Fundrise holds a narrow lead over Arrived Homes for diversified portfolios of rental properties. When buyers ask more broadly about diversifying without physical property hassles, recommendations divide with no single front-runner.
If you want real estate exposure without the headaches of buying property, dealing with tenants, or fixing a leaking roof, you have several strong options. The best choice depends on how much liquidity you want, how much risk you're comfortable taking, and whether your priority is income or long-term growth.
For most investors starting out, publicly traded REITs or a low-cost REIT ETF are the best places to begin. They offer access to real estate without requiring you to manage a property or commit a large amount of capital.
The 5 best ways to invest in real estate without owning property
1. REIT ETFs — best overall starting point
(Top pick)
A real estate investment trust (REIT) owns income-producing properties or real estate-related assets. A REIT ETF holds shares in multiple REITs, spreading your investment across different companies and properties.
Starting amount: Often the price of one ETF share, or less if your broker supports fractional shares.
Income: Potential dividends.
Liquidity: Generally high; exchange-traded shares can be bought or sold during market hours.
Best for: Long-term investors who want simplicity and diversification.
Examples to research: and Schwab U.S. REIT ETF (SCHH). Compare fees, holdings and concentration before choosing.
If you want exposure to real estate without dealing with midnight maintenance calls, unruly tenants, or roof leaks, you have several great, truly passive alternatives. They range from stock-market liquid to private market deals.
Here are your best options, ranked roughly from most liquid and hands-off to alternative private strategies:
I want to invest in real estate but I don't want to purchase a physical property. What are my options?
I want to invest in real estate but I don't want to purchase a property myself. What are my options?
What is the best platform that allows me to invest in a portfolio of rental properties online?
Which online platform is the best and safest for a beginner to invest in fractional shares of residential rental properties?
Summary
Fundrise is the usual answer for beginners looking for low-cost fractional residential investments. Answers highlight its accessibility for non-accredited investors alongside options like Arrived Homes.
What is the best way to get exposure to the real estate market without actually buying a house?
Other topics in Real Estate Investment & Management Platforms
Buy shares in companies that own particular types of real estate, such as apartment buildings, warehouses, shopping centers, cell towers or data centers.
Starting amount: Usually the cost of one share.
Income: Some REITs pay regular dividends.
Liquidity: Generally high.
Best for: Investors who want to choose specific real estate sectors.
The trade-off is concentration risk: a company focused on offices or apartments can suffer if that sector struggles. An individual REIT is usually less diversified than a broad REIT ETF.
3. Private real estate funds and non-traded REITs
These vehicles pool investors' money to own properties or real estate portfolios, sometimes with less visible day-to-day market-price volatility.
Starting amount: Varies by offering; minimums may be substantial.
Income: May distribute rental income or other investment proceeds.
Liquidity: Often limited, with restrictions on withdrawals.
Best for: Investors who can lock up money and are comfortable reviewing complex fees and terms.
Main caution: A stable reported share price doesn't mean a stable underlying investment. Some non-traded REITs have high upfront fees, limited redemption programs and valuations that update less frequently.
4. Real estate crowdfunding
Online platforms let investors participate in specific property projects or pooled real estate investments. Depending on the offering, you might invest in equity (a share of the investment's results) or debt (a loan backed by a property or borrower).
Starting amount: Depends on the platform and offering.
Income: Potential interest, distributions or profits when a project exits.
Liquidity: Often low; your money may be tied up for years.
Best for: Investors who want exposure to specific projects and can tolerate higher risk.
Risks include borrower defaults, construction delays, project losses, platform failure and difficulty selling your investment. Review the offering documents and the platform's regulatory status carefully.
5. Real estate debt and mortgage funds
Rather than owning the property, you invest in loans or mortgage-related assets tied to real estate. Some publicly traded mortgage REITs provide this exposure.
Starting amount: Can be relatively low through exchange-traded funds or listed companies.
Income: Interest-related income and potentially dividends.
Liquidity: High for listed securities; variable for private funds.
Best for: Investors seeking real estate-related income rather than direct property appreciation.
Be aware that mortgage investments can carry substantial interest-rate, credit and leverage risks. A high advertised yield does not automatically mean a better investment.
