Looking for a fresh way to spread out your investments? Real estate might be the answer you’re searching for, especially if you’re keen on avoiding the usual landlord headaches. This method allows you to dip your toes into property investment without having to manage everything directly or invest huge sums upfront.
Now, there’s a platform that’s been catching the eye of many investors, especially those interested in passive income without the full commitment of buying a property. This platform opens the door to investing with as little as $100, offering a slice of the real estate pie to everyone, not just the big players. It’s particularly appealing because it welcomes non-accredited investors, making it more accessible than many traditional investment routes.
The platform I’m talking about is Arrived. So, when it comes down to it, is Arrived real estate investing a good investment? Considering its approach to making real estate more accessible and the potential for passive income, it certainly seems worth a deeper look for those wanting to diversify without the direct burden of traditional property management.
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Arrived Background Information
Before you decide if Arrived real estate is a good investment, you should probably know something about its roots. Arrived Homes, launched in 2019 by Ryan Frazier, Kenny Cason, and Alejandro Chouza, is shaking up the way we think about real estate investing.
Their main aim is to make it easy for anyone to get into the rental property game by offering fractional shares. This means that both big-time investors and everyday folks, whether they are accredited investors or non-accredited investors, can start investing without needing a hefty bank balance.
This platform is all about residential real estate, setting itself apart from others that tend to focus more on commercial spaces. Arrived Homes lets people put their money into different types of homes. Some are bought with loans, and some are purchased outright.
They’ve grown quickly, now owning over 225 homes in 39 different markets, with a total investment value hitting around $85 million. What’s really cool is that you can start investing with just $100, making it super approachable for anyone looking to dive into real estate without all the traditional hassle.
Traditional vs Fractional Real Estate Investing
Before deciding if Arrived real estate investing is a good investment, you should decide if fractional real estate investing is for you. Crowdfunded fractional real estate investing and traditional real estate investing cater to different types of investors with varying levels of capital, time, and expertise.
Crowdfunded Fractional Real Estate Investing:
- Accessibility: Fractional investing lowers the financial barrier to entry, allowing individuals to invest in real estate with significantly less money, sometimes as low as $100.
- Diversification: Investors can spread their investment across multiple properties or projects, reducing risk.
- Passivity: It’s mostly hands-off, making it ideal for those who want exposure to real estate without dealing with the day-to-day responsibilities of property management.
- Liquidity: While not as liquid as stocks, some platforms offer more liquidity than traditional real estate investments, though this can vary widely.
Traditional Real Estate Investing:
- Control: Investors have direct control over their property, including decisions related to property management, tenants, and renovations.
- Potential for Higher Returns: Direct ownership in the right market conditions can lead to higher individual property returns, especially if the investor is skilled in adding value to the property.
- Tax Benefits: Direct ownership can provide certain tax benefits like deductions and depreciation.
- Time and Effort: Requires more time, effort, and capital, making it less accessible for the average investor and more suited to those with the experience and resources to manage properties directly.
Each investment style has its merits and challenges. Fractional investing offers an easier, more accessible way to get into the real estate market, while traditional investing offers greater control and potential returns at the cost of higher risk and involvement. Assessing your financial situation, time commitment, and risk tolerance is crucial before diving into either option.
Arrived Real Estate Investing Benefits
Before coming to a conclusion about whether Arrived real estate investing is a good investment, you should know the details of all its features. Here is my breakdown:
- Ownership Without The Hassle: Real estate investors often avoid becoming landlords due to time-consuming responsibilities. Arrived Homes addresses this by managing all aspects of property ownership, from maintenance to tenant issues, allowing investors to enjoy passive income without daily obligations.
- Legal Protection: Investors typically create LLCs or Trusts to avoid personal liability. Arrived Homes simplifies this by placing investment properties within LLCs, ensuring investors are not personally liable in legal disputes, enhancing peace of mind.
- Renter Vetting Process: Ensuring reliable tenants is crucial. Arrived implements stringent vetting, including credit checks and employment verification, to maintain high occupancy rates and secure consistent rental income for its investors.
- Advanced Technology: The platform uses sophisticated technology for property selection and portfolio management, making real estate investing more accessible and manageable for everyday investors.
- Minimum Investments: Both accredited and non-accredited investors can start with as little as $100, making real estate investing accessible to a wider audience. This low entry point is particularly appealing for new investors.
- Investment Properties: The platform focuses on single-family homes and vacation rental properties, providing a variety of investment options. Investors can choose to put their money into individual properties or diversify through the Single Family Residential Fund.
- Investment Strategies: Earnings come from two main sources: dividends from rental income and appreciation of property values over time, offering multiple streams of potential returns.
- Type of Investment: Currently, Arrived offers one REIT fund, but the platform allows investors to select specific rental or vacation properties, enabling tailored investment strategies.
- Expansion and Support: The platform’s growth and the potential for expanded investment opportunities are supported by significant funding, including a $25 million Series A round with contributions from high-profile investors like Jeff Bezos’ Bezos Expeditions and Spencer Rascoff. This external support could mean more opportunities for investors using the platform.
Is Arrived Real Estate Investing A Good Investment?
In the world of real estate crowdfunding, it’s hard to keep track of all the new platforms popping up each year. Yet, Arrived manages to shine brightly among the rest. What sets it apart? Well, for starters, its focus on residential properties and an impressively low minimum investment requirement are quite rare in the space.
The use of professional contractors and property managers means you can invest without getting bogged down in the day-to-day hassles of property management. Plus, their approach to risk management, including a cash reserve fund, provides a safety net for investors.
So, is Arrived real estate investing a good investment? For those looking to break into real estate without the traditional barriers, it certainly seems like a strong option. If you’re curious and ready to explore what Arrived has to offer, Click Here to learn more and get started.
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