Arrived Review 2024

Formerly known as Arrived Homes, Arrived allows both accredited and non-accredited investors to invest in residential real estate and vacation rentals for $100.

Arrived (formerly Arrived Homes) enables investors to create wealth in real estate investing, specifically rental homes and vacation properties. The opportunity to invest in this type of income-producing real estate is open to all investors, with a minimum investment of just $100. Because of this, Arrived wins the Best for Rental Properties category for Investopedia’s Best Real Estate Crowdfunding Platforms of 2023. 

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Pros & Cons 

Pros Explained

• Minimum investment of $100: A low investment minimum allows more investors to enter the real estate market. 
• Open to all investors: Investments at Arrived are open to both accredited and non-accredited investors.
• Fund investment offers liquidity: Investors are able to access their investment after a six-month lockout period.

Cons Explained

• Relatively high fees: Investments have sourcing fees, assets under management (AUM) fees, rent fees, and property management fees.
• Low liquidity for individual property investments: Individual investments into single-family residences or vacation rentals have an expected five- to 15-year holding period.

Company Overview

Arrived was founded in 2019 by Ryan Frazier (CEO), Alejandro Chouza (COO), and Kenny Cason (CTO) and is headquartered in Seattle. Since its inception, the mission of the company has been to “make real estate investing and ownership accessible to millions of people.”1 

The company is best suited to serve long-term investors looking to earn passive income or benefit from property value appreciation over time. The platform offers a streamlined and simplified approach to owning investment properties. However, access to customer service is extremely limited; Arrived only offers email support.

Arrived Homes At a Glance

How Does Arrived Work?

Arrived helps investors build wealth through owning real estate. The basic idea is that Arrived has streamlined the process for investors who are looking to invest in rental properties by making it more affordable and reducing risk. When investing through Arrived, shares of a specific property can be bought. This allows market entry for investors who have a few hundred dollars to invest in real estate and may not otherwise be able to come up with a down payment to purchase their own rental property. It is also less risky for investors because they are able to diversify their money and invest in several properties, thereby spreading out the risk and maximizing their opportunity for return.

Investing in Arrived rental properties can provide earnings to investors in the following ways:6 

• Dividends: Rental income on each property; currently paid out to investors quarterly
• Appreciation: Change in property value will be realized at the end of the investment hold period

Key Features

Arrived offers only rental or vacation properties as investment opportunities.7 Both accredited and non-accredited investors can start investing with as little as $100 and can choose from individual rental homes, vacation properties, or the only real estate investment trust (REIT) the company offers, the Single Family Residential Fund. Investing with Arrived is open to U.S. citizens or residents who are 18 years of age.8 

While Arrived offers only one curated REIT fund currently, investors have the opportunity to customize and diversify their investment portfolio by choosing to invest in the Single Family Residential Fund or choose the individual rental or vacation properties in which they’d like to invest.9

Investors can make money on their investment in two different ways:

• Dividends: Rental income on each property; currently paid out to investors quarterly
• Appreciation: Change in property value will be realized at the end of the investment hold period

While investors do not currently have the option to set up the automatic reinvestment of dividends, they are able to take dividend earnings and manually invest into new or current investment options at Arrived.

Fees

Arrived has different fees for different types of investments. Additionally, there are third party property management fees:

Long Term Rentals

• Sourcing Fee: 3.5% of property purchase price
• Assets Under Management (AUM) Fee: 0.15% of the property purchase price (quarterly)

Vacation Rentals

• Sourcing Fee: 5% property purchase price
• Gross Rents Fee: 5% of gross revenue

Arrived Single Family Residential Fund

• Quarterly Asset Management Fee: 0.25%10
• Sourcing Fee: 3.5% of the total purchase price of newly added property of the fund11

Property Management

• Long-Term Rentals: 8% of gross rental income
• Vacation Rentals: 15% to 25% depending on the market, specified on each property page.
• Miscellaneous: May also charge one-time expenses for lease-ups, renewals, or rehab and turn support

Sourcing fees are one-time fees charged when Arrived acquires the property. The AUM fee is charged quarterly and is paid out of the income from the property. This fee is charged to offset the costs of preparing tax forms, distributing dividends, obtaining insurance policies and filing claims when necessary, managing all financial accounting, ensuring payments and taxes associated with properties are paid, and overseeing the property manager.

