Arrived: Platform Profile

Overview

Arrived gives individual investors access to residential real estate without buying an entire property.

Current products include:

• individual single-family rental properties;
• individual vacation rentals;
• the Single Family Residential Fund;
• the Real Estate Income Fund;
• City Fund offerings where available.

The minimum investment is currently $100 across Arrived offerings.

That accessibility can make Arrived look similar to buying fractional shares of a stock.

Legally and economically, it is different.

For individual properties, investors generally purchase interests in a property-specific series/entity structure. They are not receiving a deed to a personally owned fraction of the house.

Arrived investments are private real-estate securities with limited liquidity, property-level expenses, valuation uncertainty, and sponsor/manager fees.

May fit better for

• investors who want residential real-estate exposure without becoming landlords;
• non-accredited investors;
• investors who want to diversify across multiple individual properties;
• investors who prefer small starting minimums;
• investors willing to accept private-market liquidity limits;
• investors seeking rental-income exposure.

May fit less well for

• investors who need daily liquidity;
• investors who want direct control of a property;
• investors who expect public-REIT pricing transparency;
• investors who want to use leverage personally;
• investors who assume a $100 minimum means low overall risk.

---

Company background

Arrived states that it was founded in 2019 and launched its first six property offerings in March 2021.

• Year founded: 2019
• First property launch: 2021-03

The platform is operated within the Arrived Holdings organization.

---

Who can invest

Current eligibility for the main Arrived products includes eligible U.S. investors who:

• are at least 18;
• are U.S. citizens or green-card holders;
• reside in one of the 50 U.S. states;
• complete required identity/account verification.

Accredited-investor status is not required for the principal Regulation A products.

• Accredited investor required: No
• Minimum age: 18
• US eligibility required: Yes

Offering-specific limits still apply.

---

Minimum investment

Current minimum:

• Minimum investment: 100

Arrived states that $100 is the minimum across its current offerings.

A low minimum makes diversification easier, but it does not eliminate:

• property risk;
• sponsor risk;
• liquidity risk;
• leverage risk;
• valuation risk.

---

Individual property ownership structure

For individual properties, the investor buys securities associated with a property-specific series.

The investor does not personally receive:

• a deed;
• landlord authority;
• direct tenant control;
• the right to occupy the property.

Arrived/its affiliates oversee:

• acquisition;
• financing;
• leasing;
• property management coordination;
• distributions;
• eventual sale decisions.

This is passive private real-estate ownership through a securities structure.

---

Regulation A

Arrived's principal retail offerings use Regulation A Tier 2 structures.

• Regulation a: Yes
• Non accredited access: Yes

SEC qualification allows the offering to proceed under Regulation A.

It does not mean the SEC:

• approved the investment;
• verified future returns;
• guaranteed the property value;
• determined the offering is suitable for a particular investor.

---

Current fee structure

Arrived's AUM/management charge differs by product.

Current rates:

• Individual single family property:
• Quarterly AUM fee: 0.15% of asset purchase price
• Annualized: 0.60%
• Single family residential fund:
• Quarterly AUM fee: 0.25% of net assets
• Annualized: 1.00%
• Real estate income fund:
• Quarterly AUM fee: 0.30% of net assets
• Annualized: 1.20%
• Vacation rentals:
• Fee basis: variable based on rental income
• Historical average: approximately 0.10% of initial investment per quarter

The vacation-rental historical average is not a guaranteed future fee.

---

Individual-property fee math

For a simplified $10,000 investment in a single-family property using the 0.60% annualized headline AUM rate:

$10,000 × 0.60% = $60/year

This is not the full economic cost.

Property-level costs can include:

• property management;
• insurance;
• property taxes;
• repairs;
• leasing;
• reserves;
• financing;
• one-time acquisition/sourcing costs;
• sale expenses.

---

Single Family Residential Fund

At 1.00% annualized:

$10,000 × 1.00% = $100/year

before underlying property expenses.

Real Estate Income Fund

At 1.20% annualized:

$10,000 × 1.20% = $120/year

before underlying loan/fund expenses.

---

Property-management expenses

Current Arrived guidance states property-management charges are generally paid at the property level.

Current references include:

• Single family property management: 8% of gross rental income
• Vacation rental property management: typically 15%–20% of gross rental income depending on market/manager

Other one-time charges can include:

• lease-up;
• renewals;
• turns;
• rehabilitation;
• specialized services.

These expenses reduce cash available for distributions.

---

Dividends

Arrived currently pays/targets monthly distributions on its principal income-producing products.

Individual properties

Monthly dividends begin after the property starts generating income.

That can take time.

A newly acquired property may need:

• leasing;
• renovation;
• furnishing;
• vacation-rental ramp-up.

