Investments can perform better when held for the long-term, but the Real Estate Income Fund's strong current yields mean investors can earn strong returns even if they exit early and pay redemption fees.

Net Annualized Returns at Different Exit Scenarios

This represents the Pro Forma estimate for annualized free cash flow for this fund after fees. We aim to pay out dividends monthly based on generated cash flow

Estimated costs for assembling and managing the fund's investment portfolio. These expenses include sourcing new loans, ongoing loan servicing, and asset management fees. Actual costs may may differ and past performance is not indicative of future results. For a full breakdown of expenses and fees, please review the Offering Circular.

An estimate of potential losses from unpaid loans within the fund.

Below is a sample of the potential returns for the Real Estate Income Fund based on a $10,000 investment.

Any information below is for illustrative purposes only and is not intended to serve as investment advice.

Anticipated Annual Cash Flow

Arrived strives to use technology and scale to offer real estate investments at a low cost. The Arrived Real Estate Income Fund has a 0.10% monthly Asset Management Fee on average. That equals $1.00 per month for every $1,000 invested. Learn more about how Arrived approaches fees [here](https://help.arrived.com/en/articles/10263157-breaking-down-arrived-fees-what-you-need-to-know).

Debt typically involves lower risk and lower returns, and equity typically involves higher risk and higher returns.

The Capital Stack

Real Estate Income Fund Purchase Agreement

Real Estate Income Fund Supplement

Private Placement Memorandum

We publish quarterly reports on the fund that include financial and operating performance, commentary on market trends. View those [quarterly reports here](https://arrived.com/blog/category/investing-on-arrived).

The Arrived Real Estate Income Fund is a Mortgage REIT that buys loans; investors are equity shareholders in the REIT, exposing them to residential real estate debt investments.

 When you invest in real estate debt, you are lending money to a property owner. The property secures the loan, and you receive a fixed rate of return based on the interest rate of the loan and your investment amount. Some of the benefits of investing in real estate-backed debt include:

**Steady income:** The fund has historically paid consistent dividend payments every month.

**Lower risk:** The property itself secures debt. If the borrower fails to make payments, the lender has the right to foreclose on the property to recover the losses. If there are issues with the property, debt holders are paid back first.

**Set terms with capped upside:** Debt investments typically have predetermined hold periods and interest rates. Debt investors collect interest payments and the original principal but don't participate in property appreciation.

[More Info](https://arrived.com/blog/introduction-to-real-estate-debt)

Guiding our Investment Strategy with Ryan Frazier

The Arrived Real Estate Income Fund

Explore Real Estate-backed Private Credit Debt, Our Thesis, and Loan Types in the Fund

Introductory Webinar: Arrived Real Estate Income Fund

The Arrived Real Estate Income Fund has adopted a redemption plan designed to provide investors with an option for liquidity. Once an investor has held their investment for six months, they can request a redemption of all or a portion of their shares. If approved, the redemption will occur at the then current Arrived Valuation at the end of the quarter.  Visit our [fund liquidity](https://help.arrived.com/en/articles/4537829-what-happens-if-i-want-to-liquidate-sell-my-investment-before-the-end-of-the-target-investment-period) Help Center question and [offering circular](https://www.sec.gov/Archives/edgar/data/2007995/000200799524000007/arriveddebt_253g2.htm) to learn more. 

Below is a table that outlines the redemption costs based on the timing of the request. They will be calculated as a percentage of the current Arrived Valuation at the time of redemption.

The Arrived Real Estate Income Fund financed 3 of 5 parceled buildings near the end of construction. Our bridge loan extended the borrower’s timeline to refinance or sell, and after 12 months the loan was repaid in full.

This Seattle renovation transformed a $975,000 purchase into a home listed for $2.2M. The Arrived Real Estate Income Fund provided a $1.69M loan to support the project, which was repaid in full.

This South Florida development financed the construction of a new luxury home. The Arrived Real Estate Income Fund provided a $3.85M construction loan to support the project through completion and sale, and the loan was repaid in full after an 18-month hold.

The Real Estate Income Fund provides short-term loans to real estate operators improving or building housing. Below are examples of real projects that were financed, completed, and repaid in full.

This disciplined selection framework helps us build a diversified portfolio of high-quality loans designed to deliver consistent income while minimizing downside risk.

Loan Selection Criteria

With {aumValue} AUM and {propertyCount} properties across the U.S., Arrived has become one of the largest platforms enabling individuals to invest in residential real estate. Backed by Jeff Bezos and other leading technology and real estate investors, we combine institutional underwriting, data-driven portfolio construction, and rigorous asset management to deliver consistent performance across market cycles.

The Arrived Real Estate Income Fund is managed by a seasoned team of real estate, credit, and investment professionals with decades of combined experience. Every loan is underwritten and reviewed by our in-house investments team, ensuring quality and consistency across the portfolio.

- 2x founder with Exit
- DataRank
- Gravity Ventures

Ryan Frazier

- Founder at SeaLevel Properties
- Partner at American Classic Homes
- Accenture

Joel Mezistrano

VP of Corporate Development

- VP Prosper, Lending Club and LendStreet
- FVP at JP Morgan

Sue Korn

- MD/Director at Crosscountry and Pennymac
- Portfolio Manager at WAMCO and NLG Capital

Ravi Sharma

Head of Credit

- VP at American Homes 4 Rent
- Family Office focused on Real Estate
- Goldman Sachs

Cameron Wu

VP Investments

- Davis Polk & Wardwell LLP
- Cadwalader, Wickersham & Taft LLP

John Rostom

VP & General Counsel

The Real Estate Income Fund is diversified across dozens of active loans, each underwritten for quality collateral, conservative leverage, and experienced borrowers. Below is a snapshot of current portfolio characteristics based on underlying loan data.

Return Type

Relationship with Real Estate Asset

Risk and Return

There are two ways to invest in real estate—equity and debt.

Equity investing is when investors own the underlying real estate, and debt investing is when the underlying investment is a loan secured by a property.

There are pros and cons to each investment structure. You can read more about the differences in equity and debt investing [here](https://arrived.com/blog/real-estate-debt-vs-equity).



The fund primarily invests at the bottom of the capital stack as senior debt, which is repaid before mezzanine debt or equity in the event of default. This senior position provides greater principal protection and a more predictable income profile.

By emphasizing conservative underwriting, strong borrower quality, and asset-backed lending, the fund is designed to weather a range of market conditions while targeting income-focused outcomes.

Where we sit in the capital stack

We focus on downside protection at every stage of the investment process:


  - Senior-secured loan positions with first-lien rights on the underlying property.
  - Portfolio diversification: We spread investments across multiple borrowers and geographies to mitigate concentration risk.
  - Monitoring and management: We closely track loan performance and manage risk through proactive measures.
  - Regulatory compliance: We adhere to all applicable regulations to protect investor interests.

How We Manage Risk

Since launch, the fund has delivered a historical annualized dividend of 8.1%+. While returns are not guaranteed, the fund is structured to prioritize cash flow and principal protection. To date, it has experienced zero loss of principal on any loan.

Income Profile

For new investments made by **May 31st**, the first expected dividend will be around **August 25th**. Learn about dividend eligibility timing [here](https://help.arrived.com/en/articles/13370733-why-don-t-i-start-receiving-dividends-immediately).