Real estate can be a great market for investors looking to diversify away from traditional stocks and bonds. By investing in real estate, investors can create a balanced portfolio and may earn passive income. However, many investors may not be able to afford to buy an investment property, or they may not want to deal with the hassle of being a landlord.
Other ways to invest in real estate exist. Arrived and Fundrise are two popular platforms that can help you invest in real estate without the hassle of owning a property. Each of these platforms makes investing in real estate accessible to a wide range of investors. Compare Arrived Homes vs Fundrise to see which platform is best for you.
Arrived and Fundrise at a Glance
| Feature | Arrived | Fundrise |
|---|---|---|
| Investment Focus | Direct investment in single-family rental properties in high-performing markets. | Investment in diversified portfolios of eREITs and eFunds, focusing on various real estate assets. |
| Minimum Investment | $100, allowing investors to purchase shares in specific properties. | $10, with tiered access to different investment opportunities as account balance increases. |
| Fees | Annual fee of 1%, with additional sourcing and property management fees per investment. | Annual fee of 1%, covering advisory and real estate management services. |
| Investor Type | Suitable for active investors who prefer selecting individual properties. | Geared towards passive investors seeking diversified portfolios managed by professionals. |
| Performance | Returns vary by property; historical data shows positive total returns, often over 10%. | Average annual returns between 8% to 12%, with some years outperforming public REITs and the S&P 500. |
| User Experience | User-friendly platform with property filtering options; mobile app available for portfolio management. | Easy-to-use platform with personalized investment strategies; mobile app for account monitoring. |
*Note: Past performance does not guarantee future results. All investments carry inherent risks.
What is Arrived?
Arrived is a real estate investing platform that allows investors to purchase shares of a property. The platform lists properties that are in high-performing markets. Investors can then search through these properties and invest in them for as little as $100. Investors with more capital can invest up to 10% of the property’s price. Investors invest directly in properties without the headache of being a landlord or property owner.
After purchasing their shares, investors receive regular income from the property’s rental payments. This income can be used to grow their portfolios or pay other expenses. If the property increases in value, investors also receive a share of that.
Investing with Arrived allows direct exposure to specific properties without significant initial investments or the responsibility of ownership and can be a great way to learn about real estate. All the properties on Arrived are in high-performing markets to increase the likelihood of good returns.
What is Fundrise?
Fundrise connects investors to real estate investments. However, instead of investors selecting specific properties to invest in, Fundrise allows investors to invest in a variety of eREITs and eFunds.
Fundrise is a good option for passive investors. With as little as $10, investors can create a Fundrise account. They’ll give details on their situation and goals to come up with a detailed investment plan. Then, the experts at Fundrise invest the money in funds and Real Estate Investment Trusts (REITs) that align with your goals. As your portfolio grows, Fundrise professionals will continue adding to your portfolio to diversify your holdings and help you reach your greatest chance of success.
Investors can get started with Fundrise for as little as $10; however, there are different tiers based on how much you have invested. The tiers are:
- Starter: $10 investment minimum
- Basic: $1,000 investment minimum
- Core: $5,000 investment minimum
- Advanced: $10,000 investment minimum
- Premium: $100,000 investment minimum
These plans include only a 1% annual fee. And while investors can get started with only $10, they’ll only be able to access eFunds until they reach the Core tier, which is when eREITs become available to investors.
Comparing Arrived vs. Fundrise as Real Estate Investing Platforms
Though they both involve real estate investing, comparing Arrived vs. Fundrise shows that they offer different products to investors. See which platform is the leader in these major categories.
Investment Opportunities
Arrived links investors to properties that are already identified to be in hot markets, meaning investors have a greater chance of success. After they’re invested, investors will start receiving regular passive income from rent payments and will also receive a cut of increases in property value. Since these properties have already been vetted by Arrived, they’re a little less risky. However, the real estate market can always change. And if investors only have shares in one or a few properties, their risk increases from a lack of diversification.
Fundrise can provide more diversification; you’ll get professionals managing your portfolio instead of doing it yourself. However, investors won’t get access to their full scope of investment opportunities until they have at least $5,000 in their portfolio. If they don’t have that much, they’ll only get access to a variety of eFunds.
While Fundrise can offer more diversification, Arrived can provide you with more opportunities right away. Arrived may be better suited for active investors, whereas passive investors may prefer Fundrise's hands-off model.
Fees and Costs
Fundrise and Arrived are tied in terms of fees and costs. Both these platforms charge a 1% fee annually, so you can truly capitalize on your investments. However, it’s important to note that specific investments on Arrived may charge a sourcing fee and a property management fee will already be incorporated in returns from that property.
Performance and Track Record
Arrived does not list overall historical returns, but it does list the returns by property that are available on its platform. Investors can cross-reference this data before choosing which property to invest in. Many of the properties offered positive total returns, often over 10%. Investors can also see appreciation data and rental income received.
Fundrise offers data on average customer returns. For the past three years, annual returns have been consistently higher than achieved through public REITs and the S&P 500.
Ease of Use and User Experience
Both Arrived and Fundrise have very user-friendly platforms. Arrived allows investors to view all available properties and filter through them by categories such as vacation rental, newly built, rented, or seeking tenant, and much more. It also has an app so investors can monitor and update their portfolios from their mobile phones.
Fundrise’s platform is also easy to use. When creating an account, investors answer questions about their investment goals and develop their strategy. Once their account is funded, they’ll be able to monitor their portfolio growth and see their holdings. They can also set goals and track their progress toward achieving them. Fundrise also has a mobile app for easy, on-the-go account management.
Real Estate Investing That Suits Your Needs
Real estate is an exciting market for many investors, and there are many ways to get involved. Arrived and Fundrise are two options investors can choose from, whether they're more interested in owning shares of a direct property or investing in real estate eFunds and eREITs.
Before opening an account with either of these platforms, investors should consider their goals, risk tolerance and how hands-on they want to be with their account. By answering these questions, investors will be able to decide which platform is best for them to meet their investing goals.
Frequently Asked Questions
What is the return rate for Fundrise?
Does Arrived Homes pay dividends?
Yes, Arrived Homes pays dividends to its investors. These dividends are distributed on a quarterly basis and are derived from the rental income generated by the properties in which investors have a stake.
What is the difference between Fundrise and Arrived Homes?
Arrived Homes focuses on funding specific properties and allows investors to choose their investments. Fundrise focuses on eFunds and eREITs and creates a portfolio for the investor, so now active management is required.
***This is a testimonial in partnership with Fundrise. We earn a commission from partner links on Benzinga.com. All opinions are our own.
About Savannah Munholland
Savannah Munholland is a dynamic author and communications professional known for her captivating storytelling and expertise in public relations. With a passion for YA fiction, Savannah explores themes of sexuality and acceptance in her writing, resonating with diverse audiences worldwide. Alongside her literary pursuits, she excels in verbal and written communications, social media management, and customer service, showcasing her multifaceted talents. As a dedicated advocate for the LGBTQ+ community, Savannah’s work reflects her commitment to promoting inclusivity and representation. Whether crafting compelling narratives or spearheading PR campaigns, Savannah’s creativity and determination leave an indelible mark on every project she undertakes.
