Welcome and thanks for joining us today. Before we dive in, I want to quickly introduce our speakers. I’m Ryan. I’m one of the co-founders and the CEO of Arrived. And investing in rental properties has been a passion of mine for over a decade. And I’m grateful for the opportunity to chat with everyone here today. I’m also joined by Jake, a senior product manager at Arrived. And we’re excited to be here with you all and really talk about rental property investing. We’ve got a great agenda for today. We’ll start by covering why investors consider real estate as well as the different ways to access the asset class. From there, I’ll give a quick introduction to Arrived, walk through how our model works, and highlight the key benefits Arrive can offer investors. And Jake will finish up by walking through a few more of the things to consider when investing in real estate, and then how to get started for anyone who’s interested. After that, we’ll take live questions from the audience, and then we’ll break from there. So let’s start with some of the benefits of investing in real estate in general. One of the reasons why investors have long seen real estate as an important part of their overall investment portfolio is really just due to the fact that you can earn money in multiple ways. The first is through property value growth where you can see your real estate value appreciate over time. And the second is from rental income. People paying rent providing cash flow for operating a property as a rental. And the last thing worth mentioning is just that real estate can have favorable tax treatment as well and the opportunity to defer tax on things like rental income by using depreciation of the property as an asset. Next, let’s look at why real estate has been such a durable way to build wealth over time. The two charts I’ll walk through are from the Federal Reserve Bank. The first shows how rent have has grown over time, and the second shows the long-term trend in US median home prices. Together, they really highlight what makes real estate so compelling. Investors have the potential to earn from both rental income and property appreciation. And that combination has helped real estate remain one of the most consistent wealthb buildinging assets over the long term. Another reason investors often consider real estate is overall portfolio diversification. And this really ties back to modern portfolio theory and the simple concept that for a riskaverse investors, a well- diversified portfolio can maximize returns for any given level of risk. And real estate as an asset class has historically had a lower correlation with the stock market and as a result is often recommended as a great complement to other asset classes. And then finally, real estate can provide access to lowerc cost leverage. Leverage or debt can increase your purchasing power beyond the cash that you have available today and as a result magnify your potential returns either up or down depending on how your investment performs. And real estate has long had one of the lower costs of accessing that type of leverage. So with that, how do you invest in real estate today? First, there are several types of real estate to think about. Starting with commercial or industrial properties, things like office buildings or warehouse. Then there are residential properties like single family homes or multif family buildings. There’s vacant land and there’s also vacation properties uh properties operated on Airbnb or VBO. Um outside of equity investments, there’s also real estate credit investments. Things like investing in the financing that backs professional real estate development projects. And when you think about how to invest in real estate, there’s a couple of different ways to invest. You can invest in the property directly where you go through the full process search process of searching the market, submitting offers, taking out a mortgage potentially and then managing that property over time. Alternatively, you could invest in REITs or real estate investment trusts. The most common type of REIT people think of are really publicly traded REITs where you can buy shares through your brokerage account of choice. Uh they can offer great tax benefits without needing to manage properties yourself, but since they’re often publicly traded, they’re also more correlated to the stock market performance and their prices can be more volatile than the actual underlying real estate values and that can also compress dividends associated with these REITs. Then there’s a new generation of real estate investing platforms that have emerged to make the asset class more accessible. Arrived is really part of this broader shift with a focus on residential real estate and real estate back credit. Our goal is to make it easy for anyone to invest across the real estate market without the traditional barriers of buying and managing properties directly. I’ve personally been passionate about residential homes, which is one of the things that led to creating arrive to begin with so that anyone could invest in this segment of the market and in single family homes. Homes can be a great way to get started in your real estate journey. Uh they’re quite easy for new investors to real estate to understand because the value of the house is driven by things like its location, the curb appeal, and the rental potential. All things that people can consider and value evaluate at face value on any given investment. From a market perspective, new home construction has not kept up pace with housing demand over the last 10 to 15 years. And this is why we’ve continued to see home prices grow at an accelerated rate. We’re also seeing a generational shift. More people are choosing to rent for longer in their life for the flexibility that it provides. And as their lives evolve and families grow, many people are looking for larger rental homes that offer more space without sacrificing that flexibility. Arrived first of all launched the ability to invest in shares of individual rental properties. These are long-term rentals or vacation rental properties. And today we have more than 500 properties across 65 cities and growing uh each week as we add new properties. A ride was the first company to really adopt this way for anyone to buy shares of individual rental properties and access the rental income and property values over time. Since then, we’ve also introduced new investment products like our single family residential fund. So if you think about our individual properties as a way for an investor to build a portfolio and decide which properties they want to participate in or which areas of the country they want to diversify into and really build their portfolio on their own with their own vision. The single family residential fund is meant to be sort of a mo total