Investing in rental homes has traditionally been considered a cumbersome process, laden with tedious steps and high upfront costs.
However, Arrived Homes is changing this narrative by offering a simplified, low-entry investment platform for seasoned and beginner investors. This review expands more on what the platform offers to investors.
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Pros and Cons of Arrived Homes
Pros
- Low entry threshold
- Simplified investment process
- Passive income potential
- Educational resources
- Open to all investors
Cons
- Fees can impact returns
- No automated account features
- Limited property types
- S. only service
- Long-term commitment required
What is Arrived Homes
Arrived Homes is a platform that enables you to invest in fractional shares of rental homes with as little as $100. Unlike the conventional route of purchasing rental properties, Arrived Homes curates a list of low-cost, pre-vetted homes, making the process less daunting for investors.
The investments are structured in an LLC and are taxed as Real Estate Investment Trusts (REITs), thus eliminating personal liability for investors.
By leveraging advanced market tools, data-driven technology, and collaborations with local market experts, Arrived Homes aims to optimize returns for its investors.
Through Arrived Homes, investors can earn passive income from single-family residences and vacation rentals either through quarterly dividends or from the appreciation of property value over the investment period. It’s noteworthy that while single-family residences qualify as REITs, vacation rentals do not.
Is This Platform for You?
Arrived Homes is Open to accredited and non-accredited investors and caters to a broad spectrum of individuals. Accredited investors have a net worth of at least $1 million or an annual income of $200,000 ($300,000 for couples).
This platform especially appeals to those seeking to earn passive income from rental properties without the hassle of traditional real estate investments.
For novice investors, the low investment minimum, user-friendly platform, and educational resources Arrived Homes provides can be a great boon. It serves as a gateway to building wealth through long-term passive income from real estate.
However, it’s worth mentioning that Arrived Homes lacks automated account features, indicating a better fit for those who prefer a more hands-on investment approach.
Is Arrived Homes Trustworthy?
In the realm of real estate investment, trustworthiness is a pivotal factor. Arrived Homes has garnered an A+ rating from the Better Business Bureau (BBB).
However, it’s vital to note that while BBB ratings indicate a business’s customer interaction quality, they don’t guarantee a company’s reliability or performance.
Thankfully, Arrived Homes has steered clear of major legal entanglements or public scandals thus far, painting a favorable image.
For a more personalized insight, it’s advisable to seek opinions from acquaintances who have interacted with Arrived Homes or delve into online customer reviews.
Ways to Invest with Arrived Homes
Arrived Homes provides a structured yet straightforward approach to real estate investment. Offering only taxable investment accounts and self-directed individual retirement accounts streamlines the investment process.
Taxable Accounts
- Exploration: Begin by browsing through the array of homes listed on Arrived Homes’ marketplace categorized as “Trending,” “For Sale,” or “Sold Out.”
- Share Selection: Each listing displays the per-share price, aiding in determining your investment amount.
- Contractual Agreement: Review the terms, sign the online contract, and link your bank account to fund the asset.
- Income Generation: Once on board, enjoy passive rental income managed by Arrived Homes, with quarterly dividend distributions. The annual returns for 2021 hovered between 5.21% to 6.42%.
Essential details like the number of shares, price-per-share, purchase price, and additional supportive documents accompany each listing.
Plus, the review feature on Arrived Homes provides a glimpse into other investors’ experiences with the property in question.
Retirement Savings Accounts
Investors can also opt for retirement savings through a Checkbook IRA, a self-directed IRA owning an LLC. As the LLC manager, your investment is confined to the LLC, offering more flexibility, access to alternative assets, and greater control over investments.
This structure not only expedites transactions but also provides an extra layer of security against legal or financial adversities, as assets in the LLC are distinct from your assets.
Arrived Homes Pricing Plan
Investing in real estate can be lucrative, but understanding the fee structure is crucial to measuring the potential return on investment.
Arrived Homes presents a simplified entry into real estate investment with a minimal starting requirement of $100. However, the cost to acquire rental properties is higher, typically a few thousand dollars.
Fee Breakdown:
- Long-term Rental Properties:
- Sourcing Fee: A one-time fee of 3.5% of the property purchase price is charged for sourcing the property.
- Quarterly AUM Fee: Investors are also subjected to a quarterly Assets Under Management (AUM) fee of 0.15% of the property purchase price.
- Vacation Rental Properties:
- Sourcing Fee: A higher one-time sourcing fee of 5% of the property purchase price is levied for vacation rental properties.
- Gross Rent Fee: A fee of 5% of the gross revenue generated from the rent is charged.
The fees for long-term and vacation rental properties differ, reflecting the varying levels of management required for these types of properties.
The sourcing fee is a one-time charge aimed at covering the costs associated with finding and acquiring the property, while the quarterly AUM fee and the gross rent fee are recurring charges designed to cover the ongoing management and operational costs.
Conclusion
Arrived Homes is carving a niche in the real estate investment sphere by lowering the barriers to entry and simplifying the investment process.
Whether you are an experienced investor or just starting, if the idea of earning passive income from rental properties intrigues you, Arrived Homes might be the platform to kickstart or expand your real estate investment journey.
The easy entry point and educational resources make Arrived Homes a compelling option for individuals eyeing the real estate market with long-term wealth-building in mind.
The company emerges as a platform striving to demystify the real estate investment process. Its transparency, structured approach, and favorable rating from BBB are promising indicators of its trustworthiness.
While it’s advisable to conduct personal due diligence and consult with financial advisors, Arrived Homes could potentially be a worthy avenue for both seasoned and novice investors to explore the real estate market. Click here to sign up for an account using our coupon code.
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