we have full authority for the management of the Fundrise eFUND – R14 - Controlled Subsidiary, including the R14 Property. In addition, Fundrise Lending, LLC, an affiliate of our Manager and a wholly-owned subsidiary of our sponsor, earned an origination fee of approximately 2.0% of the R14 Investment, paid directly by the Fundrise eFUND – R14 - Controlled Subsidiary. We anticipate retaining these control rights if the controlled subsidiary is contributed or turned into a joint venture structure in the future.

In addition to the purchase price of $1,137,882, we anticipate additional costs of approximately $250,000 to complete entitlement approvals yielding five (5) small lot homes. We also intend to combine the parcel with a contiguous parcel, which should support procurement of entitlements for the development of 10 small-lot homes on the combined site. The business plan then entails selling the property upon completion of entitlements. There can be no assurance that the anticipated completion cost will be achieved.

The R14 Investment is anticipated to be held for 24 to 36 months, including sale upon completion of entitlements. We believe the property will be able to achieve up to a 17% profit margin upon sale based on a $325,000 per entitled lot sellout price. However, there can be no assurance that such value will be achieved. Though presently vacant, we may potentially lease the R14 asset during the entitlement procurement period, though this is not guaranteed. 

The R14 Investment thesis is based primarily upon the site’s improving location, physical barriers to entry, basis and market sales for entitled small lot land in the immediate submarket. The Greater Echo Park neighborhood is considered to be rapidly gentrifying, as first-time home buyers are priced out of more established neighborhoods.

We believe these strong market fundamentals will continue to make the submarket a desirable investment location.

Safe Harbor Statement

This Current Report on Form 1-U contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934. You can identify these forward-looking statements by the use of words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “could,” “seeks,” “projects,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties, including those described under the section entitled “Risk Factors” in our Offering Statement on Form 1-A dated May 10, 2017, filed with the Securities and Exchange Commission (“SEC”), as such factors may be updated from time to time in our periodic filings and prospectus supplements filed with the SEC, which are accessible on the SEC’s website at www.sec.gov. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in our filings with the SEC. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.

SIGNATURES

Pursuant to the requirements of Regulation A, the issuer has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	FUNDRISE FOR-SALE HOUSING EFUND – LOS ANGELES CA, LLC
		By:	Fundrise Advisors, LLC
		Its:	Manager
		By:	/s/ Bjorn J. Hall
		Name:	Bjorn J. Hall
		Title:	General Counsel
Date:  January 9, 2018