By now, you’ve probably heard of Arrived Homes bringing fractional ownership to real estate investors. Jeff Bezos invested nearly $72 million into Arrived Homes, and would you bet against him? Arrived has funded over 200 homes already. In fact, last year they paid out $1.2 million in dividends to their investors. They have over 390,000 people who have already signed up and invested a total of $109 million in property value. Arrived Homes makes it easy for anyone to get a cut of real estate yield and appreciation without putting in hundreds of thousands of dollars. They rely on fractional ownership, which means you can buy a small part of a property for even $100 and still make money from it. Plus, they carefully choose the best properties to invest in, so you have a good chance of earning a steady income. Is it a good real estate investment though? If you want to learn more about how Arrived Homes can help you make money with real estate, keep reading for a review on Arrived Homes!
Why Invest in Arrived Homes?
Rental Yields and Dividends
One of the most attractive features of investing in Arrived Homes is the potential for stable rental income paid out as dividends. As we mentioned before, according to their 2022 report, Arrived Homes paid out $1.2 million in dividends to their investors. That’s a significant return on investment. With 390,000 registered investors and $109 million in property value owned by investors, the numbers speak for themselves.
In Q2 2023, single-family residential properties earned between 2.0% and 6.9%, with a 4.19% average. Vacation rentals averaged between 2.0 and 10.1%, with a 4.31% average.
Dividends are paid out each January, April, July, and October. You can see the expected returns in the “Annualized Rental Income” from the chart below.
For a closer look at the types of properties you could invest in through Arrived Homes, check out their current investment properties. Here’s the Arrived Homes returns for their properties up to July 2023. You can sort the table headings and click out to the property for more details. Focus on the total returns. As you can see, some are negative.
| Property Name | Market | Months Held | Total Returns | All Time Appreciation | Annualized Rental Income | Share Price |
|---|---|---|---|---|---|---|
| Lierly | Northwest Arkansas | 26 | 143.4% | 127.1% | 7.3% | $22.71 |
| Soapstone | Northwest Arkansas | 26 | 134.5% | 120.2% | 6.4% | $22.02 |
| Pecan | Northwest Arkansas | 26 | 73.4% | 58.5% | 6.6% | $15.85 |
| Patrick | Northwest Arkansas | 26 | 60.0% | 46.8% | 5.9% | $14.68 |
| Plumtree | Northwest Arkansas | 26 | 79.4% | 61.6% | 7.9% | $16.16 |
| Chaparral | Northwest Arkansas | 26 | 75.0% | 59.0% | 7.1% | $15.90 |
| Splash | Northwest Arkansas | 20 | 55.8% | 42.3% | 6.8% | $14.23 |
| Tuscan | Northwest Arkansas | 20 | 40.9% | 27.6% | 6.7% | $12.76 |
| Salem | Northwest Arkansas | 20 | 65.8% | 52.8% | 6.5% | $15.28 |
| Malbec | Northwest Arkansas | 20 | 53.9% | 40.6% | 6.7% | $14.06 |
| Pinot | Northwest Arkansas | 20 | 52.0% | 38.7% | 6.7% | $13.87 |
| Luna | Columbia | 20 | 58.9% | 46.8% | 6.1% | $14.68 |
| Kingsley | Columbia | 20 | 47.4% | 35.8% | 5.8% | $13.58 |
| Shoreline | Greenville-Spartanburg | 20 | 39.6% | 29.4% | 5.6% | $12.94 |
| Holloway | Greenville-Spartanburg | 20 | 53.6% | 42.7% | 5.7% | $14.27 |
| Badminton | Columbia | 20 | 57.8% | 47.1% | 5.9% | $14.71 |
| Eastfair | Columbia | 20 | 53.6% | 42.5% | 6.1% | $14.25 |
| Centennial | Charlotte | 20 | 49.0% | 39.1% | 5.0% | $13.91 |
| Mojave | Northwest Arkansas | 20 | 46.6% | 34.5% | 6.6% | $13.45 |
| Wentworth | Northwest Arkansas | 20 | 43.3% | 30.5% | 7.0% | $13.05 |
| Cupcake | Northwest Arkansas | 20 | 52.9% | 40.0% | 7.1% | $14.00 |