Single Family Residential Fund

Current distribution cadence:

• SFR fund distribution frequency: monthly

Real Estate Income Fund

Current distribution cadence:

• Income fund distribution frequency: monthly

Distributions are not guaranteed.

The amount can change with property or loan performance.

---

Single Family Residential Fund

The SFR Fund owns a diversified portfolio of residential rental properties.

It differs from selecting an individual house.

Potential advantages:

• diversification across properties;
• less property-selection burden;
• one fund position.

Tradeoffs:

• less investor control over property selection;
• fund-level fee;
• pooled performance;
• redemption rules rather than individual-property secondary-market trading.

---

Real Estate Income Fund

The Real Estate Income Fund is a non-traded mortgage/private-credit REIT structure focused on short-term real-estate-backed debt.

Current loan characteristics include approximately:

• Income fund loan term range: 6–36 months
• Typical loan size: $100,000–$500,000

Interest from underlying loans is used to support investor distributions.

This is debt exposure, not direct rental-home equity.

---

SFR Fund vs Income Fund

The distinction should remain explicit.

SFR Fund

Owns residential real estate.

Primary return drivers can include:

• rent;
• expenses;
• property appreciation;
• sale value.

Real Estate Income Fund

Owns/invests in real-estate-backed loans.

Primary return drivers can include:

• interest income;
• borrower repayment;
• defaults;
• collateral recoveries.

---

Secondary Market

Arrived currently provides a secondary market for eligible individual-property shares.

Current eligibility generally requires:

• Secondary market:
• Eligible for individual properties: Yes
• Minimum holding period: 6 months
• Trading frequency: approximately one one-week window per month
• Guaranteed liquidity: No

The market uses limit orders and matching.

A sale is not guaranteed.

---

Current secondary-market fees

Current Arrived guidance states the executing broker may receive:

• Secondary market fee:
• Buy side: up to 2.5%
• Sell side: up to 2.5%

Specific fees are disclosed for the applicable trading window.

---

Secondary-market fee illustration

If an investor buys $10,000 of eligible shares and the applicable buy-side fee is the current stated maximum of 2.5%:

$10,000 × 2.5% = $250

If a seller completes a $10,000 sale at a 2.5% sell-side fee:

$250

These are separate sides of different transactions.

They are maximum illustrations, not a statement that every transaction charges 2.5%.

---

Funds use redemption programs, not the individual-property secondary market

Current fund-style products are not traded through Arrived's individual-property Secondary Market.

They use redemption mechanisms subject to fund terms.

This distinction matters.

• SFR fund secondary market: No
• Income fund secondary market: No
• Fund redemption programs: Yes

---

Real Estate Income Fund redemptions

Current Income Fund redemption structure includes:

• eligibility after six months;
• quarterly processing;
• a 1% early-redemption cost for applicable periods from six months through three years;
• no stated redemption cost after three years under current terms;
• quarterly and annual capacity limits;
• board/manager approval and available liquidity.

Current intended limits include approximately:

• Income fund quarterly redemption limit: 5% of NAV
• Income fund annual redemption limit: 20% of NAV

Those are limits, not guaranteed redemption capacity.

---

Valuation

Individual Arrived property valuations are updated periodically rather than continuously.

Current process generally begins after the property has been held long enough for an initial valuation cycle.

Valuation methods can include:

• comparable sales;
• appraisal inputs;
• income-based approaches for applicable vacation rentals.

A calculated property value is not the same as a cash sale price.

Secondary-market prices can differ from Arrived's property-value estimate.

---

Why fractional real estate can still be concentrated

A $100 minimum makes it easy to own many properties.

That does not automatically produce diversification.

An investor could still concentrate in:

• one city;
• one property type;
• one economic region;
• one manager;
• one interest-rate regime.

Platform diversification and real-estate diversification are separate questions.

---

Protection

Arrived real-estate securities are not bank deposits.

• FDIC investment protection: No
• SIPC market loss protection: No
• SEC qualification means safety: No

Use of an executing broker/ATS for secondary trades does not protect the underlying property value from loss.

Assessment

Arrived's strongest feature is accessibility.

A $100 minimum lets an investor build exposure across several individual rental properties without:

• obtaining a mortgage;
• managing tenants;
• handling repairs;
• buying an entire house.

The tradeoff is less direct control and private-market liquidity.

The fees also depend heavily on which Arrived product is used. A single-family property carries a different management structure from the SFR Fund, the Income Fund, or a vacation rental.

The secondary market improves flexibility for eligible individual properties, but one monthly trading window with buyer-dependent execution is not public-market liquidity.

Arrived should be evaluated as a private real-estate securities platform—not as a brokerage substitute.