Investing in real estate used to be complicated.
Arrived is designed to make it more accessible. You can invest in equity by buying shares in individual rental homes, investing in curated funds that hold portfolios of homes, or investing in real estate-backed credit through a fund that provides short-term financing for professional real estate projects.
Different Arrived products are designed for different investor needs and portfolio roles. This article explains how they differ. It is educational and is not a recommendation. Consider your own goals and consult a financial professional before investing.
Key differences between Arrived products
Understanding the differences between Arrived’s investment options can help you decide which strategy fits your goals:
- Return type: Investments may generate returns through rental income, potential appreciation, or both, depending on the offering.
- Income potential: Properties in established rental markets may provide rental income, while properties in emerging markets may have more potential for appreciation.
- Minimum hold periods: The minimum hold period varies across Arrived products. Arrived investments should generally be viewed as longer-term investments.
- Diversification: Arrived offers investments across property types and locations. Diversification can help spread exposure, but it does not eliminate risk.
How Arrived’s products work together
With Arrived, you can combine different investment types in one portfolio. Each product is designed to play a different role.
Individual property offerings
Individual property offerings give investors targeted exposure to a specific property. Each property is reviewed by Arrived’s investment team before it is offered. Investors choose how much to invest in each property and can build a portfolio one property at a time.
Single family residential properties
Arrived focuses on purchasing single family residential homes and renting them out to long-term tenants, typically with one to two-year leases. The goal is not just to provide rental housing but also to eventually sell the property for a profit after value appreciation.
Return Type: Income + appreciation
- Total Historical Returns: 6 - 10% annual*
- Income Portion: 3 - 5% annual*
- Appreciation: Included
- Minimum Investment Hold: After a 6-month minimum hold period, investors have the option to sell shares of individual properties through the secondary market. For funds, investors become eligible to request redemptions six months after their initial investment, subject to the fund’s quarterly redemption schedule and terms.
- Diversification: Diversifying across at least five properties can help reduce risk and stabilize returns by spreading exposure and balancing income and appreciation potential.
Funds
Arrived offers expertly managed funds focused on single family residential properties and private credit. These funds allow investors to easily diversify their portfolios, guided by Arrived’s experienced team and proven operational track record.
The Arrived Single Family Residential Fund
The Arrived Single Family Residential Fund makes it easy for investors to diversify by pooling capital into a portfolio of residential properties across multiple markets nationwide.
- Return Type: Income & appreciation
- Total Historical Returns: 6 -10% annual*
- Income Portion: 3 - 4% annual*
- Appreciation: Included
- Minimum Investment Hold: Single Family Residential Fund investors may request redemptions six months after their initial investment.
- Diversification: The Single Family Residential Funds offers diversification by including a portfolio of homes, balancing risk and returns across various properties nationwide.
Arrived City Funds
Arrived City Funds focus investments in a single metropolitan area, offering targeted market exposure while maintaining the diversification of pooled assets. Unlike the Single Family Residential Fund, which spans multiple markets nationwide, a City Fund allows investors to concentrate on a specific market.
- Return Type: Income & appreciation
- Total Historical Returns: 6 -10% annual*
- Income Portion: 3 - 4% annual*
- Appreciation: Included
- Minimum Investment Hold: City Fund investors may request redemptions six months after their initial investment.
- Diversification: City Funds offer diversification by including a portfolio of homes, balancing risk and returns across various properties in a single market.
Arrived Real Estate Income Fund
The Arrived Real Estate Income Fund provides nationwide funding for renovations, rehabs, and new construction. Investors can benefit from interest-based returns secured by residential real estate assets, offering the potential for consistent, secured income.
- Return Type: Income
- Total Historical Returns: 8.4% annual*
- Income Portion: 8.4% annual*
- Appreciation: Not Included
- Minimum investment Hold: Investors may request redemptions 6 months after their initial investment.
- Diversification: The Real Estate Income Fund provides diversification through a portfolio of real estate-backed loans, helping to balance risk and return across a range of investments.
Investing in equity vs. Real estate-backed credit
Investing in real estate on Arrived can take two forms: equity or credit.
Equity and credit investments can play different roles in a portfolio. Equity offers exposure to rental income and potential appreciation, while credit focuses on income from interest payments. Because they earn returns differently and respond differently to market conditions, some investors hold both. How you balance them depends on your own goals and circumstances.
With Arrived, equity investments include individual property offerings, the Single Family Residential Fund, Arrived City Funds, and credit investments include the Arrived Real Estate Income Fund.
Equity investments
When you invest in equity on Arrived, you buy shares of a Series LLC or fund that owns property. Returns can come from rental income and any appreciation if home values rise.
This can offer higher returns, especially if the property appreciates or generates significant rental income. However, these higher returns come with greater risk, as market fluctuations can affect property values and rental income, including potential capital loss.
Credit investments
Credit investments focus on income. Investors lend money for real estate projects and earn returns mainly through interest, rather than from rental income and appreciation. Loans are secured by residential real estate, and a portfolio of many loans spreads exposure across borrowers and properties. These features are designed to help manage risk, but they don’t eliminate it. Interest and principal are not guaranteed, and recovery in a default may be less than the full loan amount.
The importance of diversification in real estate investment portfolios
Diversification means spreading investments across different properties, locations, and investment types. Arrived makes that easier to do on a single platform. You can invest in individual rental homes, a curated portfolio of homes, and real estate-backed loans, then track them together in one account. That lets you combine sources of return, such as rental income, potential appreciation, and interest, across multiple markets. Diversification can reduce your exposure to any single investment, but it does not eliminate risk or guarantee returns.
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Disclosure
The opinions expressed in this article are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product. The views reflected in the commentary are subject to change at any time without notice.
*Past performance does not guarantee future results and there is no guarantee this trend will continue. Note: The above scenarios are for illustrative purposes only and are not intended to be used to estimate the returns of an individual property.
The table is estimated by combining the 20-year historical home price appreciation from the Zillow Home Value Index (ending Q1 2023) and average historical dividend yields from the Arrived portfolio (ending Q1 2023). These data sources were combined to estimate a hypothetical IRR for each asset type and leverage classification and then rounded to whole numbers. The single family residential and vacation rental calculations also assume an average hold period of 7 years, 6% property disposition costs, and an average annual net operating income increase of 3%. The leverage classification estimates an average of 63% financing and a 4.75% interest rate, which was selected based on existing properties with leverage at the time of calculation. The Private Credit Fund return is based on annualized dividends paid from August 2024 to April 2025.
The income return range is for new properties and does not include properties that do not receive a monthly dividend due to specific circumstances, such as vacancies, eviction proceedings, significant maintenance issues impacting the property’s cash flow, or not yet booking-ready. Any operating income for these properties will be added to the property’s cash reserves and distributed at a later dividend date.
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