Fantastic, Jake. Thanks so much for prepared remarks and jumping into Q&A. You probably saw we have folks from all over the country today, which is awesome. 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 feel confident. Uh, and all the questions that can be asked, anything from 101 to 501. So, keep it coming our way. Jake, what tea are you sipping on this morning? I’ve got some throat throat tea this morning cuz I’m a little under the weather. Oh, man. Well, hopefully we’ll we’ll cruise right through and that you feel better. I know cold and flu season is early in in our area. So, all right. Well, we’ll jump right in. Jake, I know we briefly walked through this in prepared remarks, but always a good one when folks are choosing where to park their hard-earned funds. What do fees look like across our different investments? And then I’ll drop in FAQ for more details as well. Yes, there’s generally two types of fees across all the arrived investments. There’s generally an upfront sourcing fee which is a fee that is you know paid to arrive one time you know generally for our work in identifying and acquiring the asset whether it’s a loan or a single family home. Then there is an assets under management fee which is the recurring fee that goes to our team for the work in you know continuing to manage the investment you know handling all the finance and accounting dealing with contractors and kind of managing and facilitating the whole thing. The sourcing fee is the larger one of the two and it’s paid one time to arrive. it’s already baked into how much we’re raising for a particular investment. So, if you go to invest $1,000 in the single family fund, that sourcing fee is already included in that $1,000. You don’t got to get hit with an extra taxes and fees add-on at the end. Um, the asset management fee similarly is just paid out of the operating cash flow of the investment. So as the investment generates you know revenue you know say we’re renting out a property and we’re generating rent revenue we pay the expenses on the property so the insurance the property taxes repairs and then we pay the arrived asset man under management fee and then what’s left is either saved into the cash reserves for that investment or just paid out to investors as a dividend. So what’s nice about that structure is that you don’t have to come out of pocket for any of the fees. You know it’s not like signing up for a subscription where you have to pay $20 a month to continue have us operating. we just kind of take our fees out before we pay out the dividends to investors. The other thing that’s nice about that is whenever you see returns quoted around arrive, that’s always net of fees. So the return numbers that we quote is always after factoring in that you’ve paid a fee to arrive for sourcing and you’ve paid a fee to arrive as part of the management work. The FAQ that dropped is the best place to look for more info on fees. The reason I don’t have a specific number off the top of my head is because they the fee structure is going to vary a little bit by product. So the single family individual properties have a slightly different sourcing fee amount than the real estate income fund which is a slightly different amount than the vacation rentals which is a slightly different amount from you know everything else. So um similar with the asset under management fee it varies a little bit by product largely just depending on you know how much work it is for our team to operate that particular investment. Um what’s nice is that the fees are going to be the same within an asset class. So if you’re looking at five different individual single family properties the fees are all going to be the same percentage within that category. It’s only at the kind of category level that we that we vary those. Um, that’s it as far as fees go. Uh, when we actually go to sell the property, there isn’t any additional, you know, arrived fee. There’s your regular kind of real estate transaction costs or commissions and closing costs and all that, but there isn’t any kind of a profit split or, you know, a revenue share or anything like that. So, investors get to capture all the appreciation on the properties. Fantastic. All right, moving back over. There are lots of good questions coming in uh the chat. I believe it’s Eliza, but keep me honest if I’m phonetically incorrect, but how do we claim the credit? So, good question. So, for new users here, we have a $25 credit that can be applied. To qualify, you must have your bank account linked to create that new account, attend one of these webinars, and then not have received uh the same credit for this type of incentive. So, in terms of how to claim it, if you’re Eliza have uh created your account and connected your bank account, it’ll be auto applied uh this week. And then for folks that maybe don’t create their account today, but they do later, just send an email to supported arrive.com, let us know that you’re here to claim your credit, and we’re happy to apply that. So, essentially, it’ll go to your account. You’re unable to withdraw those funds, you can apply it towards a new investment on arrived. All right, James, great question. They’re curious about liquidity. How long is money potentially tied up in the single family investment? Is it market and property specifics? Maybe we