Categories: Featured News

Arrived Homes Takes $37 Million in Seed Funding from Bezos and Others

Arrived Homes, a real estate crowdfunding investment platform, just announced the other day having raised $37 million in funding. The startup is being backed by Amazon billionaire Jeff Bezos and Salesforce CEO Marc Benioff and aims to give the masses a say in real estate investing.

Billionaire Jeff Bezos – Courtesy Steve Jurvetson

The new company offers shares of rental properties starting at $100. But, Arrived Homes is not the first startup to expand real estate ownership. Fundrise, begun back in 2016, lets the average Joe or Joanne buy shares in single-family, multifamily or industrial buildings for as little as $50. 

There are others in the game like Roofstock, but Arrived Homes is focused on purchases of single-family homes. CEO Ryan Frazier explained how it works to GlobeSt recently: 

“Our customers come to our website, they browse available homes, they can view information on a property, see rental rates if it’s already rented, see information on the market. Then they can invest and buy shares starting at $100.”

According to the company, investors can invest up to $20,000 per house, and they are paid each quarter. Rental tenants also receive shares in the property. Then, if and when Arrived Homes sells a property, the proceeds are distributed to all the investors.

Furthermore, Arrived Homes is differentiated by the diversification of investments. Where larger firms tend to cluster properties, this new startup allows for investments in the broader geographic spectrum. Arrive Homes works with various companies, brokers, and other firms to isolate potential investment properties for its partner/investors. 

According to Bloomberg, Arrived Homes has acquired 15 homes and is in contracts for 18 more. The 2019 startup plans to use the new funds to buy more properties as it tries to expand on the idea of ordinary folks being in the investing game. The company says the average investment so far has been $1,800 across two or three houses. The startup expects investments will reach 100 homes per month by the end of 2021.

Other investors in Arrive Homes include former Zillow Group CEO Spencer Rascoff; Uber CEO Dara Khosrowshahi, and others who were unmentioned in the announcements.

Phil Butler

Phil Butler is a former engineer, contractor, and telecommunications professional who is editor of several influential online media outlets. Phil began his digital ramblings via several of the world’s most noted tech blogs, at the advent of blogging as a form of journalistic license. A graduate of The College of Charleston, Phil also served in the United States Navy, and has worked for any number of Fortune 500 companies. Together with his wife and partner Mihaela Lica Butler, Phil also helped forge Pamil Visions PR into one of the most successful online PR companies in the world. His greatest accomplishments however involves being the best husband, father, and friend he can be.

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