| Basil | Greenville-Spartanburg | 20 | 40.2% | 29.9% | 5.6% | $12.99 |
| Lallie | Charleston | 20 | 37.9% | 29.0% | 4.9% | $12.90 |
| Dewberry | Columbia | 20 | 40.0% | 29.7% | 5.4% | $12.97 |
| Spencer | Charleston | 20 | 42.1% | 30.6% | 5.8% | $13.06 |
| Summerset | Charleston | 20 | 46.9% | 38.4% | 4.7% | $13.84 |
| Roseberry | Charleston | 20 | 31.9% | 21.9% | 5.2% | $12.19 |
| Windsor | Charleston | 20 | 40.6% | 30.1% | 5.7% | $13.01 |
| Forest | Charleston | 17 | 33.0% | 25.6% | 5.0% | $12.56 |
| Meadow | Charlotte | 17 | 17.3% | 12.4% | 3.3% | $11.24 |
| Collinston | Charlotte | 17 | 20.3% | 15.5% | 3.2% | $11.55 |
| Saddlebred | Colorado Springs | 17 | 9.2% | 3.6% | 3.8% | $10.36 |
| Odessa | Denver | 17 | 9.6% | 4.0% | 3.8% | $10.40 |
| Lily | Colorado Springs | 17 | 14.7% | 9.1% | 3.8% | $10.91 |
| Saturn | Charlotte | 17 | 24.3% | 19.5% | 3.2% | $11.95 |
| Sugar | Charleston | 17 | 29.2% | 23.7% | 3.7% | $12.37 |
| Coatbridge | Columbia | 17 | 28.1% | 20.3% | 5.2% | $12.03 |
| Lennox | Columbia | 17 | 19.0% | 10.3% | 5.8% | $11.03 |
| Olive | Columbia | 17 | 25.0% | 16.9% | 5.4% | $11.69 |
| Dawson | Columbia | 17 | 21.7% | 14.4% | 4.9% | $11.44 |
| Ridge | Columbia | 17 | 40.9% | 32.5% | 5.6% | $13.25 |
| Bayside | Columbia | 17 | 38.2% | 29.6% | 5.8% | $12.96 |
| Elm | Columbia | 17 | 46.0% | 38.3% | 5.2% | $13.83 |
| River | Greenville-Spartanburg | 17 | 50.9% | 42.2% | 5.8% | $14.22 |
| Amber | Charlotte | 17 | 16.5% | 11.4% | 3.4% | $11.14 |
| Westchester | Columbia | 17 | 30.0% | 22.0% | 5.4% | $12.20 |
| Limestone | Columbia | 17 | 36.0% | 27.2% | 5.9% | $12.72 |
| Jupiter | Charlotte | 17 | 25.3% | 20.1% | 3.5% | $12.01 |
| Weldon | Charlotte | 17 | 29.1% | 24.2% | 3.3% | $12.42 |
| Holland | Charlotte | 17 | 30.8% | 25.8% | 3.3% | $12.58 |
| Elevation | Greenville-Spartanburg | 17 | 42.7% | 36.0% | 4.5% | $13.60 |
| Oly | Denver | 16 | 15.5% | 9.0% | 4.4% | $10.90 |
| McLovin | Denver | 17 | 21.0% | 14.5% | 4.4% | $11.45 |
| Matchingham | Columbia | 17 | 42.2% | 33.4% | 5.9% | $13.34 |
| Rooney | Phoenix | 17 | 17.3% | 11.6% | 3.8% | $11.16 |
| Diablo | Tucson | 16 | 10.2% | 4.9% | 3.5% | $10.49 |
| KerriAnn | Raleigh-Durham | 16 | 15.5% | 10.4% | 3.4% | $11.04 |
| Sigma | Raleigh-Durham | 16 | 37.9% | 31.8% | 4.1% | $13.18 |
| Grant | Atlanta | 16 | 44.5% | 37.4% | 4.8% | $13.74 |
| Bandelier | Tucson | 17 | 26.2% | 20.9% | 3.5% | $12.09 |
| Ensenada | Denver | 16 | 16.2% | 9.6% | 4.4% | $10.96 |
| Davidson | Charlotte | 16 | 29.9% | 25.0% | 3.3% | $12.50 |
| Vernon | Greenville-Spartanburg | 16 | 27.2% | 20.2% | 4.7% | $12.02 |
| Murphy | Columbia | 16 | 48.4% | 40.3% | 5.4% | $14.03 |
| Dolittle | Columbia | 16 | 42.5% | 35.4% | 4.8% | $13.54 |
| Butter | Charleston | 17 | 20.4% | 12.7% | 5.2% | $11.27 |
| Ribbonwalk | Charlotte | 16 | 13.7% | 8.8% | 3.3% | $10.88 |
| Scepter | Tucson | 17 | 44.3% | 39.1% | 3.5% | $13.91 |
| Delta | Atlanta | 15 | 21.3% | 15.4% | 4.2% | $11.54 |
| Saint | Tucson | 15 | 28.5% | 22.0% | 4.6% | $12.20 |
| Lovejoy | Atlanta | 15 | 27.7% | 21.0% | 4.8% | $12.10 |
| Emporia | Atlanta | 15 | 17.1% | 11.3% | 4.1% | $11.13 |
| Wave | Atlanta | 15 | 19.8% | 14.0% | 4.1% | $11.40 |
| Tuxford | Columbia | 15 | 12.8% | 6.4% | 4.5% | $10.64 |
| Greenhill | Columbia | 15 | 32.9% | 25.5% | 5.3% | $12.55 |
| Kawana | Huntsville | 15 | 24.9% | 17.8% | 5.0% | $11.78 |
| Chelsea | Birmingham | 15 | 10.4% | 4.4% | 4.8% | $10.44 |
| Terracotta | Tucson | 15 | 13.4% | 7.2% | 5.0% | $10.72 |
| Otoro | Atlanta | 15 | 14.5% | 9.5% | 4.0% | $10.95 |
| Hollandaise | Nashville | 15 | 9.9% | 5.0% | 3.9% | $10.50 |
| Hadden | Greenville-Spartanburg | 15 | 18.9% | 11.8% | 5.7% | $11.18 |
| Avebury | Huntsville | 15 | 14.5% | 9.2% | 4.3% | $10.92 |
| Tulip | Tuscaloosa | 14 | 8.6% | 3.2% | 4.3% | $10.32 |
