This year, the floodgate has opened on many investment apps designed for retail investors—and business is booming. One reason can be attributed to the concept of the fractional share, the idea that an investor isn’t on the hook for the whole share price, just a percentage. Lowering that barrier for entry into the investment market helps democratize the investment process.
So it shouldn’t be a surprise that if you can buy fractional shares of luxury cars and stocks, that real estate would be next. In fact, we called it back in 2019. And now real estate investing app Arrived is arriving on the scene.
According to CEO Ryan Fraizer, Arrived “is the first time ever that anyone (including non-accredited investors!) can buy shares of individual rental homes online […] starting at $100 per property.”
After a quick and painless sign-up process, you are on the homepage to explore different properties in hot and upcoming locations like Little Rock, Arkansas or Charleston, South Carolina. Currently, the list is on the shorter side, with most of the existing rentals already snapped up. However, you can make a reservation on future properties that have not been fully funded.
Upon selecting your property, you fill out some SEC-required investor information, link your bank account via Plaid, and you’re off to the investment races. Users can leave comments on each property and discuss the nuts and bolts of their investment. Feedback on each of the rental pages seems very positive.
“I have invested in RE before but do not want to add any more direct properties that I would have to manage myself,” Victor, an Arrived investor, said regarding one property in Ladson, South Carolina.
“Also, the available properties seem to be mostly located in more affordable parts of the country where I am not able to invest directly on my own. Looking for diversification and passive income in retirement. Have enough stocks at this point.”
Time will tell how Arrived and market competitor Ark7 will differentiate themselves from each other in real estate investing—and who will end up on top. But with the proliferation of apps aimed for the Average Joe or Jane, not just the institutional investors, we’re chalking this up for a win for the little guy.