The Wescott

Single Family Residential

bed: 3    bath: 3    sq ft: 1,839    year built: 1997

  • Investors

    189

  • Purchase Price

    $272,500

  • Property Leverage

    50%

  • Monthly Rent

    $1,795

  • The Wescott is a nicely renovated home featuring an open floor plan with an updated kitchen, bathrooms, bedrooms and more. The luxury kitchen with rich shaker cabinets, granite counters, upgraded lighting and new stainless steel appliance package. There is beautiful LVT flooring in the kitchen, LVP in common areas and freshly painted throughout. The master bedroom is on the main level and additional bedrooms are on the second floor along with amazing bathrooms, large windows and lots of natural light.

    Address: 416 Sandburg Drive, Clarksville, TN 37042

    Tenant Leasing Process

    Preparing a home for the rental market is a multi-tiered process that begins as soon as the property is acquired. Our experienced investment team works closely with the local property managers to get it show-ready, determine optimal market rent, take high-quality photos and videos, market the rental through various online and offline channels, screen and thoroughly vet tenant applications, and finalize the lease terms. Below you can find more information regarding the current rental status, the expected timeline, and the rental income.

  • Rental Status

    Rented

  • First Dividend Date

    July 2022

  • First Dividend Yield

    3.0% / YEAR

  • Timeline to Rent

    The time needed to sign the first tenant lease is variable and can depend on several factors including seasonality and whether the property requires any sort of renovation. Historically the average time to lease has been 45 days and has ranged from a minimum of 7 days to over 90 days.

  • Property Leverage & Volatility

    The potential financial returns you can earn are often linked to the potential risk and volatility. Adding leverage or debt to properties can amplify the potential return in exchange for higher potential volatility.

    Property Leverage

    50%

    Lower

    Higher

    Relative Volatility
    Relative to comparable properties on the Arrived platform, this property may carry average potential for equity returns, but also carries average potential for volatility given the amount of leverage used on the property.
    The Market

    Real estate values and returns are highly dependent on location. In general, properties in more affordable markets will have higher cash flow (potential dividends), and properties in more expensive markets will have higher appreciation. Arrived strives to give investors options to choose how much they invest in appreciation markets, cash flow markets, or balanced markets.

    The economy of the local city and market will dictate the potential returns of an investment. In general, some markets see high appreciation of home values, some have higher cash flow (dividends), and some have a mix of the two.

    Clarksville, TN

    Clarksville, the fifth-largest Tennessee city with rich history and surrounded by lush parkland, is located roughly 40 minutes northwest of Nashville. The city is hosts The Governors of Austin Peay State University and a neighbor to one of the largest U.S. military posts, Fort Campbell. Historically, Clarksville grew rapidly because of its accessibility to the navigable Cumberland River. Now, it's home to an LG manufacturing facility bringing hundreds of jobs with it. On the horizon, Google is set to open a $600 million data center that will offer several career opportunities attracting local and national talent to the city.

    Offering Details

    The Offering Details provide a breakdown of the financials for a specific property offering. The Offering Details show the operating plan for the property, including how the Raise Amount proceeds will be used. For transparency, we also like to share a breakdown of the Arrived fees. And if you're interested in more information, we also link to other resource documents that go into more depth around each offering.

    • Property Purchase Price

      $272,500

    • Property Improvements & Cash Reserves

      $15,210

    • Closing Costs, Offering Costs & Holding Costs

      $13,175

    • Arrived Sourcing Fee (One-time)

      $14,540

    Total Property Amount

    $315,425

    Property Loan Amount

    $136,250

    Financing: 50%
    Interest Rate: 6.125%

    Equity Raised from Investors

    $179,180

    • IPO Price Per Share

      $10

    • Total Shares

      17,918

    Hold Period

    5-7 years

    Arrived AUM Fee (Quarterly)

    $448

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    Common Questions

    Arrived acquires rental properties into an LLC and sells shares in that LLC to the general public. Arrived then manages the day to day operations including finding tenants and completing repairs.Investors receive cash dividends from rental income each quarter and capture any property value appreciation.

    Investing in Arrived rental properties can deliver returns to investors in two different ways:

    1) Dividends from the rental income on each property; currently paid out to investors quarterly
    2) Appreciation from the change in property value that will be realized at the end of the investment hold period

    The below table shows the estimated historical return range for a diversified portfolio of properties for each investment strategy. Actual returns for individual properties will vary and may over or under perform these ranges. Diversifying across several properties and across asset types can be a helpful strategy for minimizing individual property risk.

    Estimated Historical Annual Return Range for Diversified Portfolios

     Single Family ResidentialVacation Rental
    Without Leverage6% to 10%5.5% to 12%
    With Leverage7% to 12%6% to 15%
    Target Investment Period5-7 Years5-15 Years
    Return ranges are inclusive of all estimated costs, including property Operating, Finance, Legal, and Management Expenses, the Arrived Sourcing Fee, the AUM Fee, other upfront expenses, and costs associated with selling the property. Returns are calculated using the IRR formula.

    Learn More

    We are currently focused on marketing the rental homes to prospective tenants and will email you when a new lease has been signed. Arrived's strategy for seeking tenants is focused on signing 2 year leases, achieving market rent, and thoroughly vetting applicants. Though it may take a bit more time to lease out the homes, we believe these standards provide our investors the best way to maximize returns over the long term.

    Learn More

    With real estate, it can be beneficial to invest in multiple properties and markets to achieve portfolio diversification. Diversifying your portfolio can be a good way to reduce exposure to risk from an individual property, tenant, or market forces.

    Currently investors will need to plan to hold their shares for the full investment period until the property is sold and investors are paid their proportional proceeds from the sale. We anticipate filing a secondary trading market with the U.S. Securities & Exchange Commission (SEC) as an option for liquidity during the investment period, however there can be no guarantee when that will be available. Please submit your email if you would like to be notified of future developments.

    Arrived strives to give investors the opportunity to build wealth through real estate. Historically, real estate returns have been maximized when treated as a long-term investment over multiple years. Arrived property offerings typically have a 5 year minimum investment period before a property would be sold.

    Disclaimer:

    There is currently no public trading market for our Interests, and an active market may not develop or be sustained. There is no guarantee that appropriate regulatory approval to permit such secondary trading will ever be obtained. If an active public trading market for our securities does not develop or is not sustained, it may be difficult or impossible for you to resell your shares at any price before the end of the investment period. Even if a public market does develop, the market price could decline below the amount you paid for your shares, and there may be fees involved. Please refer to our offering circular for more details regarding potential distributions.

    Don't know which property to choose?

    No need to worry, all Arrived rental properties go through our rigorous selection process and have been pre-vetted for their investment potential by our acquisitions team (more info). Rather than focusing on selecting individual properties to invest in, many Arrived investors simply distribute their investment across several available properties to achieve portfolio diversification.

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    Other Questions?
    Visit our help center

    $179,180

    invested

    189 investors
    100% funded