Real estate investment platform The house that arrivedSponsorship Amazon.com Inc. (NASDAQ: AMZN)Founder Jeff BezosLaunches the largest batch of new products set to operate a total of 14 new single-family rental properties. Seven of the 14 rental homes are hitting the platform today and the remaining properties will be available later in the week.
The rental real estate investment platform allows individual investors to buy stock in single-family real estate with investments ranging from $ 100 to $ 10,000 per property.
Arrived Homes caught the attention of several prominent investors last year.Jeff Bezos invested in the company’s $ 37 million seed round last June Bezos Expedition And recently made a second investment during the company’s $ 25 million Series A Round.
The platform has grown rapidly since its launch last year. This is primarily because it is one of the few real estate investment platforms available to uncertified investors. During the last eight months of 2021, the company funded 51 homes on the platform with an asset value of approximately $ 18.5 million. So far in 2022, Arrived Homes has already funded over $ 30 million in rental properties.
The latest batch of properties has a total value of about $ 7 million. The property is located in several high-growth markets, including Atlanta, Nashville, northern South Carolina, and northwestern Arkansas.
How the platform works
Arrived Homes finds and acquires single-family rentals and offers investors split ownership with an investment of at least $ 100 through an online platform.Investors can Browse available properties And invest in what they choose.
The company fulfills its real estate management responsibilities while investors collect rental income and wait for the value of the property to increase over time.
After a target holding period of 5 to 7 years, the property will be sold and Arrived Homes will distribute the shares to each investor according to the number of shares they own. Assuming that the value of the property goes up, the investor shares the profit from the sale.
Single-family rental market
According to the data, investors have a growing desire for single-family homes. This is not surprising given that average rent in the United States has risen 16.4% in the last 12 months to 32% in cities such as Miami.from Housing tide..
Home ownership is becoming more affordable as the home market is beginning to cool in certain areas, while higher interest rates are being added to the overall cost of buying a home. This will continue to strain the supply of rental units and may lead to further rent increases over the next few years.
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Photo: Provided The house that arrived
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