| Jack | Murfreesboro | 14 | 14.1% | 9.7% | 3.5% | $10.97 |
| Bedford | Columbia | 14 | 27.6% | 21.2% | 5.1% | $12.12 |
| Louise | Tuscaloosa | 14 | 4.9% | -2.1% | 5.6% | $9.79 |
| Gardens | Tuscaloosa | 13 | -6.4% | -12.0% | 4.5% | $8.80 |
| Peanut | Tuscaloosa | 14 | -4.5% | -9.6% | 4.1% | $9.04 |
| 100 | Nashville | 12 | 0.6% | -4.3% | 4.2% | $9.57 |
| Grove | Birmingham | 13 | -5.5% | -9.3% | 3.3% | $9.07 |
| Lanier | Atlanta | 13 | 23.7% | 19.8% | 3.3% | $11.98 |
| Mammoth | Atlanta | 13 | 15.1% | 11.4% | 3.2% | $11.14 |
| McGregor | Clarksville | 13 | 5.5% | 1.0% | 3.9% | $10.10 |
| Point | Clarksville | 13 | 17.8% | 13.4% | 3.8% | $11.34 |
| Roxy | Clarksville | 13 | 9.3% | 5.8% | 3.0% | $10.58 |
| Wisteria | Tuscaloosa | 13 | 17.2% | 12.7% | 3.9% | $11.27 |
| Heron | Charleston | 13 | 22.3% | 18.3% | 3.4% | $11.83 |
| Stonebriar | Birmingham | 13 | -5.2% | -9.2% | 3.4% | $9.08 |
| Heritage | Atlanta | 13 | 12.9% | 9.2% | 3.2% | $10.92 |
| Magnolia | Atlanta | 13 | 5.8% | 2.1% | 3.2% | $10.21 |
| Kirkwood | Clarksville | 13 | 13.9% | 10.3% | 3.1% | $11.03 |
| Rosewood | Tuscaloosa | 13 | 3.0% | -0.6% | 3.1% | $9.94 |
| Apollo | Huntsville | 12 | 25.8% | 22.1% | 3.2% | $12.21 |
| Baron | Denver | 12 | -7.7% | -11.6% | 3.3% | $8.84 |
| Swift | Atlanta | 12 | 7.7% | 3.1% | 4.0% | $10.31 |
| Wescott | Clarksville | 12 | 6.8% | 3.2% | 3.1% | $10.32 |
| Wildwood | Chattanooga | 12 | 9.9% | 5.9% | 3.4% | $10.59 |
| Madison | Huntsville | 12 | -0.6% | -4.4% | 3.3% | $9.56 |
| Abbington | Nashville | 12 | -0.9% | -4.9% | 3.4% | $9.51 |
| Burlington | Denver | 12 | -1.6% | -5.5% | 3.3% | $9.45 |
| Lannister | Tuscaloosa | 12 | -17.2% | -21.0% | 3.3% | $7.90 |
| Nugget | Denver | 12 | -4.9% | -8.8% | 3.3% | $9.12 |
| Pearl | Nashville | 12 | 7.8% | 3.6% | 3.6% | $10.36 |
| Hines | Clarksville | 12 | 6.8% | 3.2% | 3.6% | $10.32 |
| Ritter | Colorado Springs | 11 | -0.3% | -3.3% | 3.0% | $9.67 |
| 101 | Nashville | 12 | -7.8% | -10.6% | 2.8% | $8.94 |
| Jake | Denver | 12 | 0.4% | -2.8% | 3.2% | $9.72 |
| Holcomb | Atlanta | 12 | 2.1% | -1.1% | 3.2% | $9.89 |
| Latte | Huntsville | 12 | 7.0% | 3.8% | 3.2% | $10.38 |
| Dunbar | Clarksville | 12 | 0.8% | -2.0% | 2.8% | $9.80 |
| Lookout | Chattanooga | 12 | 3.0% | -0.1% | 3.1% | $9.99 |
| Reynolds | Atlanta | 12 | -3.9% | -7.1% | 3.2% | $9.29 |
| Kennesaw | Atlanta | 12 | 1.7% | -1.4% | 3.1% | $9.86 |
| Pioneer | Denver | 12 | -0.4% | -3.2% | 2.8% | $9.68 |
| Bazzel | Greenville-Spartanburg | 11 | 6.0% | 2.9% | 3.1% | $10.29 |
| June | Nashville | 12 | -9.6% | -13.0% | 3.4% | $8.70 |
| Johnny | Nashville | 12 | -10.0% | -13.3% | 3.3% | $8.67 |
| Osprey | Charleston | 12 | 4.1% | 0.9% | 3.2% | $10.09 |
| Riverwalk | Chattanooga | 11 | 4.0% | 0.4% | 3.6% | $10.04 |
| Collier | Knoxville | 11 | 3.9% | 0.5% | 3.4% | $10.05 |
| Folly | Charleston | 11 | -1.4% | -4.6% | 3.2% | $9.54 |
| Dorchester | Charleston | 11 | 0.0% | -3.1% | 3.1% | $9.69 |
| Dogwood | Tuscaloosa | 11 | -0.6% | -4.3% | 3.7% | $9.57 |
| Walton | Northwest Arkansas | 11 | -3.5% | -6.5% | 3.0% | $9.35 |
| Clover | Huntsville | 11 | 8.2% | 4.0% | 4.2% | $10.40 |
| Dolly | Nashville | 10 | -1.1% | -4.1% | 3.0% | $9.59 |
| Kenny | Nashville | 10 | 2.0% | -1.0% | 3.0% | $9.90 |
| Creekside | Northwest Arkansas | 10 | 6.9% | 2.7% | 4.2% | $10.27 |
| Willow | Northwest Arkansas | 11 | 2.7% | -0.8% | 3.5% | $9.92 |
| Wilson | Northwest Arkansas | 11 | 3.4% | -0.2% | 3.6% | $9.98 |
| Daisy | Northwest Arkansas | 10 | 5.6% | 1.9% | 3.7% | $10.19 |
| Henry | Atlanta | 10 | -5.4% | -8.7% | 3.3% | $9.13 |
| Sodalis | Indianapolis | 10 | 0.2% | -2.9% | 3.1% | $9.71 |
| Loretta | Nashville | 8 | 2.5% | -0.8% | 3.3% | $9.92 |
| Conway | Nashville | 9 | 0.1% | -3.2% | 3.3% | $9.68 |
