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Arrived Homes
Fees
3.5% to 5% sourcing fee; 0.15% AUM, 5% gross rents fee
- Only $100 to start investing
- Open to accredited and non-accredited investors
- No personal liability for investors
- Property managers handle the legwork of your rental home
- Minimum holding period of 5-7 years isn’t ideal for short-term investors
- Limited selection of rental homes
About Arrived Homes
Arrived Homes lets you invest in fractional shares of rental homes with as little as $100. Whereas purchasing a rental home normally requires several tedious steps, Arrived Homes aims to simplify this process by providing low-cost, pre-vetted homes to investors.
Plus, its investments are held in an LLC and taxed as real estate investment trusts (REITs). This removes personal liability from investors. Arrived Homes also utilizes advanced market tools, collaborations with local market experts, data-driven technology, and more to maximize returns.
You can earn passive income from single-family residences and vacation rentals through quarterly dividends or appreciation from increased property value at the end of the investment holding period. Single-family residences qualify as REITs, but vacation rentals do not.
Is Arrived Homes Right For You?
Arrived Homes is open to both accredited investors and non-accredited investors. Accredited investors have a minimum net worth of $1 million or make $200,000 per year ($300,000 for couples). Arrived Homes is best for those who want to earn passive income from rental homes.
Beginner investors may benefit from Arrived Homes’ accessible and simplified platform, low investing minimum, and educational resources. The platform is best suited for investors interested in building wealth through long-term passive income. But keep in mind that Arrived Homes doesn’t offer automated account features and may be a better option for hands-on investors.
Arrived Homes: Overall Rating
Arrived Homes Pros and Cons
Is Arrived Homes Trustworthy?
The Better Business Bureau gives Arrived Homes an A+ rating. While the bureau’s ratings don’t guarantee a company’s reliability or performance level, they reflect its opinion of how well a business interacts with its customers.
The BBB also considers things like time in business, type of business, and customer complaint history. As for Arrived Homes’ slate, it hasn’t racked up any major lawsuits or public scandals.
For better insight, consider talking with friends or family who have used Arrived Homes and reading customer reviews on the business.
Ways to Invest with Arrived Homes
Arrived Homes only offers taxable investment accounts and self-directed individual retirement accounts.
Taxable Accounts
The real estate platform uses market analysis to find the best markets and accordingly acquire the best properties. However, the acquisition isn’t complete until Arrived Homes’ investment committee vets each property.
The company’s operations team then works with contractors and property managers to handle renovations, tenants, property issues, and property maintenance. As for you, the investor, you can take advantage of its rental home marketplace through four steps:
- Browsing homes: Arrived Homes’ marketplace lists several homes, and it separates them into three categories: “Trending,” “For Sale,” and “Sold Out.”
- Selecting shares: The platform shows you the per-share price for each listing, so you can decide how much you’d like to invest based on that information.
- Signing and investing: Before you’re completely in on a deal, you’ll need to review the listing’s terms, sign an online contract, and link your bank account to fund the asset.
- Earning income: This is perhaps the most straightforward part of the process. Arrived Homes manages the property while you earn passive rental income. It distributes dividends quarterly, and annual returns for 2021 ranged from 5.21% to 6.42%.
Each listing contains information like the number of shares, price-per-share, purchase price, and other supporting documents. Plus, the Arrived Homes reviews feature lets you see what other investors are saying about the property you’re interested in. As for account types, you can invest through taxable accounts, self-directed retirement accounts, and other entities.
Retirement Savings Accounts
You can save for retirement with a Checkbook IRA, which is a form of self-directed IRA that owns an LLC. With this type of account, you can only invest in the LLC and you’ll be seen as the LLC manager.
Checking IRAs allows investors more flexibility, access to alternative assets, and greater investing control. Alternative assets may include real estate, private equity, crowdfunding, and more. This type of retirement account also offers faster and cheaper transactions as you won’t need to go through a custodian.
Along with that, assets held in an LLC will be separate from your own assets. This provides another level of security and separation against bankruptcy and legal action.
Arrived Homes Fees
Arrived Homes requires a $100 minimum to start investing, but most rental properties charge at least a couple thousand to buy.
Long-term rental properties charge a one-time sourcing fee of 3.5% of the property purchase price, and a quarterly assets under management (AUM) fee of 0.15% of the property purchase price.
Vacation rental properties charge a one-time sourcing fee of 5% of the property purchase price, and a gross rents fee of 5% of gross revenue.
Compare Arrived Homes
Arrived Homes vs. Groundfloor
Arrived Homes and Groundfloor are both real estate investing platforms for accredited and nonaccredited investors. However, the two platforms have different fees and investment options.
Groundfloor has a much higher account minimum at $1,000. It’s a better option for experienced and passive investors looking for short-term investments in fractional real estate debt. Groundfloor users earn returns of 10% or more on average.
Arrived Homes is a better option for active investors interested in long-term investments and passive cash flow.
Read our Groundfloor review.
Arrived Homes vs. Roofstock
Roofstock is also available for accredited and nonaccredited investors, but it doesn’t require an account minimum, and it does charge pricey contract fees and closing fees.
Roofstock is good for active traders interested in investing in single-family rental properties. It’s also ideal for folks looking to utilize advanced financial tools and services, like a proprietary neighborhood rating system. Roofstock One, however, is the pro version of the platform only available to accredited investors. It provides a fully managed account for passive investors. But it does require a $5,000 minimum.
If you don’t mind managing your own account, Arrived Homes is a cheaper and better option for earning passive income.
Read our Roofstock review
Arrived Homes Frequently Asked Questions (FAQs)
Arrived Homes is a legitimate investment platform for real estate investing for active traders to pick and choose single-family residential and vacation homes. Arrived Homes was founded in 2019.
To open an Arrived Homes account, you must be an accredited investor which means that you have a minimum net worth of $1 million or make $200,000 per year ($300,000 for couples).
Yes. You can make money with Arrived Homes on single-family residences and vacation rentals through quarterly dividends or appreciation from increased property value at the end of the investment holding period. Single-family residential have annual returns from 6% to 12%. Vacation rentals have an annual return from 5.5% to 15%.
Arrived Homes is backed by Jeff Bezos. Ryan Frazier is the current co-founder and CEO of the platform.
Arrived Homes is a real estate investing marketplace for active traders to pick and choose single-family residential and vacation homes. For only a $100 minimum, you can diversify your investment portfolio with long-term real estate investments.
Why You Should Trust Us: Our Methodology for Reviewing Arrived Homes
We reviewed Arrived Homes using Personal Finance Insider’s rating methodology for investing platforms to compare and examine account types, investment options, pricing, and customer experience. Investing platforms are given a rating between 0 to 5.
Real estate investing platforms generally offer low fees, multiple asset classes, financial tools, and other resources. Some real estate investing platforms are better for more advanced investors, while others may better suit beginner investors. Arrived Homes was evaluated with a focus on how it performed in each category.
