Crowdfunding websites focusing on property investments have recently seen a surge in popularity. Isn’t it scary to be a landlord, though?
Arrived Homes claims that it provides a straightforward and efficient option for anyone looking to partake in real estate (property investment, vacation rentals, etc.) without taking on the role of landlord.
In this Arrived Homes review, you will see if you will really earn passive income in real estate investing and if becoming one of the real estate investors is your calling.
Arrived Homes is a course that teaches you about real estate investing.
If you’ve read my other articles on real estate investing, you’ll know there are 3 primary ways to invest:
Wholesaling, buy-and-hold, and flipping.
While they each have their pros and cons, there is a ton of potential for success investing in real estate.
Real estate has created some of the largest fortunes in world history.
That being said, you should take some time to seriously think about something:
Is now the best time for YOU to get into real estate investing?
Because despite the potential upside, investing in properties or land takes a lot of capital, and is very labor intensive.
That means if you:
- Have less than 3 hours per day, OR
- Aren’t sitting on $20K+ in disposable income
This may not be the best time for you to start investing in physical real estate.
Don’t get me wrong, real estate investing can be an amazing way to protect your assets while generating cash – but there’s a time and a place for it.
But there’s good news!
All you need is a system to generate the cash (& free time) you need to be ready for real estate investing.
My preferred method of getting there is by becoming a Digital Landlord
It takes the benefits of real estate investing, but removes many of the barriers (& annoyances), like:
- Small cash flow on properties
- Having to take out debt
- Dealing with repairs and upkeep
- Dealing with tenants
The cool part is that the income is mostly recurring (AKA semi-passive).
You could make anywhere from $2,000-$10,000+ per month doing it.
You can build it as big (or small) as you feel like, without the annoyances I listed above.
If that sounds interesting, you might want to think about becoming a Digital Landlord.
Then, you can take the profits and start investing in physical real estate a year or two from now.
If you wanna see what Arrived Homes looks like on the inside, keep reading.
What Is Arrived Homes?
Since 2020, Arrived Homes has been a resource for regular investors seeking to build a passive income via rental properties in the United States.
Investment with Arrived Homes provides all the benefits of home ownership without the stress of managing the property yourself.
Who’s Behind Arrived Homes?
Established in 2020 by Ryan Frazier, Alejandro Chouza, and Kenny Cason, Arrived Homes is a Seattle, Washington–based American company.
This real estate investment platform’s goal is to remove the first $100 investment barrier associated with purchasing rental properties.
Apparently, a number of significant investors support their mission. Jeff Bezos, Spencer Rascoff (former CEO of Zillow), and Dara Khosrowshahi (CEO of Uber), among others, have invested a total of $37 million in the company.
People who don’t have enough money to buy a whole home entirely are now able to participate because the minimum investment has been lowered.
How Does Arrived Homes Work?
Arrived Homes offers a failsafe four-step process for investing in rental properties.
Some things to consider before you get started are listed below.
No. 1 – Explore Featured Rental Homes
The first step is to explore the different rental options available on Arrived Homes.
When a home is listed on Arrived Homes’ website, it has already passed a stringent screening process to ensure it’s one of the greatest properties available at the best price.
Real estate properties here are selected depending on factors that contribute to their future property value as an investment, which include:
- Overall Quality of Rental Properties
- Overall Quality of Surrounding Environment
- Cash Flow
This screening is aimed at making sure that the homes being sought find the perfect balance between affordability and market potential.
There’s also an annual asset management fee (AUM), which includes the cost of property management and upkeep for the shareholder’s chosen property.
The investment prospectus for each transaction will include the expenses involved, which might vary from property to property.
No. 2 – Choose The Investment Property Or Rental Properties To Lay Money On
Now, decide how much money you can invest and where to put it.
If you are willing to make the required minimum investment and have sufficient shares available, you may buy as many or as few shares as you choose in any given property.
No. 3 – Purchase Shares
You should study the offering paperwork carefully before buying shares in an Arrived property.
Your investment terms and any potential risks are detailed in these documents.
It’s worth noting that real estate investments are more illiquid than publicly traded stocks or bonds; Arrived recommends a minimum holding time of five to seven years for its portfolio properties.
If you are ready to move forward with your investment, you may do so by electronically signing the investment documentation and funding your asset from an external bank account.
No. 4 – Let Arrived Homes Do The Work
Now comes the good part. As an investor in Arrived Homes, you are not responsible for any day-to-day operations.
As a result, you won’t have to deal with tenants, manage the property, or do any other tasks often associated with property managers.
Your role is to sit back and receive passive rental income and regularly check your investment to make sure it’s functioning in your plans.
The amount of money you make after paying all expenditures related to owning and maintaining a property or portfolio of properties might fluctuate depending on a number of factors.
According to Arrived, profits from real estate have generated yearly returns on investment of 5.41 percent to 7.00 percent as of the third quarter of 2021.
How Arrived Homes Make Money?
There are three sources of income for Arrived Homes platform:
Source #1: Real Estate Agent Rebate
When Arrived Homes purchases a property, the agent that helped them does so in exchange for a rebate.
Neither Arrived nor its investors are responsible for covering the cost of this rebate.
Source #2: Annual Management Fee
This is a recurrent charge depending on the capital contributions of investors.
It is deducted from the property’s operational revenue and is used to fund the continuing costs of property management.
Source #3: Sourcing Fee
This is a one-time charge that pays Arrived’s time spent locating and preparing the investment property.
It might include Arrived Homes fees for financing and holding the property during the offering period.
Is Arrived Homes Safe?
Arrived Homes Security Information submitted to Arrives is encrypted at all times. All data is secured, and money transfers are managed through Plaid, a respected third-party financial technology company.
