Category: Arrived Webinars

Fantastic. Jake and team, thanks so much for prepared remarks. Uh Jake, you probably saw we have folks from all over today, which is absolutely exceptional. Thrilled to have you all here. Feel free to drop any and all questions in the chat. This is your time. U so feel free to drop those. Sometimes if we see like kind um in terms of the questions, then we’ll group those together. So go slightly out of order. And then once we get to the top of the hour or earlier, I’ll ask if I’ve missed any. So, um, Jake, I’ll take this first one in here, and I’ll pop the second one from Thomas to you. I’m looking to invest in rental properties, but there are not none available for a long time. Why is it So, good question. So, we have quite a few properties that are available to invest in on our website right now. I’m going to go ahead and pull up uh our invest page so you can see this on your side. As a note, you do not have to have an account in order to view this information. So, if you want to uh view it on the front side, you’re more than welcome to. You’ll notice our real estate income fund, our Seattle city fund, and single family residential fund are always open. So, you can invest in that at any time. But in order to see the properties that are available to invest in, you go over to that filter button on the right hand side. You’ll click for sale and then it’s going to show you the properties that you can invest in today in the percent funded. So once they’re fully funded, they’re no longer to available to invest in unless they become available again on the secondary market like Ryan was walking through. But you’ll notice we have quite a few different properties in different markets. I’ll say too that we’re typically releasing new properties on a weekly or bi-weekly cadence. That can always vary over time, but that would be the standard typically around um on Thursdays. Um specifically asking for vacation rentals. Great feedback there. We’re uh right now we’re hyperfocused on operational efficiencies for our vacation rental properties in particular. We have roughly 40 on our platform. Um so we aren’t planning to add more right at this moment. That said, they can become available on the secondary market. So one thing to note with secondary market, uh you have to have at least one trade and be on the platform for 60 days from that trade. So uh keep an eye out there. I know there’s a lot of vacation rentals that folks get excited about. One in particular would be the buyer’s house which is from Stranger Things. Uh but great feedback there. We’ll be sure to share that with our team as well. All right, Jake. Anything to add before we move on to the next one? No, that’s great. Perfect. All right, let us know. Awesome. You said thank you. Let let us know if there’s any other questions there. Thomas had asked, “Where are your high leverage properties on the website?” Maybe I’ll go back, Jake, um so we can we can show that. Yeah. It’s a similar kind of answer. We haven’t really been adding a lot of leverage to properties in the last four years at this point. Um, interest rates went up in 2022 and that that was kind of the point where it didn’t make sense to add a lot of leverage to homes. So, we have a leverage filter in here. Um, you can see there’s nothing for sale that has leverage, but are, you know, there’s 143 properties that do have some amount of debt on them. Um, all of them, you’ll see, are fully funded. So, the only way to get access to those particular properties is going to be to invest on the secondary market. Like Karin mentioned, that’s not something you can do right off the bat. But after you’ve been an arrived investor for a few months, you’ll have access to the secondary market, which runs once per month and allows you to buy any of the shares of these older properties from arrived investors who are interested in selling. So that’s a great way to get access to things like properties that don’t that have leverage that, you know, we don’t have available right this second. And it gets you access to those properties of leverage that have, you know, 2021 or 2022 interest rates. So they generally have debt that is much cheaper than new debt is today. Uh that would be kind of the best place to look. In the meantime, we’re kind of watching the capital markets and we’re hopeful rates will come down, but right now it sure looks like the Fed is signal signaling that rates are going to stay elevated for this year and maybe start to come down next year. So we’ll be watching and waiting to see, you know, when we can possibly start to add leverage to new properties or even refinance properties that, you know, are fully equity funded right now. Absolutely. Hey, do you remember when we made the change? It’s been quite some time now to not include leverage on properties. Yeah, it was about summer of 2022. Um that was kind of when we hit the inflection point where interest rates went up high enough that it didn’t make sense. Um because our goal was to create, you know, these single family home investments where there’s a balance of cash flow and appreciation. And when interest rates went up high enough, you know that all of a sudden taking out more debt meant that you’re going to really start to