market rental fund. Um, so the returns and performance are intended to be similar to the average returns of individual properties on arrived. For investors who really want a more passive experience and don’t want to pick and choose which properties they invest in, the single family residential fund is a great option. While our individual properties and single family residential fund focus on equity investments in rental homes, the real estate income fund focuses on real estate back credit investments. That means investors can add exposure to real estate credit alongside properties designed to generate returns through rental income and potential appreciation. While our real estate income fund provides a dividend yield, so all of the investor returns primarily come from distributions or dividends or from the interest payments on underlying assets in the in the portfolio. And this is a great way in this kind of higher interest rate environment right now to sort of be the bank and provide financing to professional real estate developers across the country for their real estate projects, which could be new home construction, professional home renovations, or other potential financing opportunities backed by real estate assets. And this product has really performed well since launch, paying over an 8.1% annualized dividend yield and offering a great high yield opportunity backed by these residential real estate assets. And now let’s talk for a second about city funds. Um, and this is really an evolution in our different equity fund products. If you think of the single family residential fund as our total rental home market fund, city funds are meant to mirror individual sectors or specific slices of the market. We believe that this is the best way to participate in the underlying real estate performance of a city that you believe in. So if you want the ability to pick and choose which markets you’re investing in, similar to our individual properties, but you also want some of the efficiency and simplicity of passive investing in a poolled fund, then city funds might be for you. The first city fund we launched is the Seattle City Fund, a market that’s close to our hearts, where we have a lot of team and expertise locally, but also has been one where we’ve really wanted to allow investors to participate in the growth happening in this market. The Seattle fund is one of the markets available today and over time we aim to offer a broader mix of cities across the country for investors to choose from. Similar to investing in our individual properties which today are available across more than 65 markets. While single family rental homes can offer meaningful benefits, investing them in them directly, traditionally has been complex, uncertain, timeconuming, expensive, and largely offline. And our vision for Arrived has been to completely change that so that we can make single family home investing really accessible for anyone at any time. And Arrived is a platform for investing in shares of these individual investments around individual properties and real estate back credit investments. And through our website and our mobile app, investors can browse available investments, they can buy shares in the homes or funds uh as they choose and invest online just by linking a bank account. From there, they can earn passive income from rental dividends or distributions from our credit funds and any property appreciation over time for properties that they’re investing in. We see this as an exciting innovation in property investing and we’ve been excited by the level of interest from investors on arrived. And now over the years we’ve really become the largest platform for investing in shares of residential properties. We’ve built an incredible track record thanks to our investing community and we have an incredible group of backers in our company and we’re excited to continue to grow the Arrive community from here. And so with that, let’s get into some of the details about how Arrived works. First, let’s look at the acquisition process. We look at the wide world of real estate, analyze the markets and neighborhoods that we uh have strong conviction in in the areas that we’re buying. And some of the things that we’re looking at include tracking data like positive net migration or generally population growth, how many people are coming in and how many people are leaving that market. We want to see a strong positive trend there. Then we look at the city’s infrastructure. Are there enough highways and freeways to support the movement of goods and services and people for neighborhoods to be able to keep growing? And then finally, we’re looking for diverse economies. We want to make sure that there are jobs being created, that there are strong industries, and that it can be fairly well insulated against any source of any sort of recessionary forces. At a simple level, people need to be able to earn income to pay rent or buy homes for a market to thrive. And once we have conviction in a market, we take a bottoms up approach to selecting the right homes in that market. We look for properties with strong rental income potential relative to the cost in neighborhoods that we believe are well positioned for long-term growth while carefully evaluating the risks such as crime or overall market quality. In some cases, investing in the path of progress means looking at neighborhoods that are still improving and may have some challenges today. But that’s why our acquisition process is focused on balancing long-term opportunity with a thoughtful riskmanagement approach. After acquiring a home, we prepare it for residence. Many of the homes that we buy are newer, including new construction homes, but there is often still important work to do. ordering appliances, installing window treatments, adding fencing, and making other improvements to make the home rental ready. Fencing can be an especially a valuable um in single family home rentals. For many residents, uh particularly those with children or pets, a fenced yard adds meaningful utility and can make a home more desirable. When it’s economically feasible and the lot size allows it, we often add fencing as part of the rental ready process. From there, we operate the property to generate income. For long-term rentals, that means managing the home through a traditional landlord resident model on long-term leases. And for vacation rentals, we apply the same disciplined approach um to finding highquality assets, thoughtful design, furnishing and equipping those homes to create a great guest experience that drives attractive booking revenue. Finally, we make the investment available to investors. Each property goes through a regulatory process with the SEC where key information is filed and our investment terms are clearly disclosed. Our goal is to