| Belle | Atlanta | 11 | 0.6% | -2.3% | 2.9% | $9.77 |
| Chitwood | Cincinnati | 10 | 4.2% | 0.6% | 3.6% | $10.06 |
| Spring | Greenville-Spartanburg | 11 | 2.0% | -1.6% | 3.6% | $9.84 |
| Highland | Greenville-Spartanburg | 11 | 0.9% | -2.5% | 3.4% | $9.75 |
| Wellington | Atlanta | 8 | -2.1% | -4.6% | 3.4% | $9.54 |
| Braxton | Cincinnati | 6 | 1.1% | -2.8% | 5.2% | $9.72 |
| Reginald | Atlanta | 9 | -2.3% | -5.6% | 3.3% | $9.44 |
| Camino | Tuscaloosa | 9 | -0.9% | -5.1% | 4.2% | $9.49 |
| Winston | Huntsville | 8 | 4.6% | 1.9% | 3.6% | $10.19 |
| Inglewood | Nashville | 7 | 1.9% | -0.3% | 3.0% | $9.97 |
| Richardson | Northwest Arkansas | 8 | 5.1% | 1.7% | 3.0% | $10.17 |
| Cumberland | Clarksville | 10 | 5.2% | 1.4% | 3.8% | $10.14 |
| Bonneau | Charleston | 10 | 3.1% | -0.1% | 3.2% | $9.99 |
| Blossom | Northwest Arkansas | 7 | 5.3% | 1.9% | 4.6% | $10.19 |
| Marcelo | Cincinnati | 6 | 1.1% | -2.1% | 4.3% | $9.79 |
| Taylor | Tuscaloosa | 7 | -3.8% | -5.7% | 2.5% | $9.43 |
| Aster | Northwest Arkansas | 9 | 0.5% | -1.7% | 2.2% | $9.83 |
| Quincy | Denver | 8 | -1.9% | -4.1% | 3.0% | $9.59 |
| Jill | Murfreesboro | 7 | 0.5% | -1.9% | 3.2% | $9.81 |
| Marietta | Greenville-Spartanburg | 10 | 14.1% | 10.5% | 3.6% | $11.05 |
| Mae | Greenville-Spartanburg | 8 | -0.7% | -3.6% | 3.9% | $9.64 |
| Chester | Chattanooga | 8 | 0.9% | -0.7% | 2.1% | $9.93 |
| Shallowford | Chattanooga | 7 | 2.6% | 0.2% | 3.2% | $10.02 |
| Cypress | Atlanta | 9 | -4.1% | -6.5% | 2.4% | $9.35 |
| Harrison | Chattanooga | 9 | -2.8% | -5.5% | 2.7% | $9.45 |
| Piedmont | Atlanta | 8 | 5.7% | 4.1% | 2.1% | $10.41 |
| Kessler | Northwest Arkansas | 8 | 0.9% | -0.6% | 2.0% | $9.94 |
| Creekwood | Huntsville | 8 | 1.4% | -0.2% | 2.1% | $9.98 |
| Oasis | Nashville | 8 | 3.0% | Awaiting Valuation | 4.0% | $10.00 |
| Pointbreak | Panama City | 8 | 2.8% | Awaiting Valuation | 3.8% | $10.00 |
| Hammock | Clearwater | 8 | 3.6% | Awaiting Valuation | 4.8% | $10.00 |
| Ace | Scottsdale | 7 | 4.3% | Awaiting Valuation | 5.8% | $10.00 |
| Cardinal | Phoenix | 8 | 6.1% | Awaiting Valuation | 8.2% | $10.00 |
| Orchard | Blue Ridge | 8 | 3.6% | Awaiting Valuation | 4.8% | $10.00 |
| Mirage | Joshua Tree | 8 | 2.6% | Awaiting Valuation | 3.5% | $10.00 |
| Hansel | Murfreesboro | 7 | -8.2% | -10.6% | 3.2% | $8.94 |
| Falcon | Northwest Arkansas | 7 | 26.8% | 23.9% | 3.9% | $12.39 |
| Eagle | Northwest Arkansas | 8 | 24.7% | 21.6% | 4.2% | $12.16 |
| Goose | Northwest Arkansas | 7 | 40.4% | 36.8% | 4.8% | $13.68 |
| Cactus | Scottsdale | 7 | 4.3% | Awaiting Valuation | 5.8% | $10.00 |
| Opry | Nashville | 7 | 2.3% | Awaiting Valuation | 3.1% | $10.00 |
| Gretal | Murfreesboro | 6 | 0.8% | -1.0% | 3.7% | $9.90 |
| Mimosa | Tuscaloosa | 6 | -1.1% | -4.4% | 4.4% | $9.56 |
| Redondo | Albuquerque | 7 | -8.1% | -10.5% | 3.2% | $8.95 |
| Sundance | Albuquerque | 6 | -2.0% | -4.5% | 3.4% | $9.55 |
| Lakeridge | Blue Ridge | 6 | 2.4% | Awaiting Valuation | 4.9% | $10.00 |
| Serenity | Sedona | 6 | 3.9% | Awaiting Valuation | 5.2% | $10.00 |
| Sugarcreek | Blue Ridge | 6 | 2.7% | Awaiting Valuation | 3.6% | $10.00 |
| Palm | Palm Beach | 7 | 2.8% | Awaiting Valuation | 3.8% | $10.00 |
| Chickamauga | Chattanooga | 5 | 2.2% | Awaiting Valuation | 4.5% | $10.00 |
| Sequoyah | Northwest Arkansas | 6 | -8.4% | -10.4% | 4.1% | $8.96 |
| Havasu | Lake Havasu City | 6 | 2.2% | Awaiting Valuation | 4.5% | $10.00 |
| Litton | Knoxville | 6 | 10.7% | 8.6% | 4.3% | $10.86 |
| Brainerd | Chattanooga | 6 | 5.3% | 3.4% | 3.9% | $10.34 |
| Brooklyn | Tuscaloosa | 6 | -11.5% | -13.6% | 4.3% | $8.64 |
| Regal | Great Smoky Mountains | 5 | 2.0% | Awaiting Valuation | 4.1% | $10.00 |
| Lurleen | Huntsville | 4 | 2.6% | Awaiting Valuation | 5.3% | $10.00 |
