Category: Arrived Webinars

Fantastic Jake and team. Thanks so much for prepared remarks here. I know we also have Kyle joining today who is our head of property investing. Very excited to have him in the virtual room. I think you’ll be jumping in here shortly. Kyle, welcome. Hello. Hello. Nice to be here. Glad to have you here today. This is your first arrived webinar, but obviously wellversed in the real estate space. You probably saw we have folks from all over the country today which is absolutely exceptional. Um Kyle, would you be open to just sharing a little bit about your background um and how your time at Arrived has been so far? Yeah, sure. Appreciate it, Karen. Nice to nice to see everyone uh here in the chat. My name is Kyle Barnes. I’m head of property investments here at Arrived. I’ve been here about four months. Uh my background is in real estate investments and capital markets. Um, and my focus here is really evaluating where we invest, which properties we acquire and when it makes sense to to ultimately sell. Um, and you know, happy to get into how we think about those decisions and what we’re ultimately seeing in the market. But I’m very pleased with my time here so far. Um, it’s a exciting company uh to to work for and invest uh alongside as well. Fantastic. Well, we’re absolutely thrilled to have you here. I know it’s been an absolute pleasure being able to work alongside you and look forward to uh years to come here. So, uh we for folks that are new on the line, feel free to drop any and all questions in chat. This is your time. We want to be sure that you get all your questions answered. So, you should be able to decide if you want to move forward or not. I know there was a question in here from Daniel. I’ll answer this one live just so everybody’s aligned on what the credits are. So, for folks to qualify for a $25 credit, you must have your bank account linked with arrived must attend a new user webinar. So, that is what these are. And then must have not received the same incentive before. So, you can attend as many webinars as you would like, but it only applies for that credit one time. Uh, so for Daniel, I know uh you’re in the webinar right now, which is wonderful. Will I be getting uh this automatically or is there an additional step? Uh if you have an existing account, your bank account’s connected, you’ll automatically get that credit by end of week. When you go to the checkout flow, you can apply those credits towards a new investment. They cannot be withdrawn to your connected bank account. So, it’s only to a new investment that you have. Let’s say, for example, you haven’t created your account yet. You’re maybe taking a little bit more time if you’re not uh connecting your bank account or creating an account within the next few days. and then you’re like, “Shoot, Krenn, I didn’t get the credit.” Just email supportarrive.com um next week or at a different time once you do so and then we’ll manually apply that credit. Uh but Daniel, for your case, be auto since you are an existing investor and we’re thrilled to have you on board. So, let us know if there’s any other questions there. I also dropped an FAQ in chat for folks to take a peek at. Uh so, let us know if there’s any other questions. I did get a few DMs though on questions. So Jake, the first one will be for you. Um I know we’ve had a lot of product updates in the last little bit here. Can you walk through what those are uh for folks to keep an eye out for? Yeah, the the the [clears throat] big one that just came out this past week is the ability to set up a recurring investment. So, you know, in the past, if you wanted to just keep investing into the single family fund or the real estate income fund and, you know, just do so every time you get paid, you know, you actually had to come back to arrive and relog in, recclick the buttons, um, in order to make another investment, which, you know, worked fine, but, you know, people have kind of said, hey, we want to be able to set up something that’s automatic so that it’s like my 401k and I can kind of set it up, walk away, and come back in six months to check on my account, but I don’t need to be judiciously, you know, logging in every month in order to reinvest my dividends. So this new recurring investments feature just launched and you know kind of just like any other investment platform. It lets you just say hey I want to invest this much money into this investment product at this frequency and then we’ll go ahead and you know kind of automatically you know withdraw the money and kind of kick off those trades each month so that you don’t have to do it manually. So really nice way to be able to build up a larger balance because the you know truth is making a single $100 investment you know is not going to you know change your life as far as the investment returns. The key with thrived as with you know your retirement portfolio or any other type of investment is to really kind of build up a larger balance over time. And so for most folks that if you don’t have $100,000 to immediately put into real estate arrive kind of a great solution where you can say hey I can put in you know $200 a week or you know $500 a month and kind of over time build up that larger balance so that the dividends you receive start to become more and more meaningful as your account value grows. Fantastic. I’m very excited. And I know recurring investing has been one of the most asked for features over the last few years. I would say in general too our whole premise or the foundation of what we do is built on uh passive income or passive investment. And so recurring investing really goes hand inand where you can set it and forget it uh update it at any time. So Jake, appreciate you walking through that all the work behind the scenes and building features that folks have been asking for. Uh, I was curious too, we’re we’re into Q4. We have Q1 around the corner here, 2027. From a product perspective, what else are you looking forward to? Yeah. So, the other exciting one that we’ve got is um referrals. And so, we are now have the ability for you guys as you start investing with Arrived, you know, assuming you have a positive experience and want to kind of tell your friends about us, we do now have a kind of paid referral program where you can invite friends. I think you each you each get um cash, I believe, or Karen. checking on that um for you know doing the refer so you can invite your friends get a little bit of extra arrive credits to be able to invest into the um the investments and then your friend also gets some amount of cash and then the Kyle I’m not sure how much you want to tease but there are some exciting investments related opportunities that we are poking around with right now that should be launching you know probably over the next couple of months um if you want to touch a little bit on on some of the things we’ve got coming up yeah happy to do So um so apart from kind of the single family residential business both long-term rental and short-term rental we’re also exploring you know more thirdparty partnerships with kind of call it asset class and industry experts in different verticals where you know we might not have the same level of underwriting depth and expertise to say hey we want to go pursue a new strategy in you know senior housing or multif family or power and and data centers. So there are some there’s some partnerships that we’re exploring with reputable operators um and fund managers to consider um you know working alongside them and bringing access to some investments that otherwise you know retail investors wouldn’t have access to um without another platform like arrive. So those are just some things that we’re thinking thinking about. Um and so we’re kind of working through the the pipeline now but it’s going to take a lot of diligence to ultimately get get comfortable with those partners. We’re excited to be kind of going through those those rounds and having those conversations. Absolutely. Yeah. Lots to look forward to, Kyle. I know you’ve been at the helm of driving a lot more options for investors. So, very excited for what we have to come. For folks on the line, too. This is a perfect place to leave any and all feedback on other asset classes you’d like to see. Our goal is to continue to build for and buy each and every investor that we have on our platform. uh which we’ve done a great job thanks to investors to date. So, more to come. The one thing I did want to show here, Jake, you were talking about uh referrals. So, if we jump in here, I just went ahead and clicked on the real estate income fund for example. Again, you do not need to have an account in order to view all investments. But if you go over to your name in the right hand corner, this is if you have an account, this is where um you can see the referrals. And then there your link is right down there in the bottom right. So, let us know if there’s any questions there, but that’s intended to be as easy as possible to navigate. All right, moving back over here. A great qu question in the chat. I’m new to real estate investing. How does your service differ from other online real estate investing sites such as Fundrise? And Jake, maybe just in general, there’s a lot of other options from stocks, bonds, CDs, money market funds, other fractional platforms. What would you say that arrives is Arriv’s biggest differentiator is? Yeah. Um I’ll actually start with a similarity and that’s going to be that Fundrise and us use the same regulatory structure. So we both use you know um the reggga which is created under the jobs act in 2012 and so that’s kind of the same organizational kind of legal setup for hey how are you actually investing into these uh real estate assets if you’re not an accredited investor. The big difference is going to be the asset class. So Fundrise does a lot of great stuff across, you know, industrial, commercial, multifamily properties. And we right now are really focused on single family. So it makes a pretty clear line where if you say, hey, look, I’m really invest interested in investing in, you know, multif family properties, that might be something available on us, you know, in the future as kind of Kyle was alluding to, but for right now, you know, we’re just single family homes. And so then there’s kind of a clear split of, you know, the different assets. And we’re really bullish on single family for a lot of structural reasons that we can get into later, but that’s going to be kind of the biggest headline difference. You know, after that, there’s a lot of differences ac across customizability and transparency. So, on the custom side with Arrive, you know, we do have a couple of funds, but we also have all of these individual single family home properties, and that allows you as the investor to customize exactly what’s in your portfolio. And so we’ve had folks that say, “Hey, I want to invest only in, you know, uh, politically blue states or red states, or I want to invest in areas across the country, but I want to avoid hurricane prone areas.” And so with the customizability of Arrive, you can kind of build a portfolio that’s, you know, tailored to what you as an investor are actually looking for. The flip side is, you know, Fundrise and a lot of the other platforms online tend to be a a just generalized fund structure where you invest and you kind of get what you get and it’s not very it’s kind of rigid. you know, you you get what’s in their fund and you don’t have really any other options to, you know, tweak it to be specific toward what you’re looking for. And so along that line, the other big difference is going to be transparency. So again, with us, you know, when you’re investing in those individual properties, you’re investing in a single address. So you can do a lot of research and diligence into that particular property. You know, what are the schools in that district and where is it located and is it on a busy road? How is it, you know, related close to the city center, to the to the population areas, to where employment is. Um and similarly even if you invest in our funds products you know the single family fund we showcase all of the 50ome properties that are in that fund. So you can really take a good look if you go and you invest in, you know, even one of the big public REITs like, you know, American Homes for Rent, you know, they own 50 or 60,000 different properties and they’ll provide some good summary statistics, but it’s really hard to kind of know as an investor, am I buying a a good set of assets or am I buying something that’s not really that great because you can’t actually do the diligence to look into the individual assets and make the judgment call for yourself. The other thing that really helps there is that we’re looking at single family homes again. And so, you know, where for most folks looking at an industrial deal and, you know, knowing it’s really hard to know, you know, what’s the price per foot that makes sense to lease this to an equipment manufacturer, um, most people have a much easier time at looking at a property and kind of judging, hey, what is the purchase price of this property and what is the rent? And I can go look at Zillow for other homes that have sold in that area and other homes that are for rent. And it’s just much easier to kind of get a sense of the economics and understand what you’re actually investing in. At the end of the day, we want, you know, you guys to be comfortable investing into the properties and and feel comfortable, you know, owning those particular properties. And so, we really think that that transparency is important for you guys to be able to kind of do that diligence, peek around and then feel really confident when you pull the trigger on an investment. Fantastic, Jake. Thanks so much for walking through. Let us know if there’s any other follow-up. Oh, they mentioned thank you in the chat. That’s great. Always appreciate the questions around other investments and the differentiator as well as similarities, Jake. So, I appreciate you walking through it. a great one from Daniel. And I saw Kyle already popped in the chat. Um, Kyle, I’m thinking we show a property example. Um, and we can kind of if you and Jake kind of want to walk through uh what this looks like. So, I just pulled up, let me pull it up here. I’ll go back. So, this is the Rosalie. This is a property that’s currently available to invest in. So, if you’re curious on what the financials are, you can click into these various tabs. I’m going to go to financials. I’m going to slow down scrollly slowly so I don’t make anybody dizzy here. But if you scroll down to the bottom, we’re going to see the offering details here. So, um, Kyle, if you want to walk through briefly what you mentioned in chat and then Jake, if you have any color as well.

Yeah, happy to. So, as folks can see here, I mean, you can you can see the purchase price, you can see the breakdown of estimated closing costs, improvements, reserves, sourcing fee. So all of those costs are lumped in kind of your your total project cost here which also kind of breaks down into the the share price and ultimately you know what what you own. So that’s where you can see just really the the delta I think it’s pretty clearly delineated. Uh we do our best to kind of you know break this out simply but these are you know pretty standard market costs and expenses that you would expect kind of acquiring a property yourself. And as you know, Jake and Ken mentioned, I think the benefit here is kind of the passive uh ownership versus kind of the active management. And a lot of the homes that are being acquired are newer vintage um if not newly built homes, which are generally going to have, you know, all things being equal, less kind of repairs and maintenance expenses or, you know, deferred maintenance like an older property would have. So you would expect less capital to have to go into call it defensive improvements, things that wouldn’t really move the needle from a return on investment perspective. And so those are some of the things that we like about some of the newer homes that we that we acquire. Um kind of part of our part of our thesis, but we we still want to make sure we have adequate reserves um in the event we have a tenant move out or some unexpected cost um just so we aren’t in a situation where we’re short on capital. Absolutely. Yeah, those cash reserves come into play. I like how we are so conservative there. For example, if there’s a roof repair or an HVAC situation, uh that could happen. The last thing we would want to do on our side is ask for a capital call where we essentially ask those investors in that property for additional dollars. We’ve never had to do that today. It’s not in our uh line of business. When you’re doing a passive investment, the last thing we would want is for additional funds to need need to be funded for that property. So, we work hard on the front side to make it as passive as possible um and showcase all that financial data that folks have access to on that property page. So, very much appreciate you walking through it, Kyle. Jake, any color or commentary to add there? No, that was great. Kyle app the only thing I’ll highlight here is that you’ll see that that there’s that total property amount, which is the total amount that we need on this property, which is 423. And you’ll see below that that’s all being raised from investors. And just with interest rates being high right now, we haven’t been using mortgages for the last, you know, three or four years in our ideal world, you know, we would say, “Hey, we need $420,000 to buy this property to operate the investment and let’s maybe go and raise half of that from investors and get a bank loan for the other half. Interest rates are just too high for that to make sense. So the hope is that in the future rates come down and we can start to add mortgages to those properties. That’s where in the future if properties are leveraged, you’d see that kind of breakdown of how much money do we have need and what’s coming from investors and what’s coming from a loan. Absolutely. Yeah, Jake, I appreciate you calling that out. If you go back to the details page for the Rosalie, you’ll notice 0% property leverage like Jake called out. The one piece that I get excited about here is that refinance candidate. So Jake had mentioned we can fin refinance in the future, which is fantastic. We don’t have any other properties uh that don’t include this tag. So, we always have that option if rates become more favorable in the future. So, I just wanted to call that out as we’re walking through the property page. All right, I’m going to move this off my screen here. We’ll keep uh sifting through the chat here. Let’s see. Jake, was there any call out for fees specifically? like can you call out that we don’t have additional fees that come after you invest as well? Yeah, so in general with fees there’s two fees that we charge you know um across all the different investments. There’s a sourcing fee which is a onetime fee that goes to us for the work in you know identifying and acquiring the asset and bringing it onto the arrive platform and then there’s a recurring assets under management fee. So, a good example is that that page with use of proceeds we were just looking at showed that there was, you know, the money we’re raising for the purchase, the purchase price of the property, the cash reserves. There’s also a one-time fee to arrive there. Um, and again, that is factored into how much money we’re raising for the property. So, if you say, “I’m going to go and invest $1,000 in this home.” You will invest $1,000 and that includes that sourcing fee. You don’t get hit with like a taxes and fees section at the end. After that sourcing fee, then we earn this recurring assets under management fee which is goes toward our team to you know compensate us for all the work in actually managing the operations of the investment, providing reporting on the arrive platform, providing tax statements and kind of everything else on the back end so that you guys can be fully passive. That fee is just paid out of the cash flow that the investment generates. So at the end of the month, we tally up all the cash that a property has generated. We pay all the expenses. We pay the arrived asset under management fee. and then the rest either gets distributed out to investors as a dividend or gets saved into that cash reserves for the property depending on you know what its cash situation looks like. That’s just nice to call out because again if you say, “Hey, I want to invest $1,000 and then I’m going to take a step away and I’m going to just kind of see how this works out.” You don’t you’re not on the hook to put in another $5 a month or anything. It’s not like a subscription. You can make a onetime investment. You could walk away and you’re not on the hook or obligated to pay any any additional fees out of pocket. The fee amounts are going to vary a little bit by asset class. So, Corin will drop the uh the FAQ for me here. Uh but there’s basically a different set of fees for the single individual properties, the single family fund, the real estate income fund, any kind of etc down the line just because each of these asset classes takes, you know, different amounts of work on the front end for sourcing and different amounts of work on the back end for management. So, the fees are adjusted a little bit to kind of um reflect the operating costs on our side. The the nice thing is that the fees are going to be the same within a category. So if you’re looking at individual single family properties, it’s the exact same fees amounts um across all the different properties. And we did that on purpose so that if you’re evaluating a property that’s in Atlanta and a property that’s in Phoenix, you can just pick that investment based on the merits of the investment itself. you know, what’s the location, what is the rent, what are the returns, and not have to also be factoring in, well, also, what are the arrived fees and and are the arrived fees higher on this one, lower on the other one, and should that drive my decision? So, the fee information is in the uh the FAQ that Karin just dropped. And then on the I think financials tab of those properties that we were just looking at, you’ll see all the same information and links for more content there as well. Fantastic, Jake. Thanks for going into great detail there. Let us know folks if there’s any other questions on fees. We’re happy to walk through it. I think we cruise through everything today so we can gear up to close our virtual doors. But Jake and Kyle, any closing remarks before we shut our virtual webinar doors today.

