Jeremy Biberdorf
By: Jeremy Biberdorf
Nov 12, 2023

Arrived Homes Review 2024

Jeremy Biberdorf
By: Jeremy Biberdorf
Nov 12, 2023

Disclosure

Disclosure: This page may contain affiliate links. This means we earn a small commission (at no additional cost to you) if you purchase a product through our links.
Disclosure: This page may contain affiliate links. This means we earn a small commission (at no additional cost to you) if you purchase a product through our links.
Arrived Homes

4.5/5

4.5 rating based on 5 ratings

LEARN MORE

In a Nutshell: Arrived Homes is a real estate crowdfunding platform that allows everyday investors 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.

Are you ready to learn more, keep reading my Arrived Homes review for all you need to know.

FeesMinimum Investment
$3.5, AUM Fee: 0.15%$100
Pros & Cons
Pros
  • Dependable rental income
  • $100 Minimum Investment
  • Access to the most attractive markets
  • No operational obligations
  • Only 1% annual management fee
  • Offers a range of properties across various geographies for portfolio diversification
  • Detailed property information and financial projections are available for each listing
  • The platform’s interface is intuitive, making it easy for new investors to navigate
  • Investors receive periodic updates on property performance and financials
Cons
  • The investment is relatively illiquid with a typical holding period of 5-7 years, which might not suit all investors.
  • Like all real estate investments, there's a risk associated with market fluctuations and property value changes.

Compare to Other Investment Platforms:

Arrived Homes
4.5 rating based on 5 ratings
4.5/5
Learn More

FeesSourcing Fee: $3.5, AUM Fee: 0.15%

Minimum Investment$100

Fundrise
4.6 rating based on 5 ratings
4.6/5
Learn More

Fees1%

Account Minimum$500

First National Realty Partners
4.9 rating based on 5 ratings
4.9/5
Learn More

Fees$50,000 minimum investment per deal. .5% to 1.5% Asset Management Fee, determined on a per-deal basis. Other fees may apply.

Account Minimum$50,000

FeesSourcing Fee: $3.5, AUM Fee: 0.15%
Minimum Account Requirements$100
Investment OptionsYou browse homes that Arrived has already found, choose how much you would like to invest, and get passive income from rentals.
Redemption OptionsRental payments are currently dispersed on a quarterly schedule.
TransparencyThe Arrived SEC Filings can be found on its site.

What is Arrived Homes?

arrived.com website

Arrived Homes is a pioneering real estate crowdfunding platform that enables individuals to invest in shares of residential rental properties. Founded in 2019 by Ryan Frazier, this innovative platform stands out by focusing exclusively on the residential sector, differentiating itself from many peers in the commercial space.

Arrived Homes’ core mission is to democratize rental home ownership by simplifying investments and broadening access to such wealth-building opportunities. With its user-friendly approach, it aims to make the benefits of real estate investment accessible to many, not just a few.

Notably, Arrived Homes showcases a mix of property offerings. Some are leveraged, being acquired through long-term loans, while others are outright purchases. As of 2023, the company’s portfolio boasts ownership of over 225 homes spanning 39 markets, amounting to an impressive $85 million in total investments. This remarkable growth is a testament to its mission; with a mere $100, one can start their journey into real estate investing.

A standout feature of Arrived Homes is its operational model that keeps investor convenience at its core. The process eliminates the typical hassles of being a landlord. Investors, instead of getting bogged down with property management minutiae, enjoy passive income.

Shares in properties are structured as real estate investment trusts and housed within an LLC. This setup ensures that shareholders are insulated from personal liability, offering a safety net against potential legal repercussions.

Moreover, the platform’s commitment to transparency and value is evident. Properties are pre-vetted, ensuring that investors are presented with quality choices. With Arrived Homes at the helm of property management, investors reap the benefits of rental income, disbursed quarterly.

The company’s trajectory has not gone unnoticed. In its early stages in 2021, industry giants like Jeff Bezos of Amazon recognized its potential, becoming early backers.