give investors a transparent experience and the information they need to provide informed decisions. Next, we look at some of the benefits of investing with Arrived. Um, starting with things like passive income. With Arrived, you can invest in the properties you choose and start earning rental income through monthly distributions. Real estate has a reputation for being passive, but owning and managing property directly can oftenimes be anything but passive. There’s potentially repairs, resident needs, leasing, operation, and ongoing decisions to manage. With Arrived, it’s really designed to make your rental property investing truly passive. You choose where to invest, and we handle the work of acquiring, preparing, and managing those properties. Next is looking at capital appreciation over time. Real estate values can increase as the land and property values grow. For investors, this creates the potential to participate in long-term upside in addition to rental income. We’ll cover this more in detail in the tax treatment sess section, but real estate has historically offered the potential for capital appreciation as property values increase over time. One important note is that capital appreciation generally does not apply in the same way for a real estate income fund. The fund is primarily made up of short-term real estate loans rather than direct property ownership and those loans are generally intended to be held to maturity. So investors receive the full interest income uh while the loans are active and assuming repayment receive their principle back at maturity. Capital appreciation is more relevant to investments in properties where returns can benefit from potential increases in the value of the underlying properties over time. Another benefit is access to property level debt or leverage without personal liability through arrived investors can participate in properties that use mortgage financing without having to personally qualify for the loan. Uh there are no investor credit checks and investors do not need to meet traditional credit requirements typically associated with buying a mortgage property directly. Our debt programs are structured to be nonreourse to investors. That means investors are not personally responsible for repaying any mortgage debt associated with a property that takes on financing. And then finally, investors have no operational responsibility. Arrived handles all of the work sourcing and acquiring properties, managing those properties, and supporting the regulatory process with the SEC. So investors can participate without taking on the day-to-day responsibilities of property ownership. The next benefit of real estate investing is tax efficiency. Some of these advantages come from real estate itself, while others come from how Arrive structures its investment and offerings. One of the key real estate tax benefits is depreciation. Depreciation is a non-cash expense that accounts for normal wear and tear on a property over time. Even though no cash is paid out for depreciation, it can be used to reduce the property’s taxable operating income. In practice, this can allow investors to receive operating cash flow while deferring certain related taxes. That tax treatment is one of the reason real estate has historically been viewed as a tax advantage asset class. Another potential tax benefit is long-term capital gains treatment. When an when an equity real estate investment is held for more than one year, any gains from the sale may qualify for long-term capital gains tax rates, which are gen generally lower than ordinary income tax rates. So, if you hold an asset for a year or longer, then it’s subject to long-term capital gains treatment, which in today’s environment can be 15 to 20% depending on your income. And if you compare that to say ordinary income rates on wages, where typically the highest marginal rate is often above 30%. Next is the low minimum investments. With arrived, investors can get started with as little as $100. Um, and that really makes it easier for investors to build an investment portfolio portfolio as they see fit, either diversifying into a number of different assets, maybe dollar cost averaging over time or more easily reinvesting their dividends. This provides a lot more flexibility compared to traditional rental property investing where getting started can require tens of thousands or hundreds of thousands of dollars for a down payment, closing costs, renovations, cash reserves, taxes, and ongoing expenses. And then next is thinking about diversification. With arrived, investors can spread their portfolio across multiple properties and markets nationwide. With individual in uh offerings, investors can build a portfolio on their own terms. And with our real estate funds, investors can access broader built-in diversification through a single investment. Arrive also gives investors flexibility by turning large assets like rental homes into smaller investable shares. Arrive makes it easy to invest across different properties, markets, and strategies. Instead of being limited to just opportunities in the in your backyard or acquiring whole properties, you can access rental property investments in markets across the country. Together, these options give investors more control over how to build their real estate portfolio, whether they choose individual properties to invest through our diversified funds or our credit funds or a combination of both approaches based on their goals. And one more thing really worth highlighting is liquidity. Real estate has traditionally been in a liquid asset class. Um, when you own a property directly, selling can take months, involve significant time, cost, and complexity. Arrived investments are generally designed to be held over the long term just to give each property time to execute on its investment strategy, generate income, and maximize investment return through property appreciation over time. But at the same time, we understand that investors needs can change. For investors in individual properties, Arrived offers a secondary trading marketplace where eligible investors can list shares for sale to other investors. When buyers and sellers list at the same price, their orders match, similar to the public stock market. The secondary market can provide investors with a way to sell shares before a pro a property hits the end of its target hold period. Arrive funds also offer liquidity programs through a redemption program that provide investors with access to liquidity once per quarter after an initial six-month hold period. And with that, thank you. I’m going to turn it over to Jake so he can explain a little bit more about real estate returns and some of the financials of considering some of these investment products. Thank you. Ryan talked a lot about the reasons for