team. Thanks so much for prepared remarks. Jake, you probably saw we have folks from all over the country today. West Coasters in here. Love to see it. Jake and I are in the greater Seattle area as well. So for folks that are new, feel free to drop any and all questions in the chat. Uh if some are like kind, I will group them together. Um and then keep me honest as we get to the top of the hour if I’ve missed any. So we’ll jump right in here. Some good ones. David asked, “Does Arrive have an appreciation target for properties? For example, when the property rates uh reaches appreciation, would arrive put it for sale?” Good question. It’s a good question. Um, we don’t usually have a specific number in mind. We’re mostly looking for kind of that 5 to sevenyear holding period. And then within that holding period, when we get to the point where it may make sense to sell property, we do take a look at, hey, how much appreciation has there been and do we think there’s going to be more appreciation over the next, you know, year or two? Is it worth holding a little bit longer or not? The US long-term national average, you know, appreciation rate for single family homes is 4% per year. So, that’s kind of generally, you know, what you could call the broad target. You know, of course, it’s going to differ a lot depending on what specific market you’re in, you know, and even with that market, it’s going to depend a lot on which specific zip codes you’re in. Um, and we’ve got some of that information available on each individual properties page. There’s a little calculator that has the, you know, the historical, you know, any 10 and 20 year average appreciation rate for that particular zip code. So, the US long-term national average is about 4%, you know, that you can kind of use to ballpark. Okay, well, what does the appreciation look like? Uh, for the last 10-15 years in most of the areas we’ve been buying, it’s been well above that, you know, closer to 6 to 8% per year. But, you know, obviously, you know, we we may not repeat see a repeat of the uh the home appreciation that the 2010 saw. So, um, got to think about it a little bit that way, but we’re mostly looking for the length of time that we hold the properties rather than a set appreciation number. You know, we’re not buying a property at $250,000 and saying, “Hey, we’ll sell it as soon as we think we can hit 300.” It’s more of a let’s operate the property as a rental property and when it kind of makes sense to do so, we can evaluate a sale. And sometimes that does come early. You know, we sold uh one property early after three years and it was largely because we had the same tenants in the property for all three years. So this property had zero vacancy for the first three years and had awesome, you know, cash flow on it. And when it came time, the tenants told us they were going to leave, we kind of said, hey, well, there’s been a lot of appreciation and we haven’t had any vacancy expense. Maybe we take the bird in the hand here and just sell this one. So opportunities like that come up, but mostly it’s us kind of holding for that kind of 5 to sevenyear duration rather than waiting for a fixed appreciation number to come. Fantastic. Thanks for walking through it, Jake. and I shared a uh blog post to the Centennial which we sold a few years ago if folks want to take a peek there as well. All right, moving back over here. Amy had asked, “Would investing in Arrive negate the ability to get first-time home buyer benefits? I’m not yet a home homeowner, but I do want don’t want to lose my benefits.” And so I I can take this one quickly, Jake. Um but essentially, when you’re investing on Arrive, you’re investing in a security. So, it’s in no way no way related to uh purchasing a new home. So, you would not lose out on that at any degree. Jake, I’d share that in chat, but if you have any other color there as well, you know that there’s no no implication. It’s uh it’s legally not the same as buying a property in title in your your own name. So, you’re you shouldn’t lose anything. Absolutely. Yeah, always a good question to ask. All right, another couple here from Michael and we’ll jump into taxes. I have a C corp and I’m trying to decide whether to set up an individual or form business account. U Jake, they’re looking for pros and cons and then if there’s any tax implications. There’s literally going to be Oh, did my video drop? Uh yeah. Uh I don’t know. As long as you can still hear me, I’ll keep going. Um there’s literally no difference. So when you’re investing in any of the arrived investments, you’re really investing into an LLC that owns, you know, a particular property or owns the pool of loans. if you’re, you know, investing in the credit fund. So, you already have the liability protection that that provides. Um, there’s really no benefit to a a investment from a business account versus a personal account. The only real difference is if you know, sometimes people have a uh an LLC that they make all their investments out of and they prefer to just make it out of that. Um, but there’s no real benefit. you know, the the the other way to answer this is certainly don’t go open a new, you know, LLC in order to make investments in arrived um because you’re just going to add extra cost for zero benefit. Um for your situation with the CC Corp, you know, it’s just depends on if you want the investments to be held in the CC Corp or not. And so it depends on the other, you know, business operations you have in there and if you want that CC corp to own, you know, shares in investments that may be held for a while. Um, and if you expect that CC corp to be around for a while, you know, if you invest in one of the arrived properties and we’re holding it for seven years, but in two years you’re ready to shut down your business, well, you still have this these shares that are owned in the business’s name. And so you may need to keep the business open longer until, you know, everything’s fully liquidated. So, um, there’s no real pros and cons. You know, it if the business