That’s all I’ve got. Um, thanks for joining. I know we did a lot of content in this whole 45m minute presentation. So don’t be a stranger and feel free to shoot us an email at supported arriveive.com or join another webinar next week and happy to kind of continue the conversation and like we said want you guys to feel like you fully understand everything that’s going on before you get started and thanks for hosting my first webinar debut here. It was it was great to to meet everyone and I’m looking forward to to subsequent webinars and getting a chance to know you. Absolutely Jake. Thanks so much for your time as always Kyle. absolutely exceptional to have you on your first webinar. You’ll also be on our Q3 webinar uh prop or our financial performance webinar coming up next week. So, if folks have not attended, I definitely recommend doing so. Even if you have not invested yet, we walk through performance for all the different funds, individual properties. U sometimes Ryan gives a sneak peek into what’s coming down the pipeline, which you got a little bit of that today from Jake and Kyle. looking forward to all things arrived and hope you all have a great rest of your day. Thanks, Alex. Bye all.

Jake and team, thank you so much for prepared remarks. Cameron, you probably saw we have folks from all over the country today, which is fantastic. I’m curious on the folks that are having audio issues if you can hear us now. Um, if not, you won’t be able to hear this, but I dropped details in chat. Um, so let us know if you’re still facing that issue. For all folks on the line, we will send um the recording to all registrants, so you’ll have that as well. Uh, Robbie Robbie mentioned audio is very quiet if you turn volume level low. Okay, awesome. Looks like we got some folks clear here, which is great. Uh, feel free to drop any and all questions in chat. This is your time. We want to be sure that you if you’re confident in choosing to invest on arrived or not. Also, I will call out too, we currently have a $25 credit offering. So, this is for new folks. Um, you have to have a new account and then connect your bank account to arrive and then attend one of these webinars. Um, and then you’ve if you’ve not received a credit before, you’ll receive a $25 credit post webinar. So, definitely take a peek. I dropped a handout at the beginning of the webinar for your for you all to take a look at. But Cameron, you’re the most important part here. What are you sipping on this morning? I have coffee. It is. It is uh cloudy season in Seattle now. So, definitely have to be on my second cup. Absolutely. I’m I’m not letting go of iced coffee quite yet. So, we will see uh how long I last, but it definitely is quite drizzly in Seattle today. But, all right. Feel free to drop any on and all questions. Cameron, maybe the first one we go through um is how fees operate on arrived investments and then maybe we’ll jump into liquidity. We covered both in prepared remarks, but I feel like those are typically our top two questions that we get. Yeah, sure thing. So, the general fee framework arrive at arrived um you know there’s variations depending on the product, but there’s really uh two primary types of fees. The first one is called a sourcing fee. So, as we procure assets and whittle down the market from everything you could possibly invest in in real estate down to the very uh specific and select investments that we uh underwrite and that we transact, we go under contract with, we do all of the due diligence um and most of the time that we’re putting up the money and purchasing it before investors are even uh having to come in. So, we derisk um a lot of that upfront procurement process. that sourcing fee, you know, ranges on different products, but for properties, it’s about 3.5% of the purchase price of the home. So, for every $100,000, then that would be a $3,500 charge on the sourcing fee. And, you know, that accrudes all to the investment. So, it’s not like you, the investor, are paying a single, you know, portion of that. It’s whatever prata um of that. So, if you’re buying a $100 shares, then, you know, it’s it’s scaled down to that amount. And then on the back end there is ongoing management and monetization of that asset on a recurring basis. Um so the asset management fee it comes out to about6% of the purchase price of the property per year. So on that same $100,000 investment then it would be about $600 per year that is taken out from that and that is for really the experience of being completely passive in the investment. So we take care of all the monetization. Uh every asset sits within an LLC. So there’s a lot of entity administration. It pays for um also like the tax statements at the end of the year. And really just you know you invest your money, you get your dividends and the the returns and then you get a tax statement um at the beginning of that uh tax year. So really that that whole experience of active to passive um is what that asset management fee is for. And again different products with different fee schedules, but that is the general framework of you know a onetime sourcing fee up front and then a recurring smaller management fee on the back end to go active to passive. Fantastic. All right. Okay. And I dropped an FAQ um in chat too on how fees work and then we outline all fees on each and every offering page for all investments under the financial section. All right, moving back over a good one from Brent. So you go to connect account and then it’s automatic, etc. before we kind of decide our investments. Good question. So um in prepared remarks, I think Cameron we mentioned or Jake said that it takes roughly 4 minutes to create a new account. From there, Brent, you can go to our invest page and choose which investments that you’d like to invest in, but it’s entirely up to you. I know for new accounts, we are also offering um a diversification option, which essentially invests a certain dollar amount into all investments on a ride, and it’s instantly diversified, but essentially, it’s up to you to decide which investments you would like to invest in. All right, moving back over here. A good one from Abraham. It sounds like our audio is working too, which I love to hear. Uh, how much do I have to invest to make a monthly steady income of $500? Yeah. So, you know, the answer is going to vary depending on which product, but our most um income and dividend heavy product are our credit funds. So, historically, it’s paid out around 8% on the credit funds. So, let’s do some back of the envelope math. So, let’s say that uh you want steady income of $500 per month. So on an annual basis, you’ll be looking at about $6,000 per year. And if you’re monetizing at a rate of 8%, then you would take the inverse of that to be a multiplier of how much principle would you need to invest to get that type of a return. So the inverse of 8% is 12.5. So if we take 6,000 * 12.5, then we’re at $75,000. So, if you were to make a $75,000 investment into the credit funds, that would generate on a stabilized basis around that $500 uh monthly income that you’re looking for. Caveat, any different uh type of investment product, it will be subject to kind of the es and flows of the market as well as what the composition of that fund’s assets are. So, it can oscillate back and forth, but for some back in the napkin math, it’s that. And then if you were to invest in say our single family residential fund or various combinations of our individual properties, those monetize at about half the rate. So around 4% on the dividend yields. Uh rental homes do yield lower than credit products. But there is the expectation of a longerterm hold with appreciation that is tax advantage built into that. Um, so roughly if we double that and let’s say you were to generate $500 per month on properties, let’s say that you would need about $150,000 investment to be generating that income. But then over time, your portfolio will change with the change in property values and appreciation over time. And there’s also depreciation that is being taken out as well. Also there’s some tax advantages of investing in real estate versus credit uh instruments which you know is basically you become the bank where you lend money out and then uh real estate entrepreneurs who are doing groundup construction fix and flips etc. They are paying interest into the fund. So it’s interest income which doesn’t really have um those tax advantages that investing in depreciable property like an underlying rental home would have. So, the math is not quite that simple once you factor in taxes, which are a real impact. Uh, but with that said, if I were to back in the napkin math for you, about 75K into the credit funds or double that for pure property investments. Oh, you’re on mute. Perfect. Awesome. Thanks for walking through it, Cameron. Let us know if there’s any follow-up questions there. Happy to walk back through a great one in here. So, how long do you keep a property before selling it? And will that decision depend on market condition? Great questions. Yeah. So, you know, the north star on when we sell a property is really what delivers the highest irr, which is the internal rate of return or kind of the annualized return um during the holding period for investors. So, if we’re in a down market, we tend to not want to sell for a loss and like lock in that loss. So to the extent that we’re trying to maximize the IRR um while during that holding period that that’s our north star for a lot of properties we initially estimated about 5 to seven years and there’s a couple that we’ve sold um on the arrive platform um you know around in that time frame. Um but you know to the extent that we need to hold longer to wait for appreciation or if it’s more of a buyer market right now and more of a consolidation opportunity to to make investments but not sell then you know we would hold it longer. So there’s not a hard defined period where if it hits 10 years we absolutely have to sell. It’s really following that northstar of what is best for the investors in that property uh to make sure that they get the highest return that they can. So, we do look towards normal market signals of like when it when there’s a fast runup, then that would be more of the time to sell. Um, and if there’s, you know, a down market, it’s probably not the best time to sell. But there there is another solution in here cuz everything that I was talking about was at the property level liquidity. So, if we were to sell the property, say you and your thousand friends who are invested in that individual property, you know, we would close, we would wind down that one specific investment and then return all of the proceeds back to the investors. Um, there’s that other option where if you need to sell before the property is ready to be sold, let’s say that you wanted to redeploy cash somewhere else or there’s a life event where you want to pull out that cash to service that life event. Then there is investor level liquidity which is I think one of the really cool things about the arrive platform is that you can get your cash out of the investment um even without arrived selling the underlying property itself. So for individual properties we have the secondary market which functions much like a stock market like we’re famili like what we’re familiar with of buyers and sellers coming together to transact at an agreed upon price through a mechanism that kind of matches that interest. um in the in the investment. Um so there’s a minimum hold period of 6 months but once you clear that then you are able to uh participate in the secondary market to pull your money out. Um so that is uh I think a really great feature that gives flexibility to an asset class that traditionally doesn’t have that much flexibility. Uh you know real estate is a long-term hold in general it’s going to per perform better as a long-term hold. But with that said, life happens and you may need to pull your cash out. So we have that available for individual offerings. And then for all of our fund offerings, so whether it be the real estate income fund, the single family residential fund, our Seattle city fund, any of those funds, we have the redemption program, uh, where on a quarterly basis, the price of the shares, they get revalued and then arrived will serve as the intermediary to cash out those shares for you. So, if you bought in at $10 and let’s say that a fund is now at $10.50 and you decide, well, I need to pull my money out, then you submit for that redemption request and then in that quarter period, Arrived will fill that order. Uh, to my knowledge, we’ve been able to fill 100% of orders in all of our history. So, that liquidity is real. It’s not just a uh, you know, a marketing slogan. And then in our secondary market, um, I believe the overwhelming majority of orders, they usually find a match with them. So if you need to exit then you know we have mechanisms both for individual offerings and uh fund offerings uh but yeah you know the hold period for properties they vary with that northstar of let’s make sure each individual investor gets um the highest return that we can that you know our that our judgment is based on. Fantastic. All right and I’ll move back over here. Another one from Abraham. I can take this one really quickly, but Cameron just walked through how liquidity operates for all funds. So, the redemption program applies to Seattle City Fund, uh, real estate income fund, and single family residential funds. The secondary market is only for individual properties, so long-term rentals and vacation rentals. The one call out here is minimum investment for all or minimum hold period for all investments on arrived is 6 months. But I just want to call out that it’s quarterly redemption windows. So I shared an example or shared an FAQ rather on what those dates look like. So once you’ve hit that six months for any new investment then it becomes eligible to submit for a redemption but then it’s within the quarter. So it can be longer that you are not having access to those funds. So I like to mention that so there’s zero surprises if you should need to redeem um your funds at any time. So I dropped that FAQ just for a little more insight there. But let us know if there’s any other questions. Happy to walk through it. Um I’ll also say with once you invest like Abraham, let’s say you invest in reef or um SCF this month and then you do one next month and then the following. You can go into your investments and see those dates for eligibility as well. And then it’ll have a green check mark u once it is eligible. Lots of details there, but let us know if there’s any followup. Happy to walk through it. Kelly had asked, um, please explain the credit fund in a little more detail. Again, when we’re referencing credit, that is our real estate income fund. So, I’ll kick it over to you, Cameron. Yeah. Yeah. Great question. So, uh, let’s let’s take let’s take this question in in two parts. First, a fund versus an individual offering, just so we’re kind of, um, clear on the mechanics of that. And then I’ll explain credit versus a rental homes. So on the individual investment, uh let’s say that we take one house that’s 300K and then we’re putting it into its own contained investment. So we we create arrived Main Street LLC that is the title holder to that property and it is one contained uh investment where we’ll fund 300K into that property. So you you and your thousand friends will will fund that investment and then it becomes closed. So no more investment coming into it, no more dollars coming into it, no more assets coming into it. it is one LLC with one property and a thousand people that are invested in in that property and you’re kind of co-owning that home for the life of the asset. Uh a fund is and more specifically an evergreen fund is an investment vehicle where there’s one LLC and then there’s a lot of assets in there and then there’s a lot of investors in there and you can keep investing 24/7 all day all night 365 days a year and it’s and that’s why it’s called evergreen because it’s always it’s always open to take investment and as we get more cash into those funds then we deploy them into assets. So we’ll be purchasing rental homes or we’ll be purchasing credit assets. Okay. So that’s first the difference between the individual offering that we have versus the evergreen funds uh that are open the three that Karin had mentioned. Okay. So now let’s talk about credit versus rental homes because this gets to the heart of what is the a what are the assets within each of those vehicles and how do investors earn dividends off of that. So when we say a credit fund like the real estate income fund, which it is, we’re saying that the underlying assets are credit-based investments. So a real tangible way to imagine this is that we are buying loans from different originators that work with real estate entrepreneurs. So let’s say that there’s a local developer out there who’s building up a five unit uh you know, he he bought a 2acre parcel and he’s putting five houses on there. So developers uh almost always borrow to be able to build homes because they’re super capital intensive, but this is good collateral. They’re, you know, their homes, right? You know, it’s it’s it’s not that it’s not a risky venture, but it’s, you know, different than like an automobile loan or a credit card loan. You know, those those have a lot more risk involved in that. So the originators or the lenders as you know and banks are also originators you know for mortgages but in the the niche that we’re playing in is really uh real estate entrepreneurial ventures where it’s groundup construction or fix and flips and really just adding inventory to the market. So the underlying security of these loans are the homes themselves, right? The parcel of land with the building going up on it. So, we purchase these loans from the originators because these originators, they’re not in the business usually of holding all the loans because that’s capital intensive. You need a you need a lot of money to be able to support the loan. What they do is they find borrowers, builders, flippers who are in need of the money. And they create the terms of the borrowing and they say, “Okay, here’s your loan on closing day. Those five properties, that’s going to be a $2 million project. we’re going to lend you $1.5 million on this. So they they issue the loan for $1.5 million and then arrived. We have relationships with originators where we are purchasing those loans because we need to we we buy that for the we buy the $ 1.5 million loan and maybe it’s a uh 10% interest rate on that loan. So those originators, they want to recycle their capital because they want to keep issuing money to new borrowers for new projects because that’s the business they’re in. They’re not in the business of buying and holding for the interest. They’re out there making the relationships with the real estate entrepreneurs to issue the money. Then they want to recycle their capital. That’s how they make their money. So, we purchase those loans or those credit assets and hence kind of the heart of the question explaining the uh the credit fund in more detail. And as we’re purchasing all those loans from, you know, the $90 million now that we have in the real estate income fund, we’re buying that, we’re deploying all of that cash that investors are putting in, and we’re buying a lot of different notes or loans uh issued to these, and they’re all secured by the homes themselves and these different the the different projects uh from different borrowers. So, we create this diversified portfolio of loans all across the country, secured by different types of real estate with different borrowers. And then we’re getting paid interest into the fund because as the lender we are now entitled to collect the interest from those borrowers. So in a nutshell that’s how the credit fund works and what are the assets underneath and kind of the evergreen nature of it. But basically we’re receiving interest income and then we distribute that interest income out as dividends to the investors. So the um one of the initial questions was asked about creating steady income of $500 a month. Um, and I said, “Okay, let me give you an example using the credit fund.” That’s all supported by borrowers paying interest to the fund because we own the credit assets, which are the loans that support the dividends. And then once they finish their project, they will sell it on the open market. So, there’s a home buyer out there who wants to purchase the home. And then on closing day, they pay the loan back with interest and principal. Um, usually they make monthly payments. Sometimes they’re deferred, but they’re paying the principal back. And then that’s when we recycle the money back to buy the next loan. And that and that’s how it works. Um very much like any other type of fund. And we have other funds out there that are more supported by properties. So as investors are putting cash into the single family residential fund and the Seattle City fund. We’re taking the cash that investors are putting in and then we’re buying assets with them. So in that case we’re generating rental income and we can also put some credit assets in there. So, a lot of our funds, they also have credit to kind of boost the yield a little bit um as a cash management strategy. But that’s really the core difference between say a credit fund and a real estate income or and and then a real estate fund uh is just what are the assets in the fund that support the cash flow and then the growth of the share values. Um credit funds, we don’t really have the expectation of appreciation because we’re only entitled to our principal back, right? So if we lend that $ 1.5 million, somebody pays, you know, 10% interest for a year and then pays the 1.5 million back. There’s no appreciation on that 1.5 million. It all all the returns come back in the form of interest payments and then we issue those out to investors. So hopefully that was a uh that explored the mechanics of of what you were looking to understand, but if there’s other questions, please let me know. Fantastic. Always very well in depth. All right, moving back over here. A good one from Tina. There’s a couple different ways to answer it. What is the lowest and highest investments? I dropped some details in chat. Uh, essentially the lowest investment across all offerings is $100 and then the max is 9.8% of the equity available in those offerings, but there’s no max to the number of investments you can make. So, for example, our individual properties, it’s going to be a lower amount because of due to that 9.8%, 8% but you could max in multiple properties at one time. For our uh fund investments, the max is much larger given all the funds that are available there. So, it really depends on um the funds you want to allocate and what you want to do. Cameron, maybe we talk about the why behind that 9.8%. Yeah. So, almost all of our investments are are registered as uh real estate investment trusts. So REITs and the reason to do that a REIT is just a tax designation. So what it allows you to do is to create what is traditionally two layers of taxation in like a company structure where first the profits of the company get taxed and then the distributions to the investor get taxed. A real estate investment trust collapses that into one pass through tax treatment that has the connection with the investor to to make and that was kind of words but like abstract like what does that mean? So let me give you a quick example. Let’s say that there was a rental property in California and you live in Texas. So in California, we all know that there’s state income tax there, and that applies both to individuals as well as to entities that are, you know, making profit. But in Texas, there’s there’s no state income tax. So if the investment, the LLC that’s held in California is structured as a real estate investment trust, then any profits that are generated there, they pass through to the investor tax-free. So the first part where I said is if the entity has a tax obligation and it and it’s in California, it can avoid that and it can go straight to the investor who lives in Texas and then you escape state income tax that California would have had a claim on um had it not been uh registered as a real estate investment trust. One