What Arrived Investment Product Is Right For Me?

Arrived Team
Arrived Team

Aug 19, 2024

What Arrived Investment Product Is Right For Me?

Investing in real estate used to be complicated. 


At Arrived, we simplify it by offering diverse opportunities. You can invest in equity and buy shares directly in rental homes or invest in real estate-backed debt and provide short-term financing for real estate projects. 


Our SEC-qualified offerings are designed to complement each other, allowing you to tailor your portfolio to your financial goals and risk appetite. Our team selects only the top 0.2% of properties they evaluate.


Choosing the Right Real Estate Investment with Arrived


Understanding the key differences between Arrived’s investment products can help guide your decision. 

  • Return Type: Each Arrived investment product offers different return types. Some properties generate returns primarily from cash flow through rental income, while others may provide returns through appreciation as property values increase. Some investments may offer a combination of both. 
  • Total Returns: Different properties come with varying income potential. Consider the expected income range for each type of investment. Properties in high-demand tourist destinations can generate higher rental income, whereas investments in emerging markets can offer significant appreciation potential. 
  • Minimum Investment Hold: The minimum investment hold period varies across Arrived products. Some investments may require a longer commitment to fully realize their appreciation potential, while others may offer shorter hold periods with steady cash flow returns.
  • Diversification: Diversification is a crucial consideration of any investment portfolio. With Arrived, you can invest in a range of properties across various locations and types, helping you manage and reduce risk.


Building the Right Arrived Portfolio for You


With Arrived, you can mix and match which investment types best suit you. Arrived’s investment products are designed to complement each other.


Individual Property Offerings


Arrived investors can explore a curated selection of single family residential homes and vacation rentals, each pre-vetted for its potential to appreciate and generate income. Investors can choose how much to invest in each property, fund their initial investment within minutes, and quickly start building their rental investment portfolio.


Single Family Residential Properties


Arrived focuses on purchasing single family residential homes and renting them out to long-term tenants, typically for one to two years. The goal is not just to provide rental housing but also to eventually sell the property for a profit after value appreciation.


the oscar


  • Return Type: Income + appreciation
  • Total Returns: 6 -10% annual*
  • Income Portion: 3 - 5% annual*
  • Appreciation: Included
  • Minimum investment Hold: Individual properties must be held for a minimum of 5-7 years. Single Family Residential Fund investors may request redemptions 6 months after their initial investment.
  • Diversification: Diversifying across at least five properties can help reduce risk and stabilize returns by spreading exposure and balancing income and appreciation potential.


Vacation Rental Properties


Arrived invests in prime tourist destinations, transforming vacation rentals into luxury boutique accommodations on platforms like Airbnb and VRBO. This approach aims to meet the growing demand for high-end, short-term stays in desirable locations.


vacation rentals


  • Return Type: Income + appreciation
  • Total Returns: 4.5 -12% annual*
  • Income Portion: 2 - 5% annual*
  • Appreciation: Included
  • Minimum investment Hold: 5-15 Year hold
  • Diversification: Diversifying across at least five properties can help reduce risk and stabilize returns by spreading exposure and balancing income and appreciation potential.


Invest on Arrived With Arrived, anyone can invest in a range of single family residential properties and vacation rentals across dozens of markets.


Funds


Arrived offers two expertly managed funds focused on single family residential properties or private credit. With these funds, investors can complement their portfolios with one-click diversification while benefiting from Arrived’s proprietary operating model.   


The Arrived Single Family Residential Fund


The Arrived Single Family Residential Fund offers investors a convenient way to diversify their portfolios across multiple properties and markets. This fund provides access to a wide range of residential properties by pooling investments.


Arrived Single Family Residential Fund


  • Return Type: Income & appreciation
  • Total 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: Funds offer diversification by including a portfolio of homes, balancing risk and returns across various properties.


The Arrived Single Family Residential Fund Invest in a pool of single family residential properties in just a few clicks.


Arrived Private Credit Fund


The Arrived Private Credit Fund provides nationwide funding for renovations, rehabs, and new constructions. Investors can benefit from interest-based returns secured by residential real estate assets, offering the potential for consistent, secured income.


private credit fund


  • Return Type: Income 
  • Total Returns: 7 -9% annual*
  • Income Portion: 7-9% annual*
  • Appreciation: Not Included 
  • Minimum investment Hold: Investors may request redemptions 6 months after their initial investment.
  • Diversification: Funds offer diversification by including a portfolio of homes, balancing risk and returns across various properties.



The Arrived Private Credit Fund Invest in real estate projects nationwide.


Investing in Equity vs. Real Estate-Backed Debt


Investing in real estate can take two forms: equity or debt.


Choosing between equity and debt investments depends on your financial goals and risk tolerance. Many investors opt for a mix of both to diversify their portfolios and balance potential returns with risk management.


With Arrived, equity investments include individual property offerings or the Single Family Residential Fund, and debt investments include the Arrived Private Credit Fund.


Equity Investments


When you invest in equity, you're buying a stake in a property. This offers the potential for higher returns, especially if the property appreciates or generates significant rental income. However, these higher returns come with greater risk, as market fluctuations can impact property values and rental income.


Debt Investments


Debt investments involve lending money for real estate projects and earning regular interest payments plus principal repayment. These secured investments typically carry lower risk but offer lower returns compared to equity investments.



The Importance of Diversification in Real Estate Investment Portfolios


At Arrived, we believe the best portfolios include a mix of investments and investment products.


Diversification is a crucial strategy when building a real estate investment portfolio. By spreading your investments across different types of properties, locations, and investment methods, you can reduce risk and enhance potential returns. 


FAQ

Who can invest?

How much can I invest?

What type of products are available on Arrived?

Will I have any responsibilities for managing properties I invest in? If not, who is responsible?

What type of returns can I obtain?

Have more questions? Visit our
Frequently Asked Questions
for in-depth answers.

Disclaimers

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.

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Webinar: Investing In Arrived

Ryan Frazier, Arrived CEO, and Cameron Wu, VP of Investments, will be hosting webinars to talk about how to get started with rental property investing. Sessions are held on Tuesdays at 9am PST and Fridays at 1pm PST each week (unless otherwise posted).