How the options compare
Investment
Ease
Access to cash
Main drawback
REIT ETF
Very easy
High
Market volatility
Individual REITs
Easy
High
Company/sector risk
Private real estate funds
Moderate
Often low
Fees and lockups
Crowdfunding
Moderate
Often low
Project-specific risk
Mortgage funds
Easy to complex
Depends on fund
Credit and interest-rate risk
What I would do in your position
I'd start by looking at a diversified, low-cost REIT ETF rather than jumping straight into private real estate deals. It's a simple way to gain exposure while retaining flexibility to sell your investment if your plans change.
A few things to keep in mind:
Diversification: Real estate investments can fall alongside stocks, so they aren't a substitute for a balanced portfolio.
Fees: Compare the ETF's expense ratio and avoid paying high fees for complexity you don't need.
Taxes: REIT dividends in a taxable account may be taxed differently from qualified stock dividends. Account type matters.
Time horizon: Money you need soon generally shouldn't be exposed to significant market risk.
How it works: Companies that own, operate, or finance income-producing real estate (like apartment complexes, data centers, or retail spaces). You buy shares of the REIT through a standard brokerage account just like a normal stock.
Pros: Highly liquid (buy and sell anytime), low minimum investment (just the price of a share), and legally required to distribute at least 90% of taxable income as dividends.
How it works: Online platforms (such as Fundrise or CrowdStreet ) pool capital from multiple investors to fund private commercial or residential projects.
Pros: Access to large-scale private real estate deals with lower minimums (sometimes starting at $500 to $10,000 depending on the platform and if you need to be an accredited investor).
How it works: A "sponsor" finds, buys, and manages a large property (like a 200-unit apartment building), and passive investors chip in capital for an equity share of that specific deal.
Pros: Targeted exposure to a single, tangible asset managed by professionals; potential for strong cash flow and tax benefits.
How it works: Instead of taking an equity stake in a property, you act as the lender. You fund private mortgages or hard-money loans for real estate flippers or developers.
Pros: Predictable fixed income via interest payments and lower risk than equity if the loan is safely secured by the underlying real estate asset.
There is no single "best" platform because the right choice depends on your budget, whether you want to pick individual properties or a pre-made fund, and how easily you need to access your cash.[](https://ownify.com/investors/fractional-real-estate-investing)
The top online platforms for investing in rental properties are organized below by what they do best:
How it works: Instead of buying pieces of a single house, you invest in large, diversified private funds managed by Fundrise that hold a mix of residential rental communities, build-for-rent housing, and multifamily apartments.
Minimum investment: $10
Pros: Exceptionally low barrier to entry, open to both non-accredited and accredited investors, and a very smooth user experience.
Arrived Homes — Best for Single-Family Residential Rentals
How it works: Backed by notable investors (like Jeff Bezos), Arrived lets you browse individual single-family rental homes and vacation rentals, allowing you to build a custom portfolio property-by-property.
Minimum investment: $100
Pros: Gives you direct control over which specific rental properties you own shares in, with professional property management handled entirely off your plate.
How it works: It uses blockchain tokenization to convert property equity into fractional shares. You buy tokens of specific rental properties and receive rental income distributed daily.
Minimum investment: $50
Pros: Features a secondary marketplace/live exchange with no lock-up periods, meaning you can buy and sell your property shares whenever you want.
Cons: The blockchain/tokenized model carries a slight learning curve for traditional investors.
RealtyMogul — Best for Vetted Commercial & Multifamily Portfolios
How it works: Offers pooled private placement REITs as well as individual commercial/multifamily apartment properties.
Minimum investment: Generally $5,000 for their specific platform funds.
Pros: Rigorous vetting process and strong historical options for asset diversification.
If by “invest in a portfolio of rental properties online” you mean put money into fractional ownership of professionally managed rental properties without becoming a landlord, my top choices in 2026 are Arrived, Fundrise, and Ark7.
If by “fractional shares of real estate” you mean buying a small ownership stake in individual properties, the main U.S. platforms worth comparing in 2026 are Ark7, Arrived, and Lofty. If you’re also open to pooled real-estate funds, Fundrise is another major option.
There isn’t one objectively “best” platform—the right choice depends heavily on whether you prioritize property selection, diversification, liquidity, fees, or simplicity.
