Real Estate Investment Startup Arrived Homes Adds Vacation Rental Properties to Platform – GeekWire

Part of a property in the vacation rentals section of Arrived Homes. (Screenshot of Home arriving)

Arrived Homes, a Seattle-based startup that allows investors to buy stakes in single-family homes, is adding short-term vacation rental properties to its investment platform.

“We are very excited to announce the launch of Vacation Rentals on Arrived,” the company said in an email to users Wednesday. “Vacation rentals are fully furnished homes leased for short stays (1-30 days) on platforms such as Airbnb and VRBO.”

The company has already listed seven properties designated as short-term vacation rentals. Investors can purchase shares in these homes with names such as “The Mirage” in Joshua Tree, California and “The Ace” in Scottsdale, Arizona.

“Platforms like Airbnb have helped vacation rental owners generate more than $150 billion in rental income by catering to the arrival of 1 billion guests, but less than 0.5% of those guests Only then could we access the wealth-building potential of this rapidly growing asset class,” said CEO and co-founder Ryan Frazier in a statement. “Today, we are changing that by adding these assets to our platform.”

Listed as a vacation rental, “The Oasis” sold out on the first day of trading. Arrived has raised over $730,000 in his stake from approximately 820 investors. (arrival photo)

Arrived has about 100,000 people signed up for the service, and about 10,000 users are actively investing. On average, there are about 200-300 investors per house. The startup hopes to use crowdfunding to help these investors buy a stake in rental properties for as little as $100, democratizing real estate investing beyond wealthy individuals and institutions. I am aiming. Investors on the platform can earn passive income while the company handles everything from property acquisition and management.

Platform investors are eager to put money into short-term rentals. Nashville-based Vacation His rental “The Oasis” sold its entire stock on the first day of trading Wednesday, and was listed on the trends page of the Arrived website.

The startup aims to expand its services to both single-family rental properties and vacation rental properties. It also plans to expand into new markets such as Florida, Texas, Nevada and Indiana. However, various jurisdictions are cracking down on short-term rentals by enforcing different zoning laws, including a bill signed by Honolulu Mayor Rick Brunjadi requiring property owners to reserve units for a minimum of 90 days. Therefore, you may encounter obstacles.

Real estate investment platforms like Arrived face criticism for devouring housing supply and driving up prices. The company has previously defended its business model, saying there is a demand for “quality rental housing” for individuals and families who may not have the financial means or incentive to buy a home, and otherwise It added that it would not bid on housing stock that it could buy a home from. be the owner.

The startup was founded in 2019 by three tech veterans including Frazier, CTO Kenny Cason, and COO Alejandro Chouza. Its cap table includes leading backers, including the venture capital arm of Jeff Bezos and Marc Benioff, as well as investments from the likes of former Zillow Group CEO Spencer Rascoff and his Uber CEO Dara Khosrowshahi. increase.

Arrived owns 150 rental homes in 27 markets nationwide with a total asset value of over $55 million.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *