Arrived vs Fundrise: Expert Guide to Choosing

Arrived Vs Fundrise
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Arrived and Fundrise are both popular and successful real estate investment platforms, but they cater to different types of investors by offering very different types of properties. They also require different levels of real estate acumen.

This review will explain the pros and cons of each platform in detail, but here are the key takeaways:

Arrived is better for:

  • Experienced real estate investors looking for specific assets to add to their portfolio.
  • Cash flow investors who prioritize high yields over long-term appreciation.
  • Investors operating with a relatively higher level of risk tolerance.
  • New investors looking to learn more about investing in single-family homes with minimal risk.

Fundrise is better for:

  • Hands-off investors seeking diversification.
  • Investors who are seeking holdings with greater liquidity.
  • Those looking for a variety of types of real estate investments.

Fundrise vs. Arrived: Side-by-Side Comparison of Key Factors

Target investor:Experienced in real estate, seeks specific assets or fund diversification.Prefers hands-off, diversified real estate investments.
Investment focus:Single-family rentals, invest directly or through a fund.Diverse real estate, plus other alternatives.
Investor control:High with direct investing; less with the fund (though the fund is still targeted to single-family homes).Limited, as all portfolios are managed by Fundrise.
Minimum investment:$100 for both direct and fund investments.$10 for the funds that are open to everyone. Higher for funds that are only available to accredited investors.
Income strategy:Primarily monthly rental income, but has an opportunity for appreciation.More of a mixed-income, appreciation potential strategy (depending on the fund).
Liquidity:Investments mature in 5-15 years, and there are fees for early withdrawals. Quarterly redemptions, with a 1% penalty if sold before five years have passed.
IRA availability:Invest in IRAs via Checkbook IRA only¹.Traditional and Roth IRAs are available for a $125 annual fee.
¹To invest in Arrived Homes using a Checkbook Control IRA, you’ll need to set up a self-directed IRA (SDIRA) with a custodian like RocketDollar, which is partnered with Arrived Homes. This process involves a $360 setup fee and a $15 monthly fee.

What Type of Investor Is Arrived Best For?

Arrived is a better option for seasoned real estate investors who are looking to diversify their portfolio with specific types of properties. 

Here’s a look at the typical investor profile of someone who would benefit from utilizing Arrived:

  • Comfort with higher risk levels. Arrived’s focus on single-family homes can lead to more volatility than a broadly diversified real estate portfolio.
  • Choice of specific properties. While Arrived now offers a fund, that fund is still relatively new, having been launched in late 2023. Most Arrived investors prefer to choose the specific properties they’re investing in. This level of control appeals to experienced investors who want to capitalize on specific markets. 
  • Potential for high cash flow. The properties available on Arrived are selected for their potential to generate strong rental income, which Arrived pays out monthly. This focus on cash flow is best suited for investors who prioritize ongoing passive income over long-term appreciation.
  • Long time horizon. While both platforms are suitable for long-term investors, Arrived’s early liquidity options are more limited than Fundrise’s. While the Single Family Residential Fund allows you to request a redemption of your shares after a 6-month holding period (subject to limitations and potential fees), you should expect to hold individual rental properties for 5 to 7 years, and vacation rentals for 5 to 15 years.

Read our Arrived Homes review to learn more.

What Type of Investor Is Fundrise Best For?

Fundrise is an excellent choice for hands-off investors seeking diversification across various real estate sectors, as well as those prioritizing holding with greater liquidity. 

Here’s why:

  • Diversification through funds. Fundrise offers various funds with different purposes and investment strategies, allowing for diversification across property types, locations, and risk profiles. For example, the Flagship Real Estate Fund focuses on a mix of build-for-rent housing communities, multifamily properties, and industrial assets in the Sunbelt region. At the same time, the Income Real Estate Fund targets high-yield fundamental estate-backed fixed-income strategies.
  • Liquidity options. While both platforms are designed for long-term investors, Fundrise provides greater liquidity. Investors can request to sell their shares in the Flagship Fund, Income Fund, Innovation Fund, and eREITs every quarter (subject to certain conditions). With most funds, there is a 1% penalty for cashing-out before five years have passed.
  • Exposure to non-real estate investments. In addition to its real estate-focused funds, Fundrise offers the Innovation Fund, which invests in high-growth private technology companies. 
  • Options for accredited investors. Fundrise provides customized investment plans and access to exclusive funds for accredited investors. These offerings may include higher potential returns, different fee structures, and unique investment strategies tailored to the needs and preferences of high-net-worth investors.

