WHY BUYING SHARES OF RENTAL PROPERTIES IS THE FUTURE OF REAL ESTATE INVESTING
Real estate investing has proven to be one of the most efficient ways to build personal wealth over time. Whether it is residential, commercial, or industrial properties, these tangible assets have provided countless investors with superior returns.
Unfortunately, real estate investing has also traditionally only been a way to create wealth for people who are already wealthy or people working in real estate full time.
Large down payment requirements, mortgage underwriting criteria, and lack of time and experience have shut many people out from the possibilities of owning real estate investments.
With the use of technology, there’s no reason why this phenomenal asset class should not be available to everyone. So we built Arrived with the mission to make real estate investing simple and accessible to everyone.
Real estate ownership should reflect the diversity of its community. You should be able to invest in real estate whether you have $100 or $100,000 to start today. And renters should have some skin in the game in the homes they live in.
This is real estate reimagined.
Why Invest in Real Estate?
Real estate has a myriad of benefits that make it the investment of choice for many people around the world. Chief among the reasons for the popularity of the asset class are the historically strong returns. These returns not only come through appreciation of the assets over time, but also include consistent cash flow that puts money in investor pockets. These returns are further magnified through the availability of low cost debt that increases the leverage. Finally, special tax benefits like property depreciation only serve to reduce taxable income and further increase returns.
In addition to strong returns, real estate has shown to be low volatility, protect against inflation, and help investors diversify their portfolio and reduce risk.
The real question is why aren’t you investing in real estate?
Why invest in Rental Homes?
Given that Real estate itself is a big category with many different property types, investment vehicles, and strategies, it can be overwhelming to decide what is the right strategy for you.
Arrived invests in owning single-family rental homes that need light to moderate renovations. Arrived finds that this combination has the optimal balance of risk and returns with a long-term focus.
Single-family rentals have a relatively liquid marketplace and have higher appreciation than other types of real estate. There’s also less downside risk – even in a bad economy, people need a place to live.
Why invest in real estate instead of stocks?
Given the easy accessibility and low entry costs to buying stocks, one common question is why people should allocate part of their portfolio into real estate in addition to stocks. The stock market is powerful and a critical piece of every investment portfolio, but it does have several limiting factors that make diversification into real estate a winning proposition.
For starters, real estate has some structural advantages compared to stocks. For example, it can be much easier to find undervalued assets, improve them to force appreciation, and use low cost debt to make the most out of investments.
Additionally, real estate has better tax treatment and tax benefits, so investors can lower their taxable income through depreciation that is only available in real estate investments. There’s also less volatility – stocks bounce up and down quickly while real estate rises in value steadily. That means that if you have a shorter time horizon with stocks (3-5 years) then you can easily time the stock market incorrectly and end up with sub-par returns.
Why Arrived Homes?
If you decide to invest in real estate, one option is to go buy a rental property yourself. But like most people you probably won’t, and for good reason too. It’s expensive, time consuming, and requires a lot of expertise to find, select, and negotiate the home purchase. If you get financing, you’re then personally liable for that debt. Then you have to either hire a trustworthy property manager, or deal with all the operational tasks of dealing with tenant and home repairs yourself. Additionally, since you will probably start out with only one home, your investment is not diversified. So you are essentially putting all your eggs in one basket and your returns can easily tank if you have one bad tenant or an unexpected incident at your property. Your “passive rental income” is anything but passive.
At Arrived we have taken that complex, time consuming, and expensive process and simplified it. Using our expertise in the industry, we find and acquire the best homes in the most lucrative markets across the country. We then renovate the properties, find great tenants, and operate those properties ultra efficiently. We utilize professional-grade technology and are able to achieve economies of scale, which produce savings that we pass on to our investors. Through our experience and networks, we’re able to find the best deals on properties while passing cash flow and tax advantages on to our investors. All of our home purchases utilize financing, so our investors get access to low cost debt without the personal liability or the credit requirements. Oh, and you can get all of this for only a $100 minimum investment.
With Arrived, your passive income is truly passive. We handle the operational logistics since we have the real estate and investing expertise.
How does Arrived pick and operate properties?
Our disciplined and data-driven approach to investing allows us to offer our investors only the best returns. Our market selection model not only finds the most lucrative cities to invest in, it also helps us identify which neighborhoods and property characteristics will result in a top performing rental property.
Then we’re able to use a centralized approach to overhead, data, and technology to efficiently operate our homes, minimize costs, and maximize our returns. All tenants in our Arrived homes are given equity in the home itself, turning those renters into co-investors and ensuring that our incentives are aligned and that we attract high-quality renters.
Arrived is building the future of real estate investing. A future where everyone can easily access the expert strategies and strong returns that have previously only been available to the lucky few. Sign up below to browse our available properties and get started on your investing journey.