When it comes to investing in real estate, there are a lot of options out there. Two popular choices are Arrived Homes and Fundrise. Both platforms allow you to invest in real estate without having to buy an entire property yourself, but they have different approaches and fees. In this article, we’ll take a comprehensive look at both platforms to help you decide which one might be the better fit for your needs.
What is Arrived Homes?
Arrived Homes is a relatively new player in the real estate investment game. The platform was founded in 2020 with the goal of providing access to high-quality, income-generating rental properties for individual investors. Arrived Homes acquires single-family rental homes in high-growth markets across the United States and then rents them out to tenants.
As an investor on Arrived Homes, you can purchase ownership in their rental properties for as little as $100. You’ll receive monthly payouts from the rent collected on those properties, giving you passive income without having to manage the properties yourself.
How does Fundrise work?
Fundrise is another platform that allows individuals to invest in real estate without buying a property outright. However, Fundrise takes a slightly different approach than Arrived Homes.
Instead of purchasing individual properties like Arrived Homes does, Fundrise pools investors’ money together into eREITs (electronic Real Estate Investment Trusts). These eREITs are then used to invest in various commercial real estate projects across the country.
When you invest with Fundrise, your money will be spread across multiple investments within their eREITs. Depending on which eREITs you choose to invest in, your returns may come from rental income or capital gains.
How do fees compare between Arrived Homes and Fundrise?
Fees are an important consideration when it comes to any investment platform. Let’s take a look at how fees compare between Arrived Homes and Fundrise.
Arrived Homes Fees
Arrived Homes charges a 2% annual management fee on your investment. Additionally, there is a 1% acquisition fee when they purchase new properties.
Fundrise has several different eREITs that investors can choose from, each with its own specific fees. Generally, though, you can expect to pay an annual management fee of around 0.85%. There are also some other fees associated with selling your shares or withdrawing your money early.
Which platform is right for you?
So which platform should you choose? Ultimately, it will depend on your personal investing goals and preferences. Here are some factors to consider:
Arrived Homes has a lower investment minimum than Fundrise – just $100 versus $500 for Fundrise. This means that if you don’t have much money to invest, Arrived Homes may be the better option.
If diversification is important to you (and it should be!), then Fundrise may be the better option. Because they invest in multiple properties across the country, your investment is spread out more than it would be with Arrived Homes’ individual properties.
Ultimately, one of the most important things to consider when choosing an investment platform is potential returns. Both Arrived Homes and Fundrise offer solid returns to investors, but which one will generate higher returns for you will depend on a number of factors, including how long you plan to hold your investments and which eREITs you choose with Fundrise.
It’s worth noting that past performance doesn’t guarantee future results – so always do your own research before investing in any platform!
In summary, both Arrived Homes and Fundrise offer unique opportunities for individuals looking to invest in real estate without buying property outright. Arrived Homes allows you to purchase individual properties with a low minimum investment, while Fundrise spreads your investment across multiple commercial real estate projects.
When making a decision on which platform to choose, consider factors such as investment minimums, diversification, and potential returns. And always do your own due diligence before investing in any platform.
What are Arrived Homes and Fundrise?
Arrived Homes is a platform that empowers everyday investors to invest in single-family rental homes, whereas Fundrise is an online real estate investment platform that allows individuals to invest in private real estate deals.
How does Arrived Homes differ from Fundrise?
While both platforms offer access to real estate investments, Arrived Homes targets single-family rental properties, while Fundrise invests in a variety of commercial and residential properties.
Are the fees different for both platforms?
Yes, the fee structures differ for both platforms. Arrived Homes charges an annual fee of 1% on invested capital, while Fundrise charges an asset management fee of between 0.15% and 1%.
Can I invest in just one property with either platform?
Unfortunately no, both platforms require you to invest in a portfolio of properties rather than just investing in a single property.
Is there any minimum investment required?
Yes, both platforms have a minimum investment requirement. For Arrived Homes, it’s $1000 per investment property and for Fundrise it’s $500 per eREIT or eFund.
Which platform offers more diversification across investments?
Generally speaking, Fundrise offers more diversification as they invest in various types of commercial and residential real estate, whereas Arrived Homes focuses solely on single-family rental homes.
Will I be able to access my money easily after investing?
Both platforms allow you to sell your investments at any time through their respective secondary markets but it may take some time for your shares or interests to sell depending on market demand and other factors.
Does either platform offer specific tax advantages?
Both Arrived Homes and Fundrise offer tax benefits such as depreciation deductions and the ability to invest through a self-directed IRA, although the specifics may vary depending on your individual situation.
How easy is it to get started with either platform?
Both platforms have a straightforward sign-up process that can be completed online in a matter of minutes, however additional verification may be required for larger investments.
Which platform is better for beginner investors?
Arrived Homes might be more appealing to beginners as you invest in real estate like buying a house, whereas Fundrise offers several investment options that include diversified portfolios. Ultimately, it depends on an individual’s personal preferences and goals.