Jeff Bezos' Single-Family Rental Play Appears Almost Too Well-Timed

It should be obvious that billionaires don’t accumulate wealth by accident. Their success is predicated on observation and savvy investment, and a privileged background helps.

Billionaires like Microsoft Corp. co-founder Bill Gates likely saw an opportunity through controversial land investments, by way of food shortages, well ahead of time.

So it should be no surprise that the single-family rental company backed by Amazon.com Inc. founder Jeff Bezos is taking off. He had the foresight with Amazon to turn a book company into a get-it-now, everything provider.

Hindsight is 20/20, but after a global pandemic, turmoil in the stock market for years to come is not unexpected. The stock market has been wildly unpredictable and extremely volatile over the past year. Whether it's from the words of Elon Musk or Jerome Powell, the market fluctuates as a result.

Additionally, the U.S. has moved from a housing boom into a housing bust. Musk and Bezos have issued warnings for an inevitable recession and Jerry Howard (CEO of the National Association of Home Builders) shared similar thoughts.

Real estate mogul Grant Cardone recently called Jerome Powell "the greatest enemy of all time to the middle class" and that he is "turning the U.S. into a nation of renters."

These trends seem obvious now to many. However, Bezos noticed early and took action. With his bet on Arrived, Bezos may have been betting on more single-family homes landing in the hands of investors, and the conditions are now perfect.

Home prices and interest rates are high. At the same time, the stock market is as volatile as ever, if not floundering, so people are looking for safer options. With homeownership off the table for many, but real estate still looking promising to those who can afford it, fractional ownership feels right to the everyman who doesn't want to be left standing in the cold.

Bezos not only invested in the real estate startup's seed round in 2021, but he doubled down on that investment during the company's series A last year. Retail investors have already funded more than $78 million worth of single-family rentals on the platform with a $100 minimum investment and several new properties are being added every month.

If you can’t beat ‘em, join ‘em — Bezos certainly stands to make money off his gamble, but so do the investors adding rental properties to their portfolios while they still can.

Read next: Bezos-Backed Startup Lets You Become A Landlord With $100

Looking for ways to boost returns? Check out Benzinga's Real Estate Investment Screener to browse passive real estate offerings with minimum investments as low as $100. 

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• 3 Of The 5 Richest People In The World Are Making New Plays In The Real Estate MarketJeff Bezos-Backed Startup Lets You Become A Landlord With $100

Photo: Courtesy of National Museum of Amer on flickr