Become a Landlord for $100: Arrived Homes Investment Platform Backed by Bezos
Platforms like Robinhood democratized retail investing by making it possible for individuals to purchase fractional shares of pricey stocks. Now, Arrived, a new investment platform backed by billionaire Jeff Bezos, does the same for would-be real estate investors. The platform lets you reap the potential profits of becoming a landlord for a fraction of the price of purchasing and renting a property.
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Investments in long-term rentals or short-term vacation rentals can start as low as $100. Additionally, Arrived has launched a real estate investment trust called the Single Family Residential Fund to diversify your investment across multiple properties.
Best of all, you don’t have to manage the property or deal with tenants. You just sit back and collect your share of the profits.
But how profitable is it?
Is Arrived Homes Profitable?
GOBankingRates chatted with Brian Davis, cofounder of SparkRental.com, who has used the platform and other similar investment companies. “Arrived makes it easy to passively invest in single-family investment properties,” Davis said, noting that he has invested in 17 properties on Arrived, with an average dividend yield of 4.2%.
“Arrived’s investor dashboard does not calculate your average annual appreciation. Of the 17 properties I’ve invested in, 14 have seen positive appreciation and three have declined in value,” he said.
“The fund offers some liquidity, letting you withdraw your capital in as little as six months, but they ding you with an early withdrawal penalty of 2% in the first year or 1% in years one through five,” he explained.
Arrived Homes vs. Competitors
Similar concepts exist, including Ark7 and Lofty.ai. Ark7 requires just a $20 minimum investment, while Lofty.ai requires $50.
Ark7 and Lofty also provide a bit more liquidity with a secondary market to sell shares, Davis pointed out. “Lofty returns your money in the form of a cryptocurrency,” he said.
The Ark7 website indicated that you could sell shares through the Trading Market after a holding period of one year or less, depending on the investment.
Bottom Line
If you’d like to experiment with real estate investments with a low-stakes point of entry, Arrived offers an option. While you can invest in Arrive’s REIT, the company’s regular platform allows you to choose individual properties. As a crowdfunding platform, its low minimum investment gives it an edge over pricier private market investment platforms like YieldStreet, which requires a $10,000 minimum investment. In short, Arrived offers a simple way to potentially profit from real estate rentals.
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This article originally appeared on GOBankingRates.com: Become a Landlord for $100: Arrived Homes Investment Platform Backed by Bezos
