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Arrived (previously Arrived Homes) is an income-generating real estate investing platform for accredited and non-accredited investors to diversify their portfolios with fractional residential and vacation rental property shares.
Business Insider’s personal finance team compared Arrived to the best real estate investing apps and found it to be an industry leader in transparent offerings and flexible liquidity.
Arrived
Fees
3.5% to 5% sourcing fee; 0.15% AUM, 5% gross rents fee
- Only $100 to start investing
- Open to accredited and non-accredited investors
- No personal liability for investors
- Property managers handle the legwork of your rental home
- Individual properties have holding periods of 5-7 years isn’t ideal for short-term investors
- Limited selection of rental homes
- High fees
Introduction to Arrived
Arrived is a modern real estate investing platform for generating passive income through fractional shares of rental homes starting at $100. The platform’s streamlined investment approach allows users to earn quarterly dividends or appreciation on potentially profitable residential rental properties.
Arrived aims to simplify purchasing and managing profitable real estate by finding and pre-vetting properties for you. Arrived’s single-family residences and vacation rentals are held in an LLC and taxed as public real estate investment trusts (REITs).
It collaborates with local market experts and offers advanced tools and data-driven technology for maximized returns. Arrived best suits hands-off investors wanting to diversify their holdings or retirement portfolios while generating consistent cash flow.
However, its fees are high compared to competitor platforms. Investing in real-estate is not recommended for beginners as comes with significant risk and limited liquidity. Only experienced investors with a high risk tolerance should consider investing with Arrived.
Arrived: Overall Rating
How Arrived Works
Arrived uses market analysis to capitalize on thriving markets and acquire valuable residential and vacation properties.
Investing in Individual Properties
Arrived’s operations team works alongside contractors and property managers to handle renovations, tenants, property issues, and maintenance. You, the investor, take advantage of its rental home marketplace through four steps:
- Browsing homes: Arrived’s marketplace lists several homes, and it separates them into three categories: Trending, For Sale, and Sold Out.
- Selecting shares: The platform shows you the per-share price for each listing, so you can decide how much you’d like to invest based on that information.
- Signing and investing: Before you sign off on a deal, you must review the listing’s terms, sign an online contract, and link your bank account to fund the asset.
- Earning income and appreciation: This is perhaps the most straightforward part of the process. Arrived manages the property while you earn passive rental income. It distributes dividends quarterly along with annual returns.
Each listing contains information like the number of shares, price per share, purchase price, and other supporting documents. Users can access the Arrived Reviews feature to see what other investors say about the property they’re interested in.
Shares of individual single-family residential properties have an estimated term of 5-7 years, and vacation rental properties have a term of 5-17 years. You won’t be able to access your money during an active term. However, you may be able to make a redemption request after six months of investing. Some liquidity fees may apply, and there’s no guarantee that your request will be approved.
Arrived Single Family Residential Fund
When you invest in the Arrived Single Family Residential Fund, your money is invested in a diversified portfolio of shares of single-family residential properties from over 55 markets. It provides investors with quarterly liquidity and returns in the form of monthly dividends and property appreciation.
The Arrived Single Family Residential Fund operates as a public REIT with the same tax treatment as a traditional REIT. To avoid corporate income tax and qualify for pass-through taxation, the fund must distribute at least 90% of its taxable income to investors yearly.
Although the fund is designed to appreciate over multiple years, Arrived’s redemption plan allows you to request redemption for some or all of your shares. Approved redemption requests are redeemed at the current share price at the end of the quarter.
Arrived Private Credit Fund
Arrived’s Private Credit Fund invests in a diversified pool of real estate-backed short-term loans with monthly dividend payouts. The invested loans finance professional real estate projects, including property renovations and home construction projects.
Rather than owning the underlying properties, the Private Credit Fund allows investors to own short-term debt in exchange for dividend payments.
Checkbook IRA
You can save for retirement with a Checkbook IRA, a form of self-directed IRA that owns an LLC. With this type of account, you can only invest in the LLC, and you’ll be seen as its manager.
