Fundrise vs. Arrived vs. Ark7: Where to Put $500 in Real Estate

You've got $500 and you want real estate exposure without becoming a landlord. Three platforms are competing for that allocation: Fundrise, Arrived, and Ark7. Each takes a fundamentally different approach to fractional real estate, and the right choice depends on your timeline, risk tolerance, and liquidity needs.

The Contenders

Fundrise operates diversified eREIT funds with a $10 minimum. You're buying into a portfolio of properties, not individual assets. Liquidity is quarterly with potential penalties for early redemption.

Arrived lets you buy shares in individual single-family rental properties starting at $100. You earn quarterly dividends from rental income and participate in appreciation when the property is eventually sold (typically 5-7 year hold).

Ark7 offers fractional shares in individual rentals with a secondary market for trading. Minimums start at $20, making it the most accessible of the three.

Fee Comparison

Fundrise charges a 0.15% advisory fee plus ~0.85% in fund management fees for a total of roughly 1% annually. Arrived charges a 1% annual asset management fee. Ark7 charges a similar 1% management fee plus a sourcing fee of 2-3% baked into the initial share price.

All three are cheaper than traditional REITs with their 1.5-2% expense ratios, and vastly cheaper than buying a rental property outright when you factor in closing costs, maintenance, and property management.

Returns and Risk

Fundrise's flagship Growth fund has delivered 8-12% net annualized returns over the past five years. Arrived's track record is shorter (launched 2021) but properties have generated 3-5% in annual dividends plus unrealized appreciation. Ark7's returns are similar to Arrived's but with the added benefit of secondary-market liquidity.

Our Take

For a $500 allocation, Fundrise is the most diversified and battle-tested option. If you want exposure to a specific property in a market you believe in, Arrived offers the best individual-asset experience. And if liquidity matters most, Ark7's secondary market gives you an exit that the others don't.