Arrived Review: Affordable Real Estate Investing Made Simple

4.3

GBR RATING

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With a low investment minimum of $100 and no accreditation requirement, anyone can invest in the real estate market with Arrived. 

Arrived's features make it easy for anyone to invest in real estate. You only need $100 and you aren't required to be an accredited investor. After a six-month lockout period, investors can access their investment.

If you’re looking for a way to get into the real estate market, Arrived, which was previously known as Arrived Homes, is a good fit for those who can afford to invest a small amount. The company’s platform lets you invest in shares of rental homes with as little as $100. The good news is that you don’t have to be a wealthy accredited investor to participate. Check out this Arrived review to find out if it is a good investment for you. 

What Is Arrived? 

Arrived is a real estate platform that allows everyday people to invest in shares of rental and vacation homes. The company was founded in 2019 by three investors: Ryan Frazier, Alejandro Chouza and Kenny Cason.

The company allows individuals to participate in the market without the need for large upfront capital, property management expertise or direct ownership responsibilities. Investors earn returns from rental income and property appreciation. This approach aligns with Arrived’s mission — to make real estate investing and ownership accessible to millions of people. 

How Does Arrived Work?

Arrived wants consumers to “easily invest in real estate.” The goal is to make the platform user friendly for all investors.

How Do You Navigate Arrived?

1. Navigate to arrived.com in your browser. 
2. Browse properties online.
   • Properties include rental properties across the country.
   • Information will include projected returns, location and tenant history. 
3. Select your property.
4. Determine how much you want to invest and select the number of shares. Investments can start as low as $100.
5. Buy your shares.
6. Review terms and sign the electronic agreement.
7. Fund your investment. 
8. Monitor your returns.
9. Arrived manages the properties while you earn rental income.

What User-Friendly Features Are Available on Arrived?

Arrived wants users to navigate their website with ease. Here are some of the features that make Arrived user-friendly: 

• Easy to use platform: Most users will find the site easy to use and navigate. 
• Properties can be filtered: Users can browse properties based on location, type, investment goals, or expected returns, so you can customize your search based on what you want..
• Detailed property information: Each property includes high-quality images, detailed descriptions, financial projections on the property and estimate on returns.
• Personalized dashboard: Users can monitor their dividends and portfolio performance with a personalized dashboard.
• Mobile optimization: The site is mobile-friendly and users can conduct transactions or browse their portfolio via their cell phone.
• Secure transactions: Transactions are secure and encrypted. 
• Notifications and alerts: Users will be updated with notifications and alerts regarding new property listings, dividend payouts and investment opportunities. 
• Performance metrics: You can track return on your investments, rental income and property appreciation. 

Arrived’s Pros and Cons 

With a minimum of $100, Arrived allows anyone to invest without having to worry about accreditation. You can also earn quarterly dividends from rental income. Here’s a look at Arrived’s features, as well as its pros and cons.

Features

• Open to all investors
• Requires a $100 minimum 
• No accreditation requirement 
• Steady returns of 3% to 9% a year
• Certain properties require a minimum hold period of five to seven years
• Property selection is small

Pros

• Easy entry into real estate market
• Ability to earn passive income 
• Accreditation not required to invest
• Rental managers manage property 

Cons

• Relatively high fees
• Low liquidity for individual property investments

Arrived allows beginners to invest in the real estate market and enjoy a moderate return. However, properties need to be held for several years depending on the investment and fees may be too high. 

Who Should Use Arrived?

Arrived aims to simplify the process of investing in real estate, making it easy for any investor, beginner or not, to get started. That said, however, it does seem to be best for casual investors who want to dip a toe into the home rental market with as little fuss as possible.

Fees and investments are minimal, so just about all of your money goes into the investment itself. The platform is geared toward longer-term investors because it has a minimum holding period of five to seven years, per property.

Arrived is ideal for investors who don’t want to or can’t invest tons of funds to begin with. It’s perfect if you’re the type of investor who wants to dabble and expand your portfolio.

On the flipside, Arrived is not ideal for short-term investors or for those who can’t quite stomach a huge risk. Investors with deeper pockets will likely find better opportunities elsewhere to invest their money. 

What Are the Property Types, Fees and Pricing on Arrived?

Before you decide whether or not it’s the ideal investment opportunity, here’s a snapshot of the property and fund types available on Arrived: 

• Single-family residential properties: The focus is on residential homes and vacation rentals. The minimum investment period is from five to seven years for residential homes and five to 15 years for vacation rentals. 
• Arrived Single Family Residential Fund: This fund allows investors to spread their investment across multiple properties and markets. 
• Arrived Private Credit Fund: With this fund, Arrived can help you find new construction, renovations and rehabs. 

What Fees Does Arrive Charge?

Knowing the fees associated with a particular type of property or fund may help you decide which investment is right for you. 

Arrived charges three types of fees (though, this list is not exclusive): 

• Sourcing fee: This one-time fee is charged when Arrived acquires the property. As the investor, you don’t pay this yourself, but it’s paid by the seller of the property and included in the overall cost.
• Asset under management fee: This is an ongoing fee charged quarterly and paid from the rental income from the property. This fee offsets the cost of distribution of dividends, tax prep, managing financial accounting and more. 
• Property management fee: These fees are deducted from the rental income to cover the costs of professional property management services.

