Arrived Homes, a trailblazing real estate crowdfunding platform, has significantly impacted how everyday investors engage with the real estate market. With its innovative approach of allowing fractional ownership in rental properties for as little as $100, Arrived Homes has opened doors for many to earn passive income through real estate.
In this article, we’ll explore the platform’s offerings, address some concerns, and maintain a balanced perspective on its advantages and potential areas of improvement.
Learn More About Arrived Homes
Arrived Homes Overview
Founded in 2019 by Ryan Frazier, Alejandro Chouza, and Kenny Cason, Arrived Homes has made its mark by enabling both accredited and non-accredited investors to invest in single-family rental properties.
This approach allows individuals to generate rental income and benefit from property value appreciation without the typical burdens of property management. Despite some properties often being sold out due to high demand, Arrived Homes remains committed to expanding its portfolio and offering diverse investment opportunities.
Learn more about their offerings and how they compare to competitors in our comprehensive review here.
Arrived Homes Complaints and User Concerns
While Arrived Homes enjoys many positive reviews, it’s crucial to address potential areas where users may have concerns. It is still difficult to find any negative reviews published about the company, so let’s just discuss some areas of concern.
Inventory Shortages
One common issue is the limited number of investment properties available, as many are quickly sold out. While this can be frustrating for investors, it also reflects the platform’s popularity and success. Arrived Homes is actively working to expand its property listings to accommodate the growing interest.
Holding Time for Investments
The typical holding period of 5-7 years might be a drawback for short-term investors. However, this time frame is aligned with the nature of real estate investments, which often require a longer-term commitment to realize significant returns.
Limited Secondary Market
Currently, there isn’t a secondary market available for investors looking to sell their shares before the end of the holding period. This limitation emphasizes the need for investors to have a long-term perspective when investing with Arrived Homes.
Star Ratings and Reviews on Other Platforms
Arrived Homes boasts impressive ratings across various platforms:
- Better Business Bureau: 5
- The Savvy Couple:9
- WallStreetZen:5
- Benzinga:5
- Millennial Money:5
- Best Wallet Hacks:5
These ratings underline the platform’s user-friendliness and the ease with which investors can build a diversified real estate portfolio.
Comparison with Competing Platforms
Arrived Homes stands out in the real estate crowdfunding arena, particularly when compared to platforms like Fundrise. While Fundrise offers a broader range of real estate investment options, Arrived Homes focuses on single-family rental properties, providing a more niche and targeted investment opportunity.
For a detailed comparison, check out our Arrived Homes vs Fundrise analysis here.
Is Arrived Homes Right for You?
Arrived Homes is ideal for:
- Investors seeking passive income through rental properties.
- Those interested in real estate but lacking the capital for full property ownership.
- Non-accredited investors looking for real estate investment opportunities.
- Long-term investors comfortable with a 5-7 year holding period.
Final Thoughts
Arrived Homes presents a unique opportunity for everyday investors to enter the real estate market with a minimal initial investment. While the platform has areas to improve, such as expanding its property listings and potentially developing a secondary market, its strengths in providing effortless rental income and access to prime real estate markets are noteworthy.
To start your investment journey with Arrived Homes, click here and explore the possibilities of earning passive income through real estate. Don’t forget to take advantage of the promo code for new users of Arrived Homes.
Get Started with Arrived Homes
Arrived Homes FAQs
What is the minimum investment with Arrived Homes?
The minimum investment with Arrived Homes is only $100, making it an accessible entry point for individuals new to real estate investing. This low barrier to entry allows for diversification across multiple properties, spreading risk and maximizing potential returns.
Can non-accredited investors use Arrived Homes?
Yes, Arrived Homes uniquely caters to both accredited and non-accredited investors, democratizing access to real estate investments. This inclusivity makes real estate investment more accessible to a wider audience, previously limited by higher financial thresholds.
What type of properties does Arrived Homes offer?
Arrived Homes primarily offers shares in single-family rental properties, allowing investors to earn income from well-vetted residential real estate. These properties are carefully selected for their potential for rental income and appreciation in value.
How are rental dividends paid out?
Rental dividends from Arrived Homes are disbursed every quarter, providing investors with a regular income stream. These dividends represent a share of the rental income generated by the properties, proportional to the investor’s stake.
Is there a fee for investing with Arrived Homes?
Yes, investing with Arrived Homes involves a 1% annual management fee and a one-time sourcing fee. These fees cover property management and investment sourcing, ensuring properties are well-maintained and optimally selected.
How long do I need to hold my investment with Arrived Homes?
Investors typically hold their Arrived Homes investments for a period of 5-7 years. This holding period aligns with the nature of real estate investment, allowing sufficient time for properties to appreciate in value and generate rental income.
Can I sell my shares before the end of the holding period?
At present, Arrived Homes does not offer a secondary market for selling shares before the end of the typical holding period. Investors should view these investments as long-term commitments to maximize potential returns.
How does Arrived Homes select its properties?
Arrived Homes uses a comprehensive approach in selecting properties, involving detailed data analysis and scrutiny of market trends. This thorough vetting process aims to ensure that each property offers strong potential for rental income and appreciation.
What kind of returns can I expect from Arrived Homes?
Investors in Arrived Homes can expect returns in the form of rental income and potential property value appreciation. While exact returns vary, the platform aims to provide investors with steady income and long-term growth.
How does Arrived Homes compare to traditional real estate investing?
Arrived Homes offers a novel approach to real estate investing, focusing on passive income generation without the operational burdens typical in traditional real estate investments. It provides a more hands-off experience, appealing to those seeking exposure to real estate without the complexities of direct ownership and management.