Real estate Investment Comparison
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.
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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.
Makes it easy to invest in real estate with a well designed platform and low entry costs
Gives investors access to Class A properties.
Has an experienced team and has funded over 150 properties
Investors can invest as much as they like as long as it's over $100
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Expected investment period is 5 to 7 years
Selling early requires an application and, if approved, incurs unspecified βpenaltiesβ
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).
Only pays rent to investors a few times a year β much less often than other real estate investment options
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.
Since Groundfloor offers real estate debt investments, investors needn't know much about real estate investing at all
Investors can get started from just $10
While you can't withdraw an investment early, Groundfloor investment terms are not typically longer than two years
Average returns of over 10% is not spectacular, but it's solid
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The loans Groundfloor investors finance don't give investors access to a property's cash flow or appreciation upside
Most investments operate on deferred payment, meaning investors are only paid out when the loan is paid back in full.
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.