Arrived vs Groundfloor Comparison

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

Invest in rental homes and vacation rentals

Invest in real estate loans

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Investments
$100

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

Investments
$10

Groundfloor enables individuals to begin investing in real estate with a minimal initial requirement of only $10.


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 on Groundfloor involves credit risk from borrower default, market risk due to real estate market fluctuations, liquidity risk as investments are tied up until loan maturity without a secondary market for early exit, regulatory risk from changes in laws affecting real estate and crowdfunding, and platform risk related to operational disruptions or cybersecurity threats.


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

On Groundfloor, liquidity is tied to the term of the real estate loans, which range from 6 to 18 months. Investors' funds are committed until the loan matures and the borrower repays.

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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.

Moderate Return
10.72 %

Groundfloor's loans are graded from A to G, with interest rates ranging from 5.5% to 25.5% annually, based on risk. A diversified portfolio across all repaid loans to date would have earned a 10.72% annualized net return.


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.

Short-term Investment
6+ months

Groundfloor investments have loan terms ranging from 6 to 18 months.


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
International

Groundfloor is accessible to investors both in the US and internationally. However, for non-US investors, a minimum transfer-in amount of $5,000 is required.


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

The assets on Groundfloor, which are short-term real estate loans, generally exhibit lower volatility compared to stocks, as their value is more closely tied to specific real estate projects and less 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

Groundfloor offers securities under Regulation A of the Securities Act of 1933, allowing it to sell securities to residents in states where it's qualified or announced its intent under Regulation A's Tier 1 or Tier 2.


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 Groundfloor are not insured by any government agency such as the FDIC or SIPC, nor are they guaranteed by Groundfloor. This means investors fully assume the risk of borrower default or project failure, without any insurance safety net.


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
Interest

Groundfloor pays interest on funded loans. Interest accrues from the investment date until the loan is repaid. Loans may have monthly or deferred payment terms, with monthly interest payments processed once a month and lump sum repayments for deferred loans.


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

Investors on Groundfloor get their money back, including principal and accrued interest, once the borrower repays the loan, typically within 6 to 18 months. Repayments are processed within 7 days, with funds made available in the investor's dashboard for withdrawal or reinvestment.


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
No

Investors on Groundfloor pay no fees. Instead, borrowers are charged an underwriting fee by Groundfloor, ranging from 2% to 4.5% of the loan's principal amount.


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

Groundfloor provides tax support by issuing a 1099-INT form for interest income over $10, a 1099-B for principal losses, and a 1099-MISC for promotional credits over $600.

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