walk through what the options look like for our fund investments versus our individual properties. Very good time. Yeah. So, to start on liquidity, let’s talk about the general time horizons. So, for the individual properties where you’re investing in one house at a time, we’re generally aiming to hold those properties for 5 to seven years and then we’re looking to sell. We may sell, you know, at year four, we may sell at year eight. You know, five to seven is kind of the guidance range. Uh really meant to allow us to capture some of that market appreciation, but give our team kind of the flexibility to, you know, not sell when the market is down. Um the funds, you know, the the single family funds, the real estate income fund, those are open-ended. So those are kind of intended to go on, you know, indefinitely until some point in the the late way later on future where we decide to wind down the assets. So for those investments, you know, there isn’t a targeted, hey, this is going to last for 5 years and then we’re going to close it. It’s meant to be a kind of ongoing vehicle. So because of that, you know, the individual properties have kind of a a relatively defined, you know, liquidity event at kind of that 5 to seven year mark when we sell properties. But we do have options for both investments where you can liquidate early. So that kind of first punch is just about, hey, how long is AI going to hold these assets for? This next piece is about hey what do you want to do if you have shares in one of those particular investments. So for the we’ll do funds first because they’re a little easier. The funds have what’s called a redemption program. So the funds like I said are kind of meant to keep going and so as part of that they have you know baked into their operating agreement a redemption program which is essentially the fund buying back you know the shares of individual investors. And the way that works is you just go through our system and you click sell and you say, “Hey, I want to redeem, you know, 50 shares of the real estate income fund and we batch it together and then we process them all, you know, uh, once a quarter.” So, it’s a it’s a good kind of semi-regular opportunity to get liquidity and the importantly the price at which you are redeeming your shares is whatever the current share price of the fund is. So, say that you go and you invest in one of the funds today and you hold it for three or four years and you say, “I’m going to go and I’m going to submit. I’m going to redeem all my shares because I’m going to go and, you know, fund my kids college investment, my client’s kids college fund with us. Um, you go ahead and you are actually able to get when you redeem it, you’ll get the price per share that the fund is at in that three or four year period. So, you get to capture the appreciation um and that share price growth by holding the fund shares and doing that redemption process. Um, redemptions I think you can do anytime after the first 6 months. Um, and then there is a 1% fee for doing so up until the year three mark. And then after year three, there’s no fee at all. So again, intended to kind of angle people toward these long-term real estate investments. We generally try to discourage people from turnurning and, you know, having a bunch of transactions in and out. Um, because that’s generally helps our team plan. We know kind of how much capital we have and what’s coming in, what’s going out. Um, because it is not easy to just kind of liquidate a house, you know, last second if you really need to. Absolutely. So that’s all for the funds for the the is the redemption program. We also have the secondary market which is how you get liquidity for the individual properties. So if you own shares in any of these individual homes, we run a secondary market once per month where buyers and sellers can exchange shares and it works just like the stock market does. You know, you submit if you want to buy, you submit, hey, I want to buy this many shares and this is the max price I’m willing to pay. If you’re a seller, you say, “Hey, I want to sell this many shares and this is the minimum price I’m willing to sell for.” And then there’s an algorithm that basically matches up buyers and sellers. And so the transaction price varies by the market depends on what, you know, buyers are willing to pay for shares and what sellers are willing to sell their shares for. So because of that, you may have um a particular offering that is trading and it may have a bunch of shares trade at, you know, relatively close but different prices throughout that secondary market week as that system is matching up the buy and demand. Now, the secondary market is an opportunity to also for you guys get access to any of the, you know, 450 or 500 some properties that we’ve had in the past. So, you’ll get access to the secondary market about 2 months after you start investing with Arrived and then you’ll be able to actually go on and buy, you know, other people’s shares that have been invested in those properties for the last couple years. And that’s a really cool opportunity because you have access to a bunch of different markets and different types of properties that we may not have recently. And it allows you to really quickly diversify your portfolio, particularly since the minimum investment on the