Arrived Homes Review

Arrived Homes lets you pool your money with other people to invest in rental homes without the hassle of property management. Should you invest?

	Invest in Rental Homes with $100+ Get Started
	Overall Score	3.9
	Minimum Deposit	5.0
	Customer Service	5.0
	Commissions and Fees	3.5
	Ease of Use	5.0
	Liquidity	1.0

5-point scale (the higher, the better)

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Pros and Cons

• Just $100 minimum
• Earn rental income
• No accreditation required

• 5-7 year investment
• Limited properties

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Bottom Line

Invest in rental property and earn passive income, with no management responsibilities

Property is the gift that keeps on giving:

1. It usually increases in value over time
   
2. It can generate income on its own, and
   
3. It's one of the best ways to build wealth in the U.S.

So, what if you could reap the benefits of a rental property without playing landlord?

That's where Arrived Homes comes in.

Arrived Homes wants to make it possible for anyone to invest in rental homes for just $100. No property management involved. But is it legit? Read this review to see if it's right for you.

What is Arrived Homes?

Arrived Homes is a U.S. company, founded in 2020 by Ryan Frazier, Kenny Cason, and Alejandro Chouza, and based in Seattle, Washington.

Their goal is to make real estate investing more accessible to everyone, with just a $100 minimum. Apparently, a lot of big investors share their vision. They've received $37 million in funding from Jeff Bezos, Spencer Rascoff (former CEO of Zillow), and Dara Khosrowshahi (CEO of Uber), to name a few.

By reducing the minimum investment, they open it up to everyday folks who don't have enough to buy an entire property outright.

Investing with Arrived Homes comes with all of the benefits of owning real estate, without the stress. Find out how the buying process works below.

How Does Arrived Homes Work?

It starts when you sign up for an account with Arrived through their website. When you're ready to invest, here's how it works:

1. Browse pre-vetted homes.
   Homes are chosen for their investment potential, including:
   
   • Cash flow and appreciation
     
   • Quality of the surrounding neighborhood
     
   • Overall home quality

   All potential homes are sent to their investment team for a final check and to make sure that they're getting it for a good price.

   Then they turn the home over to their property management team, which hires contractors to rent out the home, and works to find good tenants to occupy it.

   As an added bit of insurance, they make their tenants part-owners in the home to ensure that they have just as much invested in its success as you, the user.

2. Choose your investment.
   You'll choose the home(s) you'd like to invest in and decide how many shares you'd like to buy. Remember, you can just as easily invest $100 as you can $50,000.

3. Earn dividends.
   Finally, all that's left is to review the terms and sign your name. You earn returns in the form of quarterly rental income dividends that translate to an annualized 5.95% to 7.54% per year.^[1]

Invest in Rental Homes with $100+

Click Here to Get Started

Browse rental home investments for free. No bank account required

Arrived Homes Fees

There are a few fees you should be aware of before you decide to invest in a property with Arrived Homes. Let's take a look at what they are.

• Annual Management Fee: 1% per year
  The annual management fee is paid directly to Arrived for the work they do keeping the business running.

• Property Management Fee: 8% of rent
  The property management fee is used to pay the individual property managers who take care of the day-to-day.

• Sourcing Fee: One-time fee, varies per property
  The sourcing fee is paid once upon purchase. It's included in the share price you find when choosing the property, but you can find it specified on the investment page in the "offering details" section.^[2]

What are the Benefits of Arrived Homes?

So, what are the benefits of investing in a home with Arrived?

It's accessible.
Anyone can do it. Most average Americans don't have a couple hundred thousand dollars just sitting around in the bank. With Arrived, you can invest with as little as $100.

It's safe.
While there is risk involved in any investment, holding real estate along with your other investments—and further, shares of multiple properties—allows you to reduce that risk to more comfortable levels.

Plus, since Arrived makes their tenants shareholders too, they have every incentive to keep the home in good shape.

And since every property is placed into an LLC when it's purchased, there's no worry about legal liability for any investor.

It's easy.
Not only is investing easy with Arrived, but so is the ownership itself. There's no dealing with tenants or property managers. You don't have to worry that your time and money is going to get eaten up by maintenance, because they've got it covered.

It pays.
Whatever the size of your shares, your payments will come quarterly like clockwork. And you benefit not only from rental income, but from the appreciation of the property itself.

The annual dividend yield reported in Q3 2021 was from 5.95% to 7.54%.^[1]

It's cost-effective.
One advantage that Arrived users have over traditional landlords is the economy of scale. Typical landlords have to deal with maintenance issues on a case-by-case basis.

Since Arrived is managing large numbers of properties, they can get contracting services at wholesale prices. Those savings can be passed on to you.

It's managed professionally.
Arrived Homes has access to software that helps them identify good properties to invest in. Software that isn't available to everyday buyers like us.