of those rules though is that there can be um there has to be a 100 minimum shareholders in any real estate investment trust. So the way that we make sure that each one of our investments meets that hurdle is that we have to cap the amount that any one investor can own. Because imagine that you know there were 30 people who really liked investment. They’re like I’m going to make larger investments because I just really like this one. the that’s great that they love it, but the problem is at the entity level, it wouldn’t qualify for real estate investment trust tax treatment, which is one of the keys to making our model work as real estate investment trust to be able to pass on the um tax advantage nature of having reinvestments. So that that is one of the primary reasons why we do limit it to 9.8%. um and and and why we qualify them as real estate investment trusts. Fantastic. Awesome. Thanks for walking through it, Cameron. Let us know if there’s any questions there. Happy to resurface. All right, moving back over here. Uh does one in does one investment in a particular property or sorry does one invest in a particular property or the investment is distributed across arrived larger portfolio. In that regard can one deduct uh that the return you advertise depends on the specific property performance or arrived overall performance across all portfolio compounded together. Sorry, it was wordy and I needed to slow down a little bit. Yep. Yep. For sure. Um so there’s really two different types of investments that we have on arrived. One is a fund and one is an individual offering. So you know to to your question about does one investment spread over many properties in a fund that is the case. So in our single family residential fund for example we have 56 properties. So you can still make a $100 investment into that which is great to be able to have beneficial ownership of 56 different properties. Now, it is a smaller percentage, right? Because that fund is over $20 million of capital in there. Um, so $100 investment is a small percentage of that. But nonetheless, the cash flows and the performance are supported by those 56 different homes. It’s just chopped up into much smaller pieces. Um, on the other hand, if you have an individual offering, those are self-contained because you are a shareholder in that company that is on the title for the property. That’s how the whole fractional model works is we spin up a company, call it Arrive Main Street LLC, and then the title holder to 123 Main Street is Arrive Main Street LLC. So, you’re a shareholder in that one company, but one company only. So if you do really great on that property, but then there’s another property that just does average, it’s not a, you know, and and and you don’t own that other property, it’s not averaged as part of your total return. Those are self-contained. The only kind of sharing across different assets is when you invest in a fund and then you then you get the the benefit of spreading out your investment across all of those different assets. Um, so it’s really at the product level that determines the answer to your question of are returns distributed over a pool of assets or are they self-contained. Fantastic. Awesome. And I dropped a FAQ or a blog post where you can see all those different investments, but I’ll say to the in our invest page is a great place to go take a look at it because you’re able to see all the different funds in there, the individual properties, and take a look for further detail. All right, a good one from Christopher. I answered in chat, but always good to chat live. Will there be more vacation rentals soon? Yeah, you know, it’s an asset class that has gone through a lot of changes over the last four years, and I’m happy to say that we have internalized the management of 32 out of our 40 uh vacation rentals. Long story short, the industry grew a lot during the pandemic era. Um, and there were just a lot of property managers that weren’t up to our standards in performance. So over the years, we’ve gone from eight different property managers in around 18 markets down to two property managers, ourselves and one other property manager in the Scottsdale, Phoenix area that we really like that has great results and you know, we’re very happy with um that company’s performance, but we’ve internalized most of ours. So I I the direct answer to your question is we are still in a phase of um internalizing, stabilizing, and getting our own operations. uh we feel that we’re much more aligned with our own investors whereas the property managers that we had before um again they just weren’t up to our standards. So as we finish stabilizing those out re make reinvestments into those and then really kind of rehabilitate their performance then I think um more vacation rentals is on the table uh where you know we can look at really unique experiences. I one of our most successful investments on arrived ever is a vacation rental um that was internalized fully by us and it’s uh we we call it the buyer’s house but what it is is the actual house used in the filming of the first three seasons of Stranger Things. It’s where Will Buyers and and his family lived and that as a vacation rental experience has been just a a wild success. So we have people from all over the world who actually specifically come to the US to go stay in that house and then they you know they go on a kind of movie and media tour but um you know it’s been a super successful vacation rental. So we’re eyeing those types of um you know kind of IP brand intellectual property branded and like really unique vacation rentals um because that’s where we think the the best investments are. Uh but those are also more deliberate. They’re a little bit rarer in opportunity, but now that we have our vacation rentals largely internalized and managed, I think that expands the range of flexibility that we have in making additional investments. So, you know, it’s a little bit quiet right now as an asset class, but it’s definitely a core of what we do here at Arrived, especially because we internalize the property management of those. Um, so look out in the future, but right now we’re still um repairing the existing uh 32 out of those 40. Absolutely. It’s been a massive overhaul. Huge kudos Cameron to you and the team for all the operational behind the scenes. As we know, vacation rentals are their own beasts in terms of how active they are. It’s another uh if we weren’t making changes, that’s when I would be concerned. So, it’s awesome to see everything the team’s done over the years. I’ll say too for any fully funded property, so that means that you can no longer invest in them. All of the equity has been purchased. The properties can become available again on the secondary market. So to access the secondary market, investors must have made their first investment at least 60 days before the start of the trading window. So if it’s right on the cusp there, it will have to be before uh that 60 days to be eligible. I mentioned that because I saw folks asking um about investments um in Florida and Georgia, which are two um states that we currently have investments in. They can become available again on the secondary market. But Cameron, thoughts on expanding to more properties uh in Florida or Georgia? Yeah, so I think with Florida, you nailed it with the the insurance costs. When when we first started and and made our investments into Jacksonville, uh insurance costs were running somewhere around 80.8% 80 basis points to 1% and since then have gone to over 2.4%. uh is basically like paying another expensive property tax. So on long-term rentals, the issue has been um making the dividend yields work and and the rental economics work with really high uh insurance costs, and we just haven’t found that it’s been worth it to um ma make that offering. I will say though that Jacksonville is a bit of an anomaly. To my knowledge, it’s it’s the one major city in Florida that actually doesn’t get directly hit by hurricanes. Um so I do think that there’s potential and and and possibility there um for the future where we have more investments is actually on the vacation rental side. The reason why it can work there despite being subject to high insurance costs as well is that the monetization is higher. The cash flow is higher. So if you have we have uh beach market rentals in u Panama City Beach for example. There are some in the Tampa area and those can work out because we generate enough rental income through uh vacation rentals to be able to offset the high insurance costs. With long-term rentals, you don’t have quite that flexibility because you’re kind of moving within a range of like 1,500 bucks to 2,200 bucks a month for long-term rentals. And when you have an insurance cost that is $8,000 be because, you know, on a on a $300,000 asset, you can uh really rack up an $8,000 insurance bill. Like the the the cash flow just hasn’t worked out there. Um so vacation rentals, yeah, I mean, we already have a presence there. We’re internally managed. We could expand there. I think long-term rentals is going to be tougher, especially because insurance is an annual contract. So if rates go up, like there’s not much you can do. Like you can’t lock in your rate for like 10 years and say like, “Okay, I’m I’ll locking it in like a mortgage.” Insurance is just is repriced every year and you can’t do anything about it. So it’s one of the additional reasons to not make that bet when you’ve seen an increasing cost and to subject yourself to a changing insurance contract every year. Maybe it goes up to three, maybe comes back down. And if it does come back down and the insurance industry repairs itself and distributes its costs in a different way, sure, that’s back on the table because it’s certainly a high growth state. There’s no state income tax. A lot of people move there. There’s a lot of reasons to be attracted to Florida, but insurance is the absolute killer. Um, at least on the long-term rental side in that market. Definitely. Yeah. Thanks for walking through it. Uh, for Tina and folks on the line, feel free to drop specific markets with within those states. Cameron’s the best one to hear it and we’re happy to share with our team as well. All right, it looks like I believe we walk through this in prepared remarks, but always a good one to walk through our conviction and the investments we have. Uh do you uh can you share Cameron why we have great conviction in single family residential properties as a whole? Yeah. So, so primarily, you know, to date we have been single family residential oriented. I would say it is not the only asset that we’ve invested in. It is not the only investment that we will uh invest in. In fact, we’re actively looking to uh different asset classes right now. But the reason that we had the strongest conviction in it is that it’s a really good blend of a couple things. So, first, you can monetize it and uh still get, you know, some good appreciation on it over, you know, over your holding period. Real estate is one of the few assets that actually appreciates and it’s not the building itself. It’s actually the land, right? land appreciates building they but the value of a home goes up because land becomes more valuable. So there’s there’s that reason where you can monetize it and that really keeps you in the game for a long period of time because as you’re monetizing you can you can continue to earn income that’s tax advantaged and wait for the right cycle to then capitalize on appreciation. two, it’s one of the most uh lendable assets that there that there is in America. We have all these different government agencies and banking infrastructure that supports borrowing against those properties. So, you know, it’s it retains its value and appreciates. It creates income. It’s tax advantaged. It’s highly lendable. It’s highly liquid. You know, with all things considered within real estate, you know, you compare that to a skyscraper. there’s not many participants in the market who are going to buy a skyscraper, you know. So, so commercial property has much much lower liquidity like buyers and sellers um that transact. U so if you had to sell at a discount like sometimes you hear about these office buildings that used to be $100 million that are now selling for like $22 million some some insane discount uh because there’s there’s no liquidity in that type of a market. There’s just not as many participants. But then with single family residential, you basically have everybody kind of aspiring to that American dream of home ownership and it’s lendable and you want to live somewhere and there’s neighborhoods being built and it’s a smaller price point where you can buy a $250 to $400,000 house and borrow against it. So there’s all these reasons why as an asset class there’s just so many structural advantages for investing in it. Um, so that’s really like the core nucleus of what we build, you know, like what where we have investors build their asset portfolio around. But then as we expand and as we’re also navigating different cycles, well, you know, we brought in credit assets for stronger income because that as interest rates went up in late 2022 and throughout 2023, we needed a new investment product that could compete with higher rates that you could get at the bank through money market funds or or certificates of deposit. So, we’re always evolving um on the products that we’re offering and they’re they’re, you know, really grounded in real estate. Uh but different cycles are going to have different uh plays that are more creative and we’re incrementally layering on those different asset classes that give investors that access to it. You know, we added vacation rentals, we have credit assets now, and we have um multif family investments that we put into the Seattle City Fund and we’re looking to expand uh that as well. So, I think that we’re very nimble when it comes to well, what makes the most sense in the moment, but we still have a strong core conviction that the single family residential asset class for the reasons I just described are kind of that core nucleus of what is a solid real estate portfolio that you can feel good about and hold on to for a long time and then layer in the other things. Fantastic. All right, we have one last question before we shut our virtual doors today. One from Ro. Uh, they just invested in our first Las Vegas property, Cameron, um, the Sophie. Will there be more Las Vegas properties offered in the future? Yeah, definitely. So, I I actually used to live in Las Vegas. I live in Seattle now, but I lived in Las Vegas right before. And I think it is structurally a really great market. Um, so my answer is a strong yes, there will be more properties offered in Las Vegas. It’s more of a timing issue and the right opportunity issue. And I do sense that because it’s a little bit more of a buyer market, there’s some good accumulation opportunities right now. California, its neighbor, is such a strong economic center with such high real estate values that I think that’s going to support the Las Vegas market for a long time. One of Las Vegas’s problems is that it has a very uh discretionary based economy, right? It’s tourism. It’s where people go to have fun. And when the economy is great, Vegas is ripping. when the economy is down and people don’t have much, you know, money to go spend, the the core economy of Vegas itself suffers a little bit. Um, so it’s really kind of a bifurcated market where like a lot of the working class in Vegas, um, you know, that they can they can be in a bit of a a slump, but where I think there’s structural demand is that cost of living disparity between California and Nevada or, you know, Las Vegas. Los Angeles is only a 3 and 1 half to 4 hour drive away. And what a lot of people do as they age in a retirement and they don’t, you know, need to make money anymore in California, they sell their property, they move to Vegas and they kind of have an arbitrage on the quality of life. There’s also no state income tax in in Nevada. So, there’s kind of a a theme that we have in investing with like, well, when there’s no state income tax, that’s a natural, very strong structural reason to encourage people to to move there. Uh, so I feel great about Las Vegas. I think it’ll be a strong market. It’s it’s kind of constrained too from a geography perspective. Like there’s mountains all around it. So there’s only so much area that you can really build around. Um so you know we expect values to appreciate in the long term. Um and there’s plenty of wealth in its neighbor that support the the home values there. Um so I think it’s a great market, but like with all things real estate timing related, um you can feel great about a market, but it may not always be the right time. But I do sense that um ve with with Vegas particularly there there’s good buying opportunities. So I would look out for more and especially since the Sophie did quite well at least up well that you know that’s it’s good validation on it. Um so keep your eyes out for more in the Vegas area. Absolutely. Yeah. So appreciate the interest there. Um we’re grateful to have you on board as an investor now too. All right Cameron, any closing remarks before we shut our virtual webinar doors today? always uh fun and happy to do these webinars. Love the questions. Um you know I think Arrived is just such a great solution for a real problem in the market. When when we first started this company it was really built on this one stat. Um there were 67 or nearly 70% of people had identified in a survey that um they thought that real estate was the best way to acrue wealth and kind of build a solid foundation for their portfolio over a long period of time. And you contrast that with what percent of people owned investment real estate and it was some small single-digit numbers like 6 or 7%. So there’s really this huge dislocation of market where a lot of people want to own real estate and very few people are able to because you need time, capital, expertise in being able to do it um well. So you know I think arrived is just such a great solution for that particular um you know need and and want to invest in real estate but not really having the means to. So, um, you know, we have a great platform and a great investment thesis and it and it’s only going to build from here. So, um, I think it’s just such a cool business model and always appreciate everybody’s interest in in what we’re doing here as well as all the questions on the webinar. Absolutely. Well, Cameron, thank you for all the time spent in hundreds of webinars over the years for building products that investors believe in and placing all your trust in arrived and seeing investors place trust in arrived as well. So, uh, we wouldn’t be where we are today without your, uh, DNA woven into all of the investments that are on Arrive. So, I’m very grateful to have had the opportunity to work together for so long. Um, but one last question here from Tina before we close our virtual doors. Again, we can’t make recommendations because we’re not registered adviserss, but we can always share details here. So, where would you recommend a new investor start? Yep. So I do have a general answer for this. Um and I and I want to try to make it a little bit more um you know not not just like oh blah blah diversifi you know uh but there there is definitely some elements to diversifying. So, you know, I would say both get a couple of properties uh just to mitigate some of the risk that is involved with say rental operations because as we as we think about the idea of diversification that can apply in a lot of different ways. It can mean geographic diversity, it can mean tenant diversity. So I would I would say like everybody’s got opinions and everybody has strong beliefs, but there is some element of diversification that does kind of help protect the the rockiness of investing in any one single investment. This applies to stocks, this applies to homes, this applies to really anything that you’re going to invest in. But the main thing that I would say is be aware that there is a very strong rental operation volatility that can exist even within the same market. So, if you have a really strong conviction to invest in Tennessee, as an example, and you know, Knoxville specifically, I would say make those Knoxville investments, but don’t put all your eggs in that one Knoxville home. You know, if you’re going to if you’re going to invest 200 bucks, spread it out over two homes just because if one tenant is not paying or there’s a move out, your other one can help, you know, help continue the stream. Um, even better is the single family residential fund. That is a great starting investment in the sense that it does help you diversify across those 56 properties and can um serve as kind of a buffer on the volatility in any one investment. So on one hand I say diversify but more so for the the volatility reason of just real operations of people moving in moving out falling under hardship and not being able to pay. But on the other hand, have conviction and invest in what you believe in because most importantly, you need to be able to stay in this for the long run, right? Real estate, you want to be able to hold for a long-term investment. It’s generally going to perform over a longer period of time. In the past, I’ve traded my way out of profits when like I was trading stocks and I was like too active and I was like, “Oh, I’m, you know, just kind of chasing random headlines.” I always lost money doing that. If I had conviction in the things that I was like, “Yeah, I should just invest in that.” and I kind of set it and forget it and looked away, I would have done a lot better, just like my own personal investing journey. So, I say all that to say you have to be able to sleep at night and hold things for the long term because that’s generally how you’re going to be able to get better returns in something and you’re only going to be able to hold it longterm if you really believe in it. So, that’s why I would say invest in what you believe in, but get a little bit of diversification just to absorb the volatility of like real life operations. Um, that’s my general advice and we have a lot of different products, right? So you you know you have rentals, you have credit that we talked about. I think credit is an awesome product just because it it’s it’s interest. It’s secured. Um and there’s a lot of great things about it. It’s a little bit less known because this as an opportunity has not always been available to people. Um it’s usually an accredited investor only type of um investment. So I think it’s so cool that Arrived has been able to turn credit assets into an investable fund that like is significantly higher than what you’d be earning from a bank. Um, so you know, if your if your focus is on like highest income possible, I would look towards credit investments. If your goal is, hey, you’re interested in um, you know, doing the fractional landlording and being passive in it and owning properties, then diversify a little bit, but invest in something you really believe in. Absolutely. Yeah, Cameron, thanks so much for walking through it. And again, we’re not registered adviserss, so we can’t give specific advice as it there’s a lot of different details in there. That said, we are potentially working on ways where we’re unlocking options and uh being able to give more details. So, more to come there, but very excited. Uh Cameron, thank you again for walking through every single question that came in in great detail. For all the folks that spend an hour nine with us on your Tuesday morning and afternoon, so appreciate you all. Fantastic engagement, wonderful questions. You can always join these webinars. are typically Tuesdays at 9:00 a.m. PT to jump into. Uh if any if you have any other questions that come up, feel free to reach out to supportaride.com. You can also use our chat function in the bottom righthand corner of our platform. We’re live on all social channels. The one that’s most community- based would be our subreddit, so you can jump in there as well. Uh but I’m seeing lots of great Tina, um Brent, and others in in chat saying thank you. Well, thank you. We wouldn’t be here without all of you. So, happy investing and hope you have a great rest of your day. All right. Thanks everyone. Thanks Karen. Bye.