secondary market is only one share, which can run anywhere from, you know, 7 to 12. So the secondary market is a really cool way to kind of be able to kind of build and add on to your RI portfolio. Um, and like I said, that option runs once per month. So all of them kind of have the secondary market running once a month where you can get liquidity. And then we have the redemption program which runs about once every 3 months where you can get liquidity. So, both are, you know, let’s call it semi-frequent. It’s definitely not as liquid as the stock market where there’s, you know, millions of people trading Apple stock and you can, you know, sell in a click of a button and get your cash out the next day. But it’s a heck of a lot more liquid than actually having an investment in a rental property or investing in a real estate syndicate where it takes a lot of effort, paperwork, work to actually prep a property for sale, get it sold, and get it closed in order to get your cash out. Fantastic. Awesome, Jake. Thanks so much for walking through it. One thing I’ll mention too with the redemption windows essentially that minimum hold period is 6 months but then there’s four quarterly windows in there. So sometimes we get questions of well I’ve held 6 months on this date but you it depends on what the window dates look like. So we have that schedule very transparent about it on the front side. To Jake’s point I think when you think about real estate in general traditional real estate we essentially wouldn’t go out and purchase a property and then look to sell it in 6 months. That said, given we are in the inter alternative investment space, we do want options for folks uh to be able to access their hardearned funds as well. All right, moving back over. Lots of good questions in here. Eliza asked, “Do we receive annual tax forms?” Yes, absolutely. You’ll get a 1099 DIV from Arrived. It’s a really simple tax form. It’s like a half a page. Um it takes about 20 seconds to drag and drop it into Turboax and double check that the numbers are all right. You’ll also get, you know, if you’re investing in all these individual properties, you’ll get one tax form no matter how many different properties you invest in. So, if you invest in 15 different arrived properties, you’ll still only get the one tax form. Makes it much much much easier to be able to actually organize and file taxes rather than getting, you know, a new tax form for every $100 investment you may make in a property. Fantastic. And it’s very easy. We don’t distribute them via via mail or anything. It’s very easy to download. Uh Jake also hosts a webinar typically in the end of January, early February directly on taxes. Lots of info there, but it’s a very much plug-and-play. I know Jake, we’ve had to deal with K1s and I’m glad that we do not have to do that at Arrive. Very nice. All right, a good one from Remy. I can take this one really quickly. How can I get a one-on-one meeting to get more details? Great question. I would say the best absolute best place to ask any and all questions is in these webinars. We often have folks that will attend uh Tuesdays at 9:00 am PT. They’ll attend multiple to get questions asked and answered uh or yeah asked and answered. And then um you can always email supported arrive.com or you can use that chat function in the bottom right hand corner. But I see you’re asking a lot of great questions so keep them coming our way. We typically go to the top of the hour. All right. Another good one from Remy. Are investments protected? Are the investments protected? Um I don’t believe so in the sense that you’re thinking of I can’t remember if they’re SIPC insured Karan if you happen to know. Um you’re muted. Yes, I do have more details on that because it’s the bank account technically. Uh but I will follow up and chat on that piece. I think more from like a investment perspective. Anytime you’re investing, you’re investing directly in a series LLC. So, you’re not having direct ownership in that particular property where you’re like on the deed or things like that. So, if there was any um you know issues that happened with the property or let’s say I ch tripped on Jake’s property and hurt my ankle, you’re not um there’s not any liability for you as the investor. Now, of course, there’s catastrophic events that can happen, so on and so forth. you’re always at risk for the funds that you’ve invested, but we never intend to make capital calls uh for more funds for that particular property or other investment. But I’ll follow up on the bank account piece just so I get that uh dialed in. Yeah, it’s perfect. And and like K was saying, there’s there’s protection in that you will own the security interest. You know, you own the shares of the LLC, but there is still risk and things that can happen to the property itself. You know, this there isn’t it is an investment where you are putting capital at risk. You know, that said, we like the single family asset class because single family homes tend to be pretty resilient and pretty um consistent in their performance unlike a cryptocoin or even a you know, a lot of stocks these days that are getting wrecked by, you know, all the AI. Um so there certainly is risk and that’s kind of just what comes with making an investment. You know, this is not a bank account where you’re just parking cash and earning interest. Um there is risk being