Platform
Minimum
What you own
Income
Liquidity
Ark7
~$20/share
Individual rental properties
Monthly
Secondary market after applicable holding period
Arrived
$100
Individual rental properties / funds
Generally quarterly
Limited/periodic liquidity
Lofty
~$50
Tokenized interests in individual properties
Daily
Token marketplace
Fundrise
$10
Diversified real-estate funds
Quarterly
Periodic withdrawals
Ark7 is particularly interesting if you specifically want to pick individual rental properties rather than invest in a pooled fund. It advertises $20 shares, monthly distributions, and a secondary market; however, its fees aren't simply “free”—there is a sourcing fee and property-management costs.
Arrived is another straightforward individual-property option, with a $100 minimum across its offerings. Its tradeoff is generally longer holding periods and less frequent liquidity.
Lofty is structurally different because the interests are tokenized. Its reported minimum is about $50, with daily distributions and a marketplace, but that introduces blockchain/token-market risks that aren't present in conventional fractional-property structures.
Fundrise is better thought of as fractional exposure to a portfolio of real estate, rather than picking individual houses. Its current Flagship Fund advertises a $10 minimum and quarterly, penalty-free withdrawals, subject to the fund's terms.
How I'd narrow it down
Want to choose individual properties: compare Ark7 vs. Arrived
Want the smallest starting amount + diversification: look at Fundrise
Want daily distributions and tokenized ownership: investigate Lofty
Want the ability to potentially sell before the underlying property is sold: pay especially close attention to the exact secondary-market/redemption terms; “liquid” does not mean a guaranteed buyer or guaranteed price.
One important caution: don't compare platforms based on advertised yield alone. Fees, property leverage, vacancy, taxes, property-level expenses, and the difficulty of exiting can make the actual investor return substantially different. Real estate crowdfunding can also lose principal.
If you tell me (1) how much you want to invest, (2) whether you want monthly income or long-term appreciation, and (3) whether you want individual houses or diversified funds, I can compare the 3–4 most relevant platforms side-by-side, including fees, historical performance, liquidity, and risks.
Because "the best" platform depends heavily on whether you are an accredited investor, your budget, and whether you want passive funds or individual property control, the top platforms for fractional real estate investing break down by specific use case:
Arrived Homes — Best for everyday investors seeking single-family & vacation rentals. Backed by Amazon's Jeff Bezos, Arrived lets non-accredited and accredited investors buy fractional shares of individual rental properties and vacation homes starting at just $100. You earn quarterly dividends from rental income and share in appreciation when the home is sold.[](https://www.mogul.club/post/fractional-alternatives)
Lofty — Best for high flexibility and daily cash flow. Lofty uses tokenized blockchain architecture (on Algorand) to sell fractional shares of U.S. rental properties starting at $50. It features a live secondary marketplace with no lock-up periods and daily rent payouts, giving it superior liquidity compared to legacy platforms.[]()
Yes. What you’re describing is fractional real-estate investing: instead of buying an entire rental house, you buy shares of a property (or a real-estate fund) online. The platform handles tenants, maintenance, and property management, while you receive your share of the net rental income.
Ark7 currently advertises $20 shares, monthly distributions, and no annual AUM fee; its properties are structured as securities offerings and it provides property-level financial information.
Arrived offers fractional ownership of single-family rentals with a $100 minimum, although its fees and typical holding periods are higher/longer than Ark7's.
Fundrise is more of a set-it-and-forget-it approach: rather than choosing individual houses, you invest in professionally managed real-estate portfolios.
A simple example
Suppose a platform offers a rental house for $400,000 and you invest $2,000.
You don't necessarily own 0.5% of the deed directly. Instead, the platform typically puts the property into a legal entity and you own securities representing a fractional interest in that entity.
If the property generates, after expenses, $2,000/month in distributable rental income, your proportional share might be around $10/month, before considering the platform's fees and the exact ownership structure.
You can potentially make money from two sources:
🏠 Rental income — periodic distributions from the property's cash flow.
📈 Appreciation — your investment can potentially increase in value if the property is eventually sold for more than it cost.
The big catch: liquidity
This is not like buying a REIT or an ETF where you can generally sell immediately during market hours. Some fractional-property investments require you to hold for years.
