Good morning folks. Fantastic. Jake, thanks so much for prepared remarks. You probably saw we have folks from all over today. SoCal, Sou Falls, New Jersey, Minneapolis, and Puerto Rico. Good to see you all here. Uh for anybody that’s new on the line, feel free to drop any and all questions in chat. If ever I see like kind, I’ll group them together and then once we get towards the end, I’ll just ask if I’ve missed any. So, ready to get started here? The first one we have is from Todd. Could you comment on the passive income angle specifically when bonus depreciation cost segregation tend to fall over time and true taxable passive income is experienced? Yeah. So there’s a lot to talk through in here. Let’s let’s split out first um the idea of passive income versus active income. So passive income is just receiving, you know, making an investment where you don’t have any involvement in the actual operating activities and you get to earn the the the returns. Um, it’s considered passive because you’re not actually doing any of the the work. It’ be different than if you, you know, owned a rental property yourself, more active income because you’re actually out there, you know, doing the work, swinging the hammer, um, collecting the rent, etc. So all the arrived investments would be considered passive income which isn’t a um you know is is more just for you to know that hey as you make an investment you don’t have any obligations to fill out any forms you know review any contracts uh deal with contractors do anything in that sense. The tax side of things is going to be a little bit a little bit separate here. So, um there is a passive income implication for taxes, but specifically when you talk about depreciation. Um the whole idea is that you have this depreciation expense which is something the IRS lets you have for owning you know a piece of real property that you know um you know they g give you an extra deduction where you can reduce your taxable income each year and you don’t actually pay anything for that. So, as an example, you know, you take a depreciation deduction of maybe $5,000 per year. That lowers your taxable profits by $5,000. It means you pay less in taxes, but there isn’t actually a depreciation bill that you go pay. Now, the the strategies that Todd’s referencing around bonus depreciation and cost segregation are more advanced techniques where you can basically accelerate the speed of the depreciation in order to get those big deductions faster. Um, we don’t do those at arrived. Um, namely because part of our structure means that we actually can’t distribute a loss. So, we’re getting really technical right off the bat, so apologies, but basically the best we could do on our tax forms is give you a 0 tax form that says that, you know, you may have received a bunch of dividends this year, but none of it is taxable. The strategies that incorporate bonus depreciation and costs are ones in typically in which you have a partnership structure because then you can distribute a loss. you can actually get a negative $5,000 for your tax return, which will lower your taxable income. So, the arrived investments tend to have enough depreciation on the single family homes to wipe out any of the profits anyway. That’s why we’re not doing any of the the bonus depreciation or cost sag type of stuff. Um, the depreciation expense on the homes just kind of wipes out the income and so you end up receiving the cash flow. So, you end up receiving the passive income because we’ve still generated the cash from, you know, collecting rent and paying the expenses. It’s just that there isn’t any profit because that depreciation expense is enough is large enough to kind of lower the taxable income all the way to zero or below. There’s a lot of in-depth content right at the beginning. So Todd in particular, let me know if you want follow-ups on that. And anybody else, please, I hope you aren’t, you know, fully rolling your eyes and falling asleep quite yet. No, Jake, I think it’s absolutely fantastic. Uh the point of this webinar is to ask anything from 101 to 501. So keep the questions coming our way. Very much appreciate the level of detail and great question, Todd. All right, I can take this next one from Christine. How often are vacation rentals added? Great question. We’re currently we’re focused on operational efficiencies for this asset class. We have roughly 40 on our platform. As of right now, we don’t have more in the pipeline. That said, they can become available on our secondary market. This is a peer-to-peer marketplace where existing investors can place shares for sale in existing properties. So that that’s one way to get access to uh existing vacation rentals on arrive to date. You must uh be on the platform for at least 60 days and have a trade at least 60 days before that window opens. They run on a monthly cadence. Um and it’s a great way to get into those properties. All right, moving back over. I can take this one quickly from Selena. Can I uh how about oh it was can I buy shares in the name of the trust and then another was LLC. So yes when you create an account you can choose personal entity or retirement account. One thing to note here when you are creating an