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1
Patrick
2022 May 26, 7:59pm
Patrick
2022 May 26, 7:59pm
I think fractional real estate is a very old idea which somehow never manages to catch on. Not sure why.
3
richwicks
2022 May 26, 8:06pm
richwicks
2022 May 26, 8:06pm
Looks like it's been created just in time for the crash. It was launched in 2021. I don't see how this is different than any standard REIT.
https://www.thewaystowealth.com/reviews/arrived-homes-review/
Mmmm, SFH are easily destroyed by one disgruntled renter. Buy at your own risk.
I think it's a particularly bad time to buy real estate but WTF do I know?
https://www.thewaystowealth.com/reviews/arrived-homes-review/
What Types Of Single-Family Homes Does Arrived Homes Invest In?
What makes Arrived Homes different from the dozens of other real estate investment platforms (including Fundrise and Cadre) is that the company specializes in single-family home investing. There are no duplexes, townhomes, condos or commercial buildings on the platform.
The typical home is located in a subdivision and has an average price of $250,000.
Mmmm, SFH are easily destroyed by one disgruntled renter. Buy at your own risk.
I think it's a particularly bad time to buy real estate but WTF do I know?
4
richwicks
2022 May 26, 9:44pm
richwicks
2022 May 26, 9:44pm
HunterTits says
Hmm, if it's owned outright, I'd be interested in that.
There's a place where you can own a parcel of farmland.
Hmm, if it's owned outright, I'd be interested in that.
5
zzyzzx
2022 May 27, 5:06am
zzyzzx
2022 May 27, 5:06am
Patrick says
Because timeshares have a well deserved bad reputation.
I think fractional real estate is a very old idea which somehow never manages to catch on. Not sure why.
Because timeshares have a well deserved bad reputation.
6
zzyzzx
2022 May 27, 5:06am
zzyzzx
2022 May 27, 5:06am
Hircus says
Is the stock market broken? Nobody is stopping you from buying shares in a REIT.
I just came across this site which allows non-accredited investors to purchase fractional shares in rental homes.
Is the stock market broken? Nobody is stopping you from buying shares in a REIT.
7
HeadSet
2022 May 27, 9:59am
HeadSet
2022 May 27, 9:59am
Wow, fractional house ownership. How about options? Something like I purchase a right to buy your house currently worth $500k at any time for $600k? That way if the price doubles I can make money. How about I short your $500k house for $400k, so I make money if we have a recession?
8
Hircus
2022 May 27, 10:55am
Hircus
2022 May 27, 10:55am
zzyzzx says
Buying shares in specific, individual homes of your choosing is very different from a REIT.
Hircus saysI just came across this site which allows non-accredited investors to purchase fractional shares in rental homes.
Is the stock market broken? Nobody is stopping you from buying shares in a REIT.
Buying shares in specific, individual homes of your choosing is very different from a REIT.
9
EBGuy
2022 May 27, 1:09pm
Hircus says
It was interesting to read that the VCs also will loan you money if there are vacancies over the allotted amount of time.
Bezos is one of the early investors.
It was interesting to read that the VCs also will loan you money if there are vacancies over the allotted amount of time.
10
GNL
2022 May 27, 1:14pm
GNL
2022 May 27, 1:14pm
EBGuy says
Boom, there it is. What will the interest rate be? Now tell me who's in charge of rental management. Maybe they could easily join forces with those same lenders.
Hircus says
Bezos is one of the early investors.
It was interesting to read that the VCs also will loan you money if there are vacancies over the allotted amount of time.
Boom, there it is. What will the interest rate be? Now tell me who's in charge of rental management. Maybe they could easily join forces with those same lenders.
11
EBGuy
2022 May 27, 1:47pm
Homes are owned by an LLC, which you're buying into. Arrived hires a property manager.
There is no mortgage, and therefore, no leverage (which has pluses and minuses). EDIT: well, maybe just a little leverage: it is our policy to not borrow more than 60% of the greater of cost (before deducting depreciation or other non-cash reserves) or fair market value of our assets.
We intend for each series to elect and qualify to be taxed as a separate real estate investment trust, or REIT, for U.S. federal income tax purposes, commencing with the taxable year ending after the completion of the initial public offering of interests of such series.
There is no mortgage, and therefore, no leverage (which has pluses and minuses). EDIT: well, maybe just a little leverage: it is our policy to not borrow more than 60% of the greater of cost (before deducting depreciation or other non-cash reserves) or fair market value of our assets.
We intend for each series to elect and qualify to be taxed as a separate real estate investment trust, or REIT, for U.S. federal income tax purposes, commencing with the taxable year ending after the completion of the initial public offering of interests of such series.
12
EBGuy
2022 May 27, 1:51pm
The taxation of distributions to our investors can be complex; however, distributions that we make to our investors generally will be taxable as ordinary income
https://welcome.arrivedhomes.com/
They provide estimates on returns on each property. For example, this one
https://arrivedhomes.com/properties/the-baron
is 3.1% appreciation + 4.5% dividend = 7.6% cagr
Bezos is one of the early investors.
I don't think this growing securitization of SFHs is good for the general populace, but it might be very lucrative for investors. I'm not sure how fees and other factors work yet, but if companies with models like this are able to deliver solid returns to investors without sapping them w/ too many fees and other drawbacks, this model may one day be a formidable new bubble blowing factor for RE.
There was also a recent thread on here about another company that also fractionated RE.