New Rental Property Investments Now Open To Retail Investors With $100 Minimum

Real estate can provide several great benefits to your investment portfolio, including consistent income, high potential returns and less volatility compared to the stock market. However, investing in real estate typically requires a considerable amount of capital and being a landlord can become more of a job than an investment.

Fortunately, there is an increasing number of options available for passive investors to add real estate assets to their portfolio with low minimum investments and no property management responsibilities. One of the newest and most exciting opportunities is Arrived Homes, a real estate crowdfunding platform that allows retail investors to buy shares of rental properties for only $100.

How The Arrived Homes Platform Works: Arrived Homes finds and acquires residential rental properties with positive cash flow, then offers shares of the properties to investors through its online platform. Investors can browse available properties and choose the ones in which they want to invest.

The company handles the operational headaches involved with managing rental properties while investors collect their share of the rental income and wait for the property to appreciate in value over time.

After a target hold period of five to seven years, Arrived Homes sells the property and distributes the equity to each investor according to the number of shares they own. Assuming the property increases in value, the investors share in the profits from the sale.

Investors also benefit from the equity that’s built in the property during the hold period. Most rental properties on the Arrived Homes platform are leveraged with bank financing, so the equity increases each month as the principal balance is paid down.

New Rental Property Offerings: Arrived Homes just launched 23 new rental property offerings located throughout South Carolina, North Carolina and Colorado. Monthly rent for the properties ranges from $1,495 per month to $2,795 per month and most homes are less than 10 years old.

The minimum investment on each of the new properties is $100 and the offerings are open to non-accredited investors.

View offerings on Arrived Homes

Should You Invest In Rentals? Real estate comes with several benefits, but rental properties aren’t for everyone. It’s important to note that real estate is an illiquid investment.

You won’t be able to simply cash out of your shares at any point if you need access to your money. Rental properties also come with vacancy risks. While property managers are typically able to fill vacant properties within 30 to 60 days, any periods of vacancy will cut into your cash flow for the quarter.

If you’re comfortable committing to an investment term of five to seven years and can handle potential dips in cash flow if a property loses a tenant, investing in rental properties is a great way to earn passive income and build equity.

Want to be the first to know about new investment opportunities? While real estate crowdfunding is giving individual investors access to private deals that have historically been out of reach, many of the most lucrative deals are fully funded before the average investor ever has a chance to get involved.

Gain access to the same investment offerings on which institutions and billionaire investors are earning 20% to 30% or higher annual returns by signing up here for free alerts to find out about new offerings before they go live.

Photo: Courtesy of Arrived Homes