account we still require your first and last legal name when you’re going through the process. And then you’ll have a separate section where you’re entering in u trust or LLC so on and so forth. Sometimes we have folks that plug in their LLC name as their legal name and then we have to flag it later. So, just to make that as easy as possible. Um, love this one. Really quickly, Jake, maybe we say why no on K1’s and why we kn do 1099 dibs. Yeah. So, with the tax stuff we were talking about, you know, most of the arrived investments are taxed as REITs, real estate investment trusts, which allows for a couple of extra um, you know, tax benefits and passroughs to investors. Because of that, um, REITs distribute 1099 DIIBs instead of K1s, which is what you might see if you’ve invested in a real estate partnership or some form of syndication. And what’s really nice is that first of all, the 1099 div is a much easier form to actually file your taxes with. It’s like a half a page form that you can drag and drop on Turboax if you’re doing it yourself. Um, it’s really, really simple. K1s are, you know, multiple pages and get a lot more complex and cost a lot more if you’re using a CPA to file your taxes. The other huge benefit is that if you’re using K1s, you might trigger state taxes in other areas. So with Arrived, if you’re in California and you have investments in 15 different states, you’ll only pay your California state income taxes and your federal income taxes. You don’t end up needing to file a state income tax report in Louisiana and in Arkansas and in Alabama. Um, and that is sometimes the case with K1s. Fantastic. Awesome. For anybody that’s dealt with K1s, they’re definitely a headache. So the 1099 devs were a a major uh foundational piece from the inception that goes towards a passive investment. So very excited on that one. All right, moving back over here on fees. Nishant had asked, “What are the fees charges by arrived on single family investment?” Yeah, so I’ll I’ll broaden it a little bit to just talk through fees in general. Um the best places to look is going to be on each investments page. Um, if you go to the financials tab, there’s a little breakdown section that says, you know, what the fees are for that investment. In general, there’s two types of fees on arrived um, for each of the investments. There’s generally an upfront sourcing fee and then a recurring asset under management fee. And that sourcing fee is kind of a one-time fee that’s paid to arrive for our work in, you know, identifying and acquiring the asset. So on a single family home, it’s a onetime fee that is, you know, for our work in finding the property, writing the contract, getting it under contract, um getting it securized, and ultimately bringing it to the arrived platform. Um that fee is a is built into how much we’re raising for a particular property. So if you when you go to make an investment, if you say, “I want to invest $1,000,” you don’t get hit with a taxes and fees section at the end. You invest $1,000 and that sourcing fee is already baked into, you know, that $1,000 investment. After that kind of one-time upfront fee, then there’s a recurring assets under management fee. And that goes to our team for all the work in, you know, supervising the the property managers, you know, running all the operations, making dividend distributions, providing all of the reporting and information, the tax documents. Um, that’s the smaller of the two fees. Um, and it’s just paid out of the cash flow that the property generates. So, as we collect income from all the different investments, we pay all the expenses, we pay this arrived assets under management fee, and then everything else gets distributed out to investors. Um, the fee amounts, so there’s those two fees, the the upfront sourcing fee and then the recurring assets under management fee. Each of those is going to differ by asset class, but be the same within a category. So there’s one set of fees for the single family individual properties. But if you’re looking at five different single family individual properties, the fees are going to be the exact same in between, you know, each of the five. Um, but if you’re comparing the single family fund versus the private credit fund, there is a slightly different fee amount for the, you know, the the real estate income fund versus the single family fund. Um, and again, all of that information is available on the pages if you go to that financials tab. Um, we also have all of our SEC documents linked from there as well if you want to go read the full legal ease on all of them. Fantastic. Awesome. All right, I can take this one quickly from Wambda. Can I invest under my daughter? It’s a good question. So, as of right now, Arrived is open to folks who are 18 years or older, reside within the 50 United States, US citizen, permanent resident. So, we don’t have the option for you to invest on somebody else’s behalf. However, you could list your daughter as a beneficiary. Um, Jake, any other feedback that you have in terms of limiting accounts? No, that’s good explanation. Awesome, Wanda. Great question. Let us know if there’s any other there, but very much appreciate that you’re thinking of wealth