Arrived Homes?

[Looking4Ward]

I hope I'm posting in the correct forum..........

Any thoughts on Arrived Homes? (arrivedhomes.com)

I went ahead today and purchased $100 worth of a single family rental in California (estimated annual return around 9%) and $100 worth of a vacation rental in Florida (estimated annual return around 11%).

Big money, I know

The concept is interesting, if not controversial.

 

[Another Reader]

I don't see enough detail online to have an opinion. Past schemes similar to this one have failed. Given that real estate values in many of the areas where they invest have started to decline, I would avoid this for that reason alone.

 

[Koolau]

Yeah, sounds a bit iffy. How established is it? I think I'll wait.

 

[Looking4Ward]

Jeff Bezos is backing it and they just started adding vacation rentals to the offerings so that's where I put $100 each into two of them.

It's a novel concept (like Amazon was?) so I'm curious to see where it goes.

 

[Walt34]

Well, $100 isn't going to bankrupt anyone even if it goes down the toilet so that's in the range of "do it just to see what happens".

Edit:

If they had homes in a market area that I knew, such as close to DC or here in WV, maybe I'd consider it but otherwise I'd just be throwing darts at a map because I don't know anything about where those homes are.

 

[MC Rider]

The worst that happens is you lose $200. I'm paying that for a toilet wax ring replacement. Which sounds like more fun? Toilet? Or gamble?

 

[luckydude]

The worst that happens is you lose $200. I'm paying that for a toilet wax ring replacement. Which sounds like more fun? Toilet? Or gamble?

Well if the gamble goes bad, that's like money down the toilet

 

[Koolau]

Well if the gamble goes bad, that's like money down the toilet

Most of us have been there. At least I have. Wish it were only $100 down the toilet.

 

[milford]

Seems like a copycat of other similar concepts such as Fundrise with lower minimum so the concept has been around for a while. Its going to be tough for them to produce profit in the near term with interest rates going up and we're just at the start of a housing downturn.

 

[FlaGator]

For $200 you’ll learn first-hand how reliable forecasted returns are with syndicated real estate. Especially vacation rentals which are highly correlated with consumer disposable income. And there is how leveraged the underlying properties are and if the financing is fixed or floating rate.

If you stop at that initial investment, it will be the cheapest lesson on record of a passive RE investor

 

[luckydude]

Most of us have been there. At least I have. Wish it were only $100 down the toilet.

I know I have. All my stock picks over the years have been money down the toilet. Thankfully I learned my own limitation and now just stick with index funds.

 

[JoeWras]

I'm usually not a big fan of avoiding investments as "sins," but it sounds like this one would be a sin for me. We're getting too much corporate ownership of homes, right down to the situation in my neighborhood.

So for me, it is avoid.

 

[socca]

So ... if (for example) a person invests in a property generating CA-source income will they receive a CA K-1 from Arrived Homes and be required to file a CA tax return? If the person doesn't already live in CA this would be nasty. The Arrived Homes website is silent on this topic - it only mentions "tax advantages".

 

[cathy63]

So ... if (for example) a person invests in a property generating CA-source income will they receive a CA K-1 from Arrived Homes and be required to file a CA tax return? If the person doesn't already live in CA this would be nasty. The Arrived Homes website is silent on this topic - it only mentions "tax advantages".

Interesting question. I dug around a bit and found their Offering Circular. https://sec.report/Document/0001213900-21-010201/#Arrived_1a_018

We intend for each series to elect and qualify to be taxed as a separate real estate investment trust, or REIT, for U.S. federal income tax purposes, commencing with the taxable year ending after the completion of the initial offering of interests of such series.

So, assuming they do qualify a REIT for each property, investors would get an ordinary 1099-DIV.

 

[Koolau]

Interesting question. I dug around a bit and found their Offering Circular. https://sec.report/Document/0001213900-21-010201/#Arrived_1a_018

Hmmmm. If I need to read AND understand THAT, I think I'll just use my $100 to BTD. YMMV