Adding real estate to an investment portfolio may help diversify it. Real estate can perform differently from stocks and bonds, and some investors use it as a potential source of income and long-term appreciation. Over time, real estate may also help offset inflation, though this isn't guaranteed. Property values and income can rise or fall.
Within real estate, investors can spread their exposure across different properties, markets, and investment types. Individual properties and the Single Family Residential Fund offer exposure to rental homes, while the Real Estate Income Fund offers exposure to real estate-backed loans. These investments play different roles and carry different risks. Spreading investments this way may reduce reliance on any single property or market, but diversification does not eliminate risk or guarantee returns.
Arrived is designed to make this easier. Investors can buy shares in individual rental properties across multiple markets, or invest in diversified funds. Each investment carries risk, including the possible loss of principal, and should generally be viewed as a longer-term investment.
The opinions expressed in this article are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product. The views reflected in the commentary are subject to change at any time without notice. View Arrived's disclaimers here.