Arrived Homes Review 2024: The Best Real Estate Investing Platform

THIS POST MAY CONTAIN AFFILIATE LINKS. PLEASE SEE MY DISCLOSURES. FOR MORE INFORMATION.

It’s no secret that many people are turning to real estate to build wealth.

The problem is that real estate investing can be time-consuming and require a lot of money to start.

While there are books and articles about how to get started in real estate with no money down, this option isn’t likely for the average person.

Luckily, there’s a better way: real estate crowdfunding.

This is where Arrived Homes comes into play.

Arrived is a crowdfunding platform that allows investors to invest in real estate for as little as $100.

With this low initial investment and minimal risk, you can start building your real estate portfolio and embark on your property investment journey today.

Discover the convenience and potential of Arrived Homes and gain a clear understanding of how it works.

Arrived Homes Review: Understanding How It Works

What Is Arrived?

Arrived Homes, an awesome real estate crowdfunding platform founded by Ryan Frazier in 2019, offers an incredible opportunity for individuals to invest in shares of residential real estate investments and vacation rental properties, starting from just $100. 

Arrived Homes stands out because of its simplicity and accessibility, making it an excellent choice for beginners in real estate investing.

While other companies focus mainly on commercial real estate, Arrived Homes keeps things affordable and straightforward by prioritizing residential property investments. 

Their mission is to make rental home ownership accessible to everyone, simplifying investments and providing plenty of opportunities for wealth growth.

With their user-friendly approach to real estate investment, anyone can enjoy the benefits and start their journey toward financial prosperity.

As of 2023, the Arrived Homes owned over 225 homes in 39 markets, with a total investment of $85 million.

The impressive growth clearly shows their unwavering dedication to their mission.

Arrived Homes is a trusted investment platform backed by industry giants like Jeff Bezos and Marc Benioff.

These partnerships establish Arrived as a leading choice for investors seeking stability and growth.

How Arrived Differs From DIY Real Estate Investing

Arrived Homes provides investors a seamless and hassle-free experience, eliminating the typical headaches associated with being a landlord and dealing with property maintenance.

Additionally, investors avoid sourcing a local property manager by investing through Arrived, allowing for truly passive rental income.

Investors receive rental income as quarterly dividends proportionate to their ownership level.

They offer real estate investment trusts and LLC structures to shield shareholders from personal liability.

How To Invest in Arrived Homes

To understand how you can invest in a rental property with Arrived, it is important to know how Arrived finds the single-family rental properties it offers.

They begin their search for potential rental properties to purchase by analyzing various market data to spot properties in markets throughout the US.

Once Arrived chooses a property, it purchases and lists it on the crowdfunding platform.

Step 1: Create a Free Account

The first step is creating a free account on the Arrived website to see all the real estate investments you can invest in.

Step 2: Do Your Research

As you review the properties listed, you’ll see detailed information about each property, including:

• A detailed description of the property
• City location
• Market trends
• Potential return on investment, including gross rental income
• Tenant status

Step 3: Buy Shares

Once you’ve chosen a home to invest in, you decide how many shares you want to purchase, with the minimum amount being $100.

Simply link your bank account and fund your Arrived account with your desired investment amount.

Step 4: Earn Rental Income

Once investors fully fund a property, Arrived Homes handles everything related to property management, from finding and screening tenants to handling rent collection, maintenance, and repairs.

Then, quarterly, they distribute the income generated by the property to investors as dividend payments.

The amount each investor receives depends on their ownership stake in the property.

Step 5: Appreciation of Property Value

Apart from earning income from rentals, investors can also reap property appreciation benefits.

As the property’s value increases over time, the value of investors’ shares increases too.

And when Arrived sells the property, investors also get a piece of the profits.

Usually, Arrived Homes hold onto single-family homes for around five to seven years and vacation rentals for five to fifteen years.

Then, they sell the actual property, and investors get their share of the profits.

Property Types

Arrived Homes commits itself to providing outstanding properties that exceed expectations.

They offer many options, including single-family homes and vacation rentals.

Properties are obtained through long-term loans and outright purchases, ensuring a diverse selection for discerning buyers.

Single-Family Homes

Investors can acquire shares in unfurnished single-family rental homes, which they lease for 12-24 months.

This investment option lets you diversify your portfolio while taking advantage of the stability and long-term potential of the rental market.

Investors should expect to own their shares for the full ownership term, five to seven years, as you cannot currently sell your shares until the property sells.

Arrived has plans to create a secondary market that will allow for the selling of shares before this time limit.

Vacation Rentals

Investors can choose to acquire shares in vacation rentals as well.