Transparency

Arrived receives high marks across the board regarding its transparency in liquidity, fees, and reporting.

The amount of liquidity that an investor can expect is laid out very transparently on the website. While investors are expected to hold their shares until the property is sold—five to seven years for single-family residences and five to 15 years for vacation rental properties—there is more flexibility for liquidity when investing in the fund, as investors are only required to hold the investment for six months.12 However, there are costs associated with requesting early redemption, as outlined on the Arrived website.13 

Arrived also does a good job of talking about the fees associated with its investments. However, the fees are given in the form of ranges, and those ranges vary between investment types. This does make it a bit hard for an investor to calculate what their actual fees would be, although they should have a good idea of the fees involved.

Keeping investors up to date on how the properties are performing is a strong suit of Arrived. The company reports both semi-annually and annually regarding financial performance, including items such as balance sheets, cash flows, and dividends.14

Liquidity

Arrived has different options for liquidity, based on which investment you choose. Investors who choose the Arrived Single Family Residential Fund will have much greater access to liquidity than those choosing to invest in individual rental properties, whether they be rental or vacation homes. 

Arrived Single Family Residential Fund: This fund requires an investor to hold the investment for a minimum of six months. Following that lockout period, an investor is able to request a redemption of part or all of their shares. This redemption must be approved, and can then be redeemed at the current share price at the end of the quarter.

Arrived Individual Rental Properties: These investment options offer much less liquidity to investors, as they are expected to hold their shares until the property is sold: Five to seven years for single-family residences, and five to 15 years for vacation rental properties. In the future, Arrived is looking to file a secondary trading market with the U.S. Securities & Exchange Commission (SEC), which would provide an option for liquidity during the investment period, although this is currently not an option.

There are certain restrictions and costs associated with requesting redemption of shares if done within the first five years:15 

• First 6 Months: No redemptions (lockout period)
• 6 Months–1 Year: 2.0% of total share value
• 1 Year–5 Years: 1.0% of total share value
• More Than 5 Years: 0.0% of total share value

The total number of investors for individual properties will vary. A certain number of shares are sold for each property, based on the property’s value, so once a property is fully funded, then no more investors are accepted. For all properties currently being offered at Arrived, there are 512,000 investors. 

There are also restrictions on the investment amount as well. The maximum investment amount for accredited and non-accredited investors is 9.8% of the total equity available. 

Investment Selection

The investment selection at Arrived is limited to single-family residences, vacation rentals, or one single-family residential fund. Investors can choose individual properties in which to invest or select the fund, which acts as a REIT and is curated and managed by the investment team at Arrived. No additional investments beyond residential real estate are offered by Arrived at this time.

When investors purchase shares in an Arrived home offering, they are directly buying ownership in the specific “series of a series LLC that owns that home asset.” Whatever proportion of shares the investor purchases in the offering is the proportion of ownership interest they will have, which includes income from rent or property value appreciation.16

Sectors and Domains

Arrived is fairly streamlined, only offering single-family residential homes, individual vacation rentals, and one single-family residential fund. The company’s offering is relatively typical of the real estate crowdfunding industry, the scope of investment property types is quite limited, with other companies choosing to focus on residential, commercial, or industrial.  

Educational Offerings 

Arrived is in line with the competition when it comes to providing educational materials for investors. The company has an extensive blog with articles that give investors information on building wealth with rental properties, including topics such as:17

• Real estate investing
• Investing on Arrived
• Market spotlights
• Vacation rentals
• Taxes

Customer Support 

Customer support at Arrived is relatively weak within the industry, with only email offered for any type of customer support (support@arrived.com). Users can find the email address at the bottom of the homepage.