Further, Arrived shields you from personal liability for any issues related to your property interests. Each property is managed through an LLC, so stockholders aren’t held accountable if something unexpected happens.
If you need assistance with your account, you can contact Customer Service and Support Arrived in a few different ways.
What Else Do You Need To Know About Arrived Homes?
Accredited and nonaccredited investors may participate in Arrived Homes with a modest $100 opening investment.
It opens the door for any investor to enter the real estate market. But there are a few things to think about.
There are not many homes for sale on Arrived Homes. In February 2022, the property was reviewed, and only ten homes were found to be investment-ready, with the remaining units all being sold.
Though it’s encouraging to see so much interest in Arrived Homes listings, the current scarcity of options is a drawback.
Arrived Homes is developing a structured share redemption mechanism and maybe a secondary market for real estate shares. Both would boost liquidity for investors. However, neither is ready as of November 2022.
This is a possible red flag for Arrived investors wanting a dependable means to move their money before the conclusion of the estimated 5- to 7-year hold term.
Are The Alternatives To Arrived Homes?
Yes, there are plenty of other business models to choose from if you want to pursue this making money online. Here are just a few:
Arrived Homes Review: Is Arrived Homes A Scam?
So, time for the $1,000,000 question – is Arrived Homes a scam?
No, not technically. You can 100% make money with this program, though it’s not nearly as simple as they make it seem.
As with most businesses, there is A LOT of work to be done upfront & no guarantee of you being successful.
Not to mention the profit margins are typically pretty small.
Don’t get me wrong, I’m a big proponent of front-loading work now so that you can reap the rewards later.
But if I’m gonna do that, I want the rewards to be HIGH and virtually guaranteed.
I’d rather put in that same 3 months of work (in my spare time) & build a handful of Digital Rental Properties that each produce $500-$2,000 checks every single month afterward (AKA recurring income).
And the cool part is that you can do it in a lot less time than 3 months (I personally did it in my first 2 weeks of being a Digital Landlord).
Unlike physical real estate, you can do it from anywhere in the world, so it’s a genuine “laptop-lifestyle” business.
All you need is an internet connection.
Some of my friends are Digital Landlords that run their 6-figure businesses from:
- Camping trips at national parks
- Beachfront in Hawaii
- On the road in a camper van (with a pet pig!)
They focus on living an enjoyable life first, and focus on income second. All thanks to this program.
They can take weeks or months off, and money keeps rolling in.
Living happily is the top priority.
If the thought of living perpetually at your dream vacation spot interests you, being a Digital Landlord might be for you!
What Is My Top Recommendation For Making Money From Home In 2022?
I’ve personally tried all of the major online business models:
- I’ve sold fidget spinners through Amazon FBA
- I’ve drop-shipped a toilet bowl putting green on Shopify
- I’ve sold women’s health supplements via Clickbank affiliate marketing
And I made money with all of them, so trust me when I say: there is no “perfect” business model.
It’s worth noting that I FULLY endorse real estate investing as a way to grow wealth, and that’s why I invest my own money in commercial and residential real estate.
That being said, my #1 recommendation for making real money online as a beginner is, hands-down: being a Digital Landlord.
Whether you’re a complete newbie, or you’ve been around the block before but have never had that “big win” to propel you forward, becoming a Digital Landlord is for you.
Time: If you’ve got a spare hour or two each day, you can do this. If you want to drop everything and go all in, you can do this. More time obviously means faster results, but even putting in a few hours per day is enough to see real success.
And because of that flexibility, you don’t need to trade your time for money. Once the income starts, it’s recurring.
That means you can take a month off, travel the country, pursue a passion project, chill on the beach, or charter a boat across the world.
But you can only do that once you’ve created an income stream that doesn’t require YOU to be there all day, every day
Real estate investing is a FULL-TIME JOB. If you stop finding deals, your money dries up.
Ownership & Control: Unless you’re buying your properties in cash, you don’t technically own the properties – the lender does.
If you miss a single payment, the property can be taken from you.
Why pour your soul into a business that could be taken away from you at the drop of a dime?
When you’re a Digital Landlord, you literally own all of the assets, which means you have ultimate control.
Ongoing costs: With real estate, profit margins are actually pretty slim. Real wealth is made in owning assets and owning A LOT of them.
Being a Digital Landlord, your profit margin is nearly 100%. Watch here to learn how.
Just a reminder: these Digital Rental Properties are worth (at a minimum) $500/mo in semi-passive income. And each time you create another one, your income increases, and the effort put into creating the next property decreases.
Best-case scenario, you have properties bringing in over $3,000+/mo on auto-pilot.
It’s Effectively Copy-Paste: Here’s my favorite part: once you have your first Digital Rental Property up, you can literally copy-paste another version of it and find another willing “renter” in a few days. DOUBLING your income doesn’t get much easier than that…
If you wanted to double your income with real estate investing, you would need twice as many properties, or double your profit margins on each property. And I can guarantee you, that’s a lot harder than a few clicks & a phone call.
Make Money Helping Real People: When you’re a Digital Landlord, you’re helping solve REAL problems that people are ASKING for help with:
Small local businesses around the world need one thing: customers. Without them, their business would fall apart. If we can provide those customers, they’re going to be really happy – and they’re going to pay you for it.
You’re helping a struggling mother or father put food on the table for their families, put their kids through college, or simply live life a little bit more comfortably.
Having this type of impact on the world is what will help you sleep soundly at night.
So, the rest is up to you. You could keep looking at other opportunities like Arrived Homes, which might make you money.
You could keep researching and researching for the next few months (or few years), never making a concrete decision.
OR, you can look deep inside, think about those dreams, hopes, & desires, and make the decision to ACTUALLY make it happen, just like it has for thousands of other students before you.
Making a fortune while actually helping real people that need it.
If this sounds like you, click here to see how it all works.