Do you want to invest in real estate and generate passive income? The rise of real estate investing platforms, such as Arrived Homes, makes it easier for everyday investors to access the rental property market. But with various investment options available, it is essential to ensure that you choose a legitimate platform.
In this article, we will discuss Arrived Homes to determine if it is a legitimate platform and if it is worth considering for your real estate investments.
Arrived Homes is a relatively new real estate investing platform that enables non-accredited and accredited investors alike to invest in rental properties.Co-founded in 2020 by Ryan Frazier and Alejandro Chouza, a former Amazon executive, and co-investor in many of Jeff Bezos’ deals, the platform makes it easier for everyday investors to own and earn rental income from properties without dealing with the hurdles common in the traditional real estate market. The company is based in Seattle, Washington.
The platform allows users to invest in individual properties, with a minimum investment starting at $100. As a result, investors can gain exposure to the real estate market and earn rental income without significant upfront capital or personal liability for the property.
When evaluating the legitimacy of a company, a significant factor to consider is its financial backing. Arrived Homes boasts an impressive investor portfolio, with over $135 million in company funding.
This robust financial backing underlines the confidence these investors have in Arrived Homes’ mission of democratizing real estate investing.
A look at the investors in Arrived Homes further underscores its legitimacy. The company is supported by highly regarded venture capital firms such as Forerunner Ventures, Bezos Expeditions, Time Ventures, PSL, Core Innovation Capital, Good Friends, and Neo.
Moreover, the list of individual investors includes notable names like Spencer Rascoff, Dara Khosrowshahi, Hadi Partovi, and Fred Tuomi, all respected figures in their respective industries.
Operational metrics are another significant sign of a company’s legitimacy. Arrived Homes has successfully funded more than 268 properties, illustrating a substantial volume of transactional activity. The meticulous care taken to hand-pick and individually analyze each property by the Arrived Homes investment team also emphasizes the professionalism of their operations.
Arrived Homes boasts a team that carries decades of experience across real estate, technology, operations, and finance. The team includes members from renowned companies such as Amazon, Microsoft, Smartsheet, Evernote, Uber, Sprout Social, Y Combinator, American Homes 4 Rent, and Goldman Sachs.
This blend of knowledge and experience solidifies the credibility of the team steering Arrived Homes’ vision.
For a full review of the service check out our: Arrived Homes Review.
Arrived Homes offers a range of features aimed at simplifying the real estate investment process for small, non-accredited investors:
- Individual Property Investment: The platform enables investors to choose which specific rental homes they would like to invest in. This differs from some real estate investing platforms that pool investments into a single fund or diversified portfolio. By investing in individual properties, investors have more control over their investments and can select properties they believe in.
- Diversification: With a low minimum investment of $100, investors can diversify their portfolio across multiple properties, markets, and property types. This helps reduce the impact of any single property’s performance on the overall portfolio.
- Rental Income: Investors receive a share of the rental income generated by their properties. This income can serve as passive income, supplementing other sources of income and contributing to financial goals.
- Transparency: Arrived Homes provides detailed information about each property, including location, property management, tenant information, and projected rental income. This allows investors to make informed decisions about their investments.
- Secondary Market: The platform offers a secondary market where investors can sell their shares in properties to other investors. This provides a level of liquidity not always available in traditional real estate investments.
Also check out Arrived Homes vs. Fundrise
Arrived Homes offers several strengths that may make it appealing to everyday investors:
- Low Minimum Investment: With a minimum investment of just $100, Arrived Homes makes real estate investing accessible to more people.
- Easy Online Platform: Investors can easily browse properties, make investments, and track their investments on a user-friendly platform.
- Clear Investment Process: The platform offers a transparent investment process, allowing investors to see property details and make informed decisions.
- Hands-Off Management: Arrived Homes handles property management, maintenance, and tenant relations for the investor, making it a passive investment with minimal effort required from the investor.
- Diversification Opportunity: The low minimum investment and property selection options allow for diversification in investor portfolios.
Despite its strengths, there are potential weaknesses of the Arrived Homes platform to consider:
- Limited Track Record: As a relatively new platform, Arrived Homes does not have a long operating history, which may make it difficult for some investors to evaluate its performance and reliability.
- Limited Liquidity: While the platform offers a secondary market for shares, this market is still under development. Investors may not be able to sell their shares as quickly or easily as they would like compared to other liquid investments.
- Geographic Concentration Risk: As the platform expands, it may remain concentrated in specific geographical regions, which could expose investors to regional economic risks.
- No In-person Due Diligence: Investors must rely on the platform’s due diligence on each property, as they cannot visit the properties in person.
Security and Privacy
Arrived Homes is committed to protecting investor privacy and the security of their information. The platform follows industry-standard practices to protect user data:
- Encryption: The platform uses secure socket layer (SSL) technology to encrypt sensitive information that is transmitted between users and the website, ensuring data is not intercepted during transmission.
Final Thoughts – Is Arrived Homes Legit?
After evaluating Arrived Homes’ background, features, strengths, weaknesses, and security measures, we can conclude that it is a legitimate real estate investment platform. With a low minimum investment, user-friendly platform, and focus on rental income, Arrived Homes can offer a unique opportunity for everyday investors to diversify their investment portfolio and generate passive income through real estate.
While the platform has its potential weaknesses, it is important to remember that all investments carry risks, and conducting thorough research can help mitigate those risks.
If you are considering investing in real estate through Arrived Homes, ensure you understand the risks involved and make informed investment decisions that align with your financial goals and risk tolerance. Click here to learn more about Arrived Homes!