Real estate is a favorite investment option for many Americans. Unfortunately, investing in real estate hasn’t always been an accessible opportunity for everyone.
In addition to the huge upfront cost that’s usually required, rental properties also take a considerable amount of time and maintenance that most investors don’t have. This is where companies like Arrived Homes come in.
This platform makes it easy for investors who want to invest in real estate to buy shares in rental properties. Our Arrived Homes review can help you decide if the site is a good opportunity for your real estate investing goals.
Arrived Homes is a real estate crowdfunding site that allows investors to buy shares in rental properties for a minimum investment of $100. Once you’re an investor, you can make money through rental income and appreciation.
Ease of use
- Hands-off real estate investment
- Low minimum investment
- Open to non-accredited investors
- Rental income and appreciation
- Low management fee
- Limited liability for investors
- Includes vacation rentals
- Some opportunities sold out
- Fewer properties than other platforms
- Holding period required for investments
- Few customer reviews
Table of Contents
- What is Arrived Homes?
- Is Arrived Homes Legit?
- How Does Arrived Homes Work?
- How Do I Open an Account with Arrived Homes?
- How Much Does Arrived Homes Cost?
- Is Arrived Homes Worth It?
- What Does Arrived Homes Offer?
- Arrived Homes Reviews
- Alternatives To Arrived Homes
What is Arrived Homes?
Arrived Homes is a real estate crowdfunding site that is available to non-accredited investors.
It allows investors to buy shares in individual properties and earn money from rental income and appreciation without the hassle of property management.
The company is based in Seattle and was founded by Alejandro Chouza, Kenneth Cason and Ryan Frazier.
Though Arrived Homes is only a few years old, it has already made a major impact for its investors.
The company has received more than $135 million between investors and debt financing. Its investors have funded over $50 million in property spanning more than 149 properties in over 22 active markets.
Is Arrived Homes Legit?
Arrived Homes is a legitimate company that has provided real returns for its investors. The company is accredited by the Better Business Bureau and has received many positive reviews from users.
In addition, the company has also registered with the U.S. Securities and Exchange Commission.
How Does Arrived Homes Work?
Arrived Homes allows investors to add properties to their investment portfolios through a simple four-step process.
1. Browse Homes
The company’s website has a database of all the properties currently available for individuals to invest in. These properties have been pre-vetted by the company to ensure the highest chances of a good return on investment (ROI).
For each property, investors can see information that includes:
- Property specifications
- Purchase price
- Monthly rent
- Number of current investors
- Percent of shares purchased
- Property growth value
- Rental dividend yield
- Market volatility
Investors can also invest in vacation rentals, a much sought-after opportunity for real estate investors. The vacation rental market has already reached $13 billion and is expected to reach $20 billion by 2025.
Investors love vacation rentals because they bring in 130% more profits than long-term rentals, and the market keeps growing. The number of travelers using vacation rentals has increased 3x the number of travelers using vacation rentals since 2011.
Investing in vacation rentals opens the door to more rental opportunities and helps diversify your real estate portfolio, reducing the risk of loss.
Vacation rentals are a new opportunity through Arrived, and currently, they offer investments in rental properties in the following areas:
- The Mirage in Joshua Tree, CA
- The Oasis in Nashville, TN
- The Cardinal in Glendale, AZ
- The Ace in Scottsdale, AZ
- The Hammock in Clearwater, FL
- The Orchard in Blue Ridge, GA
- The Pointbreak in Panama City, FL
2. Choose Property
Once you’ve found a property you’re interested in, you can easily invest by signing up for Arrived Homes and indicating how many shares you want to purchase.
You can purchase as few or as many shares as you want as long as there are that many shares available.
When you’re choosing a property, it’s important to pay attention to information such as the holding period and the asset management fee. These factors may impact your decision to invest.
When you’re ready to buy your shares, simply sign into your account and review the terms provided by Arrived Homes.
After you sign your online contract and link your bank account to fund your investment, the shares will be yours.
4. Earn Income and Appreciation
Once you own shares in a property, you can make money from its income and appreciation. The income you’ll earn comes from the monthly rent payment on the property.