| Haven | Tuscaloosa | 3 | 1.2% | Awaiting Valuation | 4.8% | $10.00 |
| Regency | Cincinnati | 4 | 2.2% | Awaiting Valuation | 4.5% | $10.00 |
| Sunnyside | Tuscaloosa | 3 | 1.2% | Awaiting Valuation | 4.8% | $10.00 |
| Korin | Northwest Arkansas | 3 | 1.2% | Awaiting Valuation | 4.8% | $10.00 |
| Dops | Tuscaloosa | 3 | 1.1% | Awaiting Valuation | 4.4% | $10.00 |
| Lodge | Broken Bow | 4 | 1.1% | Awaiting Valuation | 4.4% | $10.00 |
| Chilhowee | Knoxville | 3 | 1.2% | Awaiting Valuation | 4.8% | $10.00 |
| Sheezy | Chattanooga | 3 | 1.2% | Awaiting Valuation | 4.8% | $10.00 |
| Myrtle | Myrtle Beach | 4 | 1.0% | Awaiting Valuation | 4.0% | $10.00 |
| Kinlani | Flagstaff | 4 | 1.2% | Awaiting Valuation | 4.8% | $10.00 |
| Hickorybear | Broken Bow | 3 | 1.2% | Awaiting Valuation | 4.8% | $10.00 |
| Brennan | Huntsville | 2 | 0.8% | Awaiting Valuation | 3.2% | $10.00 |
| Sajni | Savannah | 3 | 1.2% | Awaiting Valuation | 4.8% | $10.00 |
| Tuscarora | Albuquerque | 3 | 0.9% | Awaiting Valuation | 3.6% | $10.00 |
| Salinas | Albuquerque | 3 | 1.1% | Awaiting Valuation | 4.4% | $10.00 |
| Hansard | Knoxville | 3 | 1.1% | Awaiting Valuation | 4.4% | $10.00 |
| Jefferson | Knoxville | 3 | 1.1% | Awaiting Valuation | 4.4% | $10.00 |
| Marie | Knoxville | 3 | 1.2% | Awaiting Valuation | 4.8% | $10.00 |
| Ella | Clarksville | 3 | 1.1% | Awaiting Valuation | 4.4% | $10.00 |
| Cristalino | Albuquerque | 2 | 1.2% | Awaiting Valuation | 4.8% | $10.00 |
| Hermanos | Albuquerque | 3 | 1.1% | Awaiting Valuation | 4.4% | $10.00 |
| Bowling | Huntsville | 3 | 1.1% | Awaiting Valuation | 4.4% | $10.00 |
| Emelina | Tuscaloosa | 3 | 1.1% | Awaiting Valuation | 4.4% | $10.00 |
| Caden | Tuscaloosa | 3 | 1.1% | Awaiting Valuation | 4.4% | $10.00 |
| Pasquin | Pocono Mountains | 3 | 1.4% | Awaiting Valuation | 5.6% | $10.00 |
| Koi | Scottsdale | 3 | 1.3% | Awaiting Valuation | 5.2% | $10.00 |
| Longbranch | Broken Bow | 3 | 1.2% | Awaiting Valuation | 4.8% | $10.00 |
| Coolbaugh | Pocono Mountains | 3 | 1.2% | Awaiting Valuation | 4.8% | $10.00 |
| Pinkshell | Panama City | 2 | 1.1% | Awaiting Valuation | 4.4% | $10.00 |
| Camellia | Huntsville | 2 | 1.1% | Awaiting Valuation | 4.4% | $10.00 |
| Palmore | Tuscaloosa | 2 | 1.0% | Awaiting Valuation | 4.0% | $10.00 |
| Brookwood | Atlanta | 2 | 1.1% | Awaiting Valuation | 4.4% | $10.00 |
| Lithonia | Atlanta | 2 | 1.0% | Awaiting Valuation | 4.0% | $10.00 |
| Haverhill | Atlanta | 2 | 1.0% | Awaiting Valuation | 4.0% | $10.00 |
| Woodwind | Atlanta | 2 | 1.1% | Awaiting Valuation | 4.4% | $10.00 |
| Aspen | Atlanta | 2 | 1.3% | Awaiting Valuation | 5.2% | $10.00 |
| Thomas | Atlanta | 2 | 1.2% | Awaiting Valuation | 4.8% | $10.00 |
| Bennett | Atlanta | 2 | 1.1% | Awaiting Valuation | 4.4% | $10.00 |
| Loop | Great Smoky Mountains | 2 | 1.2% | Awaiting Valuation | 4.8% | $10.00 |
| Pickler | Scottsdale | 2 | 1.2% | Awaiting Valuation | 4.8% | $10.00 |
| Benny | Tulsa | 2 | 1.1% | Awaiting Valuation | 4.4% | $10.00 |
| Montgomery | Montgomery | 2 | 1.2% | Awaiting Valuation | 4.8% | $10.00 |
| Summerglen | Tulsa | 2 | 1.1% | Awaiting Valuation | 4.4% | $10.00 |
| Portsmouth | Hampton Roads | 2 | 1.1% | Awaiting Valuation | 4.4% | $10.00 |
| Westhaven | Hampton Roads | 2 | 1.1% | Awaiting Valuation | 4.4% | $10.00 |
| Wheeler | Huntsville | 1 | 1.1% | Awaiting Valuation | 4.4% | $10.00 |
| Holmes | Little Rock | 1 | 1.0% | Awaiting Valuation | 4.0% | $10.00 |
| Hamblen | Knoxville | 1 | 1.1% | Awaiting Valuation | 4.4% | $10.00 |
The company’s rigorous due diligence process ensures that less than 0.2% of homes reviewed pass their criteria, aiming to maximize rental yields for their investors. Arrived’s due diligence appears to pay off. Most of their homes hold the initial investors’ values.