investing in real estate and now we’re going to take a dive into the potential returns of the arrived investments. This chart is meant to illustrate the potential range of returns for each investment strategy. In this chart, each dot represents the average return for that specific investment strategy and the lines represent the distribution of typical outcomes. You can see that the investments with higher average returns also come with a wider range of potential outcomes. This illustrates the different range of volatility or risk in the performance of each asset class. Investments with higher return potential also come with a wider range of potential outcomes. To mitigate that range of outcomes, investors can diversify across several properties. The more offerings you invest in within an investment strategy, the more likely your overall returns will be closer to that average. To do that, you could buy several different properties within an investment strategy or invest in our fund products, which are already instantly diversified across dozens of individual properties. This chart is very similar to the last one, but instead of looking at investment strategies, we’re looking at the impact of adding leverage. Adding mortgage debt to a real estate investment can amplify outcomes. It introduces an additional layer of risk, but it can also increase an investment’s potential return profile. As leverage increases, the range of potential outcomes expands. A strong investment may benefit from enhanced returns while a weaker investment may face greater downside risk. That’s why we take a disciplined approach to using debt. Given the current interest rate environment, we are not adding mortgage leverage to new properties at this time. However, some properties may include a strategic refinance candidate tag on their property page. This means the property is being offered to investors without debt today, but it may be a candidate for adding a loan to in the future if interest rates decline or financing terms become more attractive. This approach gives us time to evaluate each property’s operating performance before making a decision on leverage. It also allows us to be more selective about which properties to refinance, how much debt to add, and what interest rate would make the most sense for investors. And that brings us to this matrix which shows the intended range of return for each investment strategy with and without debt. Like I was saying, all of our new properties are launching without leverage, but we hope to add leverage to them when it makes sense. Ultimately, the returns on each investment will depend on the performance of that property’s rental operations and on appreciation in the local market. And that means some properties will certainly outperform these ranges while others may underperform them. These numbers represent a well- diversified portfolio within each investment strategy and leverage combination. The more investors diversify across multiple properties, the more likely a portfolio’s overall returns will fall within these ranges over the target investment period. As we discussed earlier, you can diversify on Arrive by buying shares in individual properties or by investing in our fund products which offer instant diversification. And that brings us to the fun part, how to get started. The account creation process takes about 4 minutes. And from there, you’ll be able to start browsing the available properties and funds that are currently being funded by investors. You can take a look at the different investment strategies and different properties to pick which ones interest you and then you can simply select the number of shares you want to buy. From there, you can start earning the potential income and appreciation from your investment. Arrived is designed to make real estate investing simple, accessible, and even enjoyable without the complexity of buying and managing property on your own. With that, let’s open it up for Q&A.
Fantastic. Cameron and team, thanks so much for prepared remarks as always. Cameron, what are you sipping on this Tuesday morning? Well, it’s uh it’s getting cloudy, so I need my second cup of coffee. Absolutely. I know. We just had fall equinox. It’s it’s getting gloomy in the Seattle area, but not complaining. Cozy fall is right around the corner. Pumpkin spice season is a part of it. Absolutely. Cameron, you probably saw we have folks from all over the country today, which is absolutely exceptional. Uh for folks that are new here, feel free to drop any and all questions in chat. This is your time. We want to be sure that you’re getting your questions answered. U so I’m going to get started here with Rick’s first question and then I’m going to drop a few details on our $25 credit uh if you attend a webinar and the FAQs with that. We can chat through that live if anybody has questions as well. Uh first one from Rick. Can a boutique finishing lodge be used for an investment property with your company? I mean I would say technically yes. there there’s not a reason why it would be precluded from being an offering on arrived. Uh with that said, you know, primarily we’re investing in uh real estate where there’s some more passive operations. So, long-term rentals, you know, there’s a two-year lease on a property, you collect rent, utilize the property manager, a fishing lodge, um, you know, to the extent that it’s kind of like an Airbnb, you know, I I I think that that’s within the realm of possibility, where it starts getting a little bit more difficult is if there are more like commercial fishing operations, there may be licenses, things like that. But, you know, to the extent that it is more like a vacation rental, but there’s fishing amenities, I think that’s very much within the realm of possibility. So, interested in hearing if you have more detail on that, like whether you have the fishing lodge property and would be interested in having arrived uh manage it or it’d be an investment offering or um you know, let us know some thoughts there, but happy to take that thought further. Absolutely. Yeah, Rick, great question. And I did drop a link to um our survey monkey which essentially our investments team reviews on a bi-weekly basis. I would say even um quicker than that. So feel free to drop any and all details there or if you have more in the chat today that’s great as well. Taylor I see you’re having a hard time downloading that document. Um if other folks are also facing that definitely let me know. It looks like it’s had like 47% on here with 16 clicks. Um, but let me know if there’s issues there. I can add it to the screen and we can walk through those details live. All right, let’s see here. Another great one from Jason. Will there be more properties purchased in the Seattle area? Also, Vancouver, Portland area. Good