You can also make money from appreciation if and when Arrived Homes eventually sells the property.
Better yet, you won’t have to worry about property management as you earn passive income with rental homes and properties.
Income is an important factor when deciding whether to invest in long-term vs. short-term rentals. While short-term rentals like vacation homes have higher income potential in a quickly growing market, long-term rentals have lower operating costs, turnover, and more consistent payouts. Evaluate which one best suits your investing and income preferences.
How Do I Open an Account with Arrived Homes?
Opening an account with Arrived Homes only takes a few minutes. When you open the company’s website, you’ll find a button in the top right corner that says “Sign Up.”
From there, you’ll be asked to enter your email address and choose a password.
Like any other investment account, Arrived Homes will require some personal information, such as your birth date and address.
Additionally, you’ll have to choose how you want to fund your account when it’s time to make your first investment.
How Much Does Arrived Homes Cost?
It’s free to sign up for Arrived Homes, and the amount required to invest depends on the rental property you choose, whether it is a long-term or short-term vacation rental.
Arrived Homes requires an investment of $100, which is considerably lower than the minimum investments required by many other crowdfunding sites.
Most Arrived Homes properties have their shares priced at $10 per share. You can purchase as many or as few shares as you want as long as you meet the company’s $100 investment minimum.
Keep in mind that in addition to your investment amount, there are also fees. This is similar to what you would expect with most other investments.
Arrived Homes charges a quarterly asset management fee, which comes out of the property’s rental income before its distributed to shareholders. An annual management fee is common on these types of sites.
Is Arrived Homes Worth It?
Arrived Homes has plenty of things going for it, including its low investment minimum, regular dividend payments and more.
Since it has a lower investment minimum than some of its competitors, it could be easier for investors to get started. Plus, you can begin earning dividends from your home or vacation rental investments quickly.
However, there are some things to consider before using the platform. First, Arrived Homes doesn’t have nearly as many investment opportunities as many other sites, which makes it difficult to diversify your real estate portfolio.
Additionally, some of the properties it owns don’t currently have tenants.
Ultimately, Arrived Homes could be worth it if you’re just looking to dip your toe into investing in properties. That said, it doesn’t have quite as much to offer as some of its competitors.
What Does Arrived Homes Offer?
Real estate crowdfunding has become increasingly popular, so there are many sites for investors to choose from. Arrived Homes has several key features that help it stand out from the competition.
Low Minimum Investment
Arrived Homes has a low investment requirement of just $100. This makes it easy to start investing with a limited amount of money.
On the other hand, many crowdfunding sites have investment minimums of thousands of dollars. In fact, some sites require as much as $50,000 to $100,000.
Arrived Homes knows that having the right tenants is an important component of investing in a successful rental property.
The company has a screening process that looks for tenants who will stay in the property longer, treat it well and pay their rent on time.
This platform has a proprietary process that vets and scores tenants using both internal and third-party professional tools.
Access the Most Lucrative Markets
When it comes to real estate investing, location is key. Unfortunately, many investors are limited to their immediate area if they want to invest in property.
Arrived Homes expands your opportunities by allowing you to buy shares of properties in the country’s best real estate markets.
Plus, when you’re browsing through options, you can see where each is located and the volatility of the local real estate market. Plus you can even access vacation rentals.
Consistent Passive Income
One of the best benefits of investing in real estate is the consistent income you earn from rental payments.
Since Arrived Homes takes care of all the work, this recurring income is completely passive. In addition, dividends are paid quarterly.
Beyond making money from rental income, you can also make money long-term through property appreciation. Over time, the value of the homes you invest in should increase.
Just like any other asset, as the value of the properties you’ve invested in increases, so does the value of your portfolio.
No Personal Liability
Arrived Homes does everything it can to limit the risk to its investors. First, as an LLC Series, the company is able to shield investors from personal liability.
For example, if a tenant of a property you’ve invested in sues Arrived Homes, you won’t have any personal liability for anything.