Appreciation
Each property profile has an estimated appreciation based on Zillow’s Home Value Index (ZHVI), which calculates the typical home value for a given region. The ZHVI uses a weighted average of the middle third of homes in that area to provide a reliable measure of property value trends. It’s worth noting that the U.S. real estate market has historically seen an average annual appreciation rate of about 5%. Given that Arrived Homes offers a diversified portfolio of properties across various locations, it’s reasonable to expect that their properties would align with these historical trends, although this is not guaranteed. For instance, check out their latest info on total returns from July 2023:
But a caveat for investors: The pandemic may have boosted home prices beyond a sustainable level. Will the returns level out for Arrived Homes? Also, the overall trend is increasing now. But how certain are you to invest in the 100+% versus the -20% home?
Another caveat: capturing that appreciation has significant limitations and risks:
- Holding Period: Arrived Homes has a 5-7 year holding period for their properties.
- This is the hugest one. You’re locked in and you lose opportunity costs for other investments.
- You Can’t Sell Shares:
- Arrived may one day create a market for shares. But, that doesn’t exist now.
- Arrived states you must hold them until the holding periods end.
- Lack of Liquidity:
- Because there’s no open market for shares, your investment is not easily convertible to cash.
- Opportunity Cost:
- Being locked in for 5-7 years means missing out on other investment opportunities.
- What happens if your investment crashes? You’re stuck.
Ask yourself: If I can’t sell my shares, am I getting paid for that risk besides just appreciation and rent income? In return for locking up a 5-7 year investment (five to fifteen years for vacation rentals), you should get a return that’s more than just appreciation and rental income. Right now, that risk isn’t compensated. On the other hand, you didn’t have to put up $200,000 for a home. So, there’s a trade-off.
Arrived Homes offers a compelling case for why they should be a part of your investment portfolio. One day, you might get that appreciation from your investment. Yet, there’s a risk to locking yourself in for so long.
SEC-Qualified Process
When it comes to regulatory compliance and investor protection, Arrived Homes takes no shortcuts. Each property offered on their platform undergoes a rigorous SEC-qualification process. If you want to get into details, the SEC filings are a fun read. That’s not sarcasm either. They give you a better idea of the financials such as rent, operating expenses, etc. This ensures that all the legalities are in place and that the investment is as transparent as possible. The SEC qualification adds an extra layer of credibility and safety, making Arrived Homes a more secure option for real estate investment.
Why Arrived Homes Could Be a Consideration for Your Investment Portfolio
In the ever-changing landscape of investments, real estate has stood the test of time as a reliable avenue for wealth creation and preservation. However, the traditional barriers to entry and complexities of property management have often deterred potential investors. Crowdfunding platforms like Arrived Homes aim to democratize this space, making real estate investment more accessible to a broader audience.
If you’re someone who has been sitting on the fence about real estate investment, the scalability offered by Arrived Homes might be a compelling reason to take the plunge. You don’t have to buy an entire property; you can start small at $100 (Arrived’s minimum investment) and scale up as you become more comfortable and knowledgeable. Arrived Homes offers weekly, informative webinars and live Q&A sessions with industry experts to help you get started
Moreover, the diversification options are not just limited to different types of properties but extend to various geographic locations. Look at the previous table. They’re in Alabama, Arizona and many states in between. What’s interesting is that states with high real estate prices, such as California, New York and Washington, are missing. Yet, those are the states that historically outperform national averages for real estate appreciation. The reason probably is that Arrived Homes pays cash for their homes. Paying $1m up front might not make sense. Overall though, in a world where local economies can be affected by everything from natural disasters to shifts in industry, having your investments spread across different regions can be a prudent strategy.
How Arrived Homes Addresses Real Estate Investment Challenges
Real estate deserves consideration in your investment portfolio. We all know that. You might still be thinking: how does Arrived Homes really help me? Let’s drill down.
While real estate offers numerous advantages, such as tangible assets and stable cash flow, it’s not without its challenges. High entry barriers and the complexities of property management can deter many potential investors. By addressing these sticking points, Arrived Homes opens the door to real estate investment for a broader audience. We can study Arrived Homes in more details and see how they make real estate more accessible for you.
