WE HAVE DESIGNED OUR INVESTMENT PLATFORM SO THAT OUR INVESTORS CAN ACCESS TOP PERFORMING REAL ESTATE INVESTMENTS AROUND THE COUNTRY.
Here at Arrived we are building a new way to invest in real estate that makes it easier for anybody to start their investing journey today. With the Arrived platform anyone can buy shares in income producing rental properties starting at just $100 and start earning money quickly. Arrived will take care of all the operational work (finding a renter, dealing with maintenance, etc) so that investors can sit back and collect net rental income and their share of the home’s appreciation.
We have specifically designed our investment platform to not only make investing super simple, but we also focused on delivering maximum benefits to our investors. Below is a breakdown of what you can expect when investing with Arrived.
Arrived Investing: Top 10 Benefits
Simple and Fast:
We have worked really hard to simplify the process of investing in real estate. While the old process to invest in real estate required over 15 steps and several months of hard work, the Arrived process is radically simple. With 4 simple steps you can now buy shares in a rental property in seconds and start earning money quickly.
Low minimum investment
The single largest barrier to investing in real estate is simply the large initial investments required. If you’re interested in buying a $250,000 home, you are going to need at least $50,000 in cash to purchase the property (that’s assuming you have financing for the remaining $200,000). With Arrived you can open an account and invest as little as $100 in a home.
Diversify your investments
- Diversifying your investments is a very powerful tool to lower your risk while keeping your returns high. There are multiple ways Arrived is designed to help you mitigate risk through diversification.
- First, our low minimum allows you to distribute your investment across as many rental properties as you want. Compare this to buying a single rental home where you have no diversification and any one-off risks (bad tenants, large maintenance problems…etc) can completely destroy your returns.
- Second, just by investing in real estate you are diversifying your total assets and lowering your total risk profile. Real estate and particularly private real estate, is an excellent way to diversify a portfolio. From 2008 to 2017, private real estate investments only correlated with the S&P 500 by 19%, compared to 79% correlation for public real estate.
- Third, Arrived also helps investors diversify across markets. Traditional DIY rental property ownership meant that people bought homes relatively close to where they live. With Arrived you can diversify across markets which means you have less exposure to potential city specific risks (job market, specific regional dynamics..etc).
No Operational Responsibility
- As an Arrived investor you have no responsibility for finding, acquiring or managing the property. Arrived has refined its process over time and takes full operating responsibility for the rental property. We find and vet the renters. We deal with any maintenance, repairs, payment collection, or customer service requests.
Truly Passive and Consistent Income:
- With Arrived, our users receive rental payments every 3 months. After talking to many prospective real estate investors we found that a top goal of most people was building passive income that was consistent. So we focused on building our product around that. Our investors get rental payments distributed, that are consistent in both when they are paid but also in terms of the amounts. We plan around larger one time expenses so that the payments do not fluctuate wildly from month to month. Additionally, since Arrived takes care of the full property operations, this is truly 100% passive, as no work is required from investors.
Aligned Incentives With Top Renters
- Through our experience in real estate we have learned that a crucial part to maximizing returns is to pick the best tenants that will pay on time, stay at the property longer, and treat the home with care.
- We developed a proprietary process that vets and scores tenants using both internal and third party professional grade tools. After analyzing the many data points we make a determination whether that renter will be a good fit for the investment property.
- We then choose to align our incentives with the tenant by rewarding them with actual shares of the rental property. By converting the tenant into a co-owner with the investors, we believe that the tenant will care for the home better, which results in lower maintenance costs. The shares granted actually increase along with the lease tenure, hence reducing vacancy as well. These benefits of lower maintenance costs and lower vacancy can mean higher returns for our investors.
Benefits from Scale
- Due to the scale that we can achieve by having multiple properties under management, we can reduce operating costs to further increase returns for our investors. This not only includes negotiating better rates with sales agents and contractors, but also buying certain maintenance services in bulk and lowering costs. In addition to the cost savings, by having multiple properties we are able to increase our response times to our tenants by having staff on call at all times and also having common repair items in our stock. All up, these benefits from operating at scale translate to happier tenants that stay longer and lower costs that increase investor returns.
Financing with no liability or credit history requirement
- Every Arrived Home is placed in an LLC Series that completely shields our investors from any type of liability that the property or its operations may incur. This not only applies to potential lawsuits or other similar events, but also applies to the financing. Our investors are essentially able to take on large amounts of low cost debt without any personal guarantees for that debt and its future payments.
- Since the financing is not backed by your personal credit, we do not require that our investors have a certain credit history to invest. While the loans are non recourse and solely backed by the property value, our experience in the industry has allowed us to still get very attractive interest rates for our investors.
Access to the most lucrative markets
- Investing in rental properties in the past has meant that investors are mostly limited to the properties and markets in close proximity to where they live. Otherwise it would be a huge pain to manage a property and deal with its operational issues from long distance. Given Arrived takes on all responsibility for the operational tasks and has a local team available, this essentially means that the investor is now able to pick investment properties in the market that yields the most favorable returns, it doesn’t matter if the property is in Alaska, Florida, or Maine. We analyze hundreds of potential markets across the country to determine which are the most lucrative markets to invest in.
Access to professional grade technology
- Over the past decade, real estate investing has changed dramatically with the addition of many data driven tools and technologies that enable better decision making that ultimately leads to increased returns for investors. The problem is that these tools are expensive and frequently not accessible to individual investors. At Arrived we use a combination of expert tools that we have either internally developed or external tools that we pay for, to ensure that we are making the right decisions when it comes to 1) identification of markets 2) analysis of properties 3) negotiating a purchase and 4) efficient operations of a property. By investing with Arrived, you can now have access to the returns that these professional grade tools deliver.
General Real Estate Investing Benefits
In addition to the above benefits specific to investing in real estate with Arrived, there are many other reasons for why you should invest in real estate and specifically SFRs (Single Family Rentals).
- Access to low cost debt – Thanks to government subsidies, the consistent increases in value, and the lower risk profile from real estate investing, financing costs for real estate purchases are extremely low. Very few other investment classes allow borrowing at such low rates for longer terms. This means real estate investors can increase their returns by utilizing financing.
- Generous Tax advantages – Investing in real estate has a number of unique tax benefits that Arrived is able to pass on to investors. Cash flows are maximized by depreciating the properties so as to reduce the taxable income. Capital gains tax is also minimized by paying long term capital gains on the home appreciation. Additionally we structure each offering as a REIT (Real Estate Investment Trust) specifically for the single taxation of the dividends (dividends are only taxed when investors receive payments and not at the Corporate level as well).
- Earn money from multiple sources – As discussed in detail in the below linked article, real estate has the benefit of earning an investor money through various methods including 1) cash flow from the property 2) appreciation of the home 3) tax benefits 4) if there is financing the mortgage can be paid down and the equity in the home increases.
- Protect against inflation – Real estate has historically shown to be a natural hedge against inflation, ensuring your capital and purchasing power is not reduced over time. Additionally when there is financing in place for the property, inflation can actually further accelerate returns.
- Low volatility & low correlation: Historical data has proven that real estate has low volatility over time, much less so than other asset classes like equities. Furthermore real estate also has low correlation with the most popular asset classes like equities, which means that by diversifying your portfolio with real estate, you are able to significantly reduce your risk.
We believe that Arrived offers a first class investment opportunity for anyone looking to build wealth through real estate investing. Sign up below to browse available properties and start investing and earning money today.