Chapter 1: Introduction to Real Estate Apps

In the wake of a tumultuous year for financial markets, particularly in the crypto sector, I ventured into alternative avenues for enhancing my passive income. My exploration led me through a variety of investment options such as dividend-paying stocks, bonds, high-yield savings accounts, and increasingly popular real estate investment applications. In this article, I will share my experiences with several of these real estate apps over the past year, beginning with my investments made in September 2021. The platforms I will discuss include Landa, Arrived Homes, and Here.

Section 1.1: Landa

The first app I want to discuss is Landa, which appears to be one of the newer options but stands out for its user-friendly interface. After acquiring your initial shares, the platform takes care of tenant sourcing, rent collection, and property management. While the returns may not match those of directly owning and managing rental properties, the main advantage is the ability to relax and receive dividends without additional effort. My initial investment consists of a few shares obtained through referrals, and I will update you on my earnings as time progresses.

Section 1.2: Arrived Homes & Here

Arrived Homes and Here share similar user interfaces and functionalities as Landa. You buy shares in long-term or vacation rentals, and the platforms handle property listings and tenant acquisition. At the time of my investment, the minimum share purchase was $600 for Here and $500 for Arrived Homes. Below are the returns I received from both apps since my investments in September and December:

Overall, the returns from these platforms have been satisfactory, especially considering the current economic climate. However, it's worth noting that investment opportunities can be quickly sold out, and neither platform has a marketplace, rendering your investment illiquid until either the property is sold or a marketplace is established. Dividends are distributed quarterly.

Chapter 2: Fundrise

Fundrise is the most recognized of these four options. Unlike the others, it doesn’t operate on a share-purchasing model. Instead, you invest in various funds such as the Flagship Fund, East Coast eREIT, Income Real Estate Fund, and the new Innovation Fund. Currently, I hold investments in all but the East Coast fund. Initially, you can only invest in the Flagship Fund until your total investment surpasses $5,000, at which point your account is upgraded to a higher tier, allowing for diversification.

Once invested, your funds are locked for five years before you can sell your position, but like Arrived Homes and Here, quarterly dividends are provided. Here are my returns thus far:

As illustrated, my returns are at 7.7%, which is slightly lower than some other platforms, but still respectable given the overall economic conditions.

Real estate has traditionally been viewed as a stable investment, and the integration of technology into this field has significantly reduced the barriers to entry. Now, individuals can invest in real estate without the burden of property management or tenant issues. This journey has been enlightening, and I am eager to continue exploring this industry. If you have any recommendations for other real estate apps I should investigate, please share in the comments!