question. Yes, for sure. So, we’ve got individual rentals in Battleground, Washington right now, and it is very close to the Vancouver area. I think it’s maybe 15 20 minutes north of Vancouver, Washington. And that particular area is um attractive because you have the no state income tax in Washington and then no sales tax in Portland, which is right across the state border. So, a lot of people live in Vancouver, Washington. They may work in Portland. So, that’s the reason why we liked it as a very specific investment thesis while being in the Pacific Northwest. Um, in the Seattle area, we do have our Seattle city fund. And the way that that fund works is that we have uh both rental properties in there as well as credit investments. And those credit investments are really oriented towards being a higher yielding cash management. So some of the rental yields up in the Pacific Northwest, they tend to be a little bit lower because the more expensive that your property values are, whether it be California, Washington, Seattle, any of those places, then you tend to get a lower dividend yield on it, because rents can only go up so much, you can’t borrow against rents, as an example. Whereas home prices, because you can borrow, that tends to produce kind of a dislocation between the amount that somebody’s willing to pay for a mortgage versus rental income. All that to say, that’s kind of why you have the dynamics where the more expensive property that you have, the lower dividend yield that you have. So, we do utilize uh that cash management through our credit investments to increase the yield. But as we get more net investment into the fund, then we’re able to purchase another property. Our average property in our Seattle fund, I think, is about $830,000 um across those couple properties. Um, so it is kind of a high mark to wait until the next property, which is why we haven’t seen some in a while. But in addition to that, it’s not just rental properties and credit funds. We also have different um investments in in different funds as well in the Seattle area. So, we have a we have a property that we’re co-investing with a local operator that is doing a value ad apartment um like I don’t want to call it a flip because that kind of is the wrong um timeline. It’s really a 5 to sevenyear project, but you know, we are able to invest in those types of assets in the fund itself. So, we are getting more properties into the fund, but they’re not always arrived managed rental funds or single family residential. They may be co-investments into individual apartments or different type of value ad operations and flips within the greater Seattle area. But really the mechanism to uh distinguish there is that we allocate cash towards high yielding credit investments. You you get enough cash into the fund then you put it into assets and they kind of rinse and repeat. So then as more money comes in you deploy that into credit investments. So that’s really the the cash management strategy to get higher yields than you normally would with just owning a rental property in the Seattle area. So to kind of recap, that’s the Seattle fund. um and when we get more properties there. And then Vancouver, Portland area. I do think that if you’re going to be in the Pacific Northwest, those lower cost of living areas, um newer inventory, a little bit less big city feel, but very convenient for a specific tax reason, um is the place. So, look out for more properties there. It’s, you know, still on the road map as a strategy uh for Arrived. Fantastic. And it looks like we have some a a couple quick rapid fire Cameron on uh markets in the area or not in the area, markets all over the US. So, do we have properties in Charlotte, North Carolina? I believe there was another one in here from Ter uh Georgia as well. Yep. So, uh Charlotte, North Carolina, definitely we have some properties in there. Uh you we Charlotte’s gotten uh fairly expensive some from the time that we’ve been purchasing. So we started in um 2021 purchasing there in Gastonia kind of second and third ring of the metropolitan area in Charlotte. Um those have been good investments. So definitely Charlotte as a market is attractive. It’s it’s actually got the second largest banking u financial operations in the in the country behind New York City. So it’s actually very much a financial hub of the southeastern part of the United States. So um definitely have conviction in Charlotte. just there’s there’s sometimes a difference between feeling good about the market and like the right time to to purchase a a property. So, um we’ve been streaming them in somewhat slowly. You know, I would I would say that we haven’t invested a ton in North Carolina in the last two years, but definitely have properties there. And if you are interested in Charlotte, you can always buy properties on the secondary market to the extent that they’re available. So, uh, investors who already own shares in that property, if they need to exit for whatever reasons, they can put their shares on the secondary market and then you trade it just like a stock market on a monthly basis. So, the stock market is open from, you know, 9 to 1 every every day. Um, or 9 to 4 actually. Um, but we settle on a monthly basis. So, you know, can answer more questions about secondary market later if you all have them. But basically, long story short, if you do want to invest in Charlotte and there’s no active new offerings, there’s always an opportunity on the secondary market. Um, there was another question about which part of Georgia? It was Georgia in general. Oh, Georgia in general. Yeah. So, we’ve been pretty active investors in Atlanta. I think it’s actually our largest metropolitan holding and we primarily purchased there in 2021 and 2022. Um good market, high eviction rate though, which is why we pulled back. So during that um COVID runup time, we definitely saw some market weakness on the operating side. So long-term conviction still feel good about appreciation. Operating risk was higher than we had appetite for. So we pulled back some, but again shares available in the secondary market. We’ve also invested in um some of the coastal markets there. to uh Savannah as an example, Savannah, Georgia. So, a little bit more affordable price points than um where we had been buying in Atlanta. So, there are some properties there. Uh but again, we’ve also kind of cooled off there. Uh North Carolina and Georgia, we bought more four years ago. More recently, we’re buying in um Tennessee and Arkansas as two of our primary convictions in states. So, still in the Southeast, still similar economy, kind of got that very big interstate freeway system down there. very good fundamental economy with um movement of goods and um you know industry trucking, shipping um but you know just allocated more towards