Arrived vs Fundrise Comparison

Assess their risks, liquidity, investments, returns, timeframes and other terms

Invest in rental homes and vacation rentals

Invest in private assets

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Investments
$100

Arrived allows for a minimum investment of $100 USD per property.

Investments
$10

Fundrise allows a minimum investment of $10 for taxable accounts and $1,000 for IRAs.


Moderate Risk
3/5

Investing in Arrived carries risks including market fluctuations, economic factors, and property-specific issues. There's also the potential for loss, and investments are generally illiquid, meaning they can't be easily sold or exchanged for cash quickly.

Moderate Risk
3/5

Investing with Fundrise involves risks such as limited liquidity, potential modifications to the share repurchase program, market volatility affecting asset values, the possibility of total investment loss, and regulatory changes impacting operations.


Minimum Liquidity
1/5

Arrived is designed for long-term investments with limited liquidity options. The Single Family Residential Fund offers share redemption after six months with restrictions. For individual properties, shares are held until the property is sold, typically after 5-7 or 5-15 years. A secondary market for shares is being considered but is not currently available.

Minimum Liquidity
1/5

Fundrise offers liquidity through its share repurchase program, allowing investors to redeem shares quarterly with no penalties or costs.

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Low Return
5.5-15 %

Arrived investors may earn returns through monthly rental income dividends and property value appreciation upon sale, with historical annual return estimates ranging from 5.5% to 15%, depending on the property type and use of leverage.

Low Return
4.81 %

Investors on Fundrise can expect returns through dividends and appreciation, with an average income return of 4.81% over 7 years.


Long-term Investment
5-15 years

Arrived targets a 5-7 year hold period for Single-Family Residentials and a 5-15 year hold period for Vacation Rentals, emphasizing a long-term investment horizon.

Long-term Investment
5+ years

Fundrise is designed for long-term investments, ideally for a period of 5 or more years, due to its focus on strategies aimed at long-term return potential.


Who can invest
United States

U.S. citizens or residents who are at least 18 years old can invest with Arrived, and accreditation as an investor is not necessary.

Who can invest
United States

To be eligible to invest with Fundrise, individuals must meet several criteria: they must be at least 18 years old, have permanent residency in the United States, possess a valid U.S. tax ID, and file taxes in the U.S. The platform is open to both accredited and non-accredited investors.


Moderate Volatility
3/5

Real estate assets on Arrived can be subject to market volatility influenced by economic shifts, interest rates, and local market conditions.

Moderate Volatility
3/5

Assets on the Fundrise platform, such as private real estate and venture capital, typically show lower volatility compared to public stocks and bonds, due to less frequent valuation updates and reduced exposure to daily market swings.


Regulation and audits
SEC Regulated

Arrived's offerings are regulated by the SEC, requiring compliance with securities laws and provision of detailed offering circulars to investors. Audits and financial reviews are conducted for transparency.

Regulation and audits
SEC Regulated

Fundrise is regulated by the SEC and must comply with strict reporting, disclosure, and operational standards. It undergoes regular independent audits to verify financial accuracy, legal compliance, and the effectiveness of its internal controls, ensuring transparency and integrity in its operations for investor protection.


Insurance
Yes

Arrived properties are insured against physical damage or loss, but insurance may not cover all risks and does not protect against market volatility, economic downturns, or other investment-related losses.

Insurance
No

Investments on Fundrise, including real estate and alternative assets, are not insured by the FDIC or any other government agency, exposing investors to the risk of loss without insurance protection.


Payouts
Dividends

Arrived pays out dividends monthly, with single-family residential properties historically averaging 45 days to lease and vacation rentals taking 3-6 months to start generating income. The first dividend payment for the Single Family Residential Fund is scheduled for February 25th for investments made by December 31st, and it may take up to 60 days to receive the first dividend after investing. Subsequent dividends are paid monthly, near the end of the month.

Payouts
Dividends

Dividends are paid quarterly, based on income from portfolio projects, and can be either reinvested or cashed out. Appreciation comes from increases in the value of the investment, reflected in the net asset value (NAV) of shares. Returns start accruing after investment settlement, typically within 5 business days, and can be tracked on the Investor Dashboard.


Withdrawals

Investors can get their money back from Arrived after the property is sold or through share redemption options, subject to specific terms and conditions. Proceeds are distributed to the investor's Arrived wallet and can be withdrawn from there.

Withdrawals

To withdraw funds from Fundrise, investors must submit a liquidation request. Liquidations are reviewed quarterly for most funds, with a waiting period for the eFund. No penalty is charged for liquidating shares from the Flagship, Income, or Innovation Funds, but eREIT and eFund shares held for less than five years may incur a penalty. Liquidations are processed on a "First in, first out" basis.


Extra Fees
Yes

For long-term rentals, Arrived charges an 8% management fee on gross rental income. Vacation rentals incur a 15-25% management fee. Additional fees include a one-time sourcing fee (3.5% for long-term, 5% for vacation rentals), and a quarterly Asset Management Fee (0.25% for the fund, 0.15% for long-term rentals). Other costs may apply for closing, renovation, and operating expenses.

Extra Fees
Yes

Fundrise charges a 0.15% annual advisory fee, a 0.85% management fee for real estate funds, and a 1.85% management fee for the Innovation Fund. Early liquidation of eREIT or eFund shares before 5 years incurs a 1% penalty.


Taxes
Tax Form

Arrived sends investors a 1099-DIV form by the end of January for tax reporting, and state taxes are based on the investor's state of residence, not the property's location. Vacation rentals are taxed similarly but do not qualify as a REIT.

Taxes
Tax Form

Fundrise investors can expect Form 1099-DIV for eREITs or interval funds with distributions over $10, Schedule K-1 for eFund shares, and Form 1099-B for liquidated shares. Tax documents are issued at the end of January for 1099-DIVs and mid-March for K-1s, available on the investor dashboard. Multiple funds in a portfolio may result in receiving multiple tax forms.

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