Best Arrived Homes Alternatives

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Contributor, Benzinga
September 19, 2024

Real estate can be a solid investment option due to the industry’s relatively stable returns. However, the capital required to purchase real property and accreditation requirements are barriers to many people. 

Fractional investment platforms like Arrived Homes eliminate these barriers, making real estate investing more accessible to the average person. 

While Arrived Homes has become quite popular, it’s not the only choice. We’ve compiled a list of the best Arrived Homes alternatives so you can weigh your options and find the ideal platform for your unique investment goals. 

Quick Look: Best Arrived Homes Alternatives

Best Arrived Homes Alternatives 

Here’s a look at the top Arrived Homes competitors you should check out. 

1. Best for Short-Term Investments: Groundfloor

Groundfloor specializes in short-term, high-yield real estate investments. You can purchase real estate debt backed by short-term rental loans. 

The platform can be appealing because it offers the potential for quicker turnarounds on your investments. However, it can also carry a fair amount of risk, especially if the deal you are backing goes sideways. 

Why We Love It: Groundfloor offers one of the lowest minimum investments in the industry. You only need $10 to get started and won’t have to pay any fees to use the platform. Groundfloor generates revenue by charging borrowers application fees, closing costs and interest on the loan. 

Investment periods tend to range from six months to two years, so you can expect faster returns than on most other platforms. 

Is Groundfloor a good investment? It certainly can be. As always, you must consider various factors when deciding where to invest your money. Think about how diverse your portfolio is and your risk tolerance. 

You are essentially backing other investors using the funds to build new properties or flip houses. Building spec homes and flipping run-down properties can be risky. If you happen to back a project that goes awry, there’s a chance that the borrower defaults on the loan, diminishing your projected returns. 

With that in mind, it’s important to diversify your investments by allocating funds toward multiple projects. Within Groundfloor, you can back several different investors, which can help stabilize returns. 

2. Best for Low Fees: Fundrise

Fundrise offers low fees and has an easy-to-use interface. It allows you to invest in a diversified portfolio of real estate assets, including residential, commercial and mixed-use properties. Fundrise takes the hassle out of real estate investment by managing the properties and distributing dividends quarterly. 

Why We Love It: We love Fundrise’s low fees. The platform charges an annual advisory fee of 0.15% and a management fee of 0.85%. That means you’ll pay about $10 in annual fees for every $1,000 you invest. 

Fundrise also has diverse offerings, including eFunds and REITs. Use these various investment tools to build a diversified portfolio and spread risk. The platform also accepts non-accredited investors, which makes it a great option if you don’t meet the requirements of other platforms. 

3. Best for Accredited Investors: Crowdstreet

If you are accredited and want to invest in large commercial projects, consider Crowdstreet. It offers access to high-quality real estate deals typically reserved for institutional investors. 

Why We Love It: There’s a lot to love about Crowdstreet. It offers investments in major commercial properties like office buildings and apartment complexes. Each investment opportunity includes a comprehensive analysis, making accessing potential returns and risks easier. Given the scale and scope of projects, Crowdstreet offers the potential higher returns. 

4. Best for Single-Family Rentals: Roofstock

Single-family rental properties are one of the most popular types of real estate investments. Like Arrived Homes, Roofstock specializes in single-family rentals. However, there are a few key differences. 

Roofstock allows you to purchase individual properties directly. You will enjoy full ownership and control over the property. 

Why We Love It: Unlike platforms offering property shares, Roofstock lets you own the property outright. Many of the properties available on Roofstock are already rented, meaning you’ll enjoy near-instant cash flow. 

The platform provides property data, including tenant payment history and inspection reports. These resources can help you make informed decisions. 

5. Best for Real Estate Debt: PeerStreet

PeerStreet focuses on real estate debt investments. You can fund loans backed by real estate properties, giving you exposure to the real estate market without the responsibilities of property ownership. 

Why We Love It: PeerStreet allows you to invest in real estate-backed loans. The investment terms range from six months to five years. You can spread your money over different investment terms to make your portfolio more flexible and maintain liquidity. 

Since you are backing flip and new construction projects, there’s potential for more stable returns and reduced risk compared to equity investments. 

Overview of Arrived Homes

Arrived Homes is a platform designed to make real estate investment more accessible to everyday investors. You can purchase shares in single-family rental properties for as little as $100. The platform handles everything, including property management, rent collection and maintenance. It will distribute quarterly dividends to you. 

One of the main advantages of Arrived Homes is its focus on passive income. Investing in shares of rental properties allows you to enjoy consistent returns without the responsibilities of property ownership. You don’t have to be accredited to invest in the platform. This makes it more accessible than many other platforms. 

Compare These Platforms Side by Side

Here’s a side-by-side look at Arrived Homes and the top alternative investment platforms that provide similar access to the real estate market: 

CompanyMinimum InvestmentTypes of OfferingsAccepts Non-Accredited InvestorsAnnual ROI
Arrived Homes$100Single-family rentals Yes4-8%
Groundfloor$10Real estate debtYes10-12%
Fundrise$10eREITs, eFunds, Flagship fundsYes8-12%
Crowdstreet$25,000Commercial propertiesNo12%
Roofstock$5,000 or down payment Single-family rentalsYes6-8%
PeerStreet$1,000Real estate debtNo6-9%

Which Real Estate Investing Platform Is Right for You?

The Arrived Homes alternatives featured above are reputable platforms and can provide access to the real estate market. When weighing your options, it’s vital to consider your long-term investment goals and how active (or passive) you intend to be when managing your assets. 

Groundfloor offers short-term investment opportunities and the potential for high yields. Fundrise has diversified offerings and low fees. If you are an accredited investor, Crowdstreet can be very appealing. Roofstock offers direct ownership of single-family rentals and PeerStreet is the go-to for debt investments. 

Ultimately, the best platform for you depends on what you want in a real estate investment. Take the time to evaluate the options and choose the solution that supports your long-term goals. 

Frequently Asked Questions

Q

Is Arrived better than Fundrise?

A

Both platforms have strengths. Fundrise offers more diversified investments, such as REITs and eFunds, whereas Arrived focuses on single-family rental properties.

Q

What is the minimum investment for Arrived?

A

Arrived requires a $100 minimum investment to use the platform.

Q

Is Arrived a hedge fund?

A

No, Arrived is not a hedge fund. The company uses a private real estate investment trust business structure.

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