Arrived Homes Review 2023: Passive Real Estate Investing

Arrived Homes offers a hassle-free way to make real estate investments without the time commitment of being a landlord and still earn passive rental income. 

They vet a property and create an LLC, which you can invest in and become a property shareholder.

You don’t have to lift a finger or manage the rental property, yet you can still make more money as a rental owner!

So if you’re looking for an easy and hands-off way to invest in rental properties, keep reading my Arrived HomesReview.

Key Takeaways

• With Arrived Homes, you’ll earn passive income from real estate properties.
• They provide low-cost, pre-vetted homes to real estate investors, making investing in this asset simpler and less risky.
• You can invest in real estate rental property using fractional shares- where you and other investors have ownership over properties.
• Rental income is gathered and paid out in quarterly dividends to investors like you.
• The minimum investment is reportedly as low as $100.
• You don’t have to be an accredited investor, so it’s accessible to everyone!
• They have some fees, like a property management fee and a sourcing fee, but nothing too different from other real estate investing platforms.
• You don’t manage rentals or handle property maintenance- they hire property managers to handle everything for you.

Arrived Homes Review

What is Arrived Homes?

is a startup started in 2019 by Ryan Frazier, Kenny Cason, and Alejandro Chouza. 

The goal of Arrived Homes is to make it easier for people to invest in rental property through fractional shares.

Investing in rental property through Arrived Homes is open to accredited and non-accredited investors.

You don’t have to be wealthy to invest in real estate; anyone can buy a small share of a property through Arrived Homes.

Property Types

With Arrived Homes, you can buy shares of rental homes chosen for their investment potential.

There are two property types on the Arrived Homes Platform. Each type has low minimum investment and will give investors a decent passive income cash flow.

Single Family Homes

Many people want to invest in single-family rental homes because it has been one of the best long-term investments in recent history.

Residential real estate properties provide returns in rental income that are comparable to stocks but with less volatility.

The issue is that most new real estate investors can’t invest in single-family homes due to the high down payments or manage a property.

But with Arrived Homes, real investors can buy fractional shares in rental properties for as little as $100.

And you don’t have to do any work to manage the property!

Investors don’t have to worry about anything but collecting the dividends and the property value appreciation.

Vacation Rental Properties

In recent years, short-term rentals have delivered excellent rates and become one of the best incoming producing assets.

The market is expanding as domestic travel habits change and more people choose to stay in vacation homes.

To help the average person invest in vacation rentals, Arrived Homes added investing in vacation rental properties to their platform.

Investors don’t have to be concerned about taking care of property management, including rental payments, because Arrived Homes takes care of that.

Investors can sit back and watch the rental income flow into the bank account.

Fees/Pricing & Investing Minimums

There are some fees that buyers pay when they invest with Arrived Homes:

• Investment Minimum – The minimum amount you can invest is $100, so it’s accessible for the average person.
• Sourcing Fee – The 3.5% – 5% sourcing fee covers Arrived Homes cost for finding and getting the property ready for investment.
• Property Management Fee – The property management fee for long-term rental properties is 8% of the gross rental income; vacation rentals are 15% – 25%
• Annual Asset Management Fee – Their website says the annual asset management fee is listed under “Offering Details” on the property page.
• Agent Rebates – The previous property owner pays the agent rebate fee when Arrived Homes buys the property from them. 
• Other Property Management Fees – Property managers may charge one-time expenses for lease-ups, renewals, or rehab & turn support.

How Investing Works

Signing up is easy, and there is a low $100 minimum so that anyone can invest in rental homes- it’s as simple as buying anything else online.

1. Open An Account

Before investing with Arrived Homes, you must open an account. It doesn’t take very long – only about five minutes.

Here are the steps:

• Open Arrived Homes here. It’ll bring up a sign-up page as I pictured above!
• Use an email account you check often and enter it here. Also, create a password you want to use for your Arrived Homes account.
• Next, you’ll need to enter your personal information, like your birthday and mailing address.
• You’ll also be asked how you will fund your account when you make your first investment on the Arrived Homes real estate investment platform.

2. Look Through Listings

To look for available homes on Arrived Homes, look beside the “Arrived” logo in the menu at the top of the website. Click the “Invest” option. It will take you to the list of properties.

On the next screen, you’ll see all the properties that are currently listed and those that have been listed but “Sold Out.”

Look through the available individual properties and click on the Arrived Homes investment property you want to find more information about.

3. Review Property Information

Each Arrived Homes property listing contains a wealth of information about the actual property, the cash flow you can expect, and the Arrived Homes pricing information.

• Real Estate Property Information – You’ll see the name they have given the property, the property’s address, how many beds and baths, and the year it was built. 
• Property Purchase Price & Investors – You’ll also see the property purchase price, how many investors are invested, how much Arrived Homes paid for the property, and current monthly rent.
• Tenant Leasing Process – You’ll see whether the property is currently rented, the date you can expect your first dividend payment, and the rate of the First Dividend Yield.

4. Pick Your Shares

You’ll need to figure out how much you want to invest overall and review properties before you begin to purchase shares.

You’ll be able to see the property purchase price for fractional shares and more in the property listing.

As long as you equal or exceed that minimum investment requirement, you’re in.

If you have money left over or add more to your account, you can purchase shares in multiple properties.

5. Start Investing & Earn Passive Income

After you’ve picked the Arrived Homes investment properties and the number of shares you want, you’ll need to buy the shares. 

Just remember – rental properties are a great way to diversify your investment portfolio and reduce volatility over the long term.

They have proven remarkably stable over time and provide a hedge against stock market fluctuations. 