had extra cash, you could use the extra cash to invest, but um there’s no real difference at all between investing in a personal or a uh business. Absolutely. Yeah. And uh for folks that are curious, if you do decide to sign up, you can choose personal entity or retirement account type. Uh and then we’ll get to this a little later on IAS, but just to mention there, and then to Jake’s point, if you were to go on the invest page, you’re not going to be able to see certain offerings because you have a certain account type. We do have folks that also have multiple accounts with different account types. The only call out there is you’ll have to use a different email. So, we have some folks with different structures. Um Michael had followed up with this. Are there any tax implications? No, just as a matter of do you want the CC corp to pay the taxes or do you want to pay the taxes individually? So, you know, with a with a pass through entity, you know, obviously that doesn’t make a difference, but for a C corp, you know, which pays its own taxes, it’s just a matter of if you want that added on to the CC Corp situation or yours personally. Absolutely. And we distribute uh consolidated 1099 DIV on an annual basis usually by the end of January each year. Uh so you’re not getting multiple tax like multiple tax forms for different investments. The only thing would be if you are selling shares on secondary market um then we have an additional tax form for that. All right moving back over. Is there David asks is there a way to participate within a retirement account IRA Roth using uh cash in one of those account types to buy shares in individual or funds on the arrive platform? Not really. Um, we do allow checkbook IRA investments, but those are a very, very, very niche subset of um, IAS. Um, but we are hoping to launch an IRA option for investing later either this year or early next year. So, definitely stay tuned, but not something that we have available right this second unless you happen to have this this very specific account type. Fantastic. I think we cruised through all the questions here. U, folks, keep me honest in the chat or if you have any other questions, we’re happy to answer. this is your time. So, we want to be sure we’re making the most of it. Uh, I did see one earlier from David that we can just clarify on. How do you realize appreciation for a property with it being sold or without it being sold? So, the only time you’re realizing that appreciation is when a property is sold. Until then, you’re making money essentially on the dividends for that property. Jake, I’m sure you have more to add there, too. Yeah, I’ll take it in a slightly different direction of um uh liquidity. So there there is you can you can get some appreciation even if the property isn’t sold if you end up selling your shares early and that generally comes in two flavors. There’s the redemption program which is for the funds. So if you own shares in the you know the the single family fund the private credit fund you know mostly the single family fund because the private you know loans don’t appreciate but each quarter we kind of remark up the value of the fund based on you know what our estimate is for the value of all of the holdings that the fund owns. And so in two or three years if you go and you say hey I’m going to redeem my shares which basically is selling them back to the fund you know you’ll redeem those shares at the current value of the fund. So in two or three years you know assuming the value of the fund goes up because the value of the holdings have gone up you’d be able to capture the appreciation that’s happened over the two or three years that you held those shares even while arrive still owns the properties within that fund. Um the other way to do so is in the secondary market. So for the individual properties, we have a kind of peer-to-peer marketplace where investors can buy and sell shares amongst each other. So the other way to kind of capture appreciation, you know, without arrive selling the property is if you’ve invested in one of the individual properties, say you wait, you know, 2 3 years and you say, “Hey, I’m going to go sell my shares.” You can go and sell your shares and the price at which you’ll get just depends on what other buyers on the market are willing to pay. But that is a way in which you know again the the market value of the shares you know should increase as the value of the underlying properties increases. So you know selling your shares whether it’s on the secondary market or through the redemption program is a way to actually capture appreciation you know independent of arrive selling property. Fantastic Jake I’m glad you took it the secondary market and redemption route. I dropped a link to liquidity if folks are interested in taking a look there. And I’m seeing lots more questions come through the chat, which is great. David asked, “What is the frequency of paying dividends to an investor?” Um, and then we’ll we’ll move on from there. Cool. Yeah, dividends are paid out monthly for all of our investments. It may take 60 to 90 days to get your first dividend just as you know, based on the timing of do we have a tenant in the property? um making sure that everything’s all kind of set up and ready to roll before we kind of start making the distributions. Um but once those start then it’s every every 30 days. So we pay dividends on the you know usually the 25th of each month. Um and so investments made now she get their first dividends around you know July or August and then monthly after that. Fantastic. All right, moving back over. David, I spelled individual wrong. I couldn’t correct it before I typed it in there, but I dropped um details for the fund investment. So if you invest by May 31st, your like Jake said, the first dividend would be around August 25th. That’s for Seattle City Fund and private credit fund and single family residential fund. And then to Jake’s point, a little more nuanced with the actual individual properties. So I dropped an FAQ um as there’s a