Arrived Homes vs. Fundrise

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. Two popular platforms are Arrived Homes and Fundrise. 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.

What is Arrived Homes?

Arrived Homes 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 start to receive regular income from the property’s rental payments. It’s income that investors can use to grow their portfolios or pay other expenses. If the property increases in value, investors get a share of that as well.

Investing with Arrived Homes allows direct exposure to specific properties without large initial investments or the responsibility of ownership and can be a great way to learn about real estate. All the properties on Arrived Homes are in high-performing markets to increase the likelihood of good returns.

Pros

• Low minimum investment
• Minimal fees
• All properties are in well-performing markets
• Easy-to-use platform
• Will receive passive income

Cons

• Difficult to diversify a portfolio without a few hundred dollars to invest

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. 

Pros

• $10 minimum investment
• Easy-to-use platform
• Great for passive investors
• Low fees

Cons

• A larger portfolio is required to be able to diversify

Comparing Arrived Homes vs. Fundrise as Real Estate Investing Platforms

Though they both involve real estate investing, comparing Arrived Homes vs. Fundrise shows that they offer different products to investors. See which platform is the leader in these major categories.

Investment Opportunities

Arrived Homes 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 Homes, 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, they’re 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 Homes can provide you with more opportunities right away. Arrived Homes may be better suited for active investors, whereas passive investors may prefer the hands-off model of Fundrise.

Fees and Costs

Fundrise and Arrived Homes 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 Homes may charge a sourcing fee and a property management fee will already be incorporated in returns from that property.

Performance and Track Record

Arrived Homes do not list overall historical returns, but it does list the returns by property that are available on their 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, it’s been positive though it’s -3.21% as of October 2023. However, annual returns have been consistently higher than achieved through public REITs and the S&P 500.

Ease of Use and User Experience

Both Arrived Homes and Fundrise have very user-friendly platforms. Arrived Homes allows investors to view all properties available and also 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 create their own personal strategy. Once their account is funded, they’ll be able to monitor their portfolio growth and see their holding. They can also set goals and track their progress toward achieving them. They also have a mobile app for easy and 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 Homes 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 meeting their investing goals.

Frequently Asked Questions

***This is a testimonial in partnership with Fundrise. We earn a commission from partner links on Benzinga.com. All opinions are our own.