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.

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.

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.

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 upon us. 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. 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 play. 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 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 uh 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 2 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. So 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, 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 on boarding. 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. 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 obligate, 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 prospectus review?” Yep. So all of our U 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 five to seven on IPO and 5 to 20 years elsewhere. Yep. So there’s that good observation that some places say 5 to seven, some places say 5 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 cuz 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 is 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 it 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 Rashid 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 know more people outside of the US. So uh you know Rashid 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 know, 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 supportive.com or you can use that chat function in the bottom righthand 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.

All right, thanks everybody for joining. My name is Cameron Woo and I am the VP of investments at Arrived. Been here about five and a half years. Uh usually we have Karen Hedland who’s head of our investor relations. Um but she’s on some well-deserved time off so you get me today. Um so happy to answer all the questions in the chat as well as any questions you may have additionally about real estate, rentals, credit, investing. um you know happy to answer the full spectrum of questions you all may have. So let’s start with some of the ones earlier in the queue. Uh we’ve got one here. During an offering investment open period, is there any difference in returns to investors um for the money received from the first investor versus the last investor before the offering is closed? Um so the the short answer to this question is no. there’s not really going to be any difference. And typically our investment offerings, they close within 2 to 3 weeks or so from the time that they open. I think the instructive part of the answer is that when we offer something for investment and it shows up on the website and you can invest, all of the financials start acrewing to the balance sheet of that investment. So each individual property, they’re going to be in their own self-contained LLC. So all the rental income as well as all the costs are getting attributed to that entity. So as you’re coming in and investing, let’s say that you may not have your shares yet, but you know the rental income is ready to be distributed. Then those shareholders that are invested, they do receive that um that dividend, you know, presuming it’s generating cash and everything like that, but all of the financials are acrewing to that entity. Um, so there can be minor variations in whether you received the dividend or not based on that timing, but again, all of those financials from from the moment that it hits the website and it’s open for investing, then all of those acrew. The slight difference is if you’re invested in one of our fund products, so that could be the single family residential fund, the Seattle city fund, the real estate uh income fund. All of those are what are called evergreen, meaning that they’re always open and you can invest at any time. And based on when you’re investing, you may qualify for a dividend that somebody coming in later does not qualify for. Works exactly like the stock market in the sense with X dividend dates where if you are a shareholder by a certain date, you would be entitled to that next quarterly dividend or however that public company is paying it out. It works the same for our fund investments. All right, let me know if there’s any other follow-up questions from that. The next question is, is there a way to defer taxes by transitioning principal and returns from one investment to the next with arrived? So, the short answer to that is no when it comes to individual properties. Um, but there are some tax advantage possibilities in funds and I’ll and I’ll give you example. So, first at a high level, each investment when you’re individually investing in properties like one 123 Main Street, they are that self-contained LLC, but it’s a security. Okay? And what that means is your your limited partners that own the company, which the shareholders, and that LLC is on title to the property. So every single one of our investments, it’s like a different company of a thousand different shareholders. So typically, if you would, if you owned your own property and you wanted to do a 1031 exchange and you’re the only individual owner of that property, it does become possible to take all of the sale proceeds and the gains and roll it in to that next property. But the requirement for a 1031 exchange is that the owner of the prior property that’s being sold has to be on the same title holder as the next one. So we can’t really force a thousand people to be shareholders of the next property because they’re indiv you’re individually investing in um all sorts of different properties. So if we sold one, that entity gets closed out and then proceeds are returned to the thousand different shareholders. Then some other groups of people, maybe they want to reinvest it, some want to take it out and transfer it back to their bank account, but that’s one of the reasons why we can’t really roll you into the next one because that LLC will have to be the same LLC that purchases the next property. Um, so that’s one of the constraints. Now, with that said, we are opening up our 1031 program and currently growing it. So, if you have a piece of property that you’re wanting to sell, arrived can help you source the next property and then roll those funds into the next one. And then we would basically replicate the program that we manage for all of our fractional investments where there’s, you know, the 123 Main Street in Main Street LLC, then there’s the thousand different fractional shareholders. We would run it the same as um you know managing on your behalf, monetizing it, distributing it to your arrived cash balance, but you would be the sole shareholder of that or however your LLC um is capitalized that they would be the same owner of that next property and we could help you with that 1031 exchange. The part where we’re there could be some uh beneficial tax gains within an arrived product is in our funds. So our single family residential fund has close to 60 properties and if we were to sell one of those then you know that is the arrived uh you know single family rental fund that one could buy the next property. So there wouldn’t be a t tax consequence for the fund for which you would be a shareholder of. So that’s a way that we can get those rollover tax benefits in a 1031. We can do that within our own SFR fund, but for individual properties, we’re not able to because we’d be forcing all thousand people in those fund in that individual company to be an investor in the next property, which they may not want to be. All right, next question. Liquidity. Okay, so what does liquidity look like for each of the investment products? So really two two primary products, individual offerings and then funds. and you get liquidity for both which is um a a pretty novel idea. So first on the fund side we have what we call our redemption program and the redemption program works a lot actually exactly like mutual funds where on a quarterly basis we update the share value and the or the net asset value is probably the more technical term and what that um net asset value is is really a reflection of the equity side of the balance sheet. Um that’s basically cash balances. Um a real traditional accounting statement where you know assets minus liabilities equals stockholder equity. So the stockholder equity is the numerator and you divide it by how many shares you have and that’s the um that’s the NAV for that quarter. The largest factor for the NAV in the equity side of the balance sheet is the change in the property prices. So what are all of the properties worth in that particular fund? um that’s one of the main drivers of what do you have um for equity in that fund. Um so that redemption program allows you to uh redeem on a quarterly basis where you can then you know for that period you can exchange your shares for that uh p for for that net asset value. So if it’s an $11 share price and you have a 100 shares then you could liquidate partial, you could liquidate full. Um there is a limitation of 20% of the total fund value in any trailing 12 months, but we we’ve never come close to that. Um you know, it may be a percent or two um on a on a quarterly basis. So it’s it hasn’t really um gotten to that amount. Um so that’s that’s on our funds. So whether it’s our real estate income fund, single family residential fund, Seattle city fund, those any any of our funds, they work the same with the redemption program. And there’s always liquidity in the sense that arrived is providing that liquidity. It’s not like a stock exchange where you have to have a seller on the other end. Arrived will redeem that that share um and then that’s how you get your cash from that investment. On the individual offering side, this works more like the stock market where um you have I I believe after six months of being in that particular property, you could list it and this is much more of a traditional market matching type function where you as a seller of shares can put any quantity that you own available for sale. on the 123 Main Street if you wanted to sell that and then uh buyers will look through the order book and say you know I’ll bid this uh you know and then we have a market um matching mechanism that will match together like who is willing to bid a price versus the asking price and if there’s a match then it’ll execute. Uh so that secondary market went live in um August of 2025. So it was a real nice achievement because um for the first time investors could really get liquidity through shares for something that’s traditionally liquid like a piece of real estate. Um so you know arrive could make the decision to sell the property on behalf of all investors in which case everybody would get liquidated out and that’s really the traditional way that most funds offer or most um you know real estate would get liquidated. But there’s a second layer which is investor level liquidity where you could sell your shares just like on the stock market. Um so that’s the liquidity on both types of investment products and and those are the two that are offered right individual offerings. So you have the secondary market and then fund investments which you have the redemption program. All right. Um so there was a clarifying question here. So you mean when you acquire a new property from a private seller you’ll offer a 1031? Yes, exactly. So, if um not necessarily acquiring it from, you know, any seller, but we do offer a 1031 program. So, if you’re wanting to sell your property and then place funds into reinvest into a different property like in a different part of the country or you know there would be a need for you to um you know want to do that to avoid having to pay the capital gains and depreciation recapture then we could facilitate a 1031 for you and then um operate it in this in the same way as the rest of our real estate portfolio.

