Jeff Bezos Backed Real Estate Investment Platform Fully Funds Another $6 Million Worth Of Single-Family Rentals

Arrived Homes, the single-family real estate investment platform backed by Amazon.com Inc. AMZN founder Jeff Bezos, is ramping up its acquisitions as demand from retail investors grows stronger for fractional real estate.

The company has fully funded approximately $6.1 million worth of rental properties this month, compared to $5 million for the entire first quarter of 2022. The number of investors using Arrived Homes has doubled in the last two months, making it difficult for the company to purchase enough homes to meet demand. 

Arrived Homes has experienced tremendous growth since its launch just a little over a year ago. The platform funded 51 homes during the last eight months of 2021 with approximately $18.5 million in property value. So far in 2022, Arrived Homes has already funded approximately $30 million worth of properties.

The company has been releasing new properties nearly every week for the past two months and currently has 11 properties on the platform that individuals can invest in for $100 to $10,000. Arrived Homes is currently active in 22 markets, including Atlanta, Charlotte, Denver, Phoenix and several other high-growth markets. 

The platform attracted interest from several high-profile investors during its seed round, including an investment from Jeff Bezos through his Bezos Expeditions Fund. Bezos doubled down on that investment this year during the company’s series A round. 

Consumer discretionary spending is falling, so it’s no surprise that Bezos would want to further diversify his holdings outside of Amazon.com, and it appears that his investment in the real estate platform was well-timed. With inflation at a 40-year high and the S&P 500 already erasing most of its gains from 2021, more investors are turning to assets like fractional real estate for more predictable and consistent returns.

How The Arrived Homes Platform Works 

Arrived Homes finds and acquires residential rental properties, then offers shares of the properties to investors through its online platform. The company handles the management of the 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.

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Photo: Courtesy of Arrived Homes