myriad of details that go into producing a dividend for a property. For example, like let’s say you invest in the Jake today. Okay, this is a property that’s fully funded, not able to invest in, but as an example, you invest in the Jake today. Let’s say it starts a lease in the next week or so. You would obviously miss that 25th dividend, but then it can take another full month of revenue coming in and expenses before it would even pay a dividend for the next few months. So, just something to keep in mind um when you’re choosing what to invest in. If a property is leased, we communicate those details in the emails so you’re well aware as as well. All right. Um, I can take these next two. One from Michael. Do we have to set up automatic recurring funding? We do not currently have the option to auto invest or u on a certain cadence. So, it’s self-s serve whenever works for you. However, this is one of our biggest areas of feedback and product features. So, more to come here and love the idea. And then I think we had one that was similar to this around dividends from David. Is there an option to reinvest dividends versus pay out to investor? Good question. So, right now, dividends go directly to your arrived cash balance from there. You can let them build up over time. You can withdraw them or you can apply them towards a new investment. The only call out, David, is if you are applying dividends. Let’s say you have $50 worth of dividends. The other 50 would come from your u connected bank account. So, it just has to meet that minimum investment uh when you are reinvesting and then we’re hoping to have an option where auto investing comes in the future which would make it much easier. So, more to come here. Jake, any thoughts? Yeah, I was just going to throw out that um even with a future auto reinvest your dividends program that doesn’t do anything tax-wise. Sometimes people think that oh, if I just reinvest the dividends, it’s not taxed, but it’s still it still gets taxed and then it just gets reinvested. Just as an FYI. Yeah, very good call out. All right, moving back over here. I think we have a couple in here as an SEC regulated investment. Rar’s asking, is there uh prospect this for arrived? There are several. Um we have a number of different uh issuers that each have their own set of offerings, you know, which are each of the things that you can invest in. Um Colonel dropped the link that has all of our SEC filings on it. Um you’ll also find them if you go to any individual investments page. There’s a link to the broad offering I think under financials. Um so you and then that’ll get you right to that that specific offerings perspectus on the SEC site. Um on that page you’ll also see linked to all of the financial statements for the investments. We do a semianual non- audited set of financials that’s out in about September and covers the first half of the year. And then we have a set of financials that is fully audited for each investment that comes out um right about now. I think it came out maybe two weeks ago or so. Um so that’ll have you know all of the 2025 financials fully audited for all the different arrived investments. The u the prospectus is definitely the the best place to look. Uh it’s called the offering circular and that’s going to have all the information that we’re kind of going through in this presentation. You know so what is ARI’s investment thesis? What are they buying? What are the rules? what are the different regulations? Um that’s got a lot of great information and definitely encourage you know reading through there. Absolutely. Awesome. I dropped a link to um the filings like Jake had mentioned and then more details on financial reporting. It spells out what type of reports there are between the audited and non- audited and when they take place. And then I’m also going to drop a link to uh why and how arrived offerings are qualified with the securities and exchange commission just if folks are interested. It’s one of the things that we are most proud of um at arrived. Uh yes, Michael, we’ll be sure to send the recording out to all uh registrants. So it’ll be in your inbox later today. All right, a great one from Amy. As you know, Jake, myriad of different ways to invest, stocks, bonds, CDs, money market fund, different fractional investments, so on and so forth. What would you say are the main benefits of investing with arrived versus retirement or investment funds? They mentioned they have limited room for savings and trying to maximize returns. Yeah, it’s a great question and and you know the obvious answer is going to be well it obviously depends on your situation and what other assets you have and what other income you have and your time horizon and your risk tolerance. So, um I’m certainly not a financial adviser um but can definitely you know educate on on my perspective of things. Um, you know, we really like the single family asset class because there is a lot of people that want to be able to buy homes and there’s not a lot of homes being built across the country. Um, that leads to a lot of structural tailwinds for, you know, housing appreciation in the future. You know, single family homes, you know, have an inherent value. You know, even at the end of the day, there’s, you know, a structure with a roof that can kind of provide shelter for somebody. And that’s a lot different than other investments that you may have. you know, if you invest in a cryptocoin, you know, it may go fully to zero. If you invest in a company, you know, even in the S&P 500, it may go fully to zero, but investing in a a piece of land with a house, you know, still kind of always has an inherent value. Even if the house gets burned down, there’s still value in that piece of land that people can have. So single family is tends to be a a kind of more defensive piece of your portfolio, you know, where you can generate income and appreciation and have a really good inflation hedge. So the you know the value of housing, the value of land has been steadily appreciating for the last 70 years