for your daughter um and investing in real estate. All right, moving back over here. I think we cruised through all the questions here. There’s one in here that didn’t get asked specifically that I think is really important. We touched lightly, Jake, on secondary market, but if you could walk through liquidity for all offerings. We chatted briefly in prepared remarks, but I think it’s always a good one when folks are determining where to park their hard-earned funds. Yeah. So, there’s two there. All of the arrive investments have a liquidity option, and there’s generally going to be two different paths. The first is going to be a redemption program, and that’s going to apply for the funds. So if you’re investing in the real estate income fund or the single family fund, you would use the redemption program. And the redemption program is an opportunity where you can redeem your shares. So effectively, you can sell your shares back to the fund and the fund repurchases shares from all the different investors. That redemption happens at whatever the current value of the fund is. So if you invest at, you know, $10 a share now and three years later it’s appreciated to $12 a share, you would be able to redeem at that $12 a share value. you capture the appreciation that’s happened in the time in which you’ve owned those shares. Um the uh there are there are fees for redemptions um but they drop off after 3 years. So I think it’s a 1% fee um for redeeming before 3 years and then after that 3ear mark it drops off completely to zero. So the idea being that you can invest you can hold your shares for a number of years. you know, we’re trying to disincentivize short-term trading and just kind of say, hey, I’m gonna trade in now and I’m gonna redeem next year. Goal being, hey, we want to build a longer term real estate vehicle. And so having that, you know, that extra flexibility means that investors can exit if they need to um with the cost of some, you know, kind of financial penalty. But if you hold for, you know, three years, then there is no, you know, um there is no cost of liquidity. The redemption program is open four times per year. So you can submit a request any time and then it just gets batched and into our system and processed once a quarter when we review them and then actually make the payments. So it’s a good kind of semi-liquid option. You know, it’s it’s definitely takes a little bit of planning. You can’t just say, “Hey, I arrived. I need this cash, you know, tomorrow.” Um, you know, because you’ll submit your request and it might be two or three months until you actually get that payment out. Um, but the funds all have a 100% track record of paying out, you know, all of the redemption requests and so it’s a pretty robust option with a lot of certainty. Now that applies just to the funds for the individual properties, the single families and the vacation rentals. We have a secondary market and the secondary market instead of you know it being arrived that’s buying your shares it is actually other arrived investors. So that secondary market looks a lot like the stock market where you can say hey I want to sell shares of this particular property and I’m gonna have to pick how many shares I want to sell and what price I’m willing to sell them for. And then the secondary market will actually match, you know, buyers and sellers um to kind of see, hey, who’s got the best price and then it’ll kind of facilitate that transaction. Um the fees are a little bit higher for selling on the secondary market. It’s about 2% um fe trade cost to buy or to sell, though we hope we’ll be able to decrease that over time. The secondary market runs a little bit more frequently. It runs monthly, you know, generally around the first week of the month. Um, and for you guys as newer arrived investors, it’ll give you guys the option to be able to, you know, buy into a lot of different arrived properties because of course you can use the secondary market to sell shares. You can also use it to buy into past properties that arrived is offered. So, we generally have a couple of new investment properties funding at any time on the site. But the secondary market gives you access to the back catalog of, you know, 450ome individual properties that may be in different markets that we don’t have that may have been bought, you know, a couple years ago that may have um, you know, an interest rate, you know, a loan with a good interest rate on it. So, it’s really kind of an interesting place for you to be able to build out your portfolio as you get started on your arrive journey. So, that’s um, how liquidity works in general. There’s that redemption program and the secondary market. They both function a little bit differently. They both have kind of pros and cons to each one. So definitely something to kind of weigh and consider as you’re kind of getting started on making an investment. Um but it’s good to know that, you know, hey, if you need to, there is a path to be able to exit. Um just depends, you know, on what your kind of preferences are based on, you know, what you’re interested in investing in. Obviously, real estate works best as a long-term investment. So the with anything the the goal might