Despite the uphill battle Arrived has been facing with the current real estate market, it continues to produce above-average returns for its investors. The company’s Q1 report is in, and it provides a meaningful glimpse into how this platform manages to sell out million-dollar homes in under 24 hours. In a nutshell, it gave its eager following another reason to continue growing their wealth with Arrived’s real estate-backed securities.
Two-thirds of the leased properties in Q1 signed for higher-than-projected rent
While 12-month leases are the industry norm, the company’s team managed to average 21 months on the lease terms for the single-family rentals signed in the first quarter. An astonishing 67% of those went for an above-forecasted rent, meaning that the shareholders can look forward to a steady flow of dividends in these turbulent times.
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The dividend rate ranged between 2% and 15.1%, while the total dividend payout clocked in at over $600k and eclipsed Q4’s earnings by an impressive $70k. As Arrived releases new single-family rentals and vacation rentals on a regular basis, these numbers are set to increase further in the next quarter.
The company boasts a cohort of registered investors numbering over 261,000. Some are already wealthy investors, and some are just looking to diversify their portfolios with a couple hundred dollars invested in America’s most promising real estate.
All of them are informed in advance when a property is to go online, so newly-added homes sell out of shares in as little as a few hours.
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The Numbers Behind The Meteoric Rise
Even though Arrived presents an opportunity to add a completely passive stream of income that sometimes reaches 8.5% on top of appreciation, many are puzzled by such numbers.
For comparison, annual yields between 5% to 8% are considered good, even when you need to handle maintenance, taxes, neighbor complaints, tenant search, and everything else that comes with a rental.
So, how can Arrived deliver similar numbers while its investors don’t have to lift a finger? It boils down to advanced property cherry-picking, purposeful renovations, and slashing costs to the bone.
To locate the most promising units, the company combines AI-powered data science with local market expertise. The company is able to scour the most lucrative real estate markets, pinpoint the most interesting units and send boots on the ground to confirm the property’s potential. To illustrate how meticulous this process is, only 0.2% of considered properties ever get listed.
Over 250 properties made the cut and are scattered across 44 markets. To drive maintenance costs down, they are usually in clusters. The company’s subcontractors are stationed nearby and keep a stockpile of the most frequently needed repair items at hand.
Copious efforts are also placed into finding the most suitable tenants for a property. They also go through a strict vetting process with the aim of selecting the tenants that will provide the most consistent cash flow and take utmost care of the property.
When all of these little things add up, it’s understandable how Arrived has managed to gain so much trust from investors.
As shown, $100 worth of shares doesn’t only buy you an additional stream of income; it also buys access to a well-oiled machine that has generated astonishing results since it started acquiring properties two years ago.
So far, investors have trusted Arrived with more than $91 million in funded properties.
If you’re looking to stash away your savings with asset-backed securities and receive monthly dividends, consider giving Arrived a shot.
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