All right. Um Okay. So, as I’m scrolling through here, let me just make sure I’m getting all the questions. Um, so we got a next one. Has there been a thought to establishing a vacation rental fund? Yeah. Um, you know, we we considered earlier on whether, you know, the fund would be the right investment or not. And one of the decisions of not doing that was vacation rentals are just so different. They’re very non-homogeneous. Whereas rental properties, they you almost want kind of a homogeneous um type of investment that’s optimized for getting the most rent per purchase price. And then they are not furnished. Um, and they’re pretty passive once they have a renter in it. So, we could construct funds that had a lot more of a, you know, consistent profile for single family rental funds. Um, and then, you know, with vacation rentals, they were just so active. Um, so we never really went through the idea of that. And then the the other consideration is that um vacation rentals are not eligible for real estate investment. Um the re basically re-qualification um and they’re a much more active operation. So we tend to look for more passive investments that get requalified um tax uh treatment. So real estate investment trust tax treatment because it avoids a second layer of taxation. Um, and then we can send out an easy 1099 div. So, there’s there’s a couple structural reasons why we didn’t do it, but primarily it’s because the asset types are just like so very different with vacation rentals that we decided to not put it into the fund structure. Whereas things like credit assets where, you know, it’s a piece of paper that guarantees you an interest um payment from a borrower or a single family rental home that is a very kind of homogeneous asset that we buy in different parts of the country. those are much more conducive to our fund structures. Um but with respect to vacation rentals, um we’ve recently internalized the large majority of the portfolio. So out of the 40 active assets that we have, 32 of them are now in-house managed. Um and once we get more of those stabilized, then we’ll, you know, consider adding more vacation rentals uh to the portfolio. But, you know, having a fund was never out of the question, but the timing just wasn’t right for um when we bought the majority of our vacation rentals in 2022.

Okay, let’s see. We got another question here. Mark, a question.

Okay, so the returns on arrive properties have been less than a percent after holding them for more than 3 years. The 8% return shown in RI’s calculation appears to be projected or scientifically calculated return rather than the actual ground truth return experienced by investors. Secondary markets also not effective making these investments highly illquid. It is difficult to sell the properties um or recover the invested capital when needed. Overall the value of the value and performance of these let me just continue reading it. Properties appear to be declining significantly with many properties showing poor returns. Um, okay. So, yeah, I mean, you know, there’s some fair points in here, so I can address these. On single family rentals, our average long-term rental return is about 3.8% to 4.2. It’ll depend. So, as far as um individual properties, there’s definitely properties that have returned lower than that or if they’ve gone through evictions or if they’ve had declining property values. Um, that’s definitely to be expected in a nearly 600 unit portfolio. Um so definitely there’s you know kind of the luck of the draw on some properties timing of the market. Um so fully recognize that not 100% of the properties have delivered that 8% return. One of the constraints on that projected return is uh we operate within a regulatory framework called reggg A+ and that is to allow nonacredited investors to be able to invest in securities. Otherwise you have to go through a pretty burdensome um process and like you just really wouldn’t be uh in a position to offer securities to nonacredited investors. The whole world of private capital investment is oriented around accredited investors which is like less than 5% of the population because you have to have a certain income and um wealth qualification. So the majority of funds and investments that are accessible to people are through a regggd framework but we go through the reggg a plus and incur significant expense and going through the securities offering to be able to offer access to people. One of the constraints though of operating in reggga plus is that we’re not allowed to make forward projecting returns. So the 8% to your point is a combination of two things. It’s the expected first dividend that will be paid out and then the projected 20-year average of the appreciation for um that particular zip code. And it’s a constraint, right? We can’t have the forward-looking projection because our securities regulation framework, it just doesn’t allow it. Um, and if you were to look at any trailing 20-year period kind of from modern American history, there’s about a four to 5% return on the appreciation component. Um, so I think that it’s not an unfair representation, especially when our dividend yields have been hitting around that uh 4ish% mark. If you look at our single family rental fund, it’s 4.2% return. Our Seattle city fund paid a 5% um return on the income. So monetization wise, we are in that range that we expected and we underwrote to. And then on the appreciation component, you know, it’s fair to say that we’re in a pretty stable and flat market right now. Um, and there’s and there’s properties that have declined as well in the portfolio because there could have been an eviction. We have to tap into the cash balances. So, as I’d mentioned earlier, the the equity component of the um of the balance sheet is what what the stock representation is. Um, so those can decline even if the property is not declining in value because the cash could be drained from the bank and the reserves because we had to pay for an eviction where we weren’t getting rent and then we have costs associated with that. It’s one of the unfortunate things about having real estate is that those situations do happen, especially on a portfolio um, you know, numbering in the 600. So, I I think about appreciation kind of as you got to be able to stay in the game and then it’s it’s not linear, right? It can be flat for a while or maybe it’ll inch up 1% 2% or go down 1% 2%. Those are perfectly normal oscillations, but then there’s going to be bull markets where for a 2-year period, three-ear period, 5 years, it can increase pretty significantly. So, we saw one of those during COVID era 2021, 2022. there was really high property appreciation and we caught the wave of that with some of our properties. Um similarly if you go back to the crash of ‘ 08 through 01 there was about a 25% decline peak to trough in the market and then there was you know stable appreciation from that point. So markets will operate on like a 15 to 25 year cycle. Um but historically you know that 4% number is coming from just picking any point looking back in a trailing 12 or 20 and what has been the annualized uh appreciation. That’s how we generate that number but it’s really born from a constraint of offering um securities to nonacredited investors. Um so you know we like rental real estate because it’s it’s tax advantage. It’s highly leverable. um you can get some of the best financing rates on it, but one of the you know reasons that allows you to stay in the game is that rental income. So, as we’ve been generating the 3.8 to 4.2% range on our overall portfolio, that allows us to hold the real estate and then once we catch that upward wave, then we’re able to capitalize on that, sell some properties for some good gains and then kind of continue the investing cycle. So that’s traditionally how you you know like the rationale behind why invest in single family residential real estate. High demand for rentals, highly leverable tax advantage through depreciation where a lot of the cash flow doesn’t incur income tax. Um and then you’re catching the right market cycles. But from my experience certainly hasn’t been linear. So hopefully that addresses some of the concerns they have. Um but happy to answer more.

All right, let’s see. Does site.

So, does the site have the capability to download your holdings with initial cost and current value to Excel? Yep. So, Larry, if you go to your portfolio page, there is an export where you can uh export your holdings, uh the number of shares you have, the recent market value, the cost basis on all of our individual investment offerings. They all start at $10. And then on your funds, based on when you invested, you’re going to have a different starting price, but that information is available on your portfolio page as an exportable spreadsheet.

Okay, let’s see. Um, we got another question here. If you just start investing uh starting to invest in a real estate site like this, is it better to do individual properties or residential fund where you can only start with $100 in shares? So great question, Jessica. Yeah, so any arrived investment has a minimum of a $100. And I would say the best way to start out is to at least get a couple of holdings just so you can get the base amount of diversification. Um, and that that can mean a lot of things. You could you could be really bullish on a certain state or a certain market and you would still want diversification because you may want to hedge against a tenant, you know, tenant performance. So, let’s say that you really like Knoxville, Tennessee, and you only want to invest in Knoxville, Tennessee, and that’s perfectly fine. You would still want to pick up a couple of properties because any one property might go vacant, go through an eviction. There could be any reason that the, you know, the core thesis is still good, but you’ll want to not put all all of your eggs necessarily in one basket. And this is agnostic to the amount that you’re investing. So whether it’s $100, $1,000, $10,000 per property, that still holds true that your capital always wants to be kind of hedged against any one factor that you would be concerned about. when people think of diversification the clear one in a lot of people’s minds are is relating to geographic diversification um and you know from from my point of view I think it’s good to have concentrated beds and it’s good to have a concentrated thesis as well um but you still want some measure of separation between like the operating performance and not putting all your eggs in one tenant basket so that’s really one of the benefits of arrived is that for a low dollar amount that you can get some of these um hedges and exposures. Now, to your question about individual properties versus a residential fund, a fund is an even more efficient version of what I just described because you can invest $100 into our single family residential fund and then you’re a partial owner of nearly 60 properties. So, you’re really not ever going to be in a position where your money is not being put to work because, you know, 60 homes are not going to go vacant all simultaneously, right? We’ve historically had about 97% occupancy on the SFR fund and then you know if a few people move out that may drop down to 90% and then you lease it back up and then it and you know comes back up to that 95% plus level. So your money is always being put to work and the SFR fund is a good example of some some of that diversification um accessible at a $100 price point. So you know it kind of goes my my message is uh twofold. one, get that little bit of exposure just to hedge yourself against any one tenant vacating and then your money is not being, you know, um is not earning you any sort of rental income. And if that’s $100 or if that’s $300 or $500, you know, it’s it’s still a pretty accessible price point relative to something as expensive as real estate. If you want to kind of just dip your toes in the water but then get max diversification then the then our funds are going to be the the best way to do that um at that dollar amount because it is for 100 bucks you can get the equivalent performance of those 60 properties. You just own a much smaller stake in all 60 of those um properties. So that’s that’s the first part of it. The the second part though I would say is you know investing is a long-term game especially in real estate and you want to have conviction in what you’re investing in. So, if what helps you sleep at night is the safety of um having your investment just automatically spread out across those 60-ish properties, then then that’s what I would recommend is to like have conviction help you sleep at night. If your convictions are I love Tennessee and I know that that market is going to be the higher returning one, you know, from from all the things that you know, like you’re thinking, then go ahead, have conviction in in those markets. Um, but still, you know, spread your money out a little bit so that’s not all indexed to just one asset. Um, but have conviction and make sure that your money’s always being put to work for you are the are the two ways that I would recommend it. But both can be played as individual stocks, you know, and to analogize to the stock market. You can be an individual stock picker or you could be an ETF investor or like an index investor. So playing funds is more akin to index investing and then being a stock picker because you have a you know a a conviction around something that you think will work into the future is necessary to um support being a long-term investor.

All right.

And I think that’s all the questions that we went through, but I’ll give it another minute or two if anybody has any further questions.

All right. Not seeing or any other questions. So, you know, with that, um, appreciate everybody’s time for, uh, sitting through the prepared marks as well as all the thoughtful Q&A questions. If you have any other, um, questions, you know, feel free to always reach out to supportive.com or click the chat bot. Uh, we’re on most social media platforms. Um, and we have a pretty quick response time with our chat. But, um, thanks so much again for coming on and happy investing. Take care.

Hello folks. Usually I’ve got Karen on here for Q&A with me, but she’s out. So, it’s actually been me in the chat with her uh her face on it. So, I am going to run our Q&A section solo today. So, try not to beat me up too badly. Feel free to keep dropping questions in the chat. Um I only have a couple here that we’ll go with. Um and we’ll kind of see what where we go from there. So, first I want to take on Paul. Um it’s a good clarification question here. If you start with an investment of $100, you know, are you obligated to do that each month? The answer is no. So, each investment on Arrive is a separate investment. You’re not signing up for a subscription. There is no required, you know, you must put in X per month. Um, you make an investment and if you wanted to only invest $100, you would only invest $100. It does not obligate you to do anything beyond that. We do have a recurring investments feature that’s going to be launching this fall. So, if you wanted to invest $100 a month, you know, similar to an auto invest program in, you know, other financial apps, you can just say, “Hey, I want to invest $100 once per month, and it’ll automatically do that for you.” But to be clear, you don’t have to. Um, and right now, um, you would just be going online, evaluating the different properties and funds, and making basically a one-time investment each time. Certainly, the I think way to be the most successful investing in real estate is to continue to invest over time. It’s similar to your 401k. You know, you don’t make one investment in your retirement account and then just walk away and say, “Great, I’m going to be able to retire in 30 years now.” You steadily invest each paycheck. You know, you have those auto contributions uh into the 401k so that over a number of years, you actually do build up a pretty sizable nest egg that can compound, earn returns on itself, and then eventually provide you enough income to support you in retirement. Um really the only other question I have in here was um apologies I’m mixing up the names but um for you Andre on the share sale. So I’ll broaden it a little bit and talk about the two liquidity options on arrived. So the funds have what is called a redemption program and it’s fairly simple. If you hold the shares in the funds and you say that you want to redeem them, you can go through your account and submit a redemption request and then we batch them and we process them once per quarter. So four times per year, we just take all of the redemption requests we’ve gotten for the last three months and then we do the exchange of shares for cash and it really is the fund effectively buying back those shares. So the price that it happens at is a set price. It’s whatever you know new the whatever the price per share of the fund is. You know, we update that value quarterly. It’s the same price that new investors are buying new shares at. If you held your shares for two or three years, you know, you capture the appreciation that’s happened in that time. um and you do that redemption request and you you know sell your shares back to the fund and you get cash out in return. The other liquidity option is the secondary market and that works for all of the individual property investments and that one’s a little bit different because instead of selling your shares back to you know arrive you’re selling your shares to another investor. So it works a lot like the stock market where you have, you know, people that are interested in buying putting in buy orders, people that are interested in selling putting in sell orders. And then transactions only happen if you know the buyer and the seller overlap on price. So the secondary market, you know, you don’t just get a fixed price per share. It depends on what the market is willing to bear. And so sometimes that is, you know, above what life thinks the shares are worth. Sometimes it is below what thinks the shares are worth. Importantly, it’s a little bit more complex than the redemption program because you have to pick how many shares you want to sell and the prices that you want to sell at. And that means you may have to look at the market data to see, hey, where are buyers? You know, where are sellers? And you know, if the the market is here and I price my shares way high, nobody’s going to buy them. So, it takes a little bit more effort in order to sell your shares on the secondary market. But that option runs more frequently. So, we have the secondary market running once per month instead of once every 3 months. And so even if you miss a window where not all your shares get sold, um you have the opportunity the next month to be able to sell as well. And so for for your situation, Andre, it looks like you listed your shares for sale, but they didn’t actually get purchased. So you just said, “Hey, I want to sell my shares for, you know, a certain price, but buyers nobody nobody ended up buying them.” So you still own those shares. um and you will until you end up either selling the shares or if you hold on to the properties long enough eventually arrive will sell the property and then liquidate you know the investment that way. So the secondary market um preandre runs through this Friday. So go ahead and take a look because if you are interested in selling that’s kind of your window to do so otherwise it’ll open up again in early September. And for the rest of you um the secondary market you only get access to it once you’ve been an arrived investor for I think 60 days. So, if you guys make your first investments this week, you should be available um you should be eligible to trade on it come October. And when you do so, it’ll be exciting because you guys are also have access to buy shares on the secondary market. And that means that you’ll have access to buy, you know, any of the properties that we’ve launched over the last 5 years. So, properties that are in markets that we may not have had recently, properties that have kind of a um a full length of operating performance, you know, versus buying a new property where we may not have gotten the first tenant in the property yet. So, it’s a cool way to be able to kind of quickly diversify your portfolio and pick up a couple different shares of properties all across the country. Um, Jackie, is there a way to transfer shares from the property to the fund? So, you do have to sell and reinvest. So, it’s it’s um not particularly efficient. It’s it’s the same thing as kind of selling stocks. You know, you can’t just say, “Hey, I’ve got Apple stock, but instead I want Google stock.” you do have to go through the full process of okay well let me sell my shares here and then let me buy shares on the other side um we do have some um costs of liquidity so for that redemption program there is a um I think it’s 1 or 2% of the share value that um goes as a uh as a fee for the early withdrawal after 3 years it drops off completely to kind of incentivize the long-term holding of real estate assets and the secondary market will have a 2% fee a buy or sell so there definitely are some transactions costs to be aware of just because you know it it um you know none of the money really goes to arrive. It’s just that there’s cost of third parties and legal um setup and frameworks that have to happen in order to facilitate these kinds of liquidity options. So it’s something that we may do in the future to to wave fees or to lower fees if you’re just transferring from one asset type to the other. But right now that isn’t available. Um and so when you do make an investment keep in mind that it is a real estate investment. It’s not meant to be, you know, flipped and day traded, etc. They’re generally meant to say, “Hey, I’m going to put money into real estate, and I’m going to let this sit for a little while.” Um, no different than if you were just going to go and buy a property, a rental property yourself. You wouldn’t buy a rental property, and then try to sell it 6 months later. Um, just because there obviously isn’t going to be that much appreciation in the market, and the transaction cost with your agents and commissions is really going to kind of eat into your equity there.