and there doesn’t seem to be any real reasons why that would stop in the coming years. So we like uh single family homes in particular for that reason. you know, real estate as a whole is going to offer a lot of tax benefits and this mix of cash flow and appreciation. So, what’s nice about real estate is you’re able to generate, you know, returns now and get those monthly dividends. Most of those dividends aren’t going to be taxed because there tends to be enough depreciation on the properties to, you know, limit or fully reduce any taxable uh income from the cash flow. Um, and then you still have this angle toward long-term appreciation and all these factors that push you toward, you know, kind of values being higher in the future. So, it’s a nice kind of piece of a portfolio where you’re able to generate income, not have it be taxed very much, and still have the opportunity for appreciation. Most kind of other investments you may see tend to skew one way or the other. And even our private credit fund is a good example. You know, the private credit fund is kind of all focused on income and there really isn’t any appreciation side of it. you know, investments in a crypto coin are going to be, you know, all appreciation and you’re hoping that it goes, you know, up 10,000x. Um, there’s not going to be any cash flow and it’s going to be, you know, high odds that it goes fully to zero. Even most stocks and even dividend stocks don’t have cash flow that is that high. Um, and stocks as a whole tend to be more growth oriented and we’ve seen that a lot of the last 10-15 years with the the tech stocks in particular driving bulk of the market returns. So there’s a lot of different reasons depending on, you know, what angle you approach it from. Um, at the end of the day, it comes down to you and your portfolio. And again, you know, there is absolutely place for your retirement savings, your, you know, stock savings, etc. I certainly wouldn’t tell anyone to go put all of their money into real estate. Um, but it does certainly have a place in your portfolio when it comes to inflation, um, volatility, hedging, um, you know, and being able to generate some income alongside the appreciation.
You’re muted.
Thanks, Jake. Always a good question to ask, especially when you’re choosing where to park your hard-earned funds. So, uh, definitely appreciate it, Tony. I can take this one really quickly from you. If I was to pass, what would happen to my account? Can I add beneficiary? So, folks can add multiple beneficiaries on your account. Very easy. I dropped a FAQ on how to do so. Upon death, uh the beneficiary would reach out to supported arrive.com. We would ask for uh the accompanying documents to verify all info and then the beneficiary would create a new account and then we would transfer shares over to that new account. The only thing I’ll mention is that uh that beneficiary will follow the same terms that you had agreed to um when investing. So, when it comes to liquidity, uh, just wanted to call that out so when you’re making notes about your investments, but very straightforward. All right. Oops. Package came, huh?
Fantastic. Sorry about that. The CBOS’s, chief parking officers are on it this morning. Um, yes, absolutely, Michael. Everyone needs somewhere to lay their heads regardless of the direction the economy is heading. And I think one thing that Cameron Woo always mentions um typically on webinars that obviously we’re not registered adviserss. We’re not able to give any investment advice on here. We’re heavily regulated by SEC, Finner, etc. But uh I know personally we only recommend investing what you feel comfortable going to bed at night with. That’s just like a common practice. Um so we definitely appreciate it, Michael, when you’re thinking about where to invest and what to do, especially um with shifts in the economy. So, all right, Jake. Any um I think we cruised through all the questions here. Folks, keep me honest in the chat if I missed anything. I’m happy to jump back in, but Jake, we’re well in our way in Q2. Uh we’ve got some kind words in chat. Anything that you’re looking forward to? Um I’m looking forward to the continued growth of our of our private credit funds. There’s been a lot of interest in investing in the debt side of real estate where, you know, unlike our equity options where you can invest and actually own the property, the private credit fund is an opportunity where you can invest into a fund that owns real estate loans. And that’s been a really exciting um opportunity in the last couple years with interest rates high. Um that fund’s been generating really strong interest income returns by you know buying loans that are uh you know say a fix and flip uh developer or a new construction home or a bridge loan. So that fund has been really exciting to see that grow over the last couple years and I’m looking forward to seeing some of the new things riding into it soon. Absolutely. Well Jake, thanks so much for your time. Uh for all the folks that spent 47 minutes with us on your Tuesday afternoon and evening or morning, thank you so much. We very much appreciate it. The engagement chat was wonderful. Awesome diversity and all the questions asked. If any other questions come up, feel free to email supportive.com. You can also use our chat function in the bottom righthand corner of our platform. We’re typically releasing new properties on Thursday mornings and afternoons. So, feel free to jump in on those. Our fund investments are always open. And then, um, secondary market for folks that are interested to uh, take a look there. there’s a little bit of a lead time uh to be able to enter, but it’s one to pay attention to as it unlocks properties that have previously been full fully funded. So, very much uh very excited for that as well. But I hope you have a great rest of your day. So, appreciate the kind words in chat, Michael, Amy, David, uh and happy investing. We’ll chat with you all soon. Thanks for joining, folks. Don’t be a stranger. Feel free to shoot us a note. Bye all. Bye.