The idea of investing in real estate is tempting to many. Owning a rental property can both diversify your portfolio and provide steady passive cash.
But the thought of having to become a landlord is a deal breaker for many of us. Finding the time to manage tenants and maintain a property can seem impossible when you already have a day job that takes over 40 hours a week.
But what if you could have the best of both worlds? With Arrived houses, you can enjoy the advantages of real estate investments without having to manage rental properties yourself. Fascinated? Let’s take a closer look at how Arrive Homes work.
- Start collecting real estate dividends right away
- Avoid the hassle of being a landlord
- Start with just $ 100
Open to non-accredited investors
What are arrived houses?
Arrived Homes is a start-up that aims to offer everyday investors the opportunity to invest in real estate. The company raised $ 37 million in seed funding earlier this year. One of their main investors is Jeff Bezos.
Ryan Fraizer, CEO and Co-Founder, said, “Our goal is to make the wealth creation potential of owning rental homes more accessible. We believe we can do this by simplifying the process and reducing the cost of getting started. ”
Essentially, you can start your real estate investment journey with just $ 100 through Arrived Homes. As an investor, you collect dividends from the real estate and your share of the increase in value, without having to worry about details such as looking for tenants or maintenance inquiries.
What does it offer?
So what can Arrived Homes offer you? Here are the features that stand out.
Consistent passive income with no problems
A major draw for investing in real estate is the opportunity to rent a property for permanent passive income. But being a landlord can be a drain on your time, energy, and resources.
With Arrived Homes, you don’t have to deal with tenants or property maintenance to take advantage of the source of income. Instead, you can leave the details to Arrived Homes. But you can enjoy the rental income through regular quarterly payments.
For the second quarter of 2021, Arrived Homes real estate dividends ranged from $ 0.13 to $ 0.16 per share. They said this resulted in annual returns of 5.21% to 6.42%.
Benefit from the increase in value
Since you are part owner of an actual property, you also participate in any returns due to increases in value. You will see the property grow in value over time. And once the property is sold you will receive a percentage of the profit based on your ownership interests.
Low investment minimum
You can invest with as little as $ 100 with Arrived Homes. But you can invest up to $ 20,000 per home. As you continue to work with Arrived Homes, you can build a real estate portfolio that reflects your goals.
Strict ownership requirements
Reviewing a property for sale is something that Arrived Homes takes very seriously. The company uses extensive data science to ensure they are buying homes at the right price.
Arrived Homes takes care of the paperwork from research to acquisition. With it, you don’t have to spend time looking for the perfect property.
No personal liability
As they build their real estate wealth, some investors worry about the personal liability associated with managing rentals. However, this is not something to worry about when investing through Arrived Homes.
The company will bring all new real estate into an LLC. This means that there is no personal liability associated with your investment.
Related: How to Form an LLC for Investing
Are there any fees?
Arrived Homes comes with a few fees that you should be aware of. First, the company calculates a annual management fee. We couldn’t find a specific percentage anywhere on Arrived Homes website. However, several third-party sources have reported that the AUM fee is 1%.
Second, Arrived Homes charges 8% of the rent for Property Management at every house. Third, you pay once Procurement fee. This fee varies by property and is already included in the listed share price. The procurement fee for a property can be found in the listing details section of the investment page.
How do the houses that have arrived compare?
Arrived Homes offers investors the opportunity to invest in real estate with minimal capital. The company isn’t the only company offering this opportunity to aspiring real estate investors.
Roofstock offers investors a similar style of investing in Roofstock One. Roofstock One is currently closed to new investors. However, when it is reissued, accredited investors can buy all or part of a managed investment property.
Fundrise does not allow investors to select individual properties. But through his eREITs. it makes it easy to invest in lots of cash flow properties (residential and commercial) starting as low as $ 10. Here’s a closer look at comparing Arrived Homes:
How do I open an account?
At this point, you can further explore the potential properties and link your bank account when you are ready to invest in an offer. When I was exploring the platform, none of the properties were ready for investment. Instead, I had the option to reserve stocks and be notified when I needed to make my investment.
Is it safe and secure?
Arrived Homes offers the opportunity to invest in real estate, which comes with inherent risks. It is possible that you could lose money on a deal. But that has not been the case so far.
In terms of liability protection, Arrived Homes protects you from any personal liability. Each property is placed in an LLC. As an investor in a home, you are investing in the LLC. This means that you are not personally on the hook if there are lawsuits relating to a specific property.
Talking about liquidity is important with any property investing side. The expected holding period for the holdings listed on their website is 5-7 years. That’s a long time to tie up your money, especially when compared to stocks and ETFs that can be sold anytime.
Arrived Homes says investors can apply for early redemption of their shares after 6 months. But it also means that there is no guarantee that a secondary market will develop. In other words, it can be difficult to find a future buyer to buy your stock.
How do I contact houses that have arrived?
Would you like to reach Arrived Homes? You can get in touch using the live chat feature on their website, call 1-814-277-4883, or email their customer support team at [email protected]
In addition, you can connect @ArrivedHomes via Facebook, Twitter, Instagram and LinkedIn.
Is it worth?
We love the concept of Arrived Homes for those who want to invest in real estate without taking responsibility as a landlord. But with little to no properties currently ready for investment, the platform appears to be still in the works.
Over time, Arrived Homes could become a serious competitor in the real estate investment world. However, if you want to invest right now, you can likely find better project inventory on a more established platform. Check out our most popular real estate crowdfunding sites here >>>
Properties of Arrived Homes
5.21% to 6.42% (as of 2nd quarter 2021)
Open to non-accredited investors
Limited. No properties currently accepting investment
High. Historical financial data and offer circulars for each property
Expected term of the plant
Can be requested after 6 months
Intended, but not guaranteed
Phone, email, chat, social media
Customer service phone number
Customer service email address
Web / desktop account access