Real estate Investment Comparison

Arrived Homes vs. Lofty

Wondering whether Arrived Homes or Lofty 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
Lofty
Minimum Investment
$100
$50
Investment Holding Period
5 years
No Minimum
Early Withdrawal Penalties
Yes - Undisclosed
None
Rent Payouts
Quarterly
Daily
Avg. Yearly Returns
6.66%
10.66%
Accessibility
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
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
Earning Potential
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
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
Investment Liquidity
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
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
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
Lofty
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

Lofty

The Bottom Line

Lofty gives investors unprecedented flexibility with their real estate investment with low minimums, no holding period, and almost instant liquidity. Some knowledge is required to get the most of your investments, but they do a good job at providing necessary documentation to help investors make the right choice.

Lofty Pros

No holding period πŸ™

Secondary market allows investors to trade holdings with low fees from the day they buy them

Daily rent payments πŸ“…

Investors receive pro-rated rent payments in their account daily

Low minimum investment πŸ”‘

Easily invest in a fraction of a property β€” as little as 0.1% ownership per property.

Decentralized ownership ⛓️

Investors actually own the underlying property and vote on major property decisions

Open to investors everywhere 🌎

Investors from anywhere can invest in U.S. real estate

‍

Lofty Cons

Some trading knowledge is helpful ⛓️

Fractional investing and managing properties is easy with Lofty, but it's helpful to understand the concept of "limit orders" when buying and selling. This is a key part of trading on Lofty, and it involves you choosing the specific price that you want to trade at.

Investment Tip: Make sure investment options don't put you out of your knowledge depth

Delinquency Risk πŸƒ

Lofty's Marketplace has a mix of low and high cap rate properties that you can choose from. Higher higher cap rate properties offer greater cash flow, but they may also carry higher risk of tenant delinquency.

Investment Tip: Do your due diligence to property evaluate risk/reward profiles of any investment

No Mobile App πŸ“΅

You can easily use Lofty via your mobile web browser, but Lofty does not yet have a dedicated mobile app.

Investment Tip: Choose investments that fit your prefered method of monitoring

Read our comprehensive
Arrived Homes
Review
Read Full Review
Read our comprehensive
Lofty
Review
Learn more about Lofty
Read Full ReviewGo to Lofty.ai