Investing with ARRIVED HOMES

[Carol D.]

 Is anyone on BP investing with Arrived Homes?

If so, what has your experience been?  pros?  cons?

Thanks!

[Carol D.]

I also came across LANDA... better than Arrived Homes?  Same?

[Brian Berry]

I have been investing with Arrived Homes since their inception (September, 2021). I just made my fourth investment with them this morning. 

So far I am very happy with them. My first investment was $500 on a home in Charlotte, NC. Arrived distributes the rental income quarterly. So far I have received $25.50 in income for that property. They estimate my share of the property to currently be worth $657.50. 

Pros:
1. Low initial investment amount ($100 is the minimum purchase)
2. High cash-on-cash return
3. Truly passive income - you make your investment and they handle the rest
4. The company only buys nice, newer homes
5. Easy to diversify
6. Good way to test the waters of an area to purchase homes in before committing to buying property there on your own

Cons:
1. New company with no real track record
2. No control over the investment - they decide when to sell the property. They say their plan is to hold the properties for 5-7 years
3. Currently there is no way to cash out of your investment early. So your cash is locked up until they decide to sell the property
4. Inventory seems to sell pretty fast. So if you find a home you want to invest in, you have to jump on it before it's gone

I plan on continuing to invest with them. I'm essentially investing in one house per quarter. I might double that in 2023. 

[Nicholas L.]

@Brian Berry

how's this going so far?  do you have other RE investments?

won't newer nicer homes have low cash flow?

[Brian Berry]

No complaints so far. It will take time to see what the end results are. Since I posted, I purchased shares in another property (this one is a STR in Nashville, TN). The first property I invested in yielded a 5% return just on the rental payments (which are distributed quarterly). That property has now increased in value by 40.5% (according to Arrived), and they say my $500 investment in that property is now worth $702.50. But until they sell the home and disperse the funds, it's all just hypothetical. Three of other four homes are making just over 3% on rental payments (3.6% on two of them, 3.2% on the other. The STR will pay out the first rental payment in January, so I have no idea how that one is performing. None of the four newer properties have had valuation updates yet (Arrived has valuations done every 6 months).

Newer homes should have lower CapEx expenses, which helps with with cashflow. And Arrived is purchasing homes that they expect to appreciate, which is where the big ROI should come from.

[Chris Seveney]

@Carol D.

They are a regulation a+ offering so they will be required to report bi annually the financials to the SEC and you can see financial strength of the company.

Just remember most companies may issue distributions but are not profitable the first few years due to high startup costs for a company

[Easton G.]

Hello, 

I made my first investment a couple weeks ago. Nothing to report beyond the ease of purchase. Really curious how/if to use arrived to supplement my investing strategy. 

[Margie Kohlhaas]

@Brian Berry - How does this work @ Tax time? Is it just like reporting stocks or is it a headache for your accountant to track these investments?

[Brian Berry]

Quote from @Margie Kohlhaas:

@Brian Berry - How does this work @ Tax time? Is it just like reporting stocks or is it a headache for your accountant to track these investments?

 It's easy. They provide a 1099-DIV. 

[Ti'Keya Williams]

Hi! How are things going? I’m researching companies now.

[Brian Berry]

Quote from @Ti'Keya Williams:

Hi! How are things going? I’m researching companies now.

I currently have invested in 6 homes, 4 LTR and 2 STR. By their calculations, I am averaging 3.5% per year from rental income for the entire portfolio. One of the LTR units had a tenant who wasn't paying, so they had to go through the eviction process.

Appreciation (based on their calculations) is mixed:

Unit 1 (LTR) - 36% increase (owned for 29 months). Location: Charlotte, NC
Unit 2 (LTR) - 1.1% increase (owned for 21 months). Location: Clarksville, TN
Unit 3 (LTR) - 7.5% decrease (owned for 20 months). Location: Nashville, TN
Unit 4 (LTR) - 6.5% decrease (owned for 19 months). Location: Atlanta, GA
Unit 5 (STR) - 10% decrease (owned for 18 months). Location: Nashville, TN
Unit 6 (STR) -  Awaiting valuation (owned for 9 months). Location: Catskill Mountains

I've paused on investing through them for now, mostly because I have other investments that are doing so much better, although the appreciation on the Charlotte property is pretty impressive. 

[Nicholas L.]

@Brian Berry

thanks!!!  appreciate the transparency.  would you mind sharing roughly how much you have invested with them?  4 figures?  5?

do they hold forever?  can a sale be forced?  how does that work?

[Brian Berry]

Not much - just over $3k. Their plan is to sell each property around the 5 year mark. There was talk of eventually allowing investors to independently sell their shares, but I haven't heard anything about that lately.

[Nicholas L.]

@Brian Berry

OK. thanks again. interesting model

[Ti'Keya Williams]

Hi!

Thanks Brian for sharing! 

[Kelsey VanSleen]

Quote from @Brian Berry:

I have been investing with Arrived Homes since their inception (September, 2021). I just made my fourth investment with them this morning. 

So far I am very happy with them. My first investment was $500 on a home in Charlotte, NC. Arrived distributes the rental income quarterly. So far I have received $25.50 in income for that property. They estimate my share of the property to currently be worth $657.50. 

Pros:
1. Low initial investment amount ($100 is the minimum purchase)
2. High cash-on-cash return
3. Truly passive income - you make your investment and they handle the rest
4. The company only buys nice, newer homes
5. Easy to diversify
6. Good way to test the waters of an area to purchase homes in before committing to buying property there on your own

Cons:
1. New company with no real track record
2. No control over the investment - they decide when to sell the property. They say their plan is to hold the properties for 5-7 years
3. Currently there is no way to cash out of your investment early. So your cash is locked up until they decide to sell the property
4. Inventory seems to sell pretty fast. So if you find a home you want to invest in, you have to jump on it before it's gone

I plan on continuing to invest with them. I'm essentially investing in one house per quarter. I might double that in 2023. 

 I like your pro #6 comment of using arrived to explore a new market, as I was thinking the same thing. How long did it take after investing to test out a market?

Now that we're in 2024, did you double your investment in 2023 like you mentioned? What have your CAC returns looked like the last couple of years? Very cool you have invested since they started! Thank you so much for your thoughts! Super helpful :)