Unpacking Arrived Homes: A Deep Dive into the World of Rental Property Investments

Here’s a simplified and more conversational version of the text:

Want to become a landlord but don’t have enough cash? Or maybe you hate the idea of dealing with tenant issues? If so, Arrived Homes might be a great choice for you. This innovative platform offers you a chance to invest in rental property without the usual headaches. Let’s talk about how it works.

Arrived Homes is a company that began its journey in Seattle, Washington in 2020. Its goal? To let anyone become a property investor! They’ve impressed some pretty big names, including Jeff Bezos, and have already raised $37 million. The best part? You can start investing with as little as $100 per property.

Renting property has been a steady income source for many. We have seen ups and downs like the 2008-11 real estate crash, but in the long run, property value tends to rise. Besides, getting passive income from rentals attracts new investors. But the tricky part, buying and managing rental properties, is made easier by Arrived Homes. They have a four-step process:

1. You can surf the Arrived Homes site to find available rental homes.
2. Choose the ones you like and decide how much to invest in them.
3. Ready to invest? Review the terms and risks, sign the documents, and pay from your bank account.
4. Enjoy the advantages of property investment! Arrived Homes takes care of everything. As an investor, all you need to do is wait for your profit to roll in.

They follow an organized procedure to make sure you get the best investment property. They analyze market trends, neighbourhood characteristics, home features, and run it all through their investment committee before making a purchase. They provide detailed information on each listed property to aid your decision-making.

But remember, like any investment, there’s a time commitment. You’re looking at about 5-7 years per property. And it’s not as easy to move your money around as it is with stocks or shares. But, by far, the rewards have outweighed the slow turnover, with returns between 5.41% and 7.02% per year as of Q3 2021.

Another unique feature of Arrived Homes is that they specialize in single-family houses – no townhomes, condos, duplexes or commercial buildings. They follow a six-step procedure to identify high-return properties in good neighbourhoods.

They earn from an annual management fee of 1%; a property management fee of 8%; and a one-time sourcing fee paid on property purchase.

Want to cash out early? While they aim for a property holding period of 5-7 years, Arrived Homes is developing a secondary market for earlier share sales, although they warn there may be risks of getting a lower return.

Is Arrived Homes legit? As of now, it has an A rating with the Better Business Bureau, no record of scandals, or major lawsuits, and zero filed complaints.

But like everything, it has its pros and cons.

Pros:
– Low investment minimums
– Open to anyone
– Extensive property investigation
– Thorough vetting for renters
– No operational responsibility
– Opportunity for high return markets
– Consistent quarterly cash flow

Cons:
– Limited property availability
– No formal share redemption program or secondary market
– Long-term commitment

Of course, there are other fish in the sea. Similar platforms include Fundrise, Groundfloor, Roofstock One, and Landa – all worth checking out if you’re keen to jump into real estate investing.

So, there you have it! If you’ve dreamed of profiting from rental property but been put off by the effort and cost involved, Arrived Homes could be just the ticket. Happy investing!