Arrived makes money in two ways:
(1) One Time Net Proceeds to Arrived - We buy each home upfront, make any needed home improvements, seek to rent the home on a long-term lease, and then sell shares of the property through our website. We can (a) make a commission when we first buy the home (paid by the original seller) and (b) we can make money through an effective sourcing fee (our estimated net proceeds from the offering) for our role in finding, acquiring, managing home improvement projects, and listing the home for rent. This fee may vary by property.
The Estimated Net Proceeds to Arrived for current properties are listed below:
The Lierly: 0.20%
The Soapstone: 0.19%
The Patrick: 2.40%
The Pecan: 2.38%
The Plumtree: 2.46%
* This one time fee percentage is already included in the purchase price of the home and share price listed. The fee percentage is based on the offering purchase price for the property. These are estimated net proceeds based on our current plans and budgeted costs related to renovation projects to the property, closing costs, holding costs, and any interest charges. They are subject to change based on market conditions.
(2) Annual Asset Management Fee: We also earn an Asset Management Fee for managing each home over the investment period. Our Asset Management Fee is a 1.00% annual fee based on the initial investor equity value of the property. The investor equity value is equal to the property raise amount. This fee is paid directly from future rental property income for each property. The fee is a source of revenue for Arrived that helps cover all of the work related to Arrived’s role in managing all ongoing property operations.