Vacation rentals refer to fully furnished short-term accommodations conveniently made available to travelers through popular platforms like Airbnb and VRBO.

Right now, investors should expect to own their shares for the full ownership term, five to fifteen years.

As with single-family homes, there are plans to create a secondary market here, too.

Single Family Residential Fund

Because the single-family real estate properties on the Arrived platform sell out so quickly, the company created a REIT to help investors start their real estate investing journey.

This fund is always open to investors and regularly adds new properties.

Instead of paying quarterly dividends, the single-family residential fund pays monthly, with an annualized dividend yield of 4.5%.

It’s important to note that the fund does charge a redemption fee if you sell shares early.

• Sell Within Six Months: No redemptions allowed
• Six Months to One Year: 2%
• One Year to Five Years: 1%
• After Five Years: No fee

Other Investment Options

In addition to investing in rentals through property ownership, Arrived offers short-term notes.

These debt obligations allow you to diversify your investment by helping Arrived fund the purchase of new properties.

The notes require accredited investors with a minimum investment of $1,000.

These investment notes mature in less than one year and carry an attractive interest rate, currently 7.5%.

Arrived Homes Fees

Arrived Homes have a minimum investment requirement of $100, significantly lower than the typical cost of buying rental properties, usually a couple of thousand dollars.

This low investment minimum allows everyday investors to start with rental real estate.

Of course, there are costs related to doing business, and Arrived is no exception.

Here are the fees Arrived charges.

Sourcing Fee

A sourcing fee is a one-time fee that Arrived Homes charges to cover the expenses related to sourcing and holding properties during the investment preparation.

This fee includes the property purchase price and the raise amount listed to invest.

Annual Asset Management Fee

Arrived Homes offers a competitive annual assets under management (AUM) fee of just 0.15%, which is remarkably low compared to other crowdfunding platforms.

This fee gets paid from the income of the property and covers various expenses, including:

• Insurance (and any potential insurance claims)
• Property taxes
• Preparation of investor tax forms
• Property management fees
• Paying investor distributions

Agent Rebates

Arrived receives a rebate from the previous property owner as a real estate agent when purchasing a rental property.

Here’s a short video that covers all the Arrived fees they charge:

Arrived Homes Returns

As an investor, you want to know your potential returns for investing in real estate assets.

Here’s a chart showing the potential returns for various asset classes.

Investment Type	Dividends	Low Variability	Leverage	Firm Assets	Inflation Hedge	Average Annual Return
Real Estate	Yes	Yes	Yes	Yes	Yes	9.8%
Stocks	Yes	No	Yes	No	No	9.6%
Bonds	Yes	Yes	No	No	No	6.9%
Gold	No	Yes	No	Yes	Yes	5.0%

Real Investor Return Experiences

While the above information is a great start, we also wanted to share some real-world investor returns.

Below is a handful of current and former Arrived investors and their experience with the real estate platform.

Return: 3.6% a Year

One individual mentioned having a portfolio of five properties.

They’re happy that three of the five properties already have renters.

They’re eagerly waiting to receive their initial dividend despite their modest expectations.

This is an experiment to diversify their income streams.

The projected annual dividend rate is 3.6%, and there’s potential for even higher gains when selling the properties.

Return: 4.3% a Year

This person has invested in a few properties and currently owns 7.

They’ll soon add another property as a short-term rental, making it 8.

Of these, six properties are currently rented and generate an average income of 4.3%.

Additionally, these properties have shown an average appreciation rate of around 15%.

Return: Up to 10% a Year

This investor has achieved excellent returns on two properties for which they bought shares in December 2021.

They’re satisfied and plan to expand their portfolio.

Non-accredited individuals should limit their allocation to a maximum of 10% of their net worth, a practice they intend to follow diligently.

They’re interested in exploring vacation rentals as a new investment option.

Additionally, they’re considering dividend-focused approaches with $100,000 homes, which differs from their current offerings.

The investor is pleased with the returns and commends the platform for diversifying and introducing new opportunities.

Ratings and Reviews

Here are some revealing reviews from the Better Business Bureau based on firsthand experiences shared by investors on the platform.

Hassle-Free
“ArrivedHomes is a great option for anybody who wants invest in rental properties without having to go through the hassle of owning the property yourself.” – Robert W.

Easy Registration
“Arrived Homes has made it really easy to invest in rental properties. The registration was easy and I have already have received my first dividend. Thank you Arrived Homes!” – Marie B

Great For Beginners
“The arrived team is top notch. They’ve helped me get my start investing in residential real estate. had some question initially which they answered promptly and thoroughly.” – Alex B

Advantages And Drawbacks

Arrived Homes enables investors to earn passive income with minimal upfront cash and simplifies real estate investment by relieving investors of traditional management responsibilities.