External Arrived Homes Reviews & Ratings

SiteRating
Better Business Bureau5 from 12 reviews
The Savvy Couple4.9
WallStreetZen4.5
Benzinga4.5
Millenial Money4.5
Best Wallet Hacks4.5

Firsthand User Experience with Arrived Homes

After poring through all the reviews I could find, here are some of the most revealing reviews, from traders who have experienced the platform firsthand:

“I’ve wanted to find an accessible way to invest in real estate and Arrived has helped me do just that! Super simple website to use and I’m already enjoying the dividends!”
“Trustworthy company, looks after their customers, and follows the SEC guidelines to the tee. They allow you to invest in single family rental homes through their website, not to be confused with another website who is trying to sell AirBnB properties.”
“I really enjoy the work the Ark7 team has done. The transparency of this platform is wonderful and the convenience of use, the great mobile application; all in, this is one of the better experiences in my opinion in real state investments out there. The fact that both Ark7 and the investors have skin in the game makes this more a partnership than a service found elsewhere. This is just the beginning, but I can’t wait to see more and diverse investment opportunities or classes added to my portfolio. Steady wins the race! I’m glad to be able to invest in real state with Ark7. Thank you to the entire Ark7 team!”
“Arrived Homes is a great option for anybody who wants invest in rental properties without having to go through the hassle of owning the property yourself.”

Arrived Homes Review Video

Arrived Homes Customer Review Analysis

Arrived Homes has an impressive average user rating of 4.7 out of 5 on the Apple App Store. Many positive Arrived Homes reviews point out how user-friendly the app is and how easily and quickly, thanks to Arrived Homes, are able to build a diversified Real Estate portfolio.

If you want to continue reading about other user’s experiences with Arrived Homes, you can look at the Arrived Homes Reddit reviews. There are some active Reddit threads on Arrived Homes, although I must point out that these comments aren’t from verified users, so you should view them with a bit of skepticism.

History of Arrived Homes

Arrived Homes was founded in 2019 by a visionary team led by CEO Ryan Frazier, along with Alejandro Chouza and Kenny Cason. From its inception, the company was set to disrupt the traditional real estate investment market by offering fractional ownership of single-family rental properties. This innovative approach opened the doors of real estate investing to a wider audience, including non-accredited investors.

The founders’ vision was to create an investment platform that was not only accessible but also transparent and user-friendly. They recognized the potential in the residential real estate market and aimed to tap into it by offering an easier way for individuals to invest in rental properties without the usual hurdles of property management.

Arrived Homes quickly gained traction in the investment community, drawing attention from high-profile investors. In 2021, the company received backing from Jeff Bezos, through his investment vehicle Bezos Expeditions, and Marc Benioff, signifying a strong vote of confidence in the company’s business model and growth potential. This investment propelled Arrived Homes into a new phase of expansion and recognition.

With a focus on selecting high-quality properties in growing markets, Arrived Homes began building its portfolio, which has now expanded to over 225 homes across 39 markets, amounting to an investment value of $85 million. The company’s growth is indicative of its successful execution of a unique business model that simplifies real estate investment while offering potentially lucrative returns to its investors.

How Does Arrived Homes Work?

arrivedhomes investment options

Arrived Homes has a simple and streamlined process for real estate investing, allowing investors to become fractional owners of rental properties. I wrote a step-by-step guide on how the platform operates:

Step 1: Property Selection

How ArrivedHomes Chooses Investment Properties

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 homes 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.

Investment Options

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 Homes’ addition of vacation rentals, profits may be higher than those from long-term rentals.

Reviewing Arrived 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.

Ownership Without The Hassle

Let’s get straight to the point: the primary reason most individuals hesitate to invest in real estate is their reluctance to take on the role of a landlord. Arrived Homes’ CEO, Ryan Frazier, reaffirms this sentiment, pointing out that the significant time obligation, ranging from everyday tasks to tax matters, deters many potential investors.

Nevertheless, there are alternative solutions. One could collaborate with a partner who’s keen on managing properties or engage a dedicated property management firm.

