Arrived enables anyone to invest in single-family homes and vacation rentals for as little as $100.
Through this company’s platform, investors can earn rental income as well as long-term gains from the properties’ price appreciation. Arrived takes care of the rest.
Arrived is backed by multiple prominent investors including venture-capital firms Forerunner Ventures, PSL Ventures, and Core Innovation Capital. Notable angel investors include Amazon Founder Jeff Bezos, Salesforce co-founder Marc Benioff, and former CEOs of Uber and Zillow.
Arrived is the very first company to be qualified by the SEC to offer shares of rental homes to the general public. And it’s since become the largest platform for investing in fractional residential and vacation-rental properties.
The company’s co-founder, Ryan Frazier, always wanted to invest in rental properties. But as his career progressed, he moved around a lot geographically. So he was never in the same place long enough for it to make financial sense to invest in a home.
Ryan also understood that, for most folks, having enough time and capital to purchase a rental property outright was rare. Initially, he invested in public real-estate funds known as Real Estate Investment Trusts (REITs). But he didn’t like how they were so correlated to the ups and downs of the stock market. So to solve his dilemma, he co-founded Arrived Homes.
Through Arrived, users browse qualified properties and purchase shares in the ones they like. Minimum investments are as little as $100.
Then, they sit back and earn their share of rental income and any appreciation if and when the property is sold. Arrived handles everything else from marketing to maintenance.
Arrived uses an extensive due-diligence process to identify properties that have the best chance at generating steady rental income and appreciating in value. They’re also located in lucrative, fast-growing markets.
When it buys a unit, Arrived collects a real-estate agent rebate. It also charges members on its platform a sourcing fee and an asset-management fee. Finally, for vacation rentals, Arrived collects five percent of the gross revenue a property brings in. This is how it makes money.
Since 2021, Arrived has grown its number of users by 833% year-over-year. In 2021, the platform has 23,000 members. And last year, that number reached 417,000. Assets under management went from $0 in 2020 to nearly sixty-million dollars in 2022.
During that time, revenues grew, too. They jumped from $454,000 in 2021 to more than six million dollars in 2022. Arrived has gone from managing properties in five markets to having a presence in thirty-five markets nationwide.
In June 2021, Arrived raised ten million dollars in a seed round led by Core Innovation Capital, a VC firm whose portfolio includes major success stories like NerdWallet and Fundera. In May 2022, the company raised another twenty-five million dollars in a round led by Forerunner Ventures, a VC firm whose portfolio includes Dollar Shave Club, Bonobos, and HotelTonight.