Here’s an estimate of the fees based on the type of investment you choose: 

Vacation Rental

• Gross rental fee: This is a fee that is calculated as a percentage of the gross rental income generated by the property. This is approximately 0.1% of your initial investment each quarter.
• Property management fee: 15% to 25%, depending on the market 

Long-Term Rental 

• AUM fee: 0.15% of the property purchase price
• Property management fee: 8% of gross rental income

Arrived Single Family Residential Fund

• Quarterly asset management fee: 0.1% to 0.30% per quarter

How Is Property Pricing Determined?

Property pricing depends on various factors. Some of those factors include: 

• Market analysis: How has the property fared in recent years? What is the history of pricing at this location?
• Rental income potential: What is the expectation on how much rental income you can receive from the property?
• Property reports: What is the appraised value?
• Acquisition costs: What are the potential renovations, legal fees and other costs to acquire the property? 

Is Arrived Legitimate?

Arrived is a legitimate company. Here’s a look at Arrived’s background, including its credibility, security and the company’s history of transparency.

Arrived’s Background and Credibility

Arrived has raised over $40 million equity financing. Arrived was founded in 2019 and its home base is in Seattle, Wash. Arrived is backed by various financial heavyweights, including Jeff Bezos‘ Bezos Expeditions, Marc Benioff’s Time Ventures, Former CEO of Zillow Spencer Rascoff and Uber CEO Dara Khosrowshahi. 

Arrived is regulated by the Securities and Exchange Commission. Individuals have fully funded hundreds of properties amounting to over $218 million in investments. To date, Arrived has funded over 427 properties. 

Can You Trust Arrived?

How can you tell if Arrived is trustworthy? Here are a few ways:

Rating by the Better Business Bureau and User Reviews 

The Better Business Bureau has accredited Arrived and has given the company an A rating. There are two somewhat negative reviews on the BBB site. One customer complained about the Arrived fees and the invested property’s depreciation. Another customer complained about not being able to reach anyone at Arrived. However, Arrived sent a response stating that they had sent several emails to this specific customer. 

There are currently no known lawsuits against the company. 

Arrived is available on mobile devices, and the Apple Store gives it a 4.5 out of a 5 star rating. The one drawback is that customer service is accessible only through email at support@arrived.com. There is no dedicated customer service line. 

Is Arrived Transparent? 

Arrived is clear about the type of investments it offers, the amount of time you need to hold on to the property, as well as any fees you might be expected to pay out of pocket. Sourcing fees are not explicitly stated on the site, however.

Penalties for Early Redemption

The holding time for a residential investment and vacation rental is five years. Funds have more flexibility here, since investors are required only to hold the investment for six months. The penalty costs are as follows:

• 5 years or more: 0%
• 1 to 5 years: 1.0%
• 6 months to 1 year: 2.0%
• 0 days and up to 6 months: None

How Does Arrive Handle Security?

Arrived data encrypts all sensitive financial information. There is a secure payment process, and the platform uses two-factor authentication and has strong password requirements. 

Arrived is required to maintain regulatory standards. There has been no known security breach to the platform. 

How Does Arrived Compare?

Arrived competes with a few other platforms that offer similar investments and services. Here’s a quick look at how it stacks up against a couple of others.

Arrived vs. Groundfloor

Groundfloor is a real estate crowdfunding site that offers shares of short-term, high-interest real estate loans to the general public for a rock-bottom minimum investment of $10, which means it has an even lower financial commitment than Arrived. Arrived is a better fit for investors who want to own shares of the properties themselves.

Arrived vs. Roofstock

Roofstock lists hundreds of single-family rental homes on its website to buy, sell, or invest in, so it’s a better choice if you want to cast a wider net. However, Arrived’s minimum investment of $100 for rental homes is much lower than Roofstock’s.

Getting Started With Arrived 

To sign up for an Arrived account, complete these steps:

1. Click the “Sign Up” link on its website.
2. You’ll be asked to provide your email address and create a password.
3. After that, you’ll be asked to provide various account details, including how you want to fund your account.

The platform is open to U.S. citizens or residents 18 and over. You don’t need to be an accredited investor to participate.

Final Take

Arrived Homes offers a viable alternative to traditional real estate investing, which typically involves spending large sums of money to acquire a rental home and then either managing it yourself or hiring a management company.

With Arrived, you can get a piece of the market for as little as $100, without having to get involved in operations or management. The platform is best for long-term investors who prefer steady returns over big gains. You’ll have to make a commitment of at least five years, and your return might be lower than with stocks or other investment types.

Research Methodology

Here’s a breakdown of the different factors that comprised GOBankingRates’ scoring.

Accessibility

There are very few restrictions if you want to invest with Arrived. The platform is open to all U.S. citizens or residents above the age of 18, and you don’t need to be an accredited investor to participate. You can also invest through certain entities or self-directed retirement accounts. The account setup process can be done quickly and easily on Arrived’s website.

Account Minimum

With a minimum investment of $100 and a nominal fee, you don’t have to break the bank to invest with Arrived Homes. Just keep in mind that there is a minimum hold period for each property of five to seven years.

Risk vs. Reward

Arrived’s minimum $100 investment means there is little financial risk involved if you want to start out slow. Cash dividends from rental income at Arrived typically average an annual return between 3% to 9% on an investment. If you’re looking for higher returns, though, you’re better off investing in other ways. For example, the stock market has returned an average of 10% a year over the past 50 years.

Breadth of Products

Arrived only offers investments in rental homes, so there’s not a lot to choose from beyond that. Sometimes its inventory of investment opportunities is very limited, with only a few available investment homes listed on its website.

Vance Cariaga contributed to the reporting for this article.

Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.

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