Tennessee and Arkansas. Fantastic. Awesome. Thanks so much for walking through it, Cameron. Great questions in the chat. Also, if you go to our invest page, you’ll be able to see all the markets we’re in. We’re over um 60 markets to date and north quite north of 500 properties on arrived. So, uh lots of growth over time. Let us know if there’s any other questions on markets as a whole. Good one from Arnold in here. What is the cost to purchase shares or does it vary per property? Yep. So, for new offerings, then we uh price them at $10 per share. So, what’s variable about that is the number of shares available to purchase. So, if you have say a $300,000 uh total raise on a property, then you would have 30,000 shares available. And then if there were a $400,000 total investment, then there would be 40,000 shares. But each one is priced at $10 and then it’s a minimum $100 purchase. So in that case, or investment I should say. And so that’s 10 shares at a $100 investment per property. And then if you are on the secondary or market or funds, those prices can vary because the the $10 is when we initially offer them. So funds can change value over time and it’s based off the net asset value which is really just a calculation of the total equity uh in an investment divided by the number of shares and that ends up being the price of it just like a stock on a on a stock exchange. Um and then secondary market the buyers and sellers they set their transacting prices. So, you know, to the extent that somebody wants at market, above market, below market, whatever they consider market, there’s different definitions of market, then they would have the choice to transact at that price, and you would get in at whatever the book is matching your prices at. Fantastic. All right, I’m going to take a few here, Cameron, for rapid fire. Uh, one from Jason. I invested last weekend for the first time. Thrilled to have you on board, Jason. Absolutely exceptional. Can I invest in the secondary market in October or do I have to wait until November? It’s a great question. To access secondary market, investors must have made their first investment at least 60 days before the start of that window. Uh, so we will definitely notify when you’re eligible for folks, and I know Cameron walked through this, our secondary market is open on a monthly basis for one week at that time. So, uh, for properties that you might be interested that are fully funded, it’s a great way to get in, uh, to different markets, different asset classes, uh, so on and so forth. We also have a webinar on secondary market as a whole. So, I’m happy to drop that in chat if any folks have questions on that. All right, a good one in here from Keith. After opening an income fund, how often can I add to it? Great question. So all of our fund investments, so Seattle City fund, uh single family residential fund, uh real estate income fund, they are always open. You can invest at any time. So let’s say for example, I invest $100 today. I can go make a new investment in that fund a few days later, a month later, depends on whatever cadence that you choose, and go make that investment. As a note, it won’t go back to your original investment. So, for the dividend, it’s going to follow the date in which you invested for that new one. Um, but you can add and increase that investment at any time. All right. And moving back over here, one good one from Joseph. How can I open an account? Love to hear this. Uh, Jake walked through this briefly, but you’ll go to arrive.comregister.
I think we timed ourselves, Cameron. It’s right around four minutes. Uh, so it’s rather quick. Uh as a note, we do require your social security number. That is for KYC, know your customer, and AML, anti-moneyaundering. It’s a standard in the investing space. Uh that’s used to verify your identity and then for tax purposes. And then you’ll walk through all the standard onboarding. Um and then move them right in to invest. So uh if you do not get an auto pass there, that’s not anything abnormal. It’s just asking for more documentation. I like to compare it like similarly if you go to the airport and you’re asked to do like extra screening. Sometimes it’s it can be random. So just as a note there in case that does take place. All right. Oh, a good one in here from Dennis. What happens if our property is destroyed by fire or weather? Would we move our renter into an another property that we have? Cameron. Yep. So, we carry insurance on all of our investments just like you would your own owner occupied residence or any other investment. So, we have a master policy that kind of gets the benefits of aggregating all of the properties on arrived into a single policy. So, you get better pricing, better coverages, and more commercial protections. So, one of those protections that I’m mentioning has to do with the second part of your question about moving a renter into another one of our properties. So the first part of it is that as a landlord, if you don’t have habitable premises, then you as a tenant are entitled to break the lease. So if we have another property that is vacant in the area that a renter does want to go into, they certainly have the option free market, they can apply um to that property and get in, but the main point is is that they are not bound to the lease anymore because the landlord is unable to provide those habitable habitable premises. So that allows the uh lee to get out of the or the yeah lee to get out of the out of the lease. Um but now the follow-up part related to insurance is that one of those commercial protections is loss rent coverages. So, if we have a, you know, when we have the policy on and there’s a uh event that qualifies, which is really any event where that would trigger the insurance and you have a renter in there, the insurance company will continue to pay the rents. And you get this coverage because as an investor, you’re really looking to monetize and extract income from your investment. It’s not your home that you’re living in. So, it’s nice that having insurance helps you rebuild the property or cover whatever parts of the damage are minus the deductible, but really you’re in it for the income. So, this allows you to also collect the income because that renter is not entitled to um or not obligated, I should say, to pay you the rent anymore. Uh so, that insurance policy will subsidize the rents in the meantime, help you rebuild the home and then proceed from there. But yeah, they’re not oblig the renters are not obligated um to stick with arrived in any meaningful way. They can go figure out whatever their living situation is. Fantastic. All right. And then Kim, remember we talked about like the in the other like insurance too and how many properties if they’re in FEMA flood zone, those details as well. Yeah. So, as part