The housing market may have slowed this year, but timeshare continues to heat up.
The real estate investment platform Homes arrived launched in 2021, becoming the first Securities and Exchange Commission (SEC) qualified investment platform to offer shares of single family rental properties to non-accredited investors.
The concept of giving access to real estate ownership to virtually anyone quickly caught the attention of several high-profile investors, including the founder of Amazon.com Inc. Jeff Bezos, which invested very early in the financing round of the real estate startup. Bezos then made a second investment in Arrived Homes during the company’s Series A earlier this year.
The investment platform has rapidly grown in popularity since its launch and has already fully funded 179 properties with a total value of over $65 million. The company recently expanded its offerings to include short-term rental stocks in popular vacation markets like Joshua Tree, Calif.; Nashville, TN; and others.
Fractional ownership concept
Fractional ownership allows investors to apply two of the most proven investment strategies: diversification and cost averaging.
Since Arrived Homes has a minimum investment of $100, investors can easily purchase shares of multiple properties in different markets instead of having to bet on just one home. The low minimum investment also allows the cost averaging to be applied to real estate investing instead of having to time the market.
The fractional model also eliminates landlord liabilities that normally come with owning rental property. Investors receive passive income from rental payments while Arrived Homes handles property management responsibilities like finding tenants and maintaining homes.
When the time is right, the properties are sold and the proceeds distributed to shareholders. According to the Arrived Homes website, the estimated holding period for each property financed on the platform is between five and seven years.
Seven rental properties are now financed on the Arrived Homes platform:
The Blossom, Northwest Arkansas
The Jill, Nashville, Tennessee
Inglewood, Nashville, Tennessee
The Shallowford, Chattanooga, Tennessee
The Braxton, Cincinnati, Ohio
The Hansel, Nashville, Tennessee
The Marcelo, Cincinnati, Ohio
Photo: Courtesy of Arrived Homes
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