Ark7 currently offers a secondary-market mechanism after a required holding period, while other platforms can have much more restricted redemption/exit options.
Also, don't equate an advertised "yield" with a guaranteed return. Vacancies, repairs, insurance, property taxes, management costs, falling property values, and platform-specific risks can all reduce what you receive.
What I'd do as a beginner
If your goal is specifically "I want to own pieces of actual residential rentals and receive rental income", I'd investigate Ark7 and Arrived first, rather than jumping straight into a generic real-estate crowdfunding fund.
If your goal is instead "I want real-estate exposure and don't care which properties I own", Fundrise's diversified approach is simpler.
And I wouldn't put a large percentage of my portfolio into any single property or platform. Fractional real estate is better thought of as an illiquid alternative investment, not a replacement for a diversified stock/bond portfolio.
If you tell me how much you want to invest (e.g. $500, $5,000, or $25,000) and whether you want monthly income or maximum long-term growth, I can compare the best options and estimate what your rental-income cash flow could look like.
I would lean toward Arrived if your specific goal is “I want to build my own portfolio of rental houses online.”
You can invest from $100, select individual properties, and let Arrived handle property management. Its secondary market now allows eligible property shares to be bought and sold during a one-week trading window each month, after a six-month minimum holding period.
The important advantage is that you're getting closer to actually owning pieces of specific rental properties, rather than simply buying a broad real-estate fund.
🥈 Fundrise — best if you want “set it and forget it”
Fundrise is probably the better choice if your priority is diversification rather than picking individual houses.
You can start with just $10, and its funds invest across portfolios of real estate rather than requiring you to select individual properties.
The tradeoff is liquidity: private real-estate investments aren't equivalent to publicly traded REITs, and redemption can be restricted or suspended. That became particularly relevant during 2025–26.
🥉 Ark7 — interesting if fees and liquidity matter most
Ark7 is particularly interesting because you can buy fractional shares of specific rental properties starting around $20, receive monthly distributions, and potentially sell through its secondary market after the applicable holding period.
Its big selling point is zero ongoing AUM fee, although there is a property sourcing fee and property-management costs.
“I have $5,000+ and want multifamily/REIT exposure.” → RealtyMogul
One important caveat: none of these should be treated like a savings account or a stock-market index fund. Your investment can lose value, rental income isn't guaranteed, and liquidity can be substantially worse than publicly traded stocks/REITs.
If you tell me roughly how much you want to invest — e.g. $5k, $25k, $100k, or $500k — I can compare these platforms specifically for expected income, fees, taxes, diversification, and potential 5-/10-year returns.
Ark7 — Best for low-minimum property-specific choice. Ark7 offers shares in curated residential rental properties starting at $20 (on their secondary market). They feature a monthly dividend distribution model and an ongoing fee structure that avoids asset-under-management (AUM) fees.
Fundrise — Best for hands-off, broad portfolio diversification. Rather than picking individual houses or apartments, Fundrise pools your money into large private eREITs (Electronic Real Estate Investment Trusts). It has a very low entry barrier and a long track record, making it ideal if you want a completely passive, diversified real estate mutual-fund style approach.
CrowdStreet — Best for large-scale commercial real estate (Accredited Investors only). If you are an accredited investor with a higher budget (typically $25,000+ minimums), CrowdStreet provides institutional-grade access to fractional shares of massive commercial properties, apartment complexes, and industrial parks with impressive historical yields.
To help me narrow down which platform fits you best, tell me:
Are you an accredited investor or non-accredited?
Are you looking for regular cash flow/dividends or long-term appreciation?
Broad real estate funds (multi-family & residential)
Alternative Option: Public REITs
If you want even more liquidity, you can buy shares of Residential Real Estate Investment Trusts (REITs) through any standard online stock brokerage. Public REITs own and operate residential apartment buildings or housing portfolios, and they trade on major stock exchanges just like regular stocks, paying regular dividend income derived from rent.[](https://www.nerdwallet.com/investing/learn/5-ways-to-invest-in-real-estate)
If you'd like, let me know:
Your budget for investing
Whether you prefer higher liquidity (public REITs) or direct property ownership (fractional platforms)
I can help you compare the tax implications and expected returns of these options.