destroy your cash flow because all of the cash flow you’re earning is going toward paying off the debt and paying the interest on the loan. So when that the interest rates went high enough where it didn’t really make sense um we stopped adding leverage and since that about then um you know last four years it’s been with with properties that are all equity funded. Absolutely. Awesome. Thanks for walking through it Thomas. Great question. I also dropped the details like Jake and I were mentioning with the secondary market how to access that. So definitely stay tuned. We’re running our windows on a monthly cadence right now. So I’ll drop those dates just so you’re aware as well. And then we would notify you when you’re eligible. I know that’s from the previous question, but eligible to participate in that. U Jake, I did get a DM on fees. Are you open to walking through how fees work? And then I’ll drop a FAQ in the chat. Yeah. So, there’s generally two types of fees that arrive charges for making investments. There’s going to be an upfront sourcing fee and then a recurring assets under management fee. Now, that upfront fee is a onetime fee that goes toward Arrive um for our work in, you know, finding and identifying a property, acquiring it, and getting it onto the Arrive platform. It’s already included with how much money we’re raising for that particular investment. So, you don’t you if you say, “Hey, I want to invest $1,000.” You invest $1,000. That’s inclusive of the fee. you don’t get hit with a taxes and fees section, you know, when you go to check out. Um, that onetime fee goes toward arrived and then from there on it’s just an recurring assets under management fee and that’s what, you know, compensates our team to, you know, actually operate all the properties and deal with managing contractors and talking to tenants and handling accounting and doing all the kind of back office and administrative things that need to happen in order to have a successful investment. Both of those fees are going to be listed on each individual investments page. Um on the financials tab, you’ll see information about the fees um and some examples of what those fee amounts are. Um and the reason I’m being I haven’t quoted any numbers yet is um the best place is really going to be in the FAQ just posted. The fees are a little bit different for each asset class. So, they generally all have the same structure of an upfront sourcing fee and then a recurring assets under management fee, but the fees are going to be slightly different for the real estate income fund versus the single family residential fund versus the individual single family properties. Um, so that’s why that FAQ is going to be the best place to look. And again, the same information is repeated on each investments page, too. Fantastic. Awesome. Thanks so much for walking through it, Jake. Very much appreciated. Uh for folks on the line, drop any and all questions. We’re here for you. Jake, we’re heading into what Q3 is coming up here. What are you most looking forward to from a product perspective? Um I’m really looking forward to Autocast. It’s been a product that everyone’s been asking for for a long time. The ability to just kind of say, “Hey, I want to set it and forget it and put, you know, $500 a month into real estate and, you know, make it really easy.” Um and right now you have to come back and log in every time. So really excited about auto invest because it’ll allow you to just set up how you want to build your real estate portfolio and then you know come back in a year or two and and you know have things automatically have been invested automatically have grown for you really similar to how you might have your you know 401k or any automatic contributions to a brokerage account. Fantastic. Awesome. Very excited. Uh for context right now, if you do have an arrived cash balance, so from your dividends, you can manually apply those towards your investments right now. So let’s say you have $10 in dividends. Uh the other 90 to meet that minimum of $100 would come from your connected bank account. So there is a way to do that in the checkout flow now. But to Jake’s point, AutoInvest is going to unlock a whole new world that we’re very excited about, primarily building on investor feedback, which is very exciting. All right, moving back over here. A good one from Thomas. What’s the expense ratio for properties? Do the funds work like EFTs? Maybe we’d clarify EFTs as well. Um, yeah, it’s it’s the the expense ratios are going to be again on each individual investments page and it’s going to be a little bit different depending on what assets you’re investing in. So, the fees are going to be a little bit different for the single family homes versus the, you know, uh, the vacation rentals versus, you know, the real estate income fund. Um, you know, in general, the the expense ratio I’m assuming you’re going to talk about here just the general expenses for the property. So not specific to fees, but generally expenses on a single family property are going to run from uh you know what 30 to 40% of the rent. So you end up getting margin of about you know in the 50 to 65% range depending on the particular property and how long it’s been owned and you know how long you’re