Arrived makes money in two ways: (1) We buy each home upfront, make home improvements, rent the home on a long-term lease, and then sell the home in the form of shares through our website. Arrived makes money on transaction fees each time a home goes through this process. We can (a) make a commission when we first buy the home (paid by the original seller) and (b) we can make money by creating additional home value through our home improvements and placing a long-term renter before we list the home on our website.(2) We also make some management fees for managing the portfolio of homes over time: A 1% management fee on the money people invest and then 8% of rent for property management.
Projected returns on the website are after all of our fees.