Here at Arrived, we have made it easy to invest in real estate. With our platform, anyone can buy shares in income-producing rental homes and vacation rental properties starting at just $100. Arrived will take care of all the operational work (finding a renter, dealing with maintenance, etc) so investors can sit back and collect net rental income and their share of the home’s appreciation.
We have designed our platform to make investing super simple while delivering maximum benefits to our investors. Below is a breakdown of what you can expect when investing with Arrived.
Arrived Investing: Top 10 Benefits
Simple and Fast:
We have simplified the process of investing in real estate. While the old process required over 15 steps and several months of hard work, the Arrived process is radically simple. In just 4 steps you can buy shares in a rental home or vacation rental property.
Low minimum investment
The single largest barrier to investing in real estate is the large initial investment required. If you’re interested in buying a $250,000 home, you are going to need at least $50,000 in cash to purchase the property (that’s assuming you have financing for the remaining $200,000). With Arrived you can open an account and invest as little as $100 in a home.
Diversify your investments
- Diversification is a very powerful tool to lower your risk while keeping your potential for returns high. There are multiple ways Arrived is designed to help you mitigate risk through diversification.
- Our low minimum allows you to distribute your investment across as many rental properties as you want. Compare this to buying a single rental home where you lack diversification and any one-off risks (bad tenants, large maintenance problems, etc) can significantly impact your returns.
- By investing in real estate, you are diversifying your total assets and lowering your total risk profile. Real estate, and particularly private real estate, is an excellent way to diversify a portfolio. From 2008 to 2017, private real estate investments only correlated with the S&P 500 by 19%, compared to 79% correlation for public real estate.
- Arrived also helps investors diversify across markets. Traditional DIY rental property ownership meant that people bought homes relatively close to where they live. With Arrived, you can diversify across markets which means you have less exposure to potential city-specific risks (job market, specific regional dynamics, etc).
No Operational Responsibility
- As an Arrived investor, you have no responsibility for finding, acquiring, or managing the property. Arrived has refined its process over time and takes full operating responsibility for the rental property. We find and vet the tenants and manage all the bookings for short-term rentals. We deal with any maintenance, repairs, payment collection, or customer service requests.
Truly Passive and Consistent Income:
- With Arrived, our users receive rental payments every quarter. After talking to many prospective real estate investors, we found that a top goal was building consistent passive income. So, we focused on building our product around that. Our investors get rental payments distributed, that are consistent in both when they are paid and the amounts. We plan around larger one-time expenses so the payments do not fluctuate wildly from month to month. Additionally, since Arrived takes care of the property operations, this is truly 100% passive, as no work is required from investors.
Superior Screening of Tenants
- Through our experience in real estate, we have learned that a crucial part to maximizing returns is selecting the best tenants that will pay on time, stay at the property longer, and treat the home with care. We developed a proprietary process that vets and scores tenants using both internal and third party professional grade tools. After analyzing the many data points, we make a determination whether that renter will be a good fit for the investment property.
Benefits from Scale
- Due to the scale that we can achieve by having multiple properties under management, we can reduce operating costs to further increase returns for our investors. This not only includes negotiating better rates with sales agents and contractors, but also buying certain maintenance services in bulk. In addition to the cost savings, by having multiple properties, we are able to increase our response times to our tenants by having staff on call at all times and having common repair items in stock. All up, these benefits from operating at scale translate to happier residents that stay longer, and lower costs that increase investor returns.
Financing with no liability or credit history requirement
- Every Arrived Home is placed in an LLC Series that completely shields our investors from any type of liability that the property or its operations may incur. This not only applies to potential lawsuits or other similar events, but also applies to the financing. Our investors are essentially able to take on large amounts of low cost debt without any personal guarantees for that debt and its future payments.
- Since the financing is not backed by your personal credit, we do not require that our investors have a certain credit history to invest. While the loans are non recourse and solely backed by the property value, our experience in the industry has allowed us to still get very attractive interest rates for our investors.
Access to the most lucrative markets
- In the past, investing in rental properties meant that investors were mostly limited to the properties and markets in close proximity to where they live. Otherwise, it would be a huge pain to manage a property and deal with any operational issues from afar. Given Arrived takes on all responsibility for the operational tasks and has a local team available, this means that the investor is now able to pick investment properties in the market that yields the most favorable returns, regardless of the distance from their home. We analyze hundreds of potential markets across the country to determine which are the most lucrative to invest in.
Access to professional grade technology
- Over the past decade, real estate investing has changed dramatically with the addition of many data-driven tools and technologies that enable better decision making and increased returns for investors. The problem is that these tools are expensive and frequently not accessible to individual investors. At Arrived, we use a combination of expert tools that we have developed internally or paid for to ensure that we are making the right decisions when it comes to:
- 1) Identification of markets
- 2) Analysis of properties
- 3) Negotiating a purchase
- 4) Efficient operations of a property
By investing with Arrived, you can have access to the returns that these professional grade tools deliver.
General Real Estate Investing Benefits
In addition to the above benefits specific to investing in real estate with Arrived, there are many other reasons for why you should invest in real estate and specifically SFRs (Single Family Rentals).
- Access to low cost debt – Thanks to government subsidies, the consistent increases in value, and the lower risk profile from real estate investing, financing costs for real estate purchases are extremely low. Very few other investment classes allow borrowing at such low rates for longer terms. This means real estate investors can increase their returns by utilizing financing.
- Generous Tax advantages – Investing in real estate has a number of unique tax benefits that Arrived is able to pass on to investors. Cash flows are maximized by depreciating the properties so as to reduce the taxable income. Capital gains tax is also minimized by paying long term capital gains on the home appreciation. Additionally, we structure each offering as a REIT (Real Estate Investment Trust) specifically for the single taxation of the dividends (dividends are only taxed when investors receive payments and not at the Corporate level as well).
- Earn money from multiple sources – As discussed in detail in the below linked article, real estate has the benefit of earning an investor money through various methods including:
- 1) Cash flow from the property
- 2) Appreciation of the home
- 3) Tax benefits
- 4) If there is financing, the mortgage can be paid down and the equity in the home increases.
- Protect against inflation – Real estate has historically shown to be a natural hedge against inflation, ensuring your capital and purchasing power is not reduced over time. Additionally, when there is financing in place for the property, inflation can actually accelerate returns.
- Low volatility & low correlation: Historical data has proven that real estate has low volatility over time, much less so than other asset classes like equities. Furthermore, real estate has low correlation with the most popular asset classes like equities, which means you can significantly reduce your risk profile by diversifying your portfolio with real estate.
We believe that Arrived offers a first-class investment opportunity for anyone looking to build wealth through real estate. Sign up below to browse available properties and start investing today.