kind of averaging out over. Um you can see all sorts of historical financial information on our financials page. And then we also have a bunch of SEC filings because each investment is a registered investment with the SEC. So we’ve got public um audited financials and public non- audited financials that cover different time periods. And that’s a great place to go look to kind of poke through all the different historical expenses. Fantastic. And Thomas, I’ll drop both of those. So to Jake’s point, we have all of it on each individual offering page and then they are consolidated on the circular. So that’s the second link I dropped. and then to walk through line by line on the difference in reports that we have. Uh you can see the FAQ on more details there. So let us know if there’s any other questions. All right, I think we cruise through all the questions today. I’ll give folks 30 more seconds. Let us know if we if you’ve if we’ve missed any or if there’s any other questions you have. It’s definitely your time. Uh Jake, as we look towards the latter half of the year, so let’s say after AutoInvest, um what do you foresee on the horizon for Herdrive? Oh boy, I don’t know. There’s all sorts of things that we’ve got coming on between Auto Invest and we’re looking at referral programs. Um and we’re looking at, you know, some specific um kind of investment guides. Um there’s definitely going to be some cool stuff coming in the second half of the year. So, it’s a great time to get started investing with Arrived and kind of getting your foot in the door, learning how it all works. And there’ll be a number of cool exciting products coming in the back half of this year. Absolutely. Very much looking forward to what we have to come. And Jake, thanks for working so hard to build the foundation for not only our existing products that we have uh but for new features coming up. So very excited for all the things. Uh for the folks that spent 34 minutes on your Tuesday morning and afternoon, thank you so much. We so appreciate the engagement. If there’s any other questions that come up, feel free to email supportive.com. You can also use our chat function in the bottom righthand corner of our platform. It’s a little circle uh with a smiley face in it. We do have an agent that um starts off asking questions and you can always request a human at any time. So, feel free to do so. Uh but hope you have a great rest of your day and happy investing. Thanks, folks. Chat soon. Bye all.

Hey team, thanks so much for prepared remarks. Cameron, appreciate you jumping in. Uh folks, you uh we so appreciate you jumping in from all over the country today. I know we have quite a few questions. I had just mentioned we were going to cut from Q&A. Um but we were able to move things around on our side. So feel free to drop any and all questions in chat. This time is yours. Um Cameron, maybe we do a brief intro for you uh before we jump into more details here. Yeah. Uh, thanks. So, uh, Cameron, I’m our VP of investments and I’ve been at Arrive since the very beginning from our very first offering. So, it’s been, uh, I great to see the platform evolve over the last couple years. I come from a family of real estate entrepreneurs. So, have been in residential real estate my entire life. And, uh, before arrived, I was with American Homes for Rent where I ran business intelligence, pricing, and asset management. Uh, so really cut my teeth on the institutional, single family, residential market. Back then we owned close to 60,000 homes. We’re one of the largest builders in the country with build for rent communities and uh it was a great experience learning the industry in and out and brought that to arrive to deploy the single family residential game plan. Fantastic. Well, Cameron, we’re so grateful to have you on board. U you’ve been one of the most incredible teammates I’ve had the honor to work with. So, uh appreciate you being here today. I know we have a lot of questions that come through the queue. Uh folks, if this is your first time joining, feel free to drop any and all questions. Sometimes I’ll group like kind um and then we’ll go from there. There was a one early on here from Pride. What is the loan to value like? I walked a little bit Cameron through how we’re not doing loans today on individual properties, but perhaps we walk through more details here. Yeah. So for the I can talk about this in in two different ways because we uh we deal with loans in as both the creditor and the debtor. So on single family residential properties, we have mortgages that we took out from 2021 to 2022 when rates were more favorable. Our typical loan to value ratio is about 50 to 65% with the majority of them being at 50%. So we’re strong believers in leverage and levered property appreciation. Uh but we’re also a little bit conservative in how we how much leverage we apply. A lot of real estate investments get into trouble when they’re overlevered. Uh so the great financial crisis is a great example of that. There were a lot of poorly written under uh poorly underwritten mortgages. There were a lot of uh LTVs that were way too high. So when the property markets crashed, then a lot of people had to get u they they were gotten forclosed on cuz their their