However, the underlying message from many hesitant individuals is their desire for a more hands-off approach to real estate investment. This is where Arrived Homes steps in.

With Arrived Homes, investors have the freedom to put their money in selected properties, earn dividends, and remain confident that tasks like repairs or tenant screenings won’t land on their desks. Arrived Homes undertakes these responsibilities, ensuring investors enjoy a genuinely passive experience.

On a quarterly basis, investors receive rental revenue in their accounts. Although future returns are unpredictable, historically, Arrived Homes has provided returns ranging from 3-7% annually.

Beyond just managing properties, Arrived Homes excels in property selection. They identify promising markets, zero in on the best neighborhoods, and meticulously screen potential tenants. It’s a comprehensive, hassle-free investment experience.

Legal Protection

Many real estate investors establish LLCs or Trusts to shield themselves from personal risks; however, this isn’t necessary with Arrived Homes. Beyond managing everyday property challenges like plumbing issues, Arrived Homes offers another layer of protection.

Properties under Arrived Homes are placed within LLCs. This structure guarantees that an investor won’t face personal liability should any legal disputes arise. With this safeguard in place, investors can have greater peace of mind.

Renter Vetting Process

Arrived Homes implements a thorough renter vetting process to ensure reliable and responsible tenants occupy the properties. This process includes credit checks, employment verification, and rental history reviews. By ensuring tenants are financially stable and have a track record of responsible renting, Arrived Homes aims to maintain high occupancy rates and consistent rental income for investors.

High-Quality Technology

Arrived Homes leverages advanced technology to enhance the investment experience. This includes data-driven analysis tools for property selection, an intuitive online platform for investors to manage their portfolios, and efficient systems for property management. The use of technology streamlines the investment process, making it more accessible and manageable for investors.

Regular Passive Revenue

Investors in Arrived Homes enjoy a steady stream of passive income through quarterly distributions of rental profits. This income is a result of the platform’s effective property management and tenant vetting processes, ensuring consistent rental cash flow. The passive nature of this revenue allows investors to earn from real estate without the day-to-day involvement typically required in property management.

Arrived Homes Performance

arrivedhomes historical 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 I think will 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 2024 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.

Arrived Homes offers a unique opportunity for real estate investment, but it comes with its challenges. One major issue is the frequent inventory shortages; it’s common for potential investors to find properties “sold out” on their platform

The company is aware of this limitation and has ambitious expansion plans and introducing short-term rentals to diversify their offerings. The company’s expansion into regions like Florida, Texas, Nevada, and Indiana is a testament to its commitment to addressing the current challenges.

Communication is another area needing improvement. Investors often miss out on listings due to the swift sales, and the platform’s fee structure, while present, could be presented more transparently.

Ethically, the rising housing prices have sparked a debate about the role of platforms like Arrived Homes. Despite the critique, the company’s goal is commendable: democratizing real estate investment, allowing hundreds to thousands of individual investors to own a piece of property rather than a single large corporation.

Arrived Homes Alternatives

Fundrise

Fundrise logo

Fundrise is a leading platform for real estate crowdfunding, allowing accredited and non-accredited investors to invest in portfolios of real estate properties.

  • Investment Focus: Unlike Arrived Homes, which specializes in single-family rental homes, Fundrise offers a mix of commercial and residential real estate investments.
  • Minimum Investment: Fundrise has a minimum investment requirement of $500, slightly higher than Arrived Homes, but still accessible to individual investors.
  • Ideal For: Investors looking for a diversified real estate portfolio that includes both commercial and residential properties.

Check out our full Arrived Homes vs Fundrise comparison

REITs (Real Estate Investment Trusts)

REITs logo

REITs are companies that own, operate, or finance income-producing real estate across a range of property sectors. Check out my Arrived Homes vs REIT article for a comparative analysis.

  • Comparison: Unlike Arrived Homes, which focuses on direct ownership of single-family homes, REITs provide exposure to a broader range of real estate assets, including commercial properties.
  • Liquidity: REITs are generally traded on major stock exchanges, offering higher liquidity compared to the fractional ownership model of Arrived Homes.
  • Ideal For: Investors seeking liquidity and a more diversified real estate portfolio without the commitment of direct property management.

