Arrived Homes Review 2023
|By: Jeremy Biberdorf||Oct 26, 2022|
In a Nutshell: Arrived Homes is a real estate crowdfunding platform that allows users to invest in real estate for as little as $100. Investors purchase shares of single-family homes instead of buying the entire property.
Arrived Homes is an excellent choice for anyone wanting to generate passive income with rental properties without the hassle. A big kicker is that Arrived allows non-accredited investors to use their platform.
|Sourcing Fee: $3.5, AUM Fee: 0.15%||$100|
- Genuinely Effortless and Dependable Rental Income
- Only A $100 Minimum Investment
- The Ability To Access The Most Attractive Markets
- No Operational Obligations
- Only 1% annual management fee
- A Small Number Of Investment Properties due to a majority being sold-out
- Short-term Investors May Find The Holding Time Of 5-7 years a drawback
Compare to Other Investment Platforms:
FeesSourcing Fee: $3.5, AUM Fee: 0.15%
Fees$50,000 minimum investment per deal. .5% to 1.5% Asset Management Fee, determined on a per-deal basis. Other fees may apply.
|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. Additional early redemption option after 6 months.|
|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.
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.
Arrived Homes Investment Options
Using Arrived Homes, 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 equity stake.
- 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.
Arrived Homes 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.
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: Arrived Homes only charges 1% in annual management fees. 1% in annual management fees is on the low end for crowdfunding.
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
Due to its recent start in 2019, Arrived Homes has a short track record. To date, It has provided investors with annual returns ranging from 5.5% to 12.1% since its founding.
Arrived Homes was capable of growing its workforce and offering more asset types thanks to a $25 million Series A investment round it completed in May.
The start-up now has a portfolio of 181 single-family rental homes in 30 markets across the United States, with a total asset value of more than $65 million.
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.
Frequently Asked Questions
The Arrived platform at the time of writing is only accessible to American citizens over 18.
Over residences held for the entire term, Arrived Homes offers cumulative yearly returns ranging from 5 to 12%.