mortgages were the properties were underwater, which means that the value is less than the mortgage. So we are very allergic to that and you know we uh risk manage quite well with our mortgages. So typically they’ve been at that lower LTV rate of 50 to 65%. Um, similarly on the credit side, so with our credit funds, we are purchaser of loans, but the but these are very different types of loans. So on the rental properties, we have 30-year mortgages. Uh, they are intereston. They’re kind of what you would imagine a landlord mortgage to have, similar to what’s on your uh your your own home or any type of residential property. But when we’re purchasers of credits uh for the real estate income fund, these are different. They are business purpose loans. They’re loans that are made to builders, fix and flippers, and really entrepreneurs who are in the business of value ad um and and groundup construction. So, these loans are really more like 6 to 24month loans. They support the construction, their their financing to really get the renovations and the project done. They pay a higher interest rate, high singledigit to low double digit percentages. So that’s the type of asset that is in the credit fund and those will usually be around 65 to 75% loan to value. Um their first position mortgages which means that uh that the credit fund is the uh first pos like they have the first claim to the economics of the asset in in the event that the borrower doesn’t pay back then you can forclose on the property. Um haven’t really had to do that yet. uh have had zero principal loss. So, you know, it’s been a great credit fund. It started off around 8.1% has climbed to around 8 1.5% as far as the yield goes. Um so, strong believers in both owning the credit assets in the funds as well as taking out um moderate leverage on the properties to get leverage appreciation. Fantastic. And Elvis had a followup here. That’s the way you recoup your principal. Is that correct? So foreclosure is more of a a a distressed event in the event that the borrower is not able to pay. So you have the right to foreclose on the note and then as as a creditor you have rights to collect all of your principal and your interest first. So it’s not just the principal but it’s also the acred interest that has not uh been paid since the borrower went delinquent. So yes, it it is a remedy more so, but usually the way of getting your principal back is that there’s some sort of successful exit. And that’s been the overwhelming majority of all loans. Like, you know, there there’s been times where we’ve had to do a workout plan with borrowers that usually involves extending time, reworking the loan. Um, but really we want to see them get to a successful exit more than we want to go through any sort of foreclosure process. Uh, usually you’re going to have to take a discount on the value of the property. you you want to really uh support them getting to the finish line and that is that is going to be the best outcome. Um and they either can sell the property or the existing loan can be take what’s called taken out uh by another loan. So let’s say that you’re doing groundup construction. They’re going to be rentals uh in the long run. So the construction loan is going to get taken out by a long-term financing loan from another lender. So that’s how you get paid back. Um, if the builder or the fix and flipper doesn’t sell, there’s some other refinancing event that takes out the existing loan. Fantastic, Elvis. Great question. And Cameron, appreciate walking through in great detail. Uh, especially when we’re thinking about the different investment products. I know another person on the line was curious, too. So, let us know if there’s any follow-ups there. Happy to. We have quite a few questions. I saw Prasad, Elvis, and other folks in the chat. How long do we have to leave the investment with arrived? What’s the holding period like for each investing vehicle? Cameron, as you know, Ryan walked through a little bit of liquidity during prepared remarks. Uh, but I feel like it’s always a good one to double down on, especially when folks are parking their hard-earned funds uh in a new platform, a new to them platform. Yep. Yeah. It’s been um over five years at this point. It’s crazy to think about that. So yeah there when you when when you make an investment arrive there’s there’s really two ways of investing. You can invest in our funds or you can invest in the individual offerings. Uh so with funds there’s a minimum hold period of 6 months and then on a quarterly basis you can redeem your shares and get liquidity meaning turn your asset which is shares into cash. So you know the strict answer is 6 months when it comes to funds. And then for individual offerings, uh we have the secondary market which allows you to connect buyers and sellers together to exchange shares of those individual offerings just like the public stock markets. Um now there’s a couple of differences. You know, there’s not these are not public companies like the word IPO indicates is initial public offering. These are not public securities. They’re still privately traded, but the mechanism is very similar in terms of connecting buyers and sellers directly. So in our fund products when you get liquidity