Leon, if you use a trust fund instead of a bank account, what is the difference between the two? So, um I think we’re mixing up two different concepts here. So, if you have a trust that you want to invest out of, you can totally do that. When you create your arrived account, there’s an option to just select a trust account type and you’ll put in your information and the information for the trust. Um what you’ll do then is you’ll just fund the investments out of that trust’s bank account as opposed to if you sign up as an individual you’ll just use you’ll just link your regular checking account and that’s how you’ll you know put money in in order to make transactions. So I think and clarify me if I’m if I’m misunderstanding. I think separate concepts here that you should have a bank account for your trust and you should have a bank account for your you know individual personal usage and which bank account you use just depends on if you are investing out of your trust or if you’re investing out of your checking account as an individual.

Excellent question Michael. Yes, there are lots of tax benefits for investing in real estate. So number one like you mentioned is depreciation. Um at the end of the day all of the the u the income on the properties is going to get distributed to investors and you’ll basically get a tax form that has your proportional amount of you know what to do due. Most of the time with these single family properties there’s enough depreciation to fully wipe out any taxable income. meaning that you know with the depreciation expense the properties end up having a tax loss which is awesome because it means you receive dividends each month that you’re investing but then when we give you your tax form it’ll have a nice big zero for you know zero taxes zero taxable income and zero taxes due. It’s really one of the the reasons that people love investing in real estate is because you can generate cash flow without having to you know incur a lot of tax burden. Um, and keep in mind, um, the depreciation won’t show up as a separate line item on the form. It’s basically already factored into everything that we’re doing. So, you’ll just get a number and that’s, you know, net of the depreciation after that’s already been factored in. Um, depreciation will obviously only work with the single family investments. So, the individual properties or the single family fund will have um a depreciation benefit. the real estate income fund won’t because you can’t depreciate any part of a loan. So the the um keep that in mind as well that the single family fund is a little bit more tax efficient even though the income is a little bit lower than the real estate income fund. Um the other thing to be mindful here is there’s also what’s called the qualified business income deduction. So, because all of our investments are taxed as REITs, they’re all pass through investments. They qualify for the QBI deduction, which basically gives you a 20% discount on any of the taxable income that you generate. So, say that you I’m going try to do an example in my head. Say that you invest um $100 in the real estate income fund and you earn the 8% um dividend that it’s been paying out. You’d receive $8 in in uh uh um income per year. but you’d only file you’d only recognize um about $6.5 worth of taxable income cuz it’s a pass through investment. Um this was something that was slated to fade out with the Tax Cuts and Jobs Act from 2017, but then they reinstated it. They kept it going, I think, indefinitely um with the current administration. So, another benefit for investors there where the taxes you’ll pay are actually going to be at 20% lower rates than what you would pay on your other ordinary income investments. Those two are going to be the biggest benefits um for investing in real estate. Um the other one I’ll mention as well is that we do do 1031 exchanges. This applies to very few people in general, but if you have a rental property outside of Arrive that you own, um you can actually sell that property and not have any capital gains on it if you reinvest into a new property. So, it’s a a newer product that I’ve been working on. Um, and if you have a rental property that you are considering um, selling, feel free to shoot us an email and I would certainly love to chat with you.

Um, Paul, I’m seeing your same question again about if it would be a monthly deduction from your account. Um, again to clarify, if you make 100 investment today, you’ll see $100 withdrawn from your account as we go to make that first investment, but then the next month there wouldn’t be anything else. It’s not there is there is no um automatic reinvestment etc. We have a feature that’s coming for that if you want it but it will be an opt-in. So it’s not going to ever just say hey we’re suddenly taking money out of your bank account without your permission. And in fact each time right now that you go to make an investment on arrive you actually have to put your you know check the couple boxes and put your initials in on the checkout flow. So it’s it’s fairly difficult to just accidentally make a trade. Um let me know if that answers all of your question. Um, otherwise happy to go through more. I’m running low on questions here, folks. Um, we went through a lot of content in prepared remarks and here, um, what other thoughts you guys have on investing in real estate options. Um, uh, on the 1031, we wouldn’t buy your property. What we’ve been doing is we’ve been um helping facilitate the exchange because there’s a lot of really strict IRS deadlines involved with the 1031 and if you mess those up you end up paying all of the capital gains taxes. And what we’ve really been valuable for investors on is sourcing the new properties. So often happens I’ve got somebody in California who says, “Hey, I want to kind of shift some equity out of California. Maybe have it generate higher income for me. maybe kind of get it out of a state that is tends to skew fairly tenant heavy and you know anti- landlord and so we have our network and we’ve got a you know 60ome different markets that we’re operating in so it’s really easy for us to buy a couple of properties you know all across the US that can help you know fulfill your exchange for most people it’s a really stressful time because you have really limited deadlines on how quickly um or on how long you have to find new properties so we we likely wouldn’t buy your property just cuz we look for very specific things when we’re buying Um, we can help sell it if you want, but you can use your own, you know, realtor of course. Um, but where we really help is kind of helping to facilitate the process, source the new property, due diligence on the new property, acquire it, and then we can help manage it. So, if you end up owning a property that’s 10 states away, we can just manage it, and you’ll be able to see it in your arrive portfolio, like any of your fractional investments.

Um, let’s see here. Oh, I clicked the wrong button. I don’t know if I can get that back up on the screen. Okay, Stephan, I’m not sure if I can get up on the screen cuz I clicked the wrong thing, but um if you start with $100 and let it sit there passively, you withdraw the dividends. Um yes. So, the way it works is say you invest $100. Um and let’s say you’re investing in the real estate income fund. You’re earning that, you know, 8% per year as the as that fund is investing in loans, generating interest. That interest and those dividends each month are being paid out into your arrived account and they’ll be paid out as cash. So, um, if you start with $100 and let’s say you come back a year later, you’ll see, you know, you’ve got $100 still invested in the real estate income fund, you’ll also have about $8 in cash sitting in your cash balance. You can do whatever you want with that $8. So, you can withdraw it and there’s no there’s no penalties or anything for that. It’s just cash sitting in your account the same way that if you have cash sitting in your, you know, Fidelity or Schwab or Erade or brokerage account, you can just withdraw that at any time. Um, or you can say, “Hey, I want to go and make a new investment.” And if you said, I want to invest another $100 in the real estate income fund, you have the option of reinvesting that $8. So you could say, hey, now I’m going to only add $92 and use the other eight that’s sitting in my arrived account and, you know, be able to go pick up more shares. Obviously, that’s what kind of gets the compounding process kicked off because you invest with, you know, $92 that time and then you get, you know, $16 in dividends the next year because you get, you know, the dividends from both of those transactions. So the next year you only have to invest um 92 – 88 86 84 you only have to invest $84 the next year in order to purchase the same you know 10 shares worth um and start generating returns. So that’s that’s kind of where the compounding over time you know really starts to take effect. Um and obviously the larger the initial investment the higher the initial dividends. So instead of $100 say that you invested $1,000 and you earn $80 that first year from the real estate income fund. That means that in year two, you only need to invest $20 out of pocket in order to purchase another $100 in shares or sorry, uh you’d only invest yeah another another $20 to get another hundred. Um so that is generally the strategy we see and that’s really why we are launching this recurring investments feature this fall. Um is that we’ve just seen people say, “Hey, I like the idea and I want to just autorevest my dividends, but I don’t want have to come back and do the clicks every month.” We’ve definitely heard that loud and clear. So, that’s why we’ve got this new recurring investments feature that’s going to be launching later this fall. Um, the team is very excited about it. I think it’s one of the uh bigger things that we’ve launched over the last few years. So, I’m excited to see that come to life.

If we don’t have other questions, we can certainly wrap up early. Um, I mentioned earlier, but yes, you guys will get a copy of this recording later today. So, um, I know we went through a lot of content. Um, we’ve got a lot of different investment products. Um, biggest piece of advice I’d give is just make sure you feel confident before you start investing. We’ve got, we host these webinars regularly. We’ve got lots of content on our blog and in our FAQs and, you know, really just read through the investment pages. There’s a lot of great information about what the strategy is for each investment. Um, we have the address for each individual property, so you can go look it up on Google Maps and kind of check it out in the real world. Um, we’ve got all the information about liquidity on each page. Um, including all the fees for the different based on the different, you know, investment type. So, there’s a lot of information. Um, and you know, want you guys to feel confident before you invest in real estate. It I know is certainly a big leap to go and buy a piece of a property online, but I think increasingly it’s becoming a a more and more common thing and folks are realizing that real estate is a great thing to add to your portfolio. you know, on top of your stocks and bonds and, you know, crypto and all the other kind of asset classes you have, real estate tends to be one that has endured for a long time that sure has a lot of tailwinds behind it. You know, a lot of people that want to buy homes, not a lot of homes being built. You know, we’re not doing a lot of construction. Um, the 2010s, we built the fewest number of new homes of any decade since World War II, so there doesn’t seem to be a a big slowdown coming in the single family market. and there’s a a lot of really strong fundamentals. So, so you know, we’re very bullish on the the market as a whole. Um, and you know, want to be able to kind of have a platform that allows folks like yourself to be able to go through and make investments, kind of participate in that upside.

I’ve rambled as long as I think I can. I’ll give it another minute or two in case there’s any other questions. Um, and if not, then like I said, we’ll have that recording available for you later today. You can always shoot us a note at supportarive.com if you have any follow-up questions. Like I said, want to make sure you guys feel like you are supported and have all the information you need. So, please don’t be a stranger. Our team is happy to help out and answer questions cuz like I said, I know we went through a lot of information over the last 45 minutes and want you guys to feel confident.

How are we finding properties? Good question. So, we have a um a whole acquisitions team that comes from, you know, largely American Homes for Rent, which is the second largest single family REIT in the country. Um and they are masters of pricing. And so they are kind of scouring the market and looking for you know what can we think we can buy the property for and what do we think we can rent the property for and that helps us kind of figure out okay what does this make sense from a cash flow perspective and then we really layer on what’s the kind of appreciation forecast in each particular market. So we do a lot of analysis to narrow those things down to look at you know jobs you know where are companies hiring what does the employment base look like you know you want to avoid investing in places like you know Detroit in 2005 where you just have a super concentration in the auto industry um we generally look for cities that are developing and growing and are kind of expanding where there’s what’s called immigration you know more people moving in than there are people moving out and we look at both the market for sales of you know what’s what kind of inventory is coming online. Um, you know, do you have places like Phoenix where you can just keep going out into the desert and building more houses or you have areas that are constrained on, you know, geographically like where can you even build more housing? Uh, good example being like Salt Lake City. You’ve got mountains on two sides and a lake on the bottom um and the top. So, it’s it’s really constrained and there isn’t a large ability to, you know, increase the supply of homes, but at the same time on the rental market, there’s a lot of people that want to be there and there is diverse employment bases. um you know that want that are attracting people to that particular area. From there we actually look at all sorts of different you know property sources. So we look at properties that are being listed online. Um where we’ve really had a lot of success is buying properties from home builders because you know the homebuilders right now have a lot of homes and a lot of land that they’ve kind of bought over the last couple years and are committed to building on. But as interest rates went up their cost of capital went up. So, we really need to start off selling loading homes, particularly this time of year, cuz I think their fiscal year end is the end of September, if I remember right. Um, and so as they’re trying to sell homes, they’re kind of hitting these headwinds where interest rates are high and so home buyers aren’t as active as they were over the last couple of years. And what that means is that we’ve actually been able to get pretty good discounts on new construction inventory. And we really like that because those new properties are going to have very few kind of repair and maintenance items over the next 5 10 years. You know, you’re not going to need a new roof. You’re not going to need a new HVAC system. And those newer properties are generally going to appeal appeal to higher quality tenants. And they’ll pay a premium in rent for buy, you know, for being able to rent a brand new property that, you know, feels new and doesn’t have that kind of old tired feel. So, we’ve seen a lot of success in buying new construction because those home builders still need to offload that inventory. They’re not in the business of buying and holding properties. They’re in the business of turning land into finished houses. So, we’re now one of the largest, if not the largest buyer of LAR homes across the country. So, as a result, we have kind of a corporate deal that allows us to get a discount on the purchase prices of those properties. And Edge ended up just getting passed off to investors. So, we’ll look at pretty much anything. Um, and we kind of shifted our strategy over time. Early on, we bought properties that were in kind of really cash flow heavy markets. We shifted to some areas that were more focused on appreciation. So, I think you know, Nashville, Phoenix, um, Denver. And then as interest rates went up and kind of the appreciation in the single family market slowed for a little bit, we shifted back toward, you know, properties are in a cash flow in that four to 5% range from, you know, day one. So, that’s kind of been the strategy and we’re kind of always evolving it based on what we see out in the market.

Leon, if I invest $100 today, can I invest more in the next month in the same fund? Absolutely. You can invest $1,000 today and $1,000 tomorrow if you want in the same fund. Um, there’s no real limitation there. Um, you can invest virtually as much as you want in any of the funds. Um, the funds will be available. um it’s those individual properties where once we kind of hit the number that we need to fund that property then that’s kind of all that there is available and then that property is then only available in the secondary market in the future when existing investors are willing to sell their shares. The funds are a little bit different because they could grow you know virtually forever. Um there is a limit on how much they can grow to but we would just create a new fund um and and you know we kind of monitor that as we go. But the way the funds work is basically as new dollars are invested those funds can then go and acquire more assets. So say the single family fund you know owns about I think 55 properties right now and it’s continuing to collect dollars from investors and as it hits enough money it’ll go and it’ll just go out and acquire a new property and it’ll go from having you know 55 properties to having 56 properties. So there’s those funds are are kind of expandable. They can kind of keep growing as there’s more investment dollars in as opposed to those individual properties. you know, we’re only buying the one property, so we don’t need $5 million to buy one single family house. Once we kind of hit the four, five, $600,000 we need, that property is kind of closed for funding from investors. Um, and we just kind of begin operations on that particular property.

