The fractional real estate investment platform Arrived Homes hit a major milestone this month – funding its 200th single-family home. The company has now funded 203 investment properties with a total value of more than $75 million.
The homes were all funded by retail investors, who put up as little as $100 each to buy shares of the properties.
Why would investors buy shares of single-family homes? Most of the properties funded on the platform are leased out to long-term tenants, who pay monthly rent that trickles down to each shareholder in the form of quarterly dividends. The rest of the homes are used as short-term rentals – rented on a nightly basis through sites like Airbnb.
Investors are also expected to benefit from appreciation over the long term. When the properties are eventually sold, the equity will be distributed among the shareholders.
The idea of fractional investment in rental properties caught the attention of Amazon.com founder Jeff Bezos early on. The billionaire invested in Arrived Homes’ $37 million seed round in 2021 through his Bezos Expedition fund. Bezos was joined by several other high-profile investors, such as Salesforce.com founder Marc Benioff through Time Ventures, former Zillow Group CEO Spencer Rascoff and Uber Technologies CEO Dara Khosrowshahi, who also invested in the real estate investment platform.
Fractional real estate has become a popular asset class for retail investors, especially since the stock market has been experiencing extreme volatility over the past couple of years and cryptocurrency has shown few signs that it can recover to its previous price levels.
Arrived Homes CEO Ryan Frazier said, “While Americans consistently rank real estate as the best long-term investment, it has been notoriously challenging. By allowing anybody to buy shares in a professionally managed rental home in less than four minutes and starting at $100, Arrived has made investing in real estate as easy as buying a book on Amazon.”
The investment platform doesn’t appear to be slowing down, despite the uncertainty in the housing market. The company’s website shows four new offerings set to go live, including three long-term rentals and one short-term rental.
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.
The S&P/TSX composite index was up 0.05 of a point at 24,224.95.
In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.
The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.
The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.
The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.
This report by The Canadian Press was first published Oct. 10, 2024.