The platform also helps to protect its investors’ credit. Normally, buying rental property would require taking out a mortgage in your name. Then, if you didn’t make your payments, your credit would take a huge hit.
However, since Arrived Homes’ financing isn’t backed by its investors’ personal credit, you don’t have to worry about that.
Professional Grade Technology
Thanks to technology, it’s now far easier for individuals to invest in real estate. Arrived Homes has data-driven tools that enable better decision-making to improve returns for investors.
The platform uses both internal and external tools for the following purposes:
- Identifying markets
- Analyzing properties
- Negotiating purchases
- Operating properties efficiently
Arrived Homes Reviews
As a relatively new company, Arrived Homes doesn’t have many online reviews yet. Currently, it has 12 reviews on the Better Business Bureau, each of which gives the company five stars.
It’s also worth noting that the company has no complaints registered with the Better Business Bureau.
This means that if you are looking for an Arrived Homes review that is positive, you won’t have to look too far.
Here’s a sampling of some Arrived Homes reviews investors have shared:
“I’ve wanted to find an accessible way to invest in real estate and Arrived has helped me do just that! Super simple website to use and I’m already enjoying the dividends!” – Adam
“Trustworthy company, looks after their customers, and follows the SEC guidelines to the tee. They allow you to invest in single family rental homes through their website, not to be confused with another website who is trying to sell AirBnB properties.” – Eli
“The entire Process was very easy and straightforward. Great way to get into real estate.” – Mike
“The process of investing with Arrived is a simple, and their information is so transparent which makes investing in rental properties attractive. I hated being a landlord, and this became the perfect solution!” – Shirley
Alternatives To Arrived Homes
Crowdfunded real estate has become increasingly popular in recent years. As a result, there are plenty of real estate websites to choose from. Here are a few alternatives to Arrived Homes.
Diversfyfund is a real estate crowdfunding platform that allows you to invest in properties for as little as $500. The platform differs from Arrived Homes in terms of the types of properties that are available to invest in.
While Arrived Homes primarily invests in single-family homes and vacation rentals, Diversyfund specializes in multi-family properties. It also handles property management for its investors.
Fundrise is one of the oldest and most popular crowdfunding sites. It is unique because rather than investing in a single property or a small selection of properties, you invest in a portfolio designed by the company.
The investment minimum depends on the portfolio you choose and could be either $10, $1,000, $5,000, $10,000 or $100,000. The Premium portfolio, which requires an initial investment of $100,000, is only available to accredited investors.
HappyNest is a real estate investing app that combines the features of many micro-investing apps with that of real estate crowdfunding.
Rather than making a large upfront investment, HappyNest allows you to round up your daily spending and use that money to invest in properties. You only need $10 in your account to invest in HappyNest’s portfolio.
Are you considering investing with Arrived Homes but still aren’t convinced it’s the right option for you? We’ve answered some of the most frequently asked questions prospective investors have to help you make a decision.
How do I contact Arrived Homes?
Arrived Homes offers two different ways for investors to reach its customer support team. You can either email the company at email@example.com or call (814) 277-4833.
Does Arrived Homes have an app?
No. Arrived Homes doesn’t currently have a mobile app. You can only access your account on the company’s website.
Is Arrived Homes safe to use?
No investment is 100% safe since you do accept some risk of losing your money. For example, with Arrived Homes, the property you invest in could go a long time without a tenant, meaning it isn’t generating a return.
However, the platform does take some steps to keep investors safe, including having safety features on its website and protecting its investors from liability. It also uses Plaid to keep your private data safe.
Does Arrived Homes charge an annual management fee?
No. Arrived Homes charges a quarterly management fee.
There’s no doubt that Arrived Homes has helped make real estate investing more accessible without the need for property management. It’s no longer necessary for investors to save up and take out a mortgage to buy their first rental property.
Instead, you can invest in real estate for as little as $10 per share, with an investment of just $100.
Of course, Arrived Homes isn’t the only real estate crowdfunding site on the market. Before deciding to invest, be sure to explore the alternatives to make sure you’re choosing the platform that best fits your needs and investment style.