Um, do we have a contingency for the company? Um, we’ve got all sorts of contingencies. So uh on the the legal answer is for all the risk factors, you know, take a look at the offering circular which is linked on each of those investment pages and goes through kind of the full set of our plans and details. But we do a lot to reduce risk. So for one, like we just talked about, we’re buying these newer properties. So we’re not buying properties that were built 100 years ago or properties that Joe and his uncle remodeled 30 years ago. Um we like buying these new construction homes cuz you kind of know what you’re getting. You know, not going to be any foundation issues. there’s not going to be anything that that really has a property be a full lemon. Um, and the builders will even warranty those properties for the first year or two. So, there’s kind of a nice little added perk in there. We also in our acquisitions are making sure that we’re not buying properties that are in a flood zone. Um, you’ll notice we don’t have properties that are, you know, on the beach where the shoreline is eroding and there’s hurricanes coming in. Um, and then we have really adequate insurance coverage. So, we insure the properties so that if there anything obviously happens, the insurance will pay out to fix it. Um, we also have, you know, a a a clause you have for landlord insurance. So that if we’ve got a tenant in a property and say that the pipe bursts and the house floods and it’s not livable, well, the insurance company will pay out to fix the property and it’ll pay out for all the lost rent that we didn’t get because the tenant couldn’t live in the property during that time. So, we obviously can’t reduce the risks to zero. You know, these are investments. It’s not just putting money in a bank account. There is risk of loss. There is risk of things happening. There’s risk of tenants don’t pay, of damages happen, of you know, all sorts of negative things can happen, but we really do a lot to, you know, try to protect the downsides on those risks. And in general, single family is an asset class that has tended to be, you know, fairly um fairly consistent over time and isn’t, you know, at the end of the day, you still have a hard asset. So, we’re not looking at something like cryptocurrency that can just bump up and down. even companies in the S&P um and on the stock market. You know, you may have per companies that IPO and then just kind of totally go to zero and get bought out eventually. The end of the day here, there’s kind of a floor to the value of these properties because there is somebody out there who’s willing to buy a single family house that wants a roof over their head and a good place to be able to live. So, we do a lot to to mitigate risk. Um but these are still investments. So, there still is that risk. And so, generally, you know, the way that you can reduce that is by diversifying. And so with these individual properties, obviously if you have $10,000 and you put it into one property, you know, it might be one property that the tenant doesn’t pay rent or we have to do an eviction or there’s a big damage, we have to pause dividends. Um, and so generally it can be smarter to say, “Hey, instead of putting $10,000 into that one property, I’m going to put $1,000 into 10 different individual properties.” Um, and that way you can kind of diversify a little bit and not have all your eggs in one basket. And that’s kind of how we ended up with things like the single family fund where if you invest that first $100 into the single family fund, it’s instantly diversified across the 55 properties that it owns. So that way as there’s normal tenant turnover and churn, you know, the dividends for that fund can be really really consistent because there haven’t been, you know, there there hasn’t been anything that is going to cause, you know, 20% uh vacancy across that whole fund. it’s all kind of staggered and those those um you know the the it’s diversified enough, you know, where there’s enough eggs in that basket that even a an event happening at one or two properties isn’t going to materially impact the overall returns for that particular fund. So that’s a that’s a good little ramble on risks um and things that can go wrong. Again, for the full list, take a look at the offering circular which is linked on the investments pages and you’ll be able to see kind of the full list of all of the the legal jargon and and disclosed risks.

Okay. Well, I’ll give you guys a couple of minutes of time back. Thank you all for joining for the long presentation. Um, and like I said, you’ll get an email recording and feel free to reach us at supportarive.com and happy to continue some of these conversations. I appreciate all the uh the questions coming in and all the feedback from folks. All right, take care. Bye.

Fantic. Looks like we have folks from all over today. Arizona, Texas, California, London, across the pond, and New York. We’re thrilled to have you all here today. I see others in the chat as well, which is great. Um Jake, I dropped a few poll questions in here, which I thought was interesting. I asked folks if they’ve invested in real estate. Roughly 75% have, 25% haven’t. And then um I asked also which arrived offerings are folks most interested in. And we had 20% say real estate income fund. So more on the credit side. We had 20% say equity. So that’s the Seattle city fund, single family residential fund and individual properties. And then 67% which I love to see you said both, which is great. So lots of diversification. And folks are interested. Uh for people that are new here, feel free to drop any and all questions in chat. This is your time. I want to be sure you get all your questions answered so you decide to move forward or move a different direction. But Jake, we’ll get things started here. Um Ryan walked briefly through secondary market. I think it’s always good to walk through uh what our hold periods look like, especially when it comes to real estate given that we have had folks that have invested and haven’t uh what options they have for for uh those hardearned funds if they should be removing them at any time. Yeah. So there’s there’s liquidity options for all of the different arrived investments. um exactly which option you know there is depends on what you invest in. So for the funds products, the Seattle fund, the single family fund, and the real estate income fund, we have what’s called a redemption program. So you can submit a redemption at any time and then we’ve processed them quarterly. So it’s a fourtime per year option where you can effectively sell your shares back into the fund. You receive the the cash from the transaction and the fund buys back those shares. There are some early withdrawal fees for doing so. um you can’t do a redemption for the first six months after you make an investment and then from six months to three years there’s a 1% penalty for um you know doing the redemption. After three years there’s no fees. So if you invest in one of the funds, you hold it for three or four years, you decide that you want to liquidate, there’s no penalty. The fund will just redeem those shares for you. It just happens on that quarterly schedule. For the individual properties, we have a secondary market. And the secondary market is a lot like the stock market where you’re actually listing your shares for sale and other arrived investors are, you know, attempting to buy them. And so, similar to the stock market, you put in a a sell order or a buy order. And then the market determines the price and the number of shares that actually transact. Just depends on if buyers and sellers agree on, you know, the price they are willing to transact at. The secondary market has a 2% fee for buying and for selling and but it runs a little bit more frequently. The secondary market runs monthly, generally around the first week of the month, and we have the whole schedule published for the next year, so you can kind of take a look and plan things out. So, with the individual properties, you have the ability to um you know, sell more frequently than with the redemption program on the funds, but there’s a little bit less certainty in the price in which you’ll be able to transact at. With both options, it’s good to remember that real estate is meant to be a long-term investment. you know, you don’t just generally buy a rental property and try to flip it within three months unless you’re actually doing that as your strategy for these more type of buy and hold real estate options. You know, we we tend to aim to hold the properties for five to seven years. And that’s intended on purpose so that you can kind of capture a number of years of cash flow and some appreciation in each of the markets. So, as you think about, you know, what you’re wanting to allocate to real estate, you know, it’s generally best to consider it part of the liquid part of your portfolio. You certainly can get out of the investment if you want to, but you know, you’ll have the best returns and performance if you’re able to invest and leave that cash invested for a number of years. Absolutely. Yeah, Jake, thanks so much for walking through it. I dropped an FAQ that outlines the differences too between the fund investments and the individual properties. I’ll say too, one thing that’s very exciting about the secondary market is it unlocks the opportunity for folks to invest in properties that are that pre are previously fully funded. So, for example, if there’s a vacation rental that you’re excited about or a property in a specific market, so on and so forth, uh once you’ve met the qualification of, you know, your first investment and been on the platform for roughly 60 days, then you’ll be able to participate in the secondary market as well. So, it’s uh it’s definitely another place uh for folks to get in there and invest in a different way. All right, moving back over really quickly, I’ll answer this one from Moses. Are non US residents allowed to invest in arrived? Currently, arrived is open to US citizens and permanent residents to date. Uh we definitely hope to expand in the future. We just don’t have an estimated time frame at the moment. Um if you are not a US citizen or permanent resident, we definitely appreciate your interest in arrived and we will be sure to share from the virtual rooftops if we expand in the future. All right. And one thing I’ll say too, Jake, you made a great point about real estate. I think um in terms of holding it, if we were to go purchase, you know, another property today, we wouldn’t be looking to hopefully sell that within 6 months, a year, even 5 years, the goal would be to hold on to that property as long as possible for that appreciation. So, even though this is fractional real estate and all these properties are living on an invest page, um I like to think about, you know, the house that you’re living in or the ones that are across the street just to um make it feel a little bit more tangible. All right, moving back over here. Let’s see. And feel free folks to drop any and all questions in the chat. Um we can always wrap early if folks don’t have any today, but um Jake, we’re well into Q3. What would you say that you’re most excited about um in terms of what we’re building? Um I’m really excited for the the auto invest feature that we’ve got coming up this fall. Our team’s working on a way for you to make recurring investments automatically. So right now if you want to just say, “Hey, I’m going to invest into the real estate income fund and I just want to generate cash yields and I’m just going to invest in this every um you know regularly.” Well, in order to do so, you have to come back every month in order to make a new investment. um which is fine, but it’s just a number of clicks and you have to remember to do it. And so we’re really excited about this recurring investments feature where you’ll be able to just set up an auto invest um you know at any point to just say hey I want to invest you know $200 a month into this fund and then kind of take a step back walk away and let the you know ability of the market to compound returns start to work on your behalf to start you know putting some money in getting the dividends from that and then reinvesting those dividends um automatically. I would be a really cool way for people to, you know, be able to build their real estate equity. Absolutely wonderful. And Jake, what would you say too about like state of the market right now, real estate as a whole, uh, very broad, high level. What are your general thoughts on real estate right now? Yeah, it’s been kind of a squirrely market, you know, where we have still um high inflation, you know, that people had thought was going to come down a bit this year and we might even start seeing rate cuts, but inflation’s kind of stayed around and then now the Fed is talking about raising rates this fall. So, generally the appreciation on most things has been, you know, kind of flat over the last year or two. Um, you know, there’s been not a lot of demand to buy properties, but prices haven’t come down because there’s been not a lot of supply on the market either. folks that are locked in on mortgages in the, you know, three, four percent range are just not willing to sell to trade into a five or six or at this point a six and a half percent mortgage. So, you have a a lot a lack of supply and a lack of demand at the same time. So, prices haven’t dropped the way that folks thought they would when interest rates went skyhigh, but they also haven’t come down. Um, and so, or they also haven’t gone up. So, we’re kind of seeing this this moment in the market where there’s certainly more renters in the the pool of people looking out there. We’ve seen really strong rental demand on our properties. Um, and you know, renewal rates are are going quite well. Um, you know, new leases are going quite well, but we’re, you know, kind of biting our time a little bit. You know, generally with appreciation, it’s it doesn’t all happen linearly. So, the historical, you know, single family homes have kind of appreciated at about 4% per year nationally, but it doesn’t all happen at, you know, an even 4% per year cluck. Um, it tends to be that you have years that are flat, then years that have crazy appreciation, and then years that are flat again. Right now, we’re kind of in one of those plateaus where um you know, we’re able to buy properties at cash flow right now and we’re kind of holding them and kind of waiting for the market to turn a little bit. Um but it’s really made for a good opportunity on our side to purchase homes because we’re buying a lot of homes from home builders and they’ve got set homes that are under construction that they need to sell and there’s not as much, you know, homeowner appetite to go out and buy those properties right now. So, we’ve been able to go out and buy properties well below list price, get a bunch of concessions from builders, um, and really get some good deals on new properties. So, we’ve been selective in what we’re buying and, um, we’re still out there, you know, acquiring properties. You know, we still believe in the the long-term tailwinds in the single family market. The reality is there’s a lot of people that want to buy homes and not a lot of people that can do so right now. So, that is going to lead to, you know, long-term appreciation. It’s just hard to know, you know, exactly um forecast exactly when that will come. Absolutely. Sometimes we wish that we had that crystal ball, but the good thing about real estate, to your point, Jake, is typically whether’s the storm or whatever takes place in the macro environment. So, very much appreciate you walking through it. There’s one last question before we close our virtual door since it seems to be a little quieter today in chat, but Jake, maybe we walk through what the 1031 exchange program is and maybe how it’s going. uh you’ve been at the helm of building the whole program alongside a whole team, but uh would love to share more details with the team as I didn’t include that in a poll as an option to on arrived. Yeah, for the 70% of you that have invested in real estate before, if you own a rental property that’s appreciated, um you can actually sell that property and not pay any capital gains. It’s called a 1031 exchange. And essentially as you if you sell a property, reinvest the proceeds into a new property, you can defer all of the capital gains and you can defer them indefinitely to ideally, you know, never end up paying the IRS for that. So we’ve recently launched a 1031 exchange program where Arise will help facilitate the process for you. There’s a bunch of tight IRS deadlines and complexities involved with the 1031. Um, and we realize that, you know, we’re out here buying single family homes every day. it’s really pretty easy for us to buy some for an individual owner. Um, you know, the same way that we buy them right now for 500 people that are going to co-own the property. So, the the 1031 program is off to the races. We’ve got several clients that are going through it right now. Um, and we’re similarly seeing good discounts from builders, good opportunities to buy. Um, and so we’ve been really excited about this program. Um, Mark, I’ll I’ll shoot you an email. I’ve got your email. I’ll shoot you a note after this. um would love to chat if you guys um have rental properties you’re considering selling. It’s really easy for me to run a couple of numbers to see kind of what makes sense and for your potential situation um and see if it might make sense. Absolutely. Wonderful. So, appreciate it, Mark. Um Jake, any other uh thoughts that you have before we close our virtual doors today? I think that’s all I’ve got. Um I know we went through a lot of information. Um, so feel free to take a look through the site, take a look at all the different property pages. We’ve got lots of good information and FAQs. Um, and we host these sessions weekly, so feel free to come back if you want to hear more, ask questions live, and otherwise just shoot us a note at supportive.com. Absolutely. Well, Jake, thanks so much for your time walking through all the questions for folks that spent 35 minutes on your Tuesday morning or afternoon. We so appreciate you. Uh, feel free to email supportive.com at any time. We also have a live chat function in the bottom righth hand corner of our platform. As a note, we do have an AI um bot that starts right away. You can ask for a human at any time in there if you prefer not to. So, uh I hope you have a great rest of your day and happy investing. All right. Thanks, folks. Take care.

