Arrived Homes expands into vacation rental investing
Arrived houses, a crowdfunded real estate investment platform enabling the ownership of single-family rental properties, today announced its expansion into short-term vacation rentals, according to a press release.
The company also announced plans to expand its offerings, which let ordinary people buy real estate stocks starting at $100, to new markets in Florida, Texas, Nevada and Indiana.
Now it will also extend its investment horizon to vacation rentals, saying it is “democratizing” access to rental income and property appreciation across all real estate asset classes in the country.
Arrived will also host “the #ArrivedGetawayto give investors the chance to win shares, trips and five nights in a property they partially own.
He announced five rental properties, valued at $5 million, that will be part of this expansion. These include The Mirage in Joshua Tree, California; The Oasis located in Nashville, Tennessee; The Cardinal in Glendale and The Ace in Scottsdale, Arizona; The Hammock and The Pointbreak in Panama City and Clearwater, Florida; The orchard in Blue Ridge, Georgia.
GeekWire reports all shares of the Nashville vacation rental were sold on the first day of trading Wednesday. Around 100,000 people have signed up for the service and around 10,000 users are actively investing on the platform, with 200-300 investors per home on average.
According to Arrived Homes, rentals will have amenities such as hot tubs, rooftop views of downtown, and proximity to cultural and entertainment hubs.
“We are excited to bring our model to vacation rentals, the fastest growing real estate segment right now,” said Ryan Frazier, CEO and co-founder of the organization, in version.
Frazier explains that Arrived Homes’ home ownership strategy helps Americans access the financial benefits of their investments. According to him, Airbnb enables vacation rental owners to generate over $150 billion in rental revenue by providing services to one billion customers. However, less than 0.5% of these customers could access the income potential of these assets. “We are changing that today by adding these assets to our platform,” he added.
For this venture, Arrived has partnered with vacation rental property managers and developers, including Tony Robinson and The Alpha Geek Capital team, Misfit Homes, Old Town Rentals, Roseus Hospitality, Southern Comfort Cabin Rentals, and Techvestor.
These partnerships will oversee the management of the properties, eliminating the involvement of investors themselves in the day-to-day operations of the rentals. Additionally, managers will utilize local hosting experience, teams, and recognition of their social media followers on various platforms to manage operations.
The release also says investors will be able to purchase shares on the Arrived website, as well as other established vacation rental platforms.
The company’s move followed shortly after its funding of a $25 million Series A round, led by Forerunner Ventures. Other tour participants included Bezos expeditions, good friends, ancient Zilliow CEO Spencer Rascoff, Core Innovation Capital, PSL Ventures and Neo. As of June 2021, it also received seed funding and debt funding worth $37 million and announced its partnership with Certain loans to lead a $100 million credit financing program to expand into the U.S. residential real estate market, in December 2021.
Arrived Homes’ claims to have financed more than 150 single-family rental properties in 27 markets across the United States, with a combined total asset value of more than $55 million.
In other recent proptech news, Berkadia, a commercial real estate joint venture between Berkshire Hathaway and Jefferies Financial Group, signed a multi-year agreement with the rental data reporting fintech Esusu. Walker & Dunlop, Inc., a commercial real estate service provider, has expanded its affordable housing platform with a new investment sales team to help clients “create, preserve and revitalize affordable communities.”