However, investors should consider property availability, personal preferences, and varying expectations.

Limited control over properties may frustrate those who prefer a hands-on approach. 

Here’s a rundown of the pros and cons of Arrived Homes.

Pros

• Operates as an LLC: Under this business structure, investors face no personal liability risk.
• Avoid Property Management: No dealing with property managers or landlord duties, such as maintenance and repairs.
• Market Data Research: Determining whether a property is worth investing can be challenging and time-consuming. Arrived does this work for you.
• Passive Income: Arrived offers passive income as you invest and collect quarterly dividends.
• Consistent Rental Income: With lease terms of up to 24 months, investors know they’ll receive income reliably.

Cons

• Properties Sell Out Quickly: There are a limited number of properties to invest in, and funding them happens fast, usually within a day or two of listing.
• Limited Purchase Options: Arrived typically only has two to four properties available to invest in at a time.
• Newer Company: While Arrived has the backing of high-profile people, it’s a newer company without a proven track record.

Arrived Homes Competitors

Real estate crowdfunding allows investors to participate in real estate deals on a smaller scale without needing full property ownership.

However, it’s important to note that quality and offerings can vary among different real estate platforms. 

Here are a few alternatives to Arrived Homes.

Fundrise

Fundrise is an online platform specializing in real estate investment trusts (REITs).

Instead of purchasing a share in a single property, a real estate investor on Fundrise purchases shares in diversified portfolios containing multiple properties.

These portfolios own multiple properties, including private, residential, and commercial properties.

The minimum investment for a taxable account is $10, and for a retirement account, it’s $1,000.

It charges 0.85% in annual management fees.

RealtyMogul

RealtyMogul is an online platform for commercial real estate crowdfunding.

It allows members to invest in single properties or a real estate investment trust of multiple properties.

While accredited and non-accredited members can invest, it has a high initial investment of $5,000.

The annual fees vary between 1% and 1.25%.

Roofstock

Roofstock is an online real estate platform that streamlines buying or selling rental properties, eliminating the complexities associated with traditional transactions.

It provides various properties across various locations, making it effortless for investors to diversify their portfolios.

This enhances their investment strategy and offers ample opportunities for growth and stability.

However, the platform exclusively offers single-family homes and requires a minimum investment of $5,000.

Who Is Arrived Homes Best For?

Now that you know more about Arrived, you might wonder if it’s right for you.

While we cannot directly answer that question, here’s a recap of the type of investor Arrived is best suited for.

• Non-Accredited Investors: While most property investment opportunities are limited to authorized investors or those with a lot of money, Arrived Homes takes on this challenge by letting investors buy fractional shares of rental properties.
• Beginner Real Estate Investors: You can invest in single-family residences and vacation homes starting from just $100. The low entry requirement lets new investors start without a ton of capital.
• Anyone Looking To Earn a Passive Rental Income: Investors can make money through rental income and possible property value growth without the hassle of traditional landlord responsibilities like property management and finding tenants.
• Long-Term Investors: Since investments in Arrived Homes usually last for five to seven years, this platform is great for investors with a longer-term perspective who don’t need quick access to funds.

Frequently Asked Questions

Is Arrived Homes Legit?

Founded in 2019, Arrived Homes quickly gained a reputation as a trusted and respected investment platform.

It empowers investors to invest in various residential and vacation homes, catering to different investment preferences.

With Arrived Homes, investors can confidently grab valuable opportunities in the real estate market that match their goals and objectives.

Is Arrived Homes a Good Investment?

If you’re seeking a low-risk investment option with minimal upfront capital and passive income potential, Arrived Homes is a good choice.

It allows for a diverse portfolio, long-term strategy, and consistent returns for investors.

Additionally, Arrived Homes have a transparent fee structure and provides exclusive investment opportunities.

How Does Arrived Homes Make Money?

Arrived Homes generates revenue through rental income, property appreciation, and strategic exit plans.

As an investor, you’ll earn a share of the monthly rental income, providing a reliable source of passive income to diversify your investment portfolio.

Additionally, the value of your properties grows as the real estate market thrives, offering potential capital gains if you choose to sell in the future.

How Much Can I Make With Arrived Homes?

While there’s no guarantee what your returns will look like, historically, the investments Arrived offers have earned investors between 6% and 12% annually.

Who Handles the Property Management, and How Is This Paid?

Arrived handles all the day-to-day logistics of managing the property.

The property management fee and all other costs related to the property come out of the rental income before distributing dividends to shareholders.