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:
Ryan Frazier, Co-Founder and CEO, Arrived Homes
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.
- 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.