of our underwriting process, we look for any sort of elevated risks and we check with our insurance carrier beforehand because they’re going to have the ultimate data sets that give you guidance on which additional protections you would need because they may not be covered. So, if you go into an area with a hurricane risk, your default policy is not going to be covering that. So, you have to get the additional coverages. Similar with flood zones. Now, we tend to not invest in properties that are in um high-risk flood zones. So, that is usually more of a preventative uh issue where we are not purchasing that property rather than purchasing the additional coverages. But, you know, sometimes a good deal is a good deal and you’re willing to take the risk and take the gamble and then you would just buy that elevated protection. Usually we’re buying it for uh like the additional riders that we’re purchasing are going to be in hurricane related areas just because the southeast part of the United States is a lot of it is in a hurricane zone. So that’s one that we would commonly um add on to the policy. Fantastic. Awesome. Thanks for walking through Cameron and move back over. Lots of good questions today. I love the um engagement that we’re seeing. Uh Joseph had asked, “Is there a perspectus review?” Yep. So all of our uh securities offerings and all of our investment offerings they we file them and get them qualified with the SEC the security and exchange commission. So you can go on to our website and there is a link directly to that prospectus where you can review all of the uh securities information related to the investment the risks how you get u you know like secondary market liquidity. So that perspectus is available on every single invest page that we have at arrive. So whether it’s a fund, an individual property, there are links to those SEC filed qualifications where you can see yes, the SEC has reviewed our offering statement. It is according to um you know what the securities rules are and then you can also read additional information on there about uh the investments themselves. Fantastic. Awesome. And then I did link to all of our filings where they’re consolidated in there as well. All right, a good one in here from Marshall. What is the anticipated hold time? Uh they noted that they’ve seen 5 to seven on IPO and 5 to 20 years elsewhere. Yep. So there’s that good observation that some places say 5 to 7, some places say 5 to to 20. Um I would kind of differentiate this by um individual offerings versus fund offerings. So in general, we’re looking to um get kind of quicker returns to the extent that we can say with a levered property, get a good interest rate, wait for some appreciation, sell it quickly, and then that’s the really the way to maximize the the return on your capital in a short period of time. Sometimes the markets don’t play nicely with interest rates, so we would have to hold them longer. So, as interest rate environments have changed over the last couple years, we extended our anticipated hold time uh to 20 years for some assets. Um, and then some fund investments, you could hold properties that are like real winners for, you know, 20 years. I think that the the the reason why I kind of differentiate an individual offering versus a fund investment is that when you invest into a fund, you own a share of the entire portfolio like by default. So, if you’re in our single family residential fund, we have 56 properties in there. Um, conceivably you could hold one for a really long time in there just because it’s a great performer that you want to hold. Um, and the difference between that and say like the individual offering is that, you know, there’s um you have the secondary market, but you know, everybody is locked into that one investment. So, everybody’s capital’s tied up into that one investment. So to the extent that we can get um that faster return then we would anticipate on selling it in a quicker time period so people could then reinvest their capital elsewhere um funds it’s much easier to hold that individual property for 20 years if it’s you know a a great contributor. So our north star is really just to maximize the you the investor’s return. Um but you know there are people that need their money sooner which is why we created the secondary market or if you’re in a fund we have quarterly redemption um as well. So lots of liquidity options um but you know different investments are going to warrant different hold periods but our northstar is like make sure that we can get the highest IRR which is internal rate of return which is basically your annualized return um for the investors. Fantastic. All right, moving back over. I can take this quickly from Arnold. If you have questions after today, how do we get them answered? Great questions. So, you can always email supportive.com and then we have a live chat function in the bottom right hand corner of arrive.com. So, you can simply go there. As a note, we do have an auto AI agent right away there. You can always request a human at any time. Uh, but I always recommend trying it out if you especially if you’re asking a few basic questions and then requesting a human at any time. That said, if you prefer not to, zero pressure. We want to be sure that folks don’t have to say operator operator operator in order to get to a human. So, one mention of human and you’re good to go there. All right, moving back over. Oh, a good one from Andrea. We walked through liquidity paths for individual properties. I know Ryan briefly touched on liquidity options in prepared remarks. Uh, but Cameron, can you walk through how redemption works for just clarifying it’s for all funds. So, Seattle City Fund, real estate income fund, um, and then our single family residential fund. Yep. So, in a general fund, we have a redemption program that works very much like a mutual fund where Arrived updates the share price on a quarterly basis. And then in that window, you’re able to request redemption where Arrived acts as the intermediary to pay you out on the shares. So, if you bought in at $10 and now the share price is $11 and you have 10 shares, then you know we could uh cash you out at that $11 share price for those 10 shares. So, it you know is a little bit different than the secondary market in the sense that the secondary market for individual offerings is where buyers and sellers directly transact with each other. for the funds themselves. There’s no, you know, counterparty that is buyer and seller. It’s that arrived pays you out and redeems you on those shares and then, you know, we bring them back into the pool and you get your um number of shares times whatever that price is. So, it’s it’s less of an open market mechanism between buyers and sellers. It’s stated on um the arrived net asset value that is updated on a quarterly basis. And to date, I don’t believe that we’ve ever had to um like couldn’t fulfill a redemption order. 