TrustPilot currently has Arrived ranked at 3.7 stars. However, that ranking is only based on a single 5-star review from July of 2023 that did not provide much detail.18

The Bottom Line

Investors looking to get into the real estate market, but who don’t have a large amount of money, can start investing at Arrived with only a $100 minimum investment. With individual properties, investors are expected to hold their shares for five to 15 years, depending on whether it is a single-family residential property or a vacation rental, so the liquidity for the individual properties is quite limited. However, the one fund, or REIT, that is offered by Arrived does offer more liquidity, only requiring a six-month holding period and lower fees for early redemption than other companies in the industry. 

Arrived has a solid process for market research and property selection, ongoing monitoring and reporting of property performance, backing from several world-class investors, and a record of solid returns.19 If an investor is looking to build wealth through real estate with a low threshold for market entry, Arrived offers a very solid option.

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Why You Should Trust Us

Investopedia analyzed 19 real estate crowdfunding companies and scored each based on eight major categories and 38 criteria that are crucial in evaluating the offerings and usability of these platforms. We used this data to review each company for their fees, investment selection, transparency, and other features to provide unbiased, comprehensive reviews to ensure our readers make the right decision for their needs. Investopedia launched in 1999 and has been helping readers find the best real estate crowdfunding platforms since 2020.

Is Arrived Legit?

All Arrived rental properties go through a meticulous selection process and are evaluated for their investment potential by the acquisitions team.20 The company estimates that less than 0.2% of homes reviewed will pass the company’s due diligence process.21 

When selecting a rental property, Arrived analyzes the data of platforms, such as Airbnb and VRBO, utilizing a tool called Airdna to help identify potential markets. Airdna tracks millions of rental properties and assigns a market grade to each property, based on demand, revenue growth, seasonality, regulation, and investment potential.22

After analyzing this data, Arrived creates a list of top markets to further explore. From here, research is conducted to figure out what markets are yielding the highest returns, consider a market’s long-term potential and sustainability, review regulations and non-owner occupied permits, and measure the demand for short-term rentals in the market.

Is Arrived Homes a Good Platform?

Arrived provides transparency when it comes to liquidity, fees, and reporting. The company has a solid plan for screening new investment properties. Arrived is also backed by several large, well-known investors, adding another layer of confidence for new investors.

Does Amazon Own Arrived?

Amazon does not own Arrived. However, Bezos Expeditions, the personal investment company of Jeff Bezos, is a financial investor of Arrived, along with many other high-level investors.23 

Is Arrived a REIT?

Arrived offers mostly individual properties for investment; however, it does have one fund, which the company considers “The REIT of the future,” boasting “more transparency into every property and wider market coverage than traditional single-family REITs.”10

How Does Arrived Work?

Arrived enables investors to get into real estate and build wealth without having to save up to buy a single property to realize appreciation or rental income. Arrived does the due diligence of market research and screening the prospective properties for income potential. Investors can buy shares of multiple properties and diversify their investments to minimize risk and maximize upside opportunity.

How We Review Real Estate Crowdfunding Platforms

To evaluate and review real estate crowdfunding platforms, Investopedia’s team of researchers, data collectors, and industry experts spent nearly two months conducting in-depth industry research, company survey data collection, and hands-on evaluations of 19 companies. We grouped the 38 criteria that we collected, including investment selection and minimums, holding periods, and curated portfolios, into eight categories. We then scored these criteria and weighted the categories to determine which real estate crowdfunding platforms are best for both accredited and non-accredited investors:

• Fees: 15%
• Account Services: 15%
• Investment Selection: 15%
• Liquidity: 12.5% 
• Transparency: 12.5%
• Sectors and Domains: 12.5%
• Customer Support and Usability: 10%
• Educational Offerings: 7.5%

Through this all-encompassing data collection and review process, Investopedia has provided you with an unbiased and thorough review of real estate crowdfunding platforms. Read our full process for more information on how we review real estate crowdfunding platforms.

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