Corporate ownership of rental properties is a concerning trend for those looking to buy their own homes. However, it presents an opportunity for even small-time investors to make money. Arrived Homes, a real estate investment platform, recently announced that it has secured $37 million in seed funding and debt financing. This round of funding was led by Core Innovation Capital, with participation from notable investors such as Jeff Bezos (CEO of Amazon), Spencer Rascoff (former CEO of Zillow), Dara Khosrowshahi (CEO of Uber), and Marc Benioff (founder and CEO of Salesforce).
Arrived Homes plans to use the funds to expand its team and acquire more rental properties across the United States. Currently, the company's portfolio includes over 30 properties in sunbelt states like Arkansas, North Carolina, and South Carolina. What sets Arrived apart from its competitors is its unique approach. Instead of investing in an entire development, users have the opportunity to purchase shares of individual homes. This allows investors to earn quarterly rental income and benefit from the appreciation of their share of the property.
The platform provides a user-friendly experience, allowing individuals to browse through properties as they would on an online listing. Users can view photos, read property descriptions, and gain valuable market insights. Each home even has a catchy name, such as The Luna, The Pinot, and The Plumtree. The company is actively expanding, with future properties being advertised in Charleston and Columbia, South Carolina.
Arrived Homes is not the only player in the real estate investment market. Fundrise, a similar platform, recently secured a $300 million credit facility with Goldman Sachs to fund the construction of new single-family rentals across the Sunbelt region. These ventures are democratizing real estate investing, opening up opportunities for individuals who were previously unable to enter the market.
Ryan Frazier, CEO and co-founder of Arrived, stated, "Investing in real estate is synonymous with the American dream, yet very few people are in a financial position to buy whole homes or have the time to invest in and manage rental properties." Arrived aims to break down these barriers by offering a streamlined investment process that takes less than four minutes and starts from as little as $100. The company is passionate about helping millions of people access this historically great asset class.
The COVID-19 pandemic resulted in increased interest in personal investing, particularly among younger generations. With more time spent at home and multiple rounds of stimulus checks, Millennials and Zoomers flocked to no-fee trading apps and online communities like Reddit's r/WallStreetBets to track and discuss trending stocks. At the same time, proptech startups capitalized on the digital transformation of the real estate industry, attracting billions in venture capital funding. This convergence of factors created an opportunity for Arrived, a Seattle-based company founded in 2019 by Ryan Frazier, Kenny Cason, and Alejandro Chouza.
With this new funding, Arrived Homes aims to expand its portfolio to include 100 rental homes by the end of the year. The platform's innovative approach to real estate investing, coupled with the support of notable investors like Jeff Bezos, positions Arrived as a promising player in the market. Whether you're a first-time investor or looking to diversify your portfolio, Arrived offers a unique opportunity to participate in the rental market and potentially reap the benefits of property appreciation and rental income.
