|Fees||Sourcing Fee: $3.5, AUM Fee: 0.15%|
|Minimum Account Requirements||$100|
|Investment Options||You browse homes that Arrived has already found, choose how much you would like to invest, and get passive income from rentals|
|Redemption Options||Rental payments are currently dispersed on a quarterly schedule.|
|Transparency||The Arrived SEC Filings can be found on its site.|
What is Arrived Homes?
Arrived Homes was founded in 2019 as a crowdfunded real estate investing platform that lets everyday investors invest in shares of rental properties.
Unlike many companies that focus on commercial real estate markets, Arrived Homes provides access to residential real estate properties.
Additionally, its interests are treated as real estate investment trusts and are kept in an LLC and because of this, shareholders (you) have no personal liability which offers protection from potential lawsuits.
- Arrived Homes avoids pesky issues that come with being a landlord
- By leveraging the power of Arrived Homes, users can generate passive income
- Anyone can begin using Arrived homes with a low $100 initial investment, lowering the barrier to entry
When purchasing a rental property, real estate investors are typically taken through several time-consuming stages. Arrived Homes’ real estate investment platform has streamlined this process for you by offering shares of low-cost, pre-vetted individual properties.
Get Started With Arrived Homes
External Arrived Homes Review & Ratings
|Better Business Bureau||5 from 12 reviews|
|The Savvy Couple||4.9|
|Best Wallet Hacks||4.5|
How Arrived Homes Started
Alejandro Chouza, Kenny Cason, and CEO Ryan Frazier created Arrived in 2019. In addition to being the first of its kind, the company was also the first SEC-qualified property investment firm that allowed non-accredited clients and just about everyone else to purchase single-family rental properties.
As a result, Arrived is considered one of the most secure investment platforms available today. Arrived Homes is also backed by billionaires.
Along with Jeff Bezos, the creator of Amazon, Arrived also has the financial support of Marc Benioff, co-founder, and CEO of Salesforce, proprietor of Time magazine, and multi-billionaire.
How Does Arrived Homes Work?
Arrived Homes has a simple and streamlined process for real estate investing, allowing investors to become fractional owners of rental properties. Here is a step-by-step guide on how the platform operates:
Step 1: Property Selection
The process begins with the team identifying potential rental properties. They utilize proprietary technology and rigorous data analysis to select properties in growing markets across the United States. The team performs thorough due diligence on every property, including assessments of the property condition, location, market trends, and potential return on investment.
Step 2: Crowdfunding
Once a property is selected, it’s listed on the platform for crowdfunding. Investors can then purchase shares of the property for as little as $100. This allows investors to own a piece of the property without having to buy the entire home.
Step 3: Property Purchase
After the crowdfunding goal is reached, Arrived Homes purchases the property using the crowdfunded money. The property is then placed into a separate LLC, and investors become owners of that LLC. This structure provides investors with protection from personal liability.
Step 4: Rental Income
Arrived Homes handles the property management, including finding and vetting tenants, collecting rent, and dealing with maintenance and repairs. The rental income generated by the property is then distributed to investors on a quarterly basis in the form of dividend payments. The amount each investor receives is proportional to their ownership stake in the property.
Step 5: Property Appreciation
In addition to rental income, investors also stand to benefit from property appreciation. As the property increases in value over time, so does the value of the investors’ shares. When the property is eventually sold, investors share in the profits.
Step 6: Exit Strategy
Arrived Homes typically plans to hold each property for a period of 5-7 years for single-family residential properties and 5-15 years for vacation rental properties. At the end of this period, the property is sold and investors receive their share of the profits.
Investors may profit from two different sources:
- Rental Revenue – Arrived shareholders receive cash profits from quarterly property rent payments from renters. Your share of the estate’s rental revenue will be based on your property shares.
- Asset Value – You’ll share in any profits from long-term value because you’ll have a portion of ownership in the real property. You may observe how the value of the property increases over time. Arrived Homes will pay a part of the proceeds from the sale of the property to you based on your ownership stakes.
With Arrived’s addition of vacation rentals, profits may be higher than those from long-term rentals.
Pricing & Fees
With just $100, you may invest in vacation rentals and residential real estate with Arrived Homes. It’s an excellent choice for someone wishing to use rental properties to yield profits in the future. And may not have the capital necessary for proper diversification in their real estate portfolio.
Arrived Homes charges fees in three main ways:
Agent Rebates: When Arrived Homes buys a rental property from the previous owner, it receives a rebate from the real estate agent.
Sourcing Fee: Arrived Homes charges a one-time fee to cover the costs of sourcing and holding properties while preparing them for investment. The listing details the sourcing fee so you know exactly how much Arrived Homes is taking.
Annual Asset Management Fee: 1% in annual management fees. 1% in annual management fees is on the low end for crowdfunding.
Property Management Fee: 8% of the rent goes towards paying the day to day property management necessary for each individual property.
Arrived Homes Features
Now let’s take a deeper look into the features of Arrived Homes that make it unique.
The business uses a screening procedure to find renters who would use the space for an extended period.
With data-driven tools from Arrived Homes, investors can make smarter decisions and increase their earnings.
Regular Passive Revenue
This consistent revenue is entirely passive since Arrived Homes does all the maintenance. Earnings are also given out quarterly.