fantastic. All right, moving over another round from Remy who chooses the properties and can a person view a person go see them. So, we’ve got a whole acquisitions team that is, you know, in the weeds every day of, you know, analyzing the market and figuring out where we should be buying and selling. So, our team does a lot of that work internally. Um, and by the time that a property actually you see on the arrive site, we’ve already acquired it. So, it’s already gone under contract and we’re um you know in the process of closing on that property and transferring ownership to investors. Our a lot of our team comes from American Homes for Rent, which is the second largest single family REIT in the country. And so, they’re really, really good at analyzing areas and figuring out, you know, what is the price we could pay for this home and what is the rent going to be? And those are the two biggest variables that go into determining what is the actual returns going to look like, as well as all sorts of other analysis we do around, you know, the appreciation side. Hey, which areas are growing and which areas do we believe in over the next, you know, 5 10 years? You know, where do we want to be kind of acquiring properties? Um, as far as viewing properties, you’re more than welcome to visit them in person, but um since they may have tenants in, you can’t go into the properties, but if you live, you know, down the road from one of the properties in a market, you’re more welcome to go drive by it. Um, and if you want to go visit a property, it’s possible you can coordinate with our team to be able to go and get a tour, but definitely reach out to us first. you know, remember that there are people living in these homes um and that you can’t just walk in and say, “I’m I own the house.” and walk right in because you will get the cops called on you. Absolutely. Yeah. I think that one thing we’ve done to help investors to feel like obviously these are real assets, but I think when you’re online sometimes it can feel less real. So, we actually moved the the property address from the offering circular directly onto the offering page quite some time ago and that was based off investor feedback. That way you’re easily able to go search on Zillow, Redf Fin, Google, all the different options to view them. Um, I know periodically too, we’ve hosted investor happy hours in a couple different markets at our vacation rentals. Uh, on our 100th property, we also had an investor happy hour there when it was vacant. Uh, but again, we ask that visitation does do not happen uh for those properties when there’s actual tenants living in them. uh we definitely want to respect their privacy as a whole and uh it’s we’ve kept them safe to date. All right, moving back over here. Let’s see what we have in the queue. What determines the number of investors in one property and the number of shares? Good question. Yeah, so the the number of shares is easy. You know, we just fix every share to be $10, you know, when we initially issue them. And so the number of shares is just how much money do we need for a particular property divided by 10. And that’s that’s how you get the the number of shares. So the biggest difference in that is going to be the purchase price. So if we’ve got a, you know, $250,000 or $300,000 property in Alabama, it’s going to have fewer shares than a $600,000 property in Denver just because the purchase price is more expensive. We need more money to purchase the home. Means we need to sell more shares in order to get the same amount in order to get the dollar amount that we need to facilitate everything. There’s a little breakdown. If you go to the uh I think the offering tab of the individual properties, it kind of shows hey, how much money do we need for this investment and you know what’s it going to go toward and it’ll kind of give you the breakdown between we need so much for the to purchase the property but then we also need some for you know the arrive sourcing fee. Then we also need some for the cash reserves and then we also need some for any upfront improvements we’re going to do and then we also have you know the the legal costs related the security and um uh securities related costs and everything that takes to actually facilitate and put everything together. um we just take that number and divide by 10 gives you the number of shares. And then the number of investors just depends on how many people buy those shares. And if we happen to get a property where people are, you know, buying in $10,000 increments or if you’re getting more people that are investing in thousand increments, uh generally it scales pretty linearly. So, you know, again, the property has more shares, it’s going to end up having more investors because there’s more shares available. Um it doesn’t make a difference to you as an investor. Everything is done on a PR rata basis. So, when we’re doing dividend calculations or similar, we basically do the math and we say, “Okay, well, we’re going to pay out a, you know, 4 cent per share dividend this month.” And we just do the math to say, “Okay, look, you know, Joe owns 10 shares. So, 10 shares, you’re getting 4 cents per share is going to be 40 cents for your dividend. And if Susie has 100 shares, you know, 100 shares, you