Arrived Review [2024]:Pros, Cons, and Alternatives

Arrived (formerly known as Arrived Homes) is a real estate investment platform that allows you to invest in fractional ownership of rental properties. The platform does a good job of simplifying the complexity of the real estate market by allowing you to take a passive role with investing.

Signing up for this account doesn’t require you to be an accredited investor, which lowers the barrier to entry for most people compared to platforms like CrowdStreet that do require it. You can begin investing on Arrived for as little as $100.

How investing with Arrived works

Opening an account with Arrived is simple and only requires that you be a U.S. resident over the age of 18. You will also need to provide your basic information, such as your name, address, Social Security number and bank account.

Once you have an account, you can access the homes the platform has in its portfolio. You can see what homes are open to new investors and homes that are already fully funded. One common complaint about Arrived is that there are not many properties available to invest in. We found this to be true as well with only three open options for single family residential properties.

Thoughtful property selection

One of the perks of using Arrived to invest in property rather than doing it yourself is that Arrived fully vets the properties. Arrived analyzes the different markets across the country, attempts to identify the ones that offer substantial property appreciation potential, and buys properties in desirable neighborhoods in these markets. Not only are they using data to make these decisions, but they employ local market experts for a second layer of analysis. This is a nice feature of Arrived because real estate markets tend to be very localized, so not every city or town necessarily behaves like the broader national market.

Fully vetted rental tenants

Arrived takes care of all the operational and maintenance responsibilities of the homes it lists, which makes this a true passive income opportunity. The company also carefully vets potential tenants and has a two-year lease requirement, which helps limit turnover. This is an important feature to look for in a platform like Arrived because tenant quality can affect your potential investment return. I wouldn’t consider investing in a REIT platform if this wasn’t a feature of the service.

Getting started

Once you set up your account, you can start investing by browsing homes. Consider which homes you want to invest in based on location and popularity of the home and which amenities the home provides. You can choose between single-family home units or vacation rentals — both come with their own perks — i.e. single-family units might have a steadier stream of income whereas vacation rentals can attract higher single-use income.

All property descriptions include valuable information that may guide your investment decision. The details Arrived offers include:

• Purchase price
• Monthly rent
• Property description and address
• Tenant leasing process
• Historical returns in the market
• Description of the market
• Property improvements and cash reserves
• Costs for closing, offering, and holding
• Equity raised from investors
• Price per share and the total number of shares

Active and new properties also show the percentage of shares still available to investors.

Select your share amount

Once you've chosen a property, decide how much you'd like to invest. Arrived allows you to buy shares of a property for as little as a $100 buy in. You can continue to invest through Arrived, either by investing in new properties or by investing in Arrived’s private credit fund.

Earning passive income

While there are fees that need to be considered, once you’ve invested in your properties, you can start earning a passive income through the following methods:

• Monthly distributions: Rental income is distributed monthly to investors based on their share ownership.
• Direct deposits: Earnings are deposited directly into your linked bank account.
• Regular updates: Stay informed with regular updates on property performance and financials.
• Capital appreciation: In addition to rental income, investors may benefit from property appreciation upon sale.

What fees does Arrived charge?

While making passive income with Arrived is possible, you should be aware of the three types of fees the platform charges. These fees can drastically eat into your profit, especially if you do not have much invested. Fees vary based on the type of investment, but you can expect the following:

• Asset under management (AUM) fees: This is a percentage-based fee charged annually on the total value of the assets managed by Arrived. For the Single Family Residential Fund, you will pay a flat 0.25% quarterly AUM. Long-term rentals have a 0.15% AUM of property purchase price charged quarterly, and investing in the Private Credit Fund has 0.1% AUM charged monthly.
• Sourcing fees: These are one-time fees incurred during the buying and selling process of a property. For the Single Residential Fund and long-term rentals, you can expect a fee up to 3.5%. Vacation rentals have a 5% sourcing fee.
• Property management fees: These fees are associated with the day-to-day operations and upkeep of the properties. They cover services such as tenant management, maintenance, and repairs. Expect to pay 8% of the gross rental income for long-term rentals and between 15% to 25% for vacation rentals.

How much can you earn with Arrived?

There are two ways to earn money with Arrived — rental income and property value growth.

Rental income

As an Arrived investor, you will receive quarterly cash dividends from the rent tenants pay to live in the home you own a share of. This is a form of passive income that provides you with cash flow without selling your share.

The amount of the dividend is based on the size of your share. If you invest $100 in a property, your share of the rental income will be less than someone who invested $2,500.

Although Arrived avoids guaranteeing a rate of return on your investment, the company estimates that historical dividends from rental income translate to an annual return between 3.0% and 7.2%, depending on the property.

Property value growth

You may also make money as the property value increases over time. Of course, there is no guarantee that the property value will actually increase. Arrived doesn’t have any data on what these returns may look like because it has not sold any of its properties yet.

The money you may make from an increase in value isn’t realized until Arrived sells the property. On average, Arrived holds individual properties for five to seven years.

The key to getting the most out of this investment opportunity with Arrived may be holding your shares for several years with the hope that the property value will appreciate over time.

However, investors wishing to redeem their shares and liquidate their investments can place a liquidation request every quarter following the initial six-month hold period. Depending on when you choose to liquidate your investment, there might be a 1.00% to 2.00% fee.

When does Arrived pay you?

When you find a home you want to invest in, you can select how much you want to invest. You can invest between $100 to $20,000 per property. Arrived pays out dividends for the Single Family Residential fund monthly, with subsequent dividends being paid out at the end of each month. Though it can take up to 90 days to receive your first dividend.

Alternative real estate investment apps

Arrived offers a simple platform to invest in real estate even if you’re a non-accredited investor or don’t have a significant amount of money to invest. Here’s how it compares with other popular real estate investment platforms:

Here are two other investment platforms that make investing money in markets other than the stock market simple.

• Diversyfund: Rather than investing in actual properties, Diversyfund enables you to invest in real estate investment trusts (REITs). REITs often include several real estate types and may trade on stock exchanges just like traditional stocks. DiversyFund specializes in multifamily properties and gives you investment access starting from $500.
• Masterworks: If you’d like to explore more alternative assets, Masterworks can give you access to the fine art world. When you invest through Masterworks, you become a fractional owner of fine art pieces from artists such as Andy Warhol, Banksy, or George Condo. The minimum investment with Masterworks is $1,000. Read our full Masterworks review to see if it is a good fit for you.

Arrived FAQ

Bottom line: Should I invest with Arrived?

Arrived is a good choice for those looking to invest in real estate with minimal hassle. You can start investing with Arrived for as little as $100, making it accessible to a wide range of investors. Additionally, each property is placed in an LLC legal entity, which provides protection from legal and financial liabilities, thereby limiting your personal risk.

If you want to try your hand at real estate investing without a huge financial commitment, Arrived is a good choice for you. Remember that any money you invest in Arrived might be tied up for the long term, and there is always the possibility that you would earn more with a high-yield savings account or other investment strategy.