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Cities like Miami, Austin, and Atlanta are hot spots for real estate investors, but the Jeff Bezos-backed investment platform Arrived is quietly making great strides in a previously obscure market. The real estate investment platform, known for allowing individual investors to buy properties for as little as $100, has diversified its portfolio across different U.S. cities, raising concerns about its impact on the housing market.
Arrivaldo’s market focus: Since its launch, Arrived has funded more than 360 properties with a total real estate value of more than $128 million. In the past six months alone, the platform has funded 76 properties, with particular concentration in markets such as Augusta, Georgia, Savannah, Georgia, and Knoxville, Tennessee. These regions, characterized by lower average hourly wages compared to the national average, are becoming hotspots for Arrived’s investments.
The most real estate states include Tennessee, Georgia, and North Carolina, targeting markets that aren’t on the radar of every investor but have the potential for growth and income. This further illustrates Alived’s strategy.
Related: Investing in real estate just got a whole lot easier. This Jeff Bezos-backed startup allows you to become a landlord in just 10 minutes, and all you need is $100.
Debate rages: The move has reignited debate over the role of institutional investors in the housing market. Critics argue that the influx of capital from companies like Arrived is driving up real estate prices and rents, making homeownership and affordable housing increasingly out of reach for local residents. There is. But proponents see it as an opportunity for investors to diversify their portfolios and homeowners to tap into new sources of financing.
U.S. Rep. Ro Khanna (D-Calif.) recently criticized the consolidation of single-family homes by investment firms such as Arrived, arguing that housing should be a right, not a speculative commodity. His proposed Stop Wall Street Landlord Act aims to curb the role of institutional investors in the housing market.
In response, Alived co-founder Alejandro Chouza emphasized that Alived was created to make real estate ownership accessible to everyone, not just billionaires.
Expanding the influence of Arrival: With more than $128 million in funding, Arrived is more than just a miner. The platform’s recent performance, including paying over $972,000 in dividend income in Q4 2023, demonstrates its growing influence in the real estate market.
The investment platform is the first to receive certification from the Securities and Exchange Commission (SEC) to sell shares in single-family rental real estate to non-accredited investors. The model caught the attention of several prominent backers early on. Amazon.com Inc. founder Jeff Bezos, Zillow Inc. co-founder Spencer Raskoff, Salesforce Inc. CEO Marc Benioff, and Uber Technologies Inc. CEO Dara Khosrowshahi all announced their plans in 2021. Invested in Arrived’s $25 million seed round. Bezos has since made a second investment. The company’s Series A round is scheduled for 2022.
Arrived continues to pioneer new ways for individuals to invest in real estate.release of Detached house fund arrives And with the introduction of monthly dividends through Arrived Wallet, real estate investing has become even more accessible and flexible.
As Arrived continues to expand its footprint, the conversation around institutional investing in real estate will certainly evolve as well. Whether seen as a boon or a bane, the impact of platforms like Arrived on local housing markets is a topic worth paying close attention to in the coming years.
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This article: Jeff Bezos-backed real estate firm targets unexpected market, accelerating debate over investment effectiveness
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