Bezos-Backed Real Estate Startup Surpasses $65 Million In Funded Property Value

The housing market may have slowed down this year, but fractional real estate ownership is still heating up. 

The real estate investment platform Arrived Homes launched in 2021, becoming the first Securities and Exchange Commission (SEC)-qualified investment platform to offer shares of single-family rental properties to nonaccredited investors.

The concept of providing access to real estate ownership to virtually anyone quickly caught the attention of several high-profile investors, including Amazon.com Inc. founder Jeff Bezos, who made an early investment in the real estate startup’s seed round. Bezos later made a second investment in Arrived Homes during the company’s Series A round earlier this year. 

The investment platform has rapidly grown in popularity since its launch and has already fully funded 179 properties with a total value of over $65 million. The company recently expanded its offerings to include shares of short-term rentals in popular vacation markets like Joshua Tree, California; Nashville, Tennessee; and others.

Concept Of Fractional Ownership

Fractional ownership allows investors to apply two of the most tried and tested investment strategies — diversification and dollar-cost averaging. 

Because Arrived Homes has a minimum investment of $100, investors can easily purchase shares of multiple properties in different markets instead of having to go all-in on a single house. The low minimum investment also makes it possible to apply dollar-cost averaging to real estate investing instead of needing to time the market. 

The fractional model also eliminates the landlord responsibilities that normally come with owning rental properties. Investors collect passive income from the rental payments while Arrived Homes handles the property management responsibilities like finding tenants and keeping the homes maintained. 

When the timing is right, the properties are sold, and the proceeds are distributed to the shareholders. According to the Arrived Homes website, the estimated hold period for each property funded on the platform is between five and seven years. 

Current Offerings

Seven rental properties are now being funded on the Arrived Homes platform:

The Blossom, Northwest Arkansas

The Jill, Nashville, Tennessee

The Inglewood, Nashville, Tennessee

The Shallowford, Chattanooga, Tennessee

The Braxton, Cincinnati, Ohio

The Hansel, Nashville, Tennessee

The Marcelo, Cincinnati, Ohio

Photo: Courtesy of Arrived Homes