Real Estate Investment Platforms — Comparison & Guide

This page compares leading real estate investment platforms by type, minimums, fees, liquidity, and distributions. It also explains how to choose based on your goals and risk tolerance. Values below are indicative and can change—always verify on each platform’s site.

Quick Comparison Table

How to Choose a Platform

• Goal & Effort: Prefer passive, diversified exposure? Consider eREITs. Want property‑level control? Fractional rentals or full ownership.
• Liquidity Needs: Debt notes (Groundfloor) have set maturities; fractional/eREITs often have quarterly windows; direct rentals are illiquid.
• Minimums & Costs: Start small to learn; focus on total fees (expense + management + transaction).
• Tax & Distributions: Dividends/interest may be taxed as ordinary income; check platform tax docs and reporting.
• Diversification: Spread across property types, regions, and structures (equity vs debt).

Platform Profiles

Fundrise

Fundrise offers diversified eREIT and eFund products that automatically allocate capital across residential and commercial projects. Investors can start with as little as $10 and choose plans oriented toward income, balanced, or growth. Liquidity is limited to periodic windows, and fees are typically around 1% annually.

Arrived Homes

Arrived focuses on fractional ownership of single‑family rentals and vacation rentals. Investors buy shares in individual properties and receive distributions from rental income, plus potential appreciation. Minimums start near $100. Expect multi‑year holding periods and platform management fees.

Ark7

Ark7 provides fractional access to rental homes with low minimums (often starting near $20). Properties are managed by the platform, and investors receive periodic distributions. The long‑term hold model suits passive investors willing to accept lower liquidity.

Groundfloor

Groundfloor specializes in short‑term, high‑yield real estate debt backed by specific projects (e.g., fix‑and‑flip). Minimums can be as low as $10. Returns depend on loan performance; repayments occur at maturity or monthly on amortizing loans. While yields can be attractive, borrower default risk must be considered.

Roofstock

Roofstock operates a marketplace for turnkey rental properties. Investors can acquire entire homes with property management in place. This approach offers full ownership and control but requires significant capital, financing, and tolerance for operational complexity. Liquidity depends on the ability to sell the property.

Risks to Understand

• Market Risk: Property values and rents can decline during downturns.
• Default/Operational Risk: For debt platforms, borrower defaults; for fractional/eREITs, platform management and execution.
• Liquidity Risk: Most private real estate investments are not liquid on demand.
• Interest Rate Risk: Rates influence cap rates, financing costs, and valuations.
• Fees & Transparency: Review all offering docs; small differences in fees compound over time.

Alternatives to Consider

If you need daily liquidity or want to start with very small amounts, consider public REIT ETFs via a brokerage account. These provide broad real‑estate exposure with low expense ratios and can complement holdings on private platforms.

FAQ

• Which platform is best for passive income? Diversified eREITs and fractional rentals provide recurring distributions; debt platforms pay interest at maturity or monthly.
• Can I withdraw any time? Generally no. Check each platform’s liquidity policy; some offer quarterly windows or secondary markets.
• Are returns guaranteed? No—returns depend on property performance, project execution, and market conditions.
• How much should I start with? Many start with minimums ($10–$100) and scale as they learn.