through um redemption then you get redeemed at the net asset the most recent net asset value for for which you um you made your request. Um and that and that is that six-month hold period. And then on individual offerings when you are transacting in the secondary market those are on monthly cadences that we have. So liquidity is not guaranteed. even if you do put your shares up for sale, you still need to have a buyer, but that is available on that monthly cadence. So, that that’s at the individual investor level, having that option to turn your assets into cash um whenever you need to. And then for an investment hold period, as far as our assets go, with rental properties, we expect to hold them from 7 to 10 years, but really we are annualized return maximizers. So if it takes longer than that to realize a better outcome, we’re going to continue to hold. And if you need liquidity before that, there’s investor level liquidity. So there’s really two levels of how do you get your cash back. There’s asset level liquidity, which means if we sell the property, everybody gets their shares turned into the cash value of what’s left. uh at the investor level you have the option through the redemption or program for funds and then the in uh the secondary market for for individual offerings the credit assets underneath um in the real estate income fund those mature on anywhere from like a 6 to 18month window. So those assets are constantly turning over and what happens is the borrower they they pay back the loan the fund receives cash but instead of distributing that cash we reinvest them into loans. So we we intend to be fully deployed all the time in those credit funds but the asset turnover underneath it is much more frequent but we we constantly buy new loans keep reinvesting cash and then distribute the interest income as dividends. Fantastic Cameron. Thanks so much for walking through it. Uh, a couple notes here too. Secondary market for folks that are new to arrive. To access secondary market, investors must have made their first investment at least 60 days before the start of the trading window. A lot of folks get very excited about this because we’ve we’ve had properties that are fully funded. That essentially once they’re fully funded, they’re sold out. You’re no longer available to invest in them. So, it also unlocks a massive opportunity to get into markets or properties that you’re of interest. Uh, so be sure to check it out. We run the secondary month uh secondary market on a monthly cadence. So it opens once per month. Uh previously it was quarterly. So we’re very excited on the monthly cadence. Then for the redemption program, like Cameron mentioned, we uh the minimum hold period 6 months and then it’s a quarterly option to redeem from there. Uh and we have dates and cuto offs in place for that. So, one thing to check out if you’re interested in. And then again, the fees for the redemption program, that minimum hold period for zero fees would be 3 years or more after that. So, uh, something to keep in mind when you’re choosing where to park them. All right, moving back over here. Couple good ones. One from Elvis. When we invest, do we know how the funds are being deployed? Yep. So, you know, f the the construction of a fund can vary from time to time because you’re going to have a different mixture of assets. Uh, but you know, it really depends on the investment perspectives. Uh, so when there’s idol, let’s let’s take a couple of different funds as working examples. So, the Seattle City Fund and the single family residential fund are two funds that are primarily based on property assets being in the fund. So, it’s generating rental income. But you know let’s say that you’ve got three homes and it’s fully deployed in homes. People are constantly investing every day. So the question is well what do we do with that cash? So this is where you know being in the credit game also really pays dividends for arrived in investors as far as the product offering that we have. So as money accumulates then we’re also purchasing loans. So let’s say that you know there’s $100,000 of cash in the fund. Well, that’s probably not enough to buy a a house that we want in that particular fund, but it is enough to contribute towards a loan that we can put into the into the residential fund or the single or the Seattle city fund. So, it’s earning higher yield uh with those loans. So you know the the perspect the investment offering it gives guidance on leverage amounts and where the assets are allocated but it’s not a precise um mandate of saying okay you always have to be 100% allocated into your rental funds and then you can never have credit assets. It doesn’t say anything like that. It says generally our goal is to generate returns and appreciation off of assets. And then we also have cash management components that look to get higher yield um subject to some constraints like we don’t want to turn it into a 100% credit fund. That’s what the real estate income fund is for is to hold those credit assets. Um so as far as where the funds are being deployed, you can see the assets that each single family residential fund or Seattle city fund owns like the the properties. Um but it with excess cash, we deploy them into those