Please remember that real estate investments aren’t “quick sales” like other investments in market-traded securities like stocks and bonds.

Arrived Homes suggests an intended hold period of five to seven years for each property you invest in.

Once you are ready to add another income stream to your portfolio and make investments, sign the Arrived Homes investment documents.

Then transfer your money from your financial institution or bank account to the Arrived Homes account and start earning a passive income.

Other Real Estate Platforms

Interested in real estate investing now that you’ve checked out this Arrived Homes review?

Well, you have other options for passive income besides rental real estate!

I like Arrived Homes and how accessible they make rental properties, but you have other options for investing in other real estate projects.

Here are other real estate investment platforms to check out for commercial real estate, accredited investing, and more:

Fundrise

Fundrise is one of the oldest and most popular Arrived Homes alternatives.

Instead of investing in a single property, you invest in a portfolio of properties using real estate investment trusts (REITs).

Your initial investment minimum is determined by the portfolio you choose to invest in, starting at $10 and going all the way up to $100,000.

The Premium portfolio, which requires an initial investment of $100,000, is only available to accredited investors.

To learn more about Fundrise, check out our Fundrise Review!

Roofstock

Roofstock offers an investment opportunity similar to Arrived Homes. It is called Roofstock One, available to verified accredited investors.

The standard minimum initial investment in Roofstock One is $5,000. After the initial investment, your investment rate drops to $100.

Like Arrived Homes, they have an investment term of at least five years.

Be sure to read my Roofstock Review to learn more about Roofstock One!

Crowdstreet

Individual commercial real estate investments with various hold periods are what Crowdstreet specializes in.

You must be an accredited investor to invest in real estate because these are investments in particular properties rather than a diversified fund.

The average minimum Crowdstreet investment is $25,000, but depending on the size of the deal, some may require as much as $100,000.

Yieldstreet

Yieldstreet is an investment platform geared many toward accredited investors, but now it has a new option for non-accredited.

Non-accredited investors can invest with as little as $2,500 in real estate projects, including multi-family homes, single-family properties, industrial developments, and more.

You have other investment options, like short-term and structured notes, art, and supply chain financing.

Find out more about it in my in-depth Yiedlstreet Review.

FAQs

Is Arrived Homes safe to invest with?

Real estate investing comes with some risk, just like any other investment.

However, although Arrived Homes is still a relatively new company, it does its best to reduce the risk for everyday investors.

Each Arrived Homes home carries limited liability for the investor because it was purchased through an independent LLC.

Like other LLCs, the shareholders are protected from any personal liability.

Arrived Homes also uses professional property management companies to look for quality tenants who want longer leases.

This is great for real estate properties, helps reduce tenant turnover, and gives investors continuous rental income from the property.

How do investors get paid from Arrived Homes?

There are two ways to get paid from Arrived Homes: rental income and property value growth.

Rental Income

Your quarterly dividends from Arrived Homes will be based on your property’s rental income.

You can expect to receive rental payments each quarter that is proportional to your property ownership.

Property Value Growth

The value of your home will likely increase while it is under the care of Arrived Homes.

However, you will not make money fast with a property value increase until they sell the property- which on average, takes 5 to 7 years.

Why should I invest in real estate?

Some of the benefits of residential real estate investing include:

• Real estate is a tangible asset that you can see and touch. It’s also one of the few assets that are both liquid (meaning you can sell it at any time) and illiquid (meaning it can take some time to sell).
• Historically, real estate investing has been a more stable investment than stocks or bonds and could put you on the path to becoming a millionaire if you own enough of it.
• When you own real estate, you have the potential to earn rental income, which can provide regular monthly income. You also have the potential to earn capital gains (profit from the sale of the property) when you sell.

What is an illiquid asset?

An illiquid asset cannot be quickly sold or converted into cash.

Assets may not sell because there’s no market for the asset or because finding someone willing to pay the desired asking price is challenging.

Illiquid assets can include real estate, stocks, bonds, and other investment vehicles.

With property appreciation, more time and big renovations are how you get the most money from your investments selling.

But property appreciates more over time, so selling it quickly means you may not get the price you want.

And doing a lot of renovations or house flipping can be costly.

Can I request early redemption with Arrived Homes?

Arrived Homes is a real estate investor with a limited track record. Property appreciation has been good in the past, but there is no guarantee that this trend will continue.

According to Arrived Homes website, investors can request early redemption of their shares after six months.

The secondary market for Arrived Homes is also still developing, so finding a buyer willing to pay the desired price may not be easy.

For these reasons, they recommend that investors hold their investment for at least five years.

If you need to access your money sooner, you may not be able to sell your investment on the secondary market without taking a loss.

What about investing in stocks and other platforms?

• Robinhood is an excellent platform for investors looking for a more hands-on approach to their investments and buying and selling stocks directly with a low minimum investment requirement. You also get free stock when you sign up!
• Acorns is a platform for investors who want to invest automatically, starting with as little as $5. The Acorns app will round up your purchases to the nearest dollar and invest the difference into a portfolio of ETFs.
• Betterment is great for investors who want a more hands-off approach to their investments with a portfolio of ETFs based on your goals and risk tolerance.  
• With M1 Finance, you can start investing in various investment options, including stocks, ETFs, and mutual funds, with as little as $100.

My Thoughts

Arrived Homes makes investing easy and inexpensive for anyone interested in a diversified portfolio, and you don’t have to manage any property as a landlord.

Plus, they offer a wide variety of properties to choose from so you can find the right one for your needs.

To get into the real estate market without all the hassle, join Arrived Homes today and invest your first $100!