Can Arrived Homes Turn Small Investments into Big Bucks? | John Burns Real Estate Consulting

Can Arrived Homes Turn Small Investments into Big Bucks?


.

Ryan Frazier and the folks at Arrived Homes can’t sell you a home for $100, but they would love to sell you a share of a home for really cheap. Arrived Homes aggregates small-time investors to buy single-family rental homes across the country, providing inexpensive passive income usually only attainable for far higher investments. Here’s how:

What’s the big idea?

  • Arrived Homes makes single-family rental (SFR) investing more accessible to more folks.
  • You buy shares in actual specific homes and decide where, what, and how much—for as little as 100 or tens of thousands of dollars.
  • This allows for a diverse portfolio on a potentially shoe-string budget.
  • Investors can be as immersed in the market or as passive as they choose.

What’s in it for you and for them?

  • Investors can access the equity of the home and rental income.
  • Arrived takes some transaction fees and earns a modest asset management.
  • The housing market is slowing down and this could increase risk—but Arrived Homes hopes a longer-term view of at least 5–7 years for each home will mitigate that risk.
  • This investment period is longer for vacation rentals—a sector Arrived recently jumped into as well.

Strategizing

  • Arrived is at about 200 homes but ultimately hopes to let millions of investors own parts of thousands of properties.
  • A slower market means Arrived can be pickier—so they look at thousands of properties for each one they buy.
  • Arrived focuses on growth markets that are not oversupplied but otherwise is omnivorous with respect to price points and product types.
  • Arrived may dip its toe into the commercial space to diversify its platform.

.

.


For a full transcript of this episode, click here.

 

Don’t miss out on future episodes!

The New Home Insights podcast is available on various platforms, including Apple Podcasts, Google Podcasts, and SpotifyTo receive email notifications whenever a new episode is released, fill out the form found on this page.


Dean Wehrli If you have any questions about our podcast, please contact Dean Wehrli, Principal at (916) 647-3263 or by email.