Eliminates High Entry Barriers
High entry barriers in real estate often deter potential investors. Major institutional investors are placing billions in residential property markets, both in the U.S. and abroad. Corporations backed by private equity groups like Blackstone have bought tens of thousands of homes across the U.S. These large firms are squeezing out retail investors by turning single-family homes into rentals. Arrived Homes lowers these barriers, allowing more people to invest. Arrived Homes lowers these barriers, allowing more people to invest (though ironically, if they continue to build their portfolio, they become one of those large, corporate investors that squeezes out retail).
Fractional Ownership
Traditional real estate investment often requires a significant upfront capital, making it inaccessible for many. Look at the purchase prices for Arrived. A quick browse through their purchase prices seems to show they’re mostly in the $250,000 to $325,000 levels. They also pay all cash. How does retail compete?
Throw in corporations and private equity. That’s even deeper pockets to compete against. Arrived Homes changes the game with its fractional ownership model. You can own a share of a property for as little as ten dollars, making real estate investment attainable for a much wider audience.
All-cash sales accounted for 26% of transactions in 2023. Arrived Homes’ fractional ownership model could enable investors to generate cash flow without the need for all-cash transactions, making it easier to maintain liquidity.
Arrived Homes offers this model, aligning with key criteria like asset profile and alignment of interest.
Ensures Consistent Cash Flow
One of the most significant challenges in real estate investment is maintaining a consistent cash flow. While the potential for stable rental income is high, there are risks involved that can disrupt this income stream. Arrived Homes addresses these challenges by relying on a cash reserve, typically 2% of the total home value, in the event of negative cash flow. This ensures that your investment yields consistent returns. They also partner with property managers and third parties to operate their investments. You can assume that Arrived Homes likely uses a higher standard to engage and contract with their third parties (we hope).
Reduces Inconsistent Rental Income
In traditional real estate investing, rental income can be hit-or-miss due to vacancies and unreliable tenants. Arrived Homes tackles this issue head-on. They use two-year leases with vetted, quality residents. These long-term leases minimize turnover costs and stabilize your rental income. This strategy complements Arrived Homes’ existing diversification across multiple properties. The result? A more consistent and reliable return on your investment. You can watch Cameron Wu, their VP of Investments, explain the importance of two-year leases:
Risk of Over-Leveraging
Leveraging can amplify your investment returns, but it also carries the risk of over-leveraging, where the debt becomes unmanageable. Arrived Homes mitigates this risk by maintaining a conservative debt-to-equity ratio in their property acquisitions. In most cases, they buy homes for cash outright, meaning no loans at all. According to Arrived Homes, a good debt-to-equity ratio is at a minimum of 70% debt and 30% equity, or a ratio of 2.33. This responsible approach ensures that the investment remains sustainable and minimizes the risk of financial strain.
Simplifies Diversification
As mentioned earlier, diversification is essential for risk mitigation. Arrived Homes streamlines this by offering a one-stop solution. You’re not just investing in one property; you’re spreading your investment across multiple properties in different geographical locations and at various price points. This approach is validated by research emphasizing the importance of a diversified real estate portfolio.
Real Estate Exposure
Incorporating real estate into your portfolio can be transformative. It increases your exposure to real estate with minimal investment. Not everyone has thousands of dollars for a down payment. However, $100 every few months into an investment on the Arrived platform can get you exposure to the real estate sector. Historical data show higher returns and lower volatility for such portfolios.
Geographic Diversification
Many real estate investors advise to “buy local”. But why concentrate all your investments in one area? Geographic diversification can be a crucial layer of protection against localized economic downturns. Arrived Homes helps you get this geographical diversification. This nuanced approach is supported by evidence that geographic and price-level diversification can significantly mitigate investment risk.
There’s also the slight novelty to it. If you don’t live in Arkansas, how fun is it to know you own a piece of property in that state?
Why Real Estate?
From the dawn of civilization, land has been a cornerstone of wealth and power. But it’s not just the land itself; it’s the endless possibilities that come with it. Real estate has proven itself as a robust investment vehicle, especially when we look at its historical performance.
Over the last 50 years, real estate has shown promising returns, often competing closely with equities. According to Investopedia, from 1968 to 2009, the average rate of appreciation for existing homes was around 5.4% per year. In comparison, the S&P 500 averaged a 7.5% return during the same period. That’s slightly lower, but consider:
You also have to look at the impact of tax advantages, income yield, and the fact that real estate investments often allow for significant leverage…
While past performance is not indicative of future results, the resilience and adaptability of real estate make it a compelling option for long-term investment. Given the current trends and market dynamics, real estate continues to be a viable avenue for financial growth.
This historical context sets the stage for understanding why real estate remains a time-tested avenue for financial growth.
There are multiple reasons to consider real estate as an investment: it offers tangible assets, serves as a hedge against inflation, provides potential for stable income, and allows for diversification in your investment portfolio.
Tangible Asset
Real Estate as a “Real” Asset
When you invest in real estate, you’re putting your money into something you can touch and feel—land and buildings. This tangibility offers a level of security that intangible assets like stocks or bonds can’t provide. You own a piece of the Earth, and that has intrinsic value. It’s not just a digital number on a screen; it’s a physical space that can be used, rented, or even developed. This realness makes real estate a comforting and often less volatile investment, especially for those new to the investment world. In today’s market, where stocks can be volatile, real estate’s tangibility offers a comforting layer of security. Even in a down market, and especially in a down market, real estate can be the perfect opportunity.
Inflation Hedge
Inflation is the silent killer of investment returns. Real estate has long been considered a hedge against inflation. Home prices have surged by 38% compared to 2019, while inflation has averaged around 5% per year since then. This stark contrast highlights real estate’s resilience against inflation, making Arrived Homes a compelling option for safeguarding your investments against rising prices.