Arrived Homes Performance
Arrived Homes has consistently delivered on client investments, providing optimal returns through both rental income and property value appreciation. The platform gives investors a detailed view of the performance of all properties, allowing them to make informed investment decisions.
As of April 2023, they had funded over $97 million in property value, demonstrating the platform’s growth and the trust placed in it by thousands of investors. The platform has over 266 funded properties that have been hand-picked and individually analyzed by the Arrived investment team. This gives investors an exceptional selection of homes to choose from when making their investment decisions.
Operating in more than 49 active markets across the country, helping investors to diversify their portfolios by investing in different regions remotely. This geographical spread is a key strength of the platform, ensuring that investors have access to a wide variety of markets.
The platform’s performance is quite impressive when you look at the returns. For instance, ‘The Lierly’ property in Northwest Arkansas, held for 23 months, delivered a total return of 115.0%, including 101.0% from property appreciation and 8.1% from rental income (via quarterly dividends), with a share price of $20.10.
‘The Salem’ property in the same region, held for 17 months, yielded a total return of 49.3%, with 38.0% from property appreciation, 6.9% from rental income, and a share price of $13.80.
These are just examples of the performance of individual properties. Each property listed on Arrived Homes has its unique performance metrics, reflecting the returns from both property appreciation and rental income.
The platform provides a transparent view of these metrics, enabling investors to make informed decisions about their investments.
Who Is Arrived Homes Best For?
Arrived Homes is a fitting investment platform for a variety of investors due to its unique model and accessible entry point. Here are a few types of people who might find Arrived Homes particularly appealing:
- Novice Real Estate Investors: With its low minimum investment requirement of $100, Arrived Homes is an excellent platform for beginners looking to get their feet wet in the real estate market. This accessible threshold allows new investors to start investing without the need for large capital.
- Passive Income Seekers: For those interested in earning passive income, Arrived Homes can be a great choice. Investors earn money from rental income and potential property value appreciation, all while not having to deal with the usual landlord responsibilities such as property management and tenant sourcing.
- Non-Accredited Investors: Often, investment opportunities in real estate are limited to accredited investors – those with a high net worth or significant annual income. Arrived Homes breaks down this barrier by allowing non-accredited investors to buy shares of rental properties.
- Diversifying Investors: For individuals seeking to diversify their investment portfolios beyond traditional stocks and bonds, Arrived Homes provides an easy way to invest in the real estate sector. It’s also a good hedge against inflation.
- Long-Term Investors: As the holding period for an investment in Arrived Homes is typically 5-7 years, this platform is best for investors who have a long-term investment horizon and don’t require immediate liquidity.
Arrived Homes in 2023 and Beyond
As Arrived Homes continues to grow, it is continually making strides in evolving its platform and offerings. By anticipating and responding to the needs of investors, Arrived Homes is shaping the future of real estate crowdfunding investment.
- Expansion to New Markets: Arrived Homes is committed to expanding its portfolio by entering new markets. This includes key growth areas in the United States, as well as potential expansion into international markets. These initiatives will provide investors with a broader range of opportunities and further diversify their portfolio.
- Increased Property Offerings: In response to the high demand from investors, Arrived Homes is focused on increasing the number of properties available for investment. This will provide investors with more choices and opportunities, thereby enhancing the potential for returns. The company’s goal is to make more properties available in a variety of markets, catering to different investment preferences and strategies.
- Enhanced Technology: Arrived Homes is investing heavily in technology to improve the investor experience. They are developing a more sophisticated and user-friendly platform to simplify the investment process and provide investors with more tools to aid in decision-making. The platform will continue to utilize data analytics to provide investors with in-depth insights into property performance and market trends.
- Stronger Vetting Processes: As part of its commitment to protecting investors, Arrived Homes is continually improving its vetting processes. This includes more stringent screening of properties and tenants, ensuring that only quality investments are presented to its investors. As a result, investors can have more confidence in their investments and the potential returns.
- Sustainable Real Estate Practices: Recognizing the importance of sustainability in real estate, Arrived Homes plans to implement more sustainable practices in its property management. This includes green renovations and energy-efficient upgrades to properties, which not only help to reduce the environmental impact of properties but also can increase their value and appeal to tenants.
Strengths and Weaknesses
The advantages are clear: Arrived Homes allow accredited and non-accredited investors to participate in fractional shares of rental properties with as little as $100. In other words, you do not need a minimum net worth of $1 million or an annual income of $200,000 to use its resources.
The lack of offerings due to many properties selling out is Arrived Homes’ most significant drawback. Currently, high investor demand cannot be satisfied by the current level of supply.
Although this is not necessarily a bad thing as it shows how popular the platform is and gives consumer confidence.
Arrived Homes intends to continually grow into other US regions in the future, including Florida, Texas, Nevada, and Indiana.
Arrived Homes Review Final Thoughts
Arrived Homes does its best to safeguard shareholders and lower the likelihood of loss. They offer very low fees and are transparent with their annual dividend yields.
Real estate investing is a proven way to generate passive income, and Arrived’s easy to use platform and low start-up costs make it a good choice for new investors.
Click here to get started today.
Get Started With Arrived Homes