Is Arrived Homes a Good Investment? An In-Depth Analysis


Jeremy BiberdorfBy: Jeremy Biberdorf

July 25, 2023July 25, 2023

Arrived Homes

Real estate is a sought-after avenue for those pursuing passive income and investment portfolio diversification. However, the realm of real estate investment, particularly rental property, has traditionally been reserved for those with substantial capital.

Not anymore. Arrived Homes, backed by investors like Jeff Bezos, is attempting to disrupt this pattern by opening up the real estate market to a broader range of investors.

This then raises the question, is Arrived Homes a good investment? This article provides a comprehensive look at the platform and its features to help you make that decision for yourself.

Learn More About Arrived Homes

Understanding Arrived Homes

Arrived Homes is a unique real estate platform that democratizes access to the rental property market. Non-accredited investors are able to buy fractional shares in individual properties –– unlike traditional investment options. This could range from single-family homes to vacation rentals.

This innovative approach, combined with the backing of high-profile individuals like Jeff Bezos, Alejandro Chouza, and Kenny Cason, has caught the attention of retail investors across the globe.

Why Invest in Arrived Homes

Investing in Arrived Homes offers several notable advantages:

  • Access to the Real Estate Market: Arrived Homes enables everyday investors to enter the real estate market, offering an alternative to the volatile stock exchange. For those seeking diversification, this platform provides an excellent opportunity.
  • Potential for Rental Income: Arrived Homes aims to deliver consistent rental dividend payments, offering a passive income source and helping to build long-term wealth.
  • Property Appreciation: Besides rental income, investors can also benefit from property appreciation. This growth can yield capital gains and even give investors leverage on their initial investment.

With the opportunity to earn from both property appreciation and consistent rental dividends, Arrived Homes presents a compelling proposition.

Also, the platform’s commitment to democratizing the real estate market has enabled everyday people to step into the shoes of a real estate investor. And now, the possibility of owning a piece of investment property without substantial capital is a reality –– an undeniably appealing prospect.

Arrived Homes: Simplified Investment Process

Getting started with Arrived Homes involves a straightforward four-step process:

  • Browse Properties: Investors can browse through a wide variety of properties, all pre-vetted for their investment potential.
  • Select Property: Once a potential property is chosen, the investor decides on the amount to invest and selects the shares accordingly.
  • Buy Shares: Next, the terms are reviewed, the online contract is signed electronically, and the investment is funded.
  • Earn Rental Income & Appreciation: Lastly, while Arrived Homes takes care of property management, investors can sit back and enjoy both rental income and potential property appreciation.

The simplified investment process offered by Arrived Homes does not just remove the complexities associated with real estate investing; it also brings down the barriers to entry. Once the process is complete, investors can look forward to quarterly dividends and potential appreciation from the property.

This blend of passive income and growth potential positions Arrived Homes as a compelling real estate investing platform for many investors.

Leveraging the Arrived Homes Platform

One significant advantage of investing with Arrived Homes is the flexibility it offers in terms of investment amounts. Investors can put in anything from $100 to approximately $20,000 per house. This broad range of flexibility empowers a much wider demographic. –– allowing them to benefit from real estate investments.

Moreover, diversifying your investment portfolio has never been easier –– this is an excellent opportunity. Given the historically consistent returns and low correlation to the stock market –– real estate adds stability to your portfolio, potentially mitigating risks associated with stock market fluctuations.

Examining the Benefits and Risks

Investing with Arrived Homes comes with several benefits that can make it a good investment option:

  • Minimal Investment: With a minimum investment requirement as low as $100, Arrived Homes makes real estate investing accessible to more people.
  • Property Management: The platform takes care of property management, thus removing the typical headaches associated with rental properties, such as maintenance and tenant relations.
  • Portfolio Diversification: By allowing investment in individual properties, Arrived Homes provides an avenue for portfolio diversification beyond conventional stock market investments.

However, like any investment, Arrived Homes comes with its risk factors. It’s crucial to understand that while the platform simplifies real estate investing, it doesn’t eliminate the inherent risks associated with the housing market. These could include property value fluctuations, potential vacancies, and variations in rental income. Check out our detailed review for more pros and cons.

Pricing and Potential Returns with Arrived Homes

Understanding the pricing and potential returns is critical for any real estate investor considering alternative investments like Arrived Homes. The platform has property shares available for a specific purchase price –– available on a first-come, first-serve basis. This pricing model is based on a valuation of the single property, taking into account the price paid to the previous owner and renovation costs, if any.

The real estate properties available on Arrived Homes range from single-family rental properties to vacation properties. Once the shares are fully funded, Arrived Homes purchases the property and places it on the rental market.

As a shareowner, you then start receiving rental payments as quarterly dividends, based on the rental income earned from the property, less any property management fee and other associated costs. Rental homes in high-demand areas can provide steady cash flow.

Investors also have the ability to trade their shares in the secondary market –– allowing them to exit their investment before the typical holding period ends. The share price in the secondary market is influenced by investor demand and price trends in the broader real estate market.

It’s crucial to remember that like any type of investment, these property shares come with their risks, including potential fluctuations in share price and rental income.

Arrived Homes vs. Other Platforms

When compared to other real estate investment platforms or REITs, Arrived Homes stands out due to its focus on individual properties. Arrived Homes allows its investors to choose the actual property they wish to invest in –– unlike REITs, where you invest in a diversified portfolio of properties.

This level of transparency is appealing to many investors –– providing them with a clear understanding of exactly where their money is going.

After thorough analysis, Arrived Homes appears to be a promising platform for those looking to diversify their investment portfolios with real estate. It provides a relatively affordable and hands-off approach to investing in rental properties. And this comes with steady passive income potential along with the possibility of property appreciation.

However, as with any investment opportunity, it’s important to understand the risks and align the opportunity with your personal financial goals and risk tolerance. Consider reading our detailed comparison of Arrived Homes vs. Fundrise to help you make a decision.

Final Thoughts

If you’re contemplating entering the real estate market but are apprehensive about the significant capital and personal liability typically involved, Arrived Homes could be the answer. The platform offers fractional ownership in rental properties, thus democratizing real estate investment.

Ready to take your first step in real estate investing with Arrived Homes? Click here to kick-start your journey into the rewarding world of real estate investment.

Get Started With Arrived Homes

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Jeremy Biberdorf
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.

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