Arrived Homes, the fractional real estate investment company backed by Amazon.com Inc (NASDAQ: AMZN) founder Jeff Bezos, has 14 new offerings going live on its platform Monday May 2, 2022. Shares of the rental properties will be available to investors at 11:00 AM EDT.
The properties are located in multiple locations in Georgia, Tennessee, Alabama and South Carolina. The homes have monthly rents ranging from $1,495 to $3,295 with tenants on two-year leases.
The last batch of properties launched on the Arrived Homes platform in early April was fully funded in under 12 hours, with the two most popular properties selling out almost immediately after going live.
Arrived Homes has grown rapidly since its launch last year, largely due to it being one of the few real estate investment platforms available to non-accredited investors. The company funded 51 homes on its platform during the last eight months of 2021 with approximately $18.5 million in property value. So far in 2022, Arrived Homes has already funded about $17 million worth of rental properties.
The company attracted interest from several high-profile investors during its seed round, with investments from Jeff Bezos through his Bezos Expeditions fund, former Zillow Group Inc (NASDAQ: Z) CEO Spencer Rascoff, Uber Technologies Inc (NYSE: UBER) CEO Dara Khosrowshahi and Salesforce.com Inc (NYSE: CRM) founder Marc Benioff through Time Ventures.
How The Arrived Homes Platform Works
Arrived Homes finds and acquires residential rental properties, then offers shares of the properties to investors through its online platform. Investors can browse available properties and invest in whichever ones they choose.
The company handles the management of the properties while investors collect their share of the rental income and wait for the property to appreciate in value over time.
After a target hold period, Arrived Homes sells the property and distributes the equity to each investor according to the number of shares they own. Assuming the property increases in value, the investors share in the profits from the sale.
So far, the average annualized dividend yield for each property has ranged from 3.7% to 7.7%. Properties that have been held for at least six months have generated a total annualized return of 20% when factoring in price appreciation.
The 100th Offering
The platform’s 100th property will be included in this next batch of offerings – a 3 bed, 3 bath home near the center of Nashville, TN. The house was built in 2020 and has a monthly rental rate of $3,295.
Photo: The 100, courtesy of Arrived Homes
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