Checking IRAs allows investors more flexibility, access to alternative assets, and greater investing control. Alternative assets may include real estate, private equity, crowdfunding, etc. This type of retirement account also offers faster and cheaper transactions as you won’t need to go through a custodian.
Additionally, assets held in an LLC will be separate from your own assets. This provides another level of security and separation against bankruptcy and legal action.
Arrived Fees
Arrived requires a $100 minimum to start investing, but individual rental properties typically require at least a couple thousand to buy. The Accredited Single Family Residential Fund and Private Credit Fund also start at $100.
Long-term rental properties charge a one-time sourcing fee of 3.5% of the property purchase price and a quarterly assets under management (AUM) fee of 0.15%.
Vacation rental properties charge a one-time sourcing fee of 5% of the property purchase price and a gross rent fee of 5% of gross revenue.
The Single Family Residential Fund has an AUM of 0.25% of net assets per quarter, and the Private Credit Fund has an AUM of 0.1% of net assets per month.
Pros and Cons of Arrived
Arrived Trustworthiness
The Better Business Bureau gives Arrived Homes, LLC an A rating. While the bureau’s ratings don’t guarantee a company’s reliability or performance level, they reflect its opinion of how well a business interacts with its customers. Arrived Homes, LLC is also an accredited business.
Arrived Homes, LLC has not been involved in any lawsuits or public scandals in the last few years.
Arrived vs. Other Real Estate Investing Platforms
Arrived vs. Groundfloor
Arrived and Groundfloor are real estate investing platforms for accredited and non-accredited investors to diversify their investment portfolios. However, the two platforms have different fees and investment options.
Groundfloor has a much lower account minimum at $10. It’s a better option for passive investors looking for short-term investments since it offers an Auto Investor Account, which invests in hundreds of high-yield loans.
Arrived is a better option for generating cash flow through dividend payouts and property appreciation by investing in single-family residential and vacation rental properties. A long-term investment strategy is best with Arrived, but you can request a redemption six months after investing.
Arrived vs. Roofstock
Roofstock is also available for accredited and non-accredited investors, but it doesn’t require an account minimum or charge pricey contracts and closing fees.
Roofstock is good for active traders interested in investing in single-family rental properties. It’s also a solid option for folks interested in advanced financial tools and services, like a proprietary neighborhood rating system. Roofstock One, however, is the pro version of the platform only available to accredited investors. It provides a fully managed account for passive investors. But it does require a $5,000 minimum.
If you don’t mind managing your own account, Arrived Homes is a cheaper and better option for generating consistent passive income. Non-accredited investors with limited real-estate investing experience will prefer Arrived’s straightforward and transparent offerings.
Arrived FAQs
Arrived is a safe real estate investment platform that prides itself on its transparent offering and fees. The platform aims to streamline the real estate investment process, making it more accessible to a wider group of potential investors. However, investing in real estate poses a greater risk than traditional investment options like stocks, bonds, and ETFs.
Arrived charges sourcing fees, annual asset management fees (AUM), and liquidity fees. Fees vary based on investment type, but Arrived is transparent in what you’ll be charged when you purchase.
Arrived offers flexible liquidity each quarter. However, you can’t sell your shares anytime. After six months of investing, you can make a redemption request, but there is no guarantee Arrived will approve it. Access to liquidity also varies by investment type, so make sure you understand the length of the investment term before purchasing.
Why You Should Trust Us: How We Reviewed Arrived Homes
We reviewed Arrived using Business Insider’s rating methodology for investing platforms to compare and examine account types, investment options, pricing, and customer experience. Each real estate investment platform also receives a liquidity rating based on how it compares next to other real estate apps, not other types of investment app. Platforms are given a rating between 1 to 5.
Real estate investing platforms generally offer low fees, multiple asset classes, financial tools, and other resources. Some platforms are better for more advanced investors, while others may better suit beginner investors. Arrived Homes was evaluated focusing on how it performed in each category.