probably you know for most people is you know probably 90% of investors don’t use either one. Um you know most people just invest and are going to hold their investment until we eventually sell the properties and kind of distribute the cash and wind down the investment. But for all of you it’s good to know that there is a path to liquidity should you say hey I’ve invested it’s been two years four years six years whatever um and I need to reallocate use the funds for something. Um there is a way to do that. Absolutely. So yeah, Jake, thanks so much for walking through it. Folks, let us know if there’s any other questions there. Again, it’s in prepared remarks as well. We’ll be sure to send out the recording. All right, another good one from Todd in here. Are there any plans to add pads split or furnish finder properties in between our long-term rentals and vacation rental properties? Nothing planned right now, but certainly the arrived model is flexible and could do those kinds of things in the future. um basically any real estate, you know, we could take and kind of say, hey, we know how to fractionalize it, you know, split it up into pieces and we know how to operate it. So, no plans right now. Um there’s some other asset classes that we’re kind of eyeing um as we think better opportunities in the short term. Um but eventually those things may be on the road map. Absolutely. Yeah, great question. Very much appreciated. I think we cruise through all here. So, folks, keep us honest. If there’s any other in chat, let us know. We’d be happy to answer. Jake, what are you most looking forward to coming up in Q3? Um, I’m excited for the new auto invest feature that the team is working on. Um, people love investing in things like the real estate income fund because it’s got a, you know, 8 8 and a half% um, kind of cash return, but it’s challenging right now because you have to come back and make an investment each time you want to add funds. And um the arrive model since you can kind of invest in smaller amounts is really similar to a 401k where you can you know you can invest a little bit over time over time over time and over a number of years build up a portfolio that can kind of carry you into retirement. So I’m really excited about autoinvest because it’ll let people just kind of set up an auto investment so that you don’t have to keep coming back every month to make that contribution. so that you can kind of set it up and then kind of walk away for six months and not miss out on kind of continuing that process of adding more cash in in order to kind of build wealth and start to compound your returns. So team’s been working hard on that and it’s been a a well requested feature over the years and looking forward to that coming out this fall. Absolutely. Well, Jake, you’ve been imperative in building the foundation of Auto Invest. So very much excited. uh right now when you receive dividends, we do have the option. You simply like apply it towards an investment, but set it and forget it will be extremely exciting. So very very thrilled for that to come out. We’ve had a lot of feedback on that over the years. So to Jake’s point, if you ever have any features or asset classes that you want to see, definitely let us know. Our goal is to build for and buy each investor on our platform. So keep it coming our way. Uh I think we cruise through all here. Jake, any closing remarks before we shut our virtual doors today? No, that’s all I’ve got. Um, thanks for being a great a great audience. It was great to chat with you. Um, and don’t be a stranger. Feel free to choose a note at supportive.com and happy to keep some of the conversations going. Fantastic. Well, Jake, thanks so much for your time walking through all the questions for folks that spent 40 minutes on your Tuesday morning and afternoon. Very much appreciated. Love the engagement. Fantastic questions. Uh, high level and in-depth, which is wonderful. To Jake’s point, feel free to reach out to supportive.com. You can use our chat function in the bottom righth hand corner of arrive.com. Uh, Wambda, we do have an app. We have an iOS app currently. Uh, we are working on Android for the future, but we do not have a ETA on that at the moment. But I will say Arrived is accessible on all browsers. So that includes mobile browsers. Uh, the majority of like even updates within your account would need to take place on browser as well. So, it’s uh there’s definitely a lot of flexibility there, but we’ll be sure to uh keep you posted. If you are an Android user, you can always reach out to supportive.com. We can add you to that paid when it’s live. But I think we covered all today. Uh we’re typically releasing properties on a weekly, bi-weekly basis. Our fund investments are always open. And then again, if you’re interested on properties in the secondary market, if you make an investment today, it just has to be 60 days from the start of the next window. So with little sometimes folks will hit that 60-day on the day that it’s opening. So that’s technically missed. It would have to be directly before. Uh but very excited for what’s to come. Hope you all have a great day and happy investing. Thanks folks. Have a good one. Bye y’all.