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. I believe Arrived Homes’ easy to use platform and low start-up costs make it a good choice for new investors.

Click here to get started today.

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%.

Their comprehensive Help Center is available for quick solutions, but for more specific questions, they welcome direct contact. Whether you prefer to send an email to support@arrivedhomes.com or make a call to 1-814-ARRIVED, their team is ready to assist.

Should you wish to reach out in person or send a letter, their office is located at 1525 11th Ave, Seattle, WA 98122.

Arrived Homes is for both Accredited and Non-Accredited investors. All investors will receive 1099 documents in order to comply with taxes.

Arrived Homes has set up a unique model where each property is placed within an individual LLC, each possessing its distinct bank account and ownership framework. Arrived doesn’t hold a significant ownership position in these LLCs, ensuring a distinct boundary between the enterprise and the real estate assets.

This structure indicates that, should Arrived Homes cease operations, a new overseer would be appointed to make pivotal decisions, such as choosing property managers or deciding on property liquidation. Specific details on who this overseer might be or how the properties would be managed concerning investor interests are not provided.

For bank account integrations on their platform, Arrived Homes collaborates with Plaid, a trusted third-party payment system.

Arrived Homes has three primary revenue streams – Agent Commissions, Acquisition Charges, and Management Fees.

When Arrived Homes purchases a property, they serve as their own purchasing agent. As a result, they obtain Agent Commissions from the initial property seller during the purchase. This commission isn’t explicitly listed for investors on their Property pages.

However, investors can clearly see the Acquisition Charge. This fee is displayed with other expenses and typically hovers around 5% of the property’s final purchase price. To illustrate, on a property worth $685,000, the charge for investors by Arrived Homes is close to $35,000.

Then there’s the Management Fee by Arrived Homes. Once all shares of a new property are sold, they begin levying a continuous fee, roughly 0.5% of the property’s yearly value. Over a usual holding duration of 5-7 years, this implies that investors pay an extra 2.5% to 3.5% from the property’s value appreciation. Taking into account these charges, Arrived Homes gains an added $17k to $25k for each property they offload, excluding any appreciation value.

These charges come in addition to other potential incomes like the difference between actual cash inflow from the “Rental Dividend Yield” and actual property value growth from the “Property Equity Returns.”

Also, for their third-party property management services, Arrived Homes deducts 8% from the rental earnings.

Arrived Homes employs a meticulous selection process, involving market research, analysis of growth potential, and evaluation of rental income prospects. They focus on properties in high-demand areas with strong potential for appreciation and stable rental income.

Yes, investors on Arrived Homes have the flexibility to choose specific properties to invest in. Each listed property comes with detailed information, allowing investors to make informed decisions based on their investment goals.

Arrived Homes manages all aspects of property maintenance, including repairs and renovations. Costs for significant repairs are typically covered by reserves set aside from rental income, ensuring the property’s value and rental potential are maintained.

Yes, investing with Arrived Homes has tax implications, similar to other real estate investments. Investors receive tax documents annually and may be subject to income tax on rental earnings and capital gains tax upon the sale of a property.

Rental incomes are distributed to investors quarterly based on their ownership percentage. Property appreciation benefits are realized when the property is sold, and profits are distributed to investors according to their shares in the property.

Arrived Homes offers long-term investment prospects, with a typical holding period of 5-7 years. This allows for potential property appreciation and steady rental income, contributing to long-term wealth building for investors.

Currently, Arrived Homes does not offer a secondary market for selling shares before the planned exit period. However, they are exploring options to provide liquidity solutions for investors in the future.

Arrived Homes maintains transparency about its fees and charges. All fees, including management fees, sourcing fees, and property management fees, are clearly outlined on the platform and in the investment documents.

Jeremy Biberdorf

About the Author:

Jeremy Biberdorf is the founder of Modest Money. He’s a father of 2 beautiful girls, a dog owner, a long-time online entrepreneur and an investing enthusiast.