also get 4 cents per share. It’s going to be $4 for your dividend. So, um, it doesn’t impact you as an investor how many people are in a property or not. And that’s kind of nice because it means you can kind of diversify out and kind of spread your investment dollars across a number of properties and there’s no penalty for doing so. It’s it’s just as easy to do that as it is to put all your money into one property. Fantastic. Awesome. Jake, thanks for walking through it. And Remy, just to follow up, uh investors cash balance on arrived in our series bank account are both FDIC insured. Uh let us know if there’s any other questions there. Happy to walk through it. All right, let’s see. I think we cruised through all the questions in the chat. So folks, keep me honest. One, if I missed any in chat, if you have any others, we’re happy to go to the top of the hour, but if we don’t see any, we can always close our virtual doors early. Jake, we’re well into Q4 here. Uh what would you say that you’re most excited about from a platform perspective? Um I’m really excited about our recurring investments feature. uh team is working right now on an auto invest type feature where you can kind of set up a recurring investment into either of the funds and then you’ll walk away and have it automatically create a new trade you know withdraw the money from your bank account and execute it. Um that’s really exciting because you know folks really like the single family fund because it gets a lot of that instant diversification. You don’t have to choose individual properties and people really like the real estate income fund because it has kind of a higher cash dividend yield. And the pain right now is that, you know, if you want to keep investing each month as you’re earning money at your job, you actually have to come back into Alive, go through the clicks, and it doesn’t take that long, but it does get a little annoying to say, “Okay, click into the fund, click yes, I want to make an investment, click the amount, click to sign, click to approve.” Um, and so our recurring investments feature is going to let people just set it up. Um, the same way that you have, you know, an auto invest on your 401k or similar, you could just say, “Hey, look, I want to invest $200 a month in this fund.” and then you can step back and walk away and then kind of let the magic of compounding take over and say, “Hey, look, you’re going to invest that $200 and then as you get dividends, it’s going to, you know, allow you to reinvest those to buy more shares.” And that way, you don’t have to be on and about coming back every month and being super vigilant. You can just kind of say, “Hey, look, I’m going to I’m going to build up a little bit of an SDK and I may not have, you know, $15,000 $20,000 to put into this right now, but I can do, you know, $500 a month and you can just kind of invest it and not have to worry about remembering to keep coming back every month.” um until you can kind of build up that, you know, larger dollar amount which is obviously going to translate into, you know, larger dividends and larger appreciation gains down the road. Absolutely. Yeah, we couldn’t be more excited. Uh Jean Lewis, I’m glad to hear that that’s of interest to you as well. I will say over the years, I think this has been one of the most asked for features that we’ve seen today, especially when there’s so many other platforms that you’re able to do it on. I think that one big behind the-scenes moment is that there was a lot of due diligence and correct approval that we’ve done for Auto Invest to take place uh and doing it the right way. So very excited, sorry, recurring investment, not auto invest. We’re very excited for it. Um and we’ll be sure to share when that’s live. But Jake, I think we’re I think we uh cruise through all the questions. Any closing remarks before we shut our virtual webinar doors today? That’s all I’ve got. Um thanks for joining folks. Lots of great questions and feel free to reach out if you have more. I know we went through a lot of content between prepared remarks and Q&A. So feel free to shoot us an email at supportarive.com if you have more. We’re happy to continue the conversation. Definitely want you guys to feel confident and you know ready to go when it’s time to make that investment. Absolutely. Well Jay, thanks so much for your time as always in walking through all the questions for the folks that spent 45 minutes on your Tuesday morning and afternoon. Very much appreciate you. If any other questions come up, as Jake mentioned, supporter.com, use our chat function in the bottom righthand corner of our platform. We’re also live on all social channels. The one that is most community- based would be our subreddit. Uh, so definitely jump in there. Uh, I think that’s it for today. Oh, in terms of the credit, if you’re if you create a new account and your bank account is linked, it will be auto applied. You should see that within the next day or so. If you’re still in the process of creating your account and connecting, just shoot me an email supported.com and then we’ll apply that credit directly towards your account. We just don’t get auto notified um if those take place. But let us know if there’s any other questions. Happy investing and hope youall have a great day. Thanks folks. Talk to you later.