Unlike other assets that may lose value over time due to rising prices, real estate often appreciates. Just look at the previous stat over the past 50 years.
The dual growth mechanism of property value and rent makes real estate a smart choice for preserving and growing your wealth in inflationary times. According to a Forbes article, investing in income-generating real estate can actually make inflation work for you, increasing your income over time. This aligns with Arrived Homes’ investment model, providing an added layer of financial security in inflationary times.
Collateral Value
One of the less-discussed benefits of real estate investment is its collateral value. Owning property provides you with an asset that you can leverage for financial gains in various areas. According to CoreLogic, a majority of appraisals were either exactly at the contract price (31.6%) or slightly above it (58.6%), indicating strong collateral value. Whether you need a business loan or are looking to invest in another venture, your real estate holdings offer the financial flexibility you need. This collateral value adds another layer of utility to real estate investment, making it a versatile asset in your financial portfolio.
Arrived Homes may also consider the possibility of setting up a liquidity market for the shares of homes that investors own. However, this could require more time to set up due to SEC regulations. According to Investopedia, a liquid market can offer minimal transaction costs and ease of entry and exit. If implemented, this liquidity market could provide Arrived Homes investors with the flexibility to easily trade their shares, thereby enhancing the investment’s attractiveness and potentially increasing the asset’s market value. Additionally, the liquidity market could enable investors to borrow against their Arrived Homes investments, offering yet another layer of financial flexibility.
Cash Flow Potential
Potential for Stable Rental Income
One of the most compelling reasons to invest in real estate is the opportunity for stable rental income. Unlike other investment vehicles that may offer sporadic or unpredictable returns, a well-chosen real estate property can provide a consistent monthly revenue stream. This is particularly true in high-demand rental markets where vacancy rates are low. According to the U.S. Census Bureau, the rental vacancy rate in the U.S. for the second quarter of 2023 was as low as 6.3%, indicating a robust demand for rental properties. This low vacancy rate can serve as a financial cushion, providing you with stable rental income and allowing you to plan and invest with greater confidence.
Leveraging Debt for Cash Flow
Debt can be a powerful tool when used wisely in real estate investment. Mortgage loans enable you to acquire properties with a fraction of the total cost, effectively leveraging a small amount of capital into a larger investment.
A Birgo Insights article states that leveraged real estate investors can use debt to amplify returns from appreciation and debt paydown. This strategy can significantly amplify your cash flow, turning a modest initial investment into a consistent revenue stream. However, it’s crucial to approach leveraging with caution and a well-thought-out financial plan to mitigate the risks associated with debt.
Tax Benefits Enhancing Cash Flow
Tax incentives are often an overlooked aspect of real estate investment. Yet, they can offer significant advantages for enhancing cash flow. For instance, the IRS allows property owners to write off depreciation, reducing your taxable income. Other tax benefits like mortgage interest deductions can further improve your cash flow, making real estate a financially efficient investment option. According to a Bankrate, the average annual return on investment for residential real estate in the United States is 10.6%, when considered with tax benefits.
These tax advantages, such as property depreciation and mortgage interest deductions, can improve your cash flow and make real estate a financially efficient investment option.
Consulting a tax professional for these complex incentives is advisable.
Importance of Diversification in Investment Portfolio
Risk Mitigation
Diversification is a fundamental principle of investing and risk mitigation. By spreading your investments across various asset classes like stocks, bonds, and real estate, you can significantly reduce your portfolio’s volatility. For instance, a 60/40 portfolio (60% S&P 500 and 40% Bloomberg U.S. Aggregate Bond index) faced a challenging year in 2022, with a 16% decline on a total return basis. However, J.P. Morgan Asset Management projects that such a diversified portfolio could yield an annual return of 7.2% over the next decade. By spreading your investments across various asset classes like stocks, bonds, and real estate, you can significantly reduce your portfolio’s volatility and potentially enjoy better returns in the long run.
Enhanced Returns
A well-diversified portfolio can offer a balance of high and low-risk assets, potentially increasing overall returns. According to historical data, portfolios that included a mix of stocks, bonds, and real estate outperformed those that were solely invested in one asset class. This balanced approach allows you to capture gains in one market while offsetting losses in another, optimizing your overall returns. Arrived Homes offers a unique opportunity for investors to diversify their portfolios. According to CNBC, diversification in real estate is crucial for 2023. With Arrived Homes, you can invest in multiple properties across different markets, mitigating risks and potentially enhancing returns.
Asset Allocation
Asset allocation is a dynamic practice that allows you to adjust your investment portfolio based on current market trends and your individual risk tolerance. Imagine residential real estate is showing strong growth potential. You might allocate more of your portfolio to this asset class through Arrived Homes. This flexibility enables you to capitalize on market trends, making your investment strategy more responsive. For instance, one report anticipates less focus on inflation and more on growth. Now could be the time to find a good entry point with Arrived Homes and real estate assets.
Emotional Stability
The emotional aspect of investing is often overlooked but plays a crucial role in long-term success. It helps investors avoid the trap of emotional investing, which can lead to poor decisions. It does this by reducing the impact of a single asset’s poor performance on your overall portfolio. This emotional comfort can be invaluable, especially during market downturns when investor confidence is low.
Arrived Homes provides a unique approach to real estate, making it more accessible and diversified. As you explore various investment opportunities, consider whether their features align with your financial goals and risk tolerance. You can check out Arrived Homes as they provide excellent tips and investing on their platform.