Read our review of Fundrise to learn more. 

Example Investor Scenarios

Here are some example scenarios to help you understand which platform works best in specific situations. 

Scenario #1: Beginning investor who wants to learn real estate on a minimum budget (Arrived)

Arrived offers an ideal starting point for novice investors eager to learn the ropes of real estate investing, and who are not necessarily looking to maximize returns. 

By providing the flexibility to evaluate and invest in individual properties, Arrived allows beginners to gain hands-on experience with minimal risk. Since Fundrise is completely fund-based, you have less individual control over your investments and thus less opportunity to learn. 

And you can learn a lot from picking two to three properties on the platform, writing down your thesis for why you picked those properties, and then tracking the returns over time. 

Having some skin in the game is a great way to get real-world feedback on your ability to invest in real estate without debt. 

Scenario #2: Investor seeking diversification beyond traditional assets (Fundrise)

Fundrise makes more sense for investors seeking to diversify into alternative investments outside of stocks and bonds, primarily because Arrived focuses on a single type of property (single-family homes). 

With a wide array of real estate investment options spanning residential, commercial and industrial properties, and offerings like the Fundrise Innovation Fund, investors can gain exposure to various asset classes, not just single-family homes. 

Scenario #3: High-net-worth investors (Fundrise)

Fundrise offers better investment options for high-net-worth investors.

Not only does Fundrise have a longer track record than Arrived, but the additional funds they make available to accredited investors provide a greater level of diversification and flexibility.

For example, Fundrise offers access to specialized funds focusing on niche strategies, such as opportunistic real estate development and value-added multifamily investments. These funds often have higher minimum investment requirements and unique fee structures designed to align with the specific needs and risk tolerance of high-net-worth investors.

While Arrived recently-introduced fund provides some diversification options, those options are limited compared to the wide range of investment opportunities offered by Fundrise. 

Arrived Single Family Residential Fund is a relatively new offering, with total assets under $10 million.
Arrived’s Single Family Residential Fund is a relatively new offering, with total assets under $10 million.

For example, at the time of publication, Arrived’s fund holds just 22 single-family home properties and has a value under $10 million. In contrast, Fundrise has over $2.7 billion under management. 

If opting to invest in individual properties, you may face challenges building a well-diversified portfolio, particularly if your goal is to invest a significant sum and be very selective in the properties you’re going to invest in. That’s because Arrived caps individual investments at 9.8% of the total equity in a single property. 

Therefore, if you’re looking for a very particular type of investment for your portfolio — e.g., a vacation rental in the Sunbelt region — there are simply not enough properties on the platform for you to diversify in at once.

Additionally, Arrived’s investments often sell out quickly, making it difficult to secure your desired allocation, even if you have the funds available. 

In contrast, Fundrise’s investment structure and fund options provide a more accessible and efficient way for high-net-worth individuals to invest larger sums and achieve diversification.

Arrived vs. Fundrise: Final Verdict

Ultimately, the choice between Arrived and Fundrise (or any of the other top real estate investment platforms, for that matter) depends on your investment goals, risk tolerance and preferences. 

Experienced investors seeking control over specific properties may prefer Arrived, while hands-off investors looking for diversification across multiple real estate sectors may find Fundrise more appealing.

To make an informed decision, we encourage you to read our comprehensive Fundrise and Arrived reviews. 

Also, both platforms offer quick and easy sign-up processes, allowing you to explore investment opportunities firsthand.

Learn more at Arrived.

Learn more at Fundrise.

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R.J. Weiss
R.J. Weiss, founder of The Ways To Wealth, has been a CERTIFIED FINANCIAL PLANNER™ since 2010. Holding a B.A. in finance and having completed the CFP® certification curriculum at The American College, R.J. combines formal education with a deep commitment to providing unbiased financial insights. Recognized as a trusted authority in the financial realm, his expertise is highlighted in major publications like Business Insider, New York Times, and Forbes.

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