Real estate Investment Comparison

Arrived Homes vs. Groundfloor

Wondering whether Arrived Homes or Groundfloor is a better investment? We put them both to the test to help you compare and decide where to invest your money.

vs.

Comparison Table
Arrived Homes
Groundfloor
Minimum Investment
$100
$10
Investment Holding Period
5 years
1-18 months
Early Withdrawal Penalties
Yes - Undisclosed
Unavailable
Rent Payouts
Quarterly
N/A
Avg. Yearly Returns
6.66%
10.5%
Accessibility
Star Rating - 0.5
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Star Rating - 0.5
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Earning Potential
Star Rating - 0.5
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Star Rating - 0.5
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Investment Liquidity
Star Rating - 0.5
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Arrived Homes
Investment Quality Score
2.5
Star Rating - 0.5
Star Rating - 1Star Rating - 1.5Star Rating - 2Star Rating - 2.5Star Rating - 3Star Rating - 3.5Star Rating - 4Star Rating - 4.5Star Rating - 5
Groundfloor
Investment Quality Score
4.0
Star Rating - 0.5
Star Rating - 1Star Rating - 1.5Star Rating - 2Star Rating - 2.5Star Rating - 3Star Rating - 3.5Star Rating - 4Star Rating - 4.5Star Rating - 5
Arrived Homes

The Bottom Line

Arrived Homes is an easy option for unsophisticated investors to access quality fractional real estate, but their lack of transparency around recouping investments is deeply concerning.

Arrived Homes Pros:

Easy to Use ✨

Makes it easy to invest in real estate with a well designed platform and low entry costs

Great property options 🏠

Gives investors access to Class A properties.

Strong track record πŸ“œ

Has an experienced team and has funded over 150 properties

Low Minimum Investment πŸ”‘

Investors can invest as much as they like as long as it's over $100

‍

Arrived Homes Cons:‍‍

Long Lockup Period πŸ”

Expected investment period is 5 to 7 years

Investment Tip: Have an exit plan before you make an investment

‍‍Hidden penalty details and exit options πŸ’Έ

Selling early requires an application and, if approved, incurs unspecified β€œpenalties”

Investment Tip: Beware of investments with undisclosed fees and exit options

Low rent returns πŸ“‰

Typical rent yield of 3-5% per year is low compared with returns from other real estate investment options (typically 5-15% rent yield per year) and the stock market (average 10% per year).

Investment Tip: Compare the return of an investment with alternative options

Slow rent payout 🐌

Only pays rent to investors a few times a year – much less often than other real estate investment options

Investment Tip: Factor in how quickly returns are delivered to your compounding calculations

Groundfloor

The Bottom Line

Groundfloor provides decent returns in an accessible and easy to use product ideal for first-time real estate investors, but investors looking for higher returns may want to look elsewhere.

Groundfloor Pros:

Real estate knowledge not required 🏠

Since Groundfloor offers real estate debt investments, investors needn't know much about real estate investing at all

Low minimums Β πŸ”‘

Investors can get started from just $10

Short investment terms ⏩

While you can't withdraw an investment early, Groundfloor investment terms are not typically longer than two years

Decent return record πŸ“œ

Average returns of over 10% is not spectacular, but it's solid

‍

Groundfloor Cons:

Capped upside 🧒

The loans Groundfloor investors finance don't give investors access to a property's cash flow or appreciation upside

Investment Tip: Make sure efforts to reduce risk don't disproportionately reduce potential gains too

Lump sum returns ⛰️

Most investments operate on deferred payment, meaning investors are only paid out when the loan is paid back in full.

Investment Tip: Make sure you calculate in the timing of investment returns when calculating your long term gains

No opportunity to learn about real estate investing πŸ“‰

Groundfloor does well to make investing easy, but its debt structure means investors don't leave knowing more about how to earn more leveraging real estate.

Investment Tip: Look for opportunities to compound not only money, but investing skill as well

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Arrived Homes
Review
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Read our comprehensive
Groundfloor
Review
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