As a dedicated platform, they can afford to spend money on tools that make the job more efficient and more effective.

It's a smart tax move.
There are tax benefits to investing in real estate, with special deductions offered specifically for this kind of investment.

Invest in Rental Homes with $100+

Click Here to Get Started

Browse rental home investments for free. No bank account required

Are There Any Downsides to Arrived Homes?

While there's a lot to like about Arrived Homes, there are some things you might want to consider before you invest.

It's not for short-term investors.
Most investment terms are from 5-7 years, which, while common among similar crowdfunded real estate platforms, is long compared to other investments like stocks or crypto, which are admittedly more volatile.

It's not always easy to cash out.
Arrived is working on a program that will allow users to request early redemption of their shares after 6 months. But they can't guarantee that a secondary market will develop nor that they'll have someone to buy your shares.

This means, unlike the markets mentioned above, you may have trouble cashing out when you want to.

It's offerings are limited.
There are relatively few properties currently listed on Arrived. Their list of investors and approach is credible, but it's not quite fully developed just yet.

If you'd like more variety in terms of what properties you can choose, you may have to wait to find it.

How Does It Compare?

Arrived Homes isn't the only company offering pooled real estate investing to everyday people. Let's see how they differ.

Fundrise
Fundrise is another crowdfunded real estate investing company, established way back in 2012.

They offer the same service that Arrived does, except that it isn't focused on single-family properties, but commercial real estate that you can invest in through eREITs.

Like Arrived, users get paid in quarterly dividends and benefit from the appreciation of share value. Historical annualized returns on Fundrise from 2014 to 2019 ranged from around 9% - 12%, which may be higher than the rates that Arrived can offer for now.

The fees include a 0.85% annual management fee, a 0.15% annual advisory fee, and an origination fee that usually lands between 0-2%. This pricing is comparable to Arrived, possibly a little cheaper.

The buy-in at Fundrise is only $10, making it even more accessible to small investors than Arrived is.

	Arrived Homes	Fundrise
	SPECIAL OFFER Invest in Rental Homes with $100+ - Learn More	SPECIAL OFFER Invest in Real Estate with $10+ - Learn More
	Benefits and Features
Annual Fee	1% annual management fee	1% management fee
Minimum Deposit	$100	$10
Phone Support	Yes	No
Live Chat Support	Yes	No
Email Support	Yes	Yes
Dividends	Quarterly rental income dividends	Choose quarterly payouts or auto reinvest
Investment Period	5+ years	5+ years
Investment Types	Rental homes	Commercial, single family, industrial
Wealth Requirements	None	None
	Invest in Rental Homes with $100+ Earn Passive Income with Rental Homes	Invest in Real Estate with $10+ Earn Passive Income with Real Estate Starter Plan
		Terms Apply. Offering Circulars

Diversyfund
Diversyfund is a little more costly to start, with a $500 minimum investment. However, it stands out in other areas. It had 18% annualized returns in 2017, and 17.3% in 2018.

On top of that, Diversyfund doesn't charge the user any fees. By owning all of their projects directly, Diversyfund is able to offer investors better rates.

While Arrived deals in single-family homes, Diversyfund mainly deals with multi-family properties such as apartment buildings. There is no option to cash out dividends, so you'll have to be okay with receiving no returns until end of the investment.

	Arrived Homes	DiversyFund
	SPECIAL OFFER Invest in Rental Homes with $100+ - Learn More	SPECIAL OFFER Earn Passive Income with Real Estate - Learn More
	Benefits and Features
Annual Fee	1% annual management fee	$0. No management fees and no commissions
Minimum Deposit	$100	$500
Phone Support	Yes	Yes, normal business hours
Live Chat Support	Yes	Yes
Email Support	Yes	Yes
Dividends	Quarterly rental income dividends	Automatically reinvested
Investment Period	5+ years	5+ years
Investment Types	Rental homes	Apartment buildings and condos
Wealth Requirements	None	None
	Invest in Rental Homes with $100+ Earn Passive Income with Rental Homes	Earn Passive Income with Real Estate Become Part-Owner in Apartment Complexes Growth REIT

Bottom Line

There's a lot to be said for Arrived Homes, and if you're interested in diversifying your investment portfolio with real estate, it's certainly worth your consideration.

It's also worth noting that in a housing market in which everyday buyers are increasingly being pushed out by corporations and wealthy investors, crowdfunding single-family homes to be rented instead of purchased by the families who live in them may only contribute to the problem.

Choosing Fundrise, a commercial property investor, or Diversyfund, which focuses on multi-family homes that are typically rented anyway, may have less of a negative impact.

Whichever you choose, investing in real estate has long proven to be a sound financial decision, and we can only hope to benefit from more options in the space.

References