Arrived Homes vs RealtyMogul

RealtyMogul Overview

RealtyMogul is best suited for investors who want accredited and non-accredited investors seeking diversified commercial real estate exposure with low minimum investments and regular income distributions, balanced with illiquidity and moderate risk tolerance.. The platform, RealtyMogul has built a growing investor base.

With a minimum investment of $5K, RealtyMogul offers some investments open to non-accredited investors. The platform does not currently offer a secondary market and requires manual investment selection.

Key Strengths:

• Low minimum investment of $5,000 for REITs makes commercial real estate accessible to non-accredited investors
• Strong due diligence process; multiple reviewers noted RealtyMogul has 'best due diligence in the business'
• Non-accredited investor eligibility for REIT offerings with reasonable limitation (10% of income/net worth)
• Long track record with 234 realized investments as of October 2024 showing 18.1% realized IRR

Key Drawbacks:

• Completely illiquid investments with no secondary market for selling positions
• Mixed investor reviews with some reporting only 1 of 3 deals performing as projected
• Some investors reported deals had no returns or lost money completely

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Arrived Homes Overview

Arrived Homes is best suited for investors who want non-accredited retail investors seeking fractional real estate exposure with low minimum investments; hands-on investors who prefer selecting specific properties over passive fund allocation. The platform, Arrived Homes manages $180 million in assets.

With a minimum investment of $100, Arrived Homes is open to all investors regardless of accreditation status. The platform offers a secondary market for early liquidity and requires manual investment selection.

Key Strengths:

• Low minimum investment of just $100 makes real estate investing accessible
• Open to non-accredited investors with no accreditation requirement
• Transparent fee disclosure; returns are net of all fees
• Mobile app available for iOS; quick 4-minute signup process

Key Drawbacks:

• High sourcing fees of 4-6% per property purchase reduces net returns
• Multiple fee layers (AUM, property management, disposition) significantly erode profits
• Historical returns of 3.2%-7.2% significantly underperform 8%-20% targets

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Head-to-Head Comparison

Fees & Costs

RealtyMogul carries a fee rating of 3.0/5, with fees structured as: Income REIT: 1% annual; Apartment Growth REIT: 1.25% annual. Arrived Homes scores 2.3/5 on fees, charging: AUM fee: 0.15% quarterly (single-family), 0.25% quarterly (SFR Fund), 0.3% quarterly (PCF Fund); variable for vacation rentals (~0.1% quarterly); Sourcing fee: 4-6% of purchase price (one-time); Property management: 8% of gross rents (15-25% for short-term rentals); Disposition fee: 6-7% of sale price.

Edge: RealtyMogul. Lower cost structure gives investors more of their returns.

Minimum Investment

RealtyMogul requires $5K to get started, while Arrived Homes requires $100. Arrived Homes's lower minimum makes it more accessible for new investors.

Edge: Arrived Homes. Lower barrier to entry.

Accreditation Requirements

RealtyMogul partially requires accreditation. Arrived Homes does not require accreditation.

Edge: Arrived Homes. Open to all investors.

Liquidity

RealtyMogul offers illiquid investments. Arrived Homes provides semi-liquid investments with a secondary market.

Edge: Arrived Homes. Secondary market provides more flexibility.

Ease of Use

RealtyMogul scores 3.5/5 for ease of use. Arrived Homes scores 4.5/5 and also has a mobile app.

Edge: Arrived Homes. Better overall user experience.

Transparency

RealtyMogul earns a 4.0/5 transparency rating. Arrived Homes scores 4.0/5.

Edge: Tie. Both platforms provide comparable transparency.

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Who Should Choose RealtyMogul?

RealtyMogul is the better choice if you:

• Are comfortable with a $5K minimum investment
• Meet accredited investor requirements and want premium deal flow
• Want exposure to diversified real estate portfolios
• Prefer to hand-pick your investments

Who Should Choose Arrived Homes?

Arrived Homes is the better choice if you:

• Want to start investing with a low minimum
• Are a non-accredited investor looking for access to alternatives
• Want exposure to specific real estate deals or projects
• Prefer to hand-pick your investments
• Value the option to sell holdings before maturity

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Verdict

It's a close call. Both RealtyMogul and Arrived Homes are strong platforms that serve slightly different investor needs. RealtyMogul stands out for accredited and non-accredited investors seeking diversified commercial real esta, while Arrived Homes excels at non-accredited retail investors seeking fractional real estate exposure with low. Your best choice depends on your investment goals, budget, and whether you need accreditation.

For most investors exploring alternatives, we recommend starting with RealtyMogul — but consider your specific goals before committing.

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FAQ

Is RealtyMogul or Arrived Homes better for beginners?

Arrived Homes is generally more beginner-friendly with its $100 minimum investment compared to RealtyMogul's $5K. Additionally, Arrived Homes doesn't require accreditation, making it accessible to more new investors.

Can I use both RealtyMogul and Arrived Homes?

Yes. Many alternative investment portfolios benefit from diversification across platforms. RealtyMogul and Arrived Homes overlap in some asset classes but may offer different deal structures, fee models, and investment approaches.

Which platform has better returns?

Historical returns vary by specific investment and time period. RealtyMogul has a higher overall rating, but past performance doesn't guarantee future results. Both platforms provide different risk-return profiles depending on the specific offerings you choose.

Are RealtyMogul and Arrived Homes safe?

Both platforms are legitimate, regulated investment services. RealtyMogul is regulated by SEC. Arrived Homes is regulated by SEC (Regulation A+, Tier 2). As with all alternative investments, there is inherent risk — these are generally illiquid, long-term investments and not FDIC insured.