In a world where the American Dream of homeownership is becoming difficult for many, a company backed by Amazon founder Jeff Bezos is offering a new way to invest in the housing market. Arrived, a real estate firm, has launched a fund aimed at buying or building single-family homes to be used as rentals.
Since its inception in 2021, Arrived has attracted nearly a half a million customers, operating as a fractional real estate investing platform. The company’s model is similar to buying a slice of the American pie, allowing investors to purchase shares of single-family rentals for as little as $100.
The housing market has been a rollercoaster ride in recent years, with many Americans being priced out and forced to swap the title of homeowners for tenants. Arrived’s new fund, the Single Family Residential Fund, offers a simplified way for investors to allocate capital, allowing them to invest more at their own pace, rather than waiting for specific properties to launch.
The fund also offers a smorgasbord of investment opportunities, diversifying across multiple properties in different real estate markets. Arrived plans to offer investors the option to cash in their chips, redeeming or liquidating their shares every quarter after the initial six months.
Arrived’s CEO, Ryan Frazier, is bullish about the single-family home market, citing its historically robust returns and lower volatility compared to the general stock market. He also pointed to the constant demand for housing, which has been outpacing the supply of new homes.
In the third quarter of 2023, investors on the platform raked in approximately $890,000 in dividend income, a significant increase from the previous quarter. Over the past year, the platform has doled out over $2.8 million in dividends to its investors.
However, the success of firms like Arrived has led to a surge in property acquisitions, with investors on the platform funding over 388 homes valued at more than $122 million. This has resulted in rental properties being fully funded within hours of going live on Arrived, leading the platform to limit the maximum investment on many of its properties.
Read more at Daily Express US.