100% of redemption orders um to my knowledge have been fulfilled through arrived. They have. Yes. Thanks for walking through it, Cameron. Uh I dropped that FAQ. It’s a great one to peek at as well. Again, that minimum hold period is 6 months and then we have those specific windows with dates. I always recommend taking a look at those. Obviously, we’ve said that all investments are arrived are intended for long term. I would say our liquidity pass are semi-liquid. It’s not one that you can invest in today and then go liquidate tomorrow. Um so on and so forth. So we always like to be as transparent as possible uh when folks are choosing where to park their hard-earned funds. All right, moving back over here. I think this is our last question here, but folks keep me honest in the chat if I’ve missed any. Joseph had asked, can I purchase in the name of a trust or IRA? Uh so yes, you can invest in the name of entity. So whether it’s an LLC, a trust, those are all possible. With IAS, they are also possible, but it’s a little bit more of a skinnier version um of an individual retirement account. So in this case, it has to be a selfdirected IRA, in which case you kind of have the control of the the checkbook to to make the investment. They’re sometimes referred to as checkbook IAS, um kind of indicating the mechanism by which you invest and who has control and the authority to make the investment. But specifically, if you do have that self-directed IRA, it can be in the name of that. And then um you know, to my knowledge, most uh entity type investments, you know, whether it’s LLC or trust, those are also fine. Absolutely. All right, I think we cruised through all the questions today. So folks, uh give if you have any more, I’ll give you like 30 more seconds. Drop them in chat. Monica, I know you had asked once I register, am I ready to invest? Good question. So you should see essentially blocks at the top of your page when you’re moving through those where you are in onboarding. So if there’s any questions that you have on that, definitely let us know. But theoretically, you should be able to create an account within four minutes or so and then move forward and invest there. But we’re always here to support you. That chat agent in the bottom righthand corner is a great resource as well. All right. A good one in here. Uh Rasheed said, “I live in Canada. Can I invest in this?” So currently arrived is limited to permanent residents and citizens of the United States. There is um like a tax hurdle to get over uh in in terms of when could we open this up to more more of the globe you more people outside of the US. So uh you know Rasheed I would say that today unfortunately it’s not a possibility unless you are a permanent resident or um you know which it’s possible to have a permanent resident in the US and kind of live in Canada in in some ways you know depending on how you um go back and forth. But with that said uh future roadmap item you know open it up to more of the world but unfortunately right now it is limited to permanent residents and citizens in the United States 18 and older. Absolutely. Yeah. Echoing you, Cameron. Definitely hope to expand in the future and so appreciate your interest. All right. Oh, they are Canadian. Yeah, we’ll definitely be sure to share when we expand. Um, but yeah, it’s always great to get those questions. Very cool to see though that the message is kind of expanding to um, you know, outside the US border. So, you know, appreciate your attendance and interest and just kind of blown away that it’s, you know, people from outside the country are attending the webinar. Absolutely. Yeah, allocating the time. It’s pretty exceptional. I can take this one quickly from Keith. Do you have automatic reinvesting? If not, when? Fantastic question. This has probably been, I would say, in one of the top five requested features that we’ve seen over the years. I think it goes right in line with our passive investment. So, good news. We are working on recurring investment um actively right now. I don’t have a specific launch date, but we will absolutely be sure to share that from the virtual rooftops when it does come. Uh, I know I’m personally very excited about it, so I don’t have to jump in. I can like set it and forget it, which is how a lot of my other investments work. So, very excited for that. More to come, Keith. Um, and appreciate the question. All right, Cameron, I think we cruised through all the questions today. Any uh closing remarks before we shut our virtual webinar doors? Always appreciate everybody’s interest and time in attending these webinars. You a couple of really cool things to look forward to. I would say that arrived is always evolving both as a technology platform as well as the investment offerings that we um are excited to bring. So always a lot of stuff in the works, a lot of platform improvements and you know we’re bringing real estate investing online. So I think it’s kind of crazy that there’s not a real you know online mechanism to invest in real estate. Uh Arrived is becoming that company. So always appreciate uh everybody’s interest. Fantastic. Well Cameron thank you so much for your time as always. I don’t even know the number of webinars I’ve had the pleasure to do with you. So, I’m very grateful. U you’ve been at the foundation of all the products that have been built on arrive to date, which is exceptional. Uh so, thank you. Thank you for your time today and always. And for all the folks that spent 53 minutes on your Tuesday morning and afternoon, we so appreciate you. Uh if you have any questions regarding the credit, definitely let us know. You can email supportarive.com or you can use that chat function in the bottom right hand corner. I did share details on that $25 credit in chat, but I’m happy to send over that document if you send an email in. Uh, super easy on my side. So, essentially, I’ll just walk through it really quick before we close our virtual doors. If you attend an arrived new new user webinar, which is this one today, um, and if you qualify, you’ll receive a $25 in arrived credit. You can apply towards an investment. So, that’s not cash. you can withdraw and you just have to create an account, link your bank, and then attend this intro webinar. So, if you’ve done that today, uh we’ll be sure to allocate those within the week. But I think that’s all we have. Cameron, did you any thoughts? Um, no, I was just going to echo the the sentiment that it that it’s been great being on all these webinars with you as well. Yeah, it’s been a blast. Awesome. All right. Well, happy investing everybody and hope you all have a great rest of your day. All right. Thank you all. Take care.