Jake and team, thanks so much for prepared remarks. Looks like we have folks from all over today. Denver, Long Island, Louisiana, Orlando, Atlanta, Maryland. Uh Kelsey, I know you had asked if this video will be sent to your email. Absolutely. We’ll be sure to send it directly to uh the email that you use to register. So, it will go out to all registrants today. Uh feel free to drop any and all questions in chat. We’ll definitely work through them. Um but Jake, thrilled to have you on board today and walk through all the questions. Sometimes I’ll group like kind as we go through here. Uh but this is your time. We want to be sure that uh this is a space where you can ask any and all questions if you should decide to invest or not and arrive. So thrilled to have you all here today. Jake, in prepared remarks towards the end, we walked through historical returns like what we’re seeing to date for all the offerings that we have on arrived. Um and I know we have a active investor who’s had a tough experience. So I’d love to address uh what our historical returns are and then how that can differ for performance in uh a an investor’s account depending on what they’ve invested in and when. Yeah. So the returns that you get on arrived are are ultimately going to depend on how the performance of the underlying asset does um for what you invest in. So when you invest in you know the single family home residential asset category you know generally those properties as a whole are averaging you know a three and a half to four or so um percent dividend and then you earn the appreciation as well and the appreciation is going to be highly dependent on you know what point you bought in. If you bought properties one year ago it’s probably going to have less appreciation than properties that you bought into four years ago. Um, but the thing to remember is that, you know, you only earn the returns of that particular house if you’re investing in the individual properties. So that might mean that you end up investing in a property that rents above our forecast and has, you know, the tenants renew their lease several times, there’s no vacancy, and doesn’t have much repair maintenance. And on a property like that, you’re going to have much higher dividends because there’s much more cash flow being generated from that property. On the flip side, if you just threw a dart and we’re going to pick, you know, make one investment, you might end up getting the flip side and getting the property that has, you know, a tenant that doesn’t pay their rent because they lost their job and then moves out in the middle of winter and there’s a hard time releasing it. And if there’s no income, there’s no, you know, cash for us to be able to pay out those dividends. So, the the way to kind of mitigate that risk is through diversification. It’s kind of the same idea as not, you know, having all your eggs in one basket. Um, the same way you wouldn’t invest in stocks and just only buy into one stock. you know most people buy into you know the S&P 500 where you get kind of the market level returns because the you get the benefit of diversification across a bunch of different companies. So similarly when you invest on arrive you know it’s helpful to invest in you know multiple different individual properties to diversify away some of the risk of any one property doing poorly or you can invest in things like the single family fund which are kind of already diversified because it’s a fund that owns 50 properties. So within the single family fund, if you know, one or two properties isn’t rented, it’s really not that big of a deal because those two properties are such a small percentage of the overall fund. So without looking into that that one investor’s portfolio, it’s hard to say exactly what happened. But the the returns overall are going to depend on what you’ve invested. And remember that we go through different cycles as well. Our properties that were purchased in 2021 and 2022 have seen a ton of appreciation. our properties that were purchased in 2023 2024 are doing okay so far and the ones that have been purchased in the last year or two are starting off really strongly so far. So you want to diversify not just across you know which properties but also across time. You know, it’s similar to if you think back to the the Great Recession. You know, if you only invested in 2007, you know, of course you were going to have poor returns because a market crash happened right before. But if you were investing a little bit in 2005, 6, 7, 8, 9, 10, 11, 12, well, all of a sudden look back now after a decade and you’ll have actually have pretty good returns because you kind of bought as the market was going up and as the market was going down because it’s, you know, virtually impossible for anybody to know exactly what’s going to happen in the future. But we really like the single family asset class in particular because over the long term over 40 50 60 year um time periods we see consistent appreciation of about 4% nationally and oftentimes higher in some of the markets that we’re buying properties in. So my my general you know thoughts for folks is to you know make sure you diversify and make sure that you only invest in funds that you’re willing to have kind of stay in real estate for a bit. You know, real estate is not an asset class that you can invest in and then trade out of and trade back into and kind of go back and forth, back and forth. It’s definitely something that performs best when you invest and then kind of take a step back and let it sit there for a number of years. Fantastic, Jake. Thanks so much for walking through it. And I I believe there was another um comment, but I’m not seeing it now from this active investor where they had stated illiquidity. And I just wanted I know we touched on liquidity. Uh Ryan didn’t prepared remarks, but Jake, I’d love to double down on what liquidity options are available given you were just mentioning that and Jerry asked how do I sell? Um so maybe we walk through the options that we have for individual properties. I can share some performance data and then uh what we can do for funds as well. Yeah. So there’s there’s all [clears throat] of the investments on arrive have a path to be able to liquidate. The path that you take depends on what you invest in. So for the funds, the single family fund and the real estate income fund, we have what’s called a redemption program. So all you have to do is submit your request to redeem shares and then it gets batched into a queue and we process them once a quarter. When that redemption happens, it’ll happen at whatever the current share price of that fund is. So if you invest in a fund now and you you wait three years and then you decide to redeem you submit this request your your um transaction the price you sell at will be the price of the fund in three years. So I’d say this to mean that you kind of you capture the appreciation that happens. Um there is an early withdrawal penalty for redeeming before the three-year mark of 1%. After 3 years it’s 0%. So again, as far as investing, you know, for the long term in real estate, if you put money into the funds and you wait a couple of years, you can then do a redemption and take that money out with the appreciation for no penalty. Um, that redemption program is specific to just the funds. For the individual properties, we have a secondary market. And the secondary market is runs once per month, you know, generally around the first week of the month. And it’s a peer-to-peer marketplace. So it’s an opportunity where you can sell your shares to other arrived investors or you can buy shares from other arrived investors. And so because of that the price at which transactions happen on the secondary market is going to differ for everybody because like the stock market it depends on what is the market for each individual property and what prices are people willing to sell at which prices are people willing to buy at. So on the secondary market we provide all sorts of information about you know what the current yield is, what the yield is at certain list prices, what the historical trade uh amounts are, what the current order book is. You can see where other buyers and sellers are pricing their trades. And then we have an algorithm that will automatically kind of match buyers and sellers again just like the stock market. That is a little bit more complex to use and it runs a little bit more frequently. Like I said, runs monthly. So the the good news is with both of these programs, you do have the opportunity to be able to liquidate. The redemption program runs a little bit less frequently, four times per year, and the secondary market is a little bit more frequent at 12 times per year. And again, you don’t necessarily need to know any of these or need to use any of them right now. Um it’s important just to say that, you know, you have the ability to liquidate and you have the ability to sell your shares and exit the investment at any point. Um, let me know if there’s any follow-ups on how those work. Again, for for you guys right now, the the more interesting opportunity is that you can actually, you know, eventually be able to go buy shares on the secondary market and buy shares of all the past properties that we’ve had that may not be available right now. That is something that you should definitely get into after you, you know, the first couple months. Kind of dip your toes in the water, get used to arrive, understand how everything works, and then that option will become available for you. Fantastic. All right. Um, and Jerry, it looks like you’re looking to liquidate the Gerald, which is great feedback. Uh, within once you log in, you’ll go to your portfolio. From there, you should see all positions and then single family. You’ll be able to see your investment. But if you have any questions at all, always feel free to email me at supporterrive.com or use that chat function in the bottom right hand corner of your platform. Typically on online at 9:00 a.m. So, if you’ve already written in, fantastic. We will definitely get back to you uh as soon as this webinar is over. and we can figure out your dates there. So, more than happy to help. Um, and few stats on secondary market as a whole. This is as of Q2 2026. We had 474 offerings trading. So, all properties, we’ve had uh over 11K investors that have participated, 181k orders placed, and 9.7 million matched. Now that has increased since we had our secondary market uh open in August as well. So this was from earlier. Um and then we have another one co opening up on September 11th as well. And to Jake’s point, all investments across arrived are intended to be held for at least 6 months. So we do not have an option to liquidate prior to that six-month hold um for any investments on arrived and then those hold periods that Jake walked through for anticipated. But let us know if there’s any other questions on liquidity. Uh folks have their hard-earned funds and we want to make sure that you know your options when you’re choosing where to park those funds. So very much appreciate the questions. All right, moving back over to the queue here. A great one from Patrick. Very timely. Do any of these investments qualify for 1031 exchange? The investments [clears throat] you see in the Arrive platform do not, but we are actually in the middle of launching a 1031 exchange program. Um, so I’ll send you an email after this, Patrick, but the long and short is that we’ve been helping folks to, you know, sell their old property and then most importantly, we’ve been helping folks to acquire their new property and manage it for them. And the 1031s have um I’m going to keep it short because I know there’s a lot of folks that this won’t apply for on the call, but the 1031s have a ton of tax benefits. It’s just really tricky to execute because there’s some really tight IRS deadlines. We’ve got everything set up because we’re buying properties every day. Um, and so we’ve now started this program where we’re actually helping investors to facilitate a 1031 so they can exit, you know, actually actively actively managing a property but still retain equity in real estate um, and be able to kind of benefit from, you know, the cash flow and appreciation. So, I’ll shoot you an email right after this, Patrick. I’d love to just hear a little bit more about your situation and see if it might apply to you. Absolutely. Very timely. Um, and I sent over a link to our 1031 landing page if you would like to take a peek um, prior to chatting with Jake. All right. Okay, I can take this one quickly from Al. How do I withdraw money tied to my bank account to invest? Great question. So, funds actually come directly from uh your connected bank account when you invest. So, there’s no need to deposit funds into your arrived cash balance. The arrived cash balance is primarily where uh your dividends will go that uh and you can let them build up over time. You can withdraw them or you can apply them towards a new investment when you go to invest. So, let us know if there’s any questions there. But when you go to make an investment, you will see your connected bank account there as well. All right, moving back over. Ooh, a good one in here. What percentage or fee does arrive charge for providing this investment service? Great question. So, fees are going to depend a little bit on which asset you’re investing in. Within an asset class, the fees are all consistent. Um, so if you’re looking at the single family individual properties, it’s going to be the same fees for all of them, but the fees there are going to differ a little bit from the single family fund or from the real estate income fund. The there’s generally two types of fees that we charge. There’s an upfront sourcing fee. So, it’s a onetime fee that goes to us for the work in identifying and acquiring the the asset and bringing it onto the arrive platform. After that, then there’s a recurring assets under management fee, which is what we charge for all of the ongoing management, tax reporting, information provided, um, and facilitation of the investment. And that fee is generally a percentage of the the amount that you invest. Both of those fees are going to be highlighted on each individual properties page. So, if you go to the financials tab, you’ll be able to see the breakdown for that asset class. And that FAQ that CR sent has a lot of good information as well that goes into all the specific numbers and details around each specific one. But that’s generally the high level overview is there’s a larger upfront sourcing fee. It’s a onetime fee. It’s already baked into how much money we’re raising for an investment. So if you go to invest $1,000, that is going to include that sourcing fee in it. You don’t get hit with like a taxes and fees section at the end. And then that recurring assets under management fee is just paid out of the cash flow that the investments generate. So, as we, you know, collect rent from tenants and pay expenses on the property, we pay the arrived asset management fee and then what’s left gets distributed out to investors. That way, you’re not on the hook for any, you know, subscription costs. You don’t have to put more money in. If you say, “Hey, I only want to put in $100 and then that’s all I’m going to do.” You don’t you’re not on the hook to put in any more money than that. Um, I think that was all I was going to have on fees. Let me know if there’s any other specific questions. Um, I can never keep all the numbers straight these days with how many different products we have. So, that FAQ and then the financials tab on each offering page is going to be the best place to look to have all that information. Absolutely. Awesome. Thanks so much for walking through it, Jake. I can take this one quickly from Al. I don’t see any other questions in the queue, so keep them coming. Uh, we’re happy to answer any and all. Al had asked, “Does arrive have a phone number to physically talk to somebody at arrived?” It’s a great question. We pre previously offered a phone number, but it wasn’t uh manned 24/7. So, folks had longer than expected uh response times. So, the best way to reach our team is email supportive.com or use the chat function in the bottom righthand corner of our platform. And then we have these webinars once a week. It’s Tuesdays at 9:00 a.m. uh that we have existing investors jump into to have questions. But I would say in general our response times on email and chat are rather fast. For context, we do have an AI chat directly on the intercom or on our chat that’s in the bottom righth hand corner of our platform. You can ask for a human at any time and get out of them. Um I know sometimes those can be frustrating. So our goal has been to always be human first. Uh that’s just the first line of defense if there’s any questions that can come directly from our FAQ. So, let us know if there’s any other questions there, Al. Uh, happy to walk through it um and answer any others. Jake, we’re well into Q3 here. Uh, what would you say that your most exciting uh project that you’re working on right now? Um, I’m I’m working on a lot of our 1031 stuff, but I’m also really excited about the recurring investments uh feature that our team has coming up. So right now if you want to build up you know a large portfolio in you know the real estate income fund and you don’t have the capital to do it all at once it generally means you have to come back you know pretty regularly to keep putting in more money and so we’re excited about this recurring investments feature where you can set up an auto invest so that way you can just say hey I want to invest you know $100 a month and then kind of set it and forget it come back in a year or two and we’ll automatically withdraw the extra cash invest it into the fund and that’ll allow you to kind of compound your returns because you can actually start to you take the dividends that you’re earning, reinvest those to buy more shares, which of course then gets you even more dividends the next month to be able to buy more shares. So, it’s been a uh frequent request for the last couple of years, even though it’s pretty easy to go and click through to make a new investment, it does get a little tiring after you’ve done it for, you know, two, three, four years. So, it’s a um a big feature that our team’s been working hard on and we’re excited to be having that come out this fall. Absolutely. Well, Jake, you’ve been integral in building every single uh product that we’ve had on arrive today. So, your fingerprints are on each and every offering, and it’s exciting to see 1031 off the ground. Um, and now building recurring investment. I know that’s been one of the top feature requests that we’ve had from investors to date. So, very excited and looking forward to that one going live. Uh, it just adds to what we all are about and our DNA of being a passive investment. So, goes right in line with making this as easy as possible. Not getting those phone calls at 2 a.m. with a leaky toilet or a refrigerator going out. Um, just being able to let your investment work for you. Uh, one quick one from Kelsey and then I think we’ll wrap our virtual doors here unless any other questions. What’s the minimum investment? What is the minimum investment amount you can invest? The minimum in all offerings on arrived unless otherwise noted is $100. So the goal is to be as accessible as possible. The max investment per individual property is 9.8% of the equity available. That is so we intend to maintain real estate investment trust um status within those offerings. Now for the fund investments, we also mirror that max but it’s much larger given the funds are a lot larger than the individual properties. So no max in the number of properties you can invest in. Um, oftent times or like I shouldn’t say oftentimes, periodically if we have a property that is selling quickly, we will put a smaller max on that. So you could see $500 uh $500 max, $200 max, and that is just to give more folks the opportunity to invest in that property. Um, that is not extremely often. Just calling it out in case you seen that. All right, Jake, I believe you walked through returns, but um and so Kelsey, it’ll be in our um in the recording, but Jake, maybe we do could you do like a basic dollar amount, like maybe a $100 investment and what that return could look like? Um it’ll vary with funds and individual properties. Yeah, the the high level is the single family residential investments tend to have about a 4% dividend yield and then, you know, maybe about a 3 to 5% per year in appreciation, but that’s going to kind of depend on the individual property, the market you invest in. Um, and it’s not, you know, tends doesn’t tend to be very linear. So, you have some years where the market’s flat and some years where there’s a ton of appreciation. So, the single family investments end up being about kind of the seven to n% return or so per year. um with about half of that coming from dividends and about half of that coming from appreciation. The real estate income fund tends to be about 8% um and that’s all dividend. So the real estate income fund is investing in a bucket of loans. Loans don’t appreciate, you know, they just get paid back at the the their par value, you know, the the principal amount. So the the real estate income fund is only generating income, but it does generate pretty high income at about 8% per year. um that’s probably enough to kind of get you started again again the you know the um single families it that’s are kind of the averages. So there’s going to be some properties in some markets that have you know lower returns or lower dividend yields others that will have higher ones. Um that’s just kind of the the averages for the overall group if you look at all you know 500 sub properties. Fantastic. Awesome. Kelsey that said thanks for addressing my question and for the explanation Jake. So thanks for walking through it. Great question Kelsey. Um, I think we cruised through all the ones that I see today. So, keep me honest in the chat if I’ve missed any. Uh, Jake, any closing remarks before we shut our virtual doors today. That’s all I’ve got. Thanks all for coming and asking good questions and looking forward to investing with you. Absolutely. Well, Jake, thanks so much for your time as always. Uh, very much looking forward to what’s to come, what we built today. For all the folks that spent 43 minutes on your Tuesday morning and afternoon, thank you. Fantastic engagement. Uh we so appreciate having the opportunity to walk through any questions that you have and if any which typically happen uh come after this webinar you can always reach out to supportive.com. You can use our chat function in the bottom righthand corner of our platform. We’re live on all social channels. The one that’s most community based would be our Reddit. Uh but again the email and chat are best for any u questions about your account or arrived as a whole. So happy investing and I hope you all have a great rest of your day. Thanks folks. Talk to you later. I