Arrived, an online investment platform enabling access to rental and vacation homes, is raising money on Wefunder.
According to the offering page, Arrived raised over $37 million in a side-by-side offering. Smaller investors may participate in a Reg CF offering, and Accredited Investors may participate in a Reg D offering. The offer is for common shares at a pre-money valuation of $100 million.
The offering page indicates that 4572 investors have backed the company. The breakdown of actual funding is a bit confusing, as the offering indicates $7.3 million in Reg CF investments and $30 million raised off Wefunder—apparently on the same terms—under Reg D. The company kicked things off by testing the waters, gauging investor interest last year – a process that has taken an extended amount of time.
In a recent update, Arrived founder and COO Alejandro Chouza explained that non-accredited investors (Reg CF) may invest a maximum of $500, and Accredited Investors may invest up to $5000. Non-accredited investors will be able to invest on a first-come, first-served basis until they hit the $1.2 million under the Reg CF exemption. Only accredited investors will be able to invest once the funds raised from non-accredited investors hit $1.2 million. As of March 27th, 60% of the $1.2 million had been raised or about 60% of the Reg CF goal. The funds raised are expected to be used for general operating expenses, including new hires and product development.
So, what does Arrived offer its users? The company states that it aims to be the “easiest way for anyone to invest in rental homes & vacation rentals.” If you are an investor on the platform, properties can generate passive income along with the potential for capital appreciation. Arrived reports that in the 4th quarter of 20223, 324 properties paid out dividends with annualized yields ranging from 1.2% and 9.1% on single-family residential properties and 2.0% and 6.0% on vacation rentals.
Assets under management increased went from $58.5 million in 2022, to $126 million by the end of 2023. Arrived claims to be the largest platform in the fractional real estate investing space.
Arrived generates revenue from real estate agent rebates, a one-time sourcing fee, and a quarterly fee based on assets under management.
The company has landed some notable early investors, including Jeff Bezos and CEO of Salesforce Marc Benioff.
Each individual property is managed in an LLC, with all securities-related needs handled by the Dalmore Group. You may view a Reg A offering circular for Arrived properties here.
Arrived shares estimated returns on all of its properties here.
Effectively, you may invest in rental/vacation properties similar to buying shares on a marketplace. If you are bullish on housing and vacation properties, it is an interesting concept.
The Form C filed with the SEC indicates the offering should close by April 29, 2024. Shares issued by the Reg CF offering will be held in an SPV. You may read the offering documents here.
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