short-term loans to generate higher yield for the fund overall. So that’s a general description of of how it is. And the you know residential funds that hold the home assets, they are overwhelmingly predominantly um real estate assets and then when there’s excess cash, we’re putting them into loans. Fantastic. Awesome. Thanks for walking through it. Cameron, we did walk through returns in prepared remarks, but it’s always one always a great one to chat through live. What the what are the current rate of return offered on fund versus rentals? And we want to The only thing with rentals is clarifying long-term versus vacation rental as well. Sure. Yeah. So, I would say that there’s three different asset types that are um being offered on arrive. There’s long-term rentals, vacation rentals, which are both um you know, supported by physical assets, the homes themselves, and then there are credit assets. So on the real estate income fund, which is all credit assets, that rate of return, um, it started off at 1 8.1% and is, you know, steadily climbed throughout its 2-year history to be around 8 and a half. And certain months, uh, we’ve been able to distribute 8.7, but 8 12% is probably a good average number to to think about right now. And that’s all been paid out as dividends because it’s being supported by interest income. There’s no expectation of appreciation on that because there’s not really a um you know as a credit asset you’re only entitled to get back the principal. There’s not like an appreciation component on it. It’s all interest income that gets distributed out to investors. Uh so that’s you know 8 12%. On the long-term rental assets we have a much more balanced mix between expectation of appreciation and then the actual cash flow being paid out by rents. So we’ve seen about 3 and 12 to 4 1/2% depending on the uh market and price point and vintage and all that you know the assets but that’s on the the dividend yield. So the rental income is generating 3 and 1 half to 4 1.5% and then the appreciation you know it depends on any given year you know you look at any 20-year history um of different zip codes different assets it averages about 4%. Um, but the reality of appreciation that it looks like you have 1% one year, 2% another year, 0% minus 1%, and then you’ll get a large surge in property prices and then it’s like, whoa, 8% and then 10%. But then when you look at the average over that 20-year period, very consistently throughout American history, it’s been about 4%. Um, so you know, the expectation is that total return for those assets in the 6 to 10% range when you factor in both the dividends and the home price appreciation on those investments. Um, and then for vacation rentals, it’s going to be skewed a little bit more towards um the income side. Now, we’ve had a little bit of um operational transitions where we’ve fired property managers, brought a lot of it inhouse um but stabilized on our vacation rentals. they’ve been paying around 2%. But we expect that to um improve over time as we are now internally managing the majority of our assets. U so you know rental assets both bal balance of appreciation and income two to five 2 to 4 and a.5% on dividend yields and then appreciation kind of 20 year 4% average but you know it can vary in any time of year. And then for credit assets um you know north of 8% 8 and a half% for pure dividend returns. Fantastic. Awesome. Elvisa, thank you so much for answering all the questions. Thank you, Cameron, for your time here. Very much appreciated. Also, fantastic questions being asked today. So, very much appreciated. I saw a couple folks ask this. Will the presentation uh be available afterwards? Absolutely. For all registrants, we send it over via email as well for you to take a peek at. Uh we’ll give folks like 30 more seconds here. If there’s any questions I didn’t answer earlier in chat or you’d like further clarification on, definitely let us know. Um Cameron, maybe we talk a little bit about uh I’ll get back to you one second, Elvis. Um adding multifamily into Seattle City Fund, clarifying like what that means, why we did it, why now? Yeah. So, we’re pretty excited to have our first multif family offering on arrived and it is in the Seattle city fund and that city fund is really focused on all sorts of different asset types but oriented around the the greater Seattle metropolitan area. So, we had an opportunity to make an investment into a um really excellent operator uh in the Seattle area that focuses on repositioning and um rehabilitating multif family assets. So, the opportunity here is that there’s a lot of um under optimized uh multif family assets that have been held by families 30 years, 40 years, and you know, they got in at a good basis. They’ve been holding on to it for a long time. a lot of them don’t have the cash to put the appropriate renovations into it and thus they kind of go um under underachieve on what the rent potential is for that particular area. So um we got wind of a really great opportunity to enter into a position in one of their funds that has a really great asset. It’s in actually the Edmonds area which is like 10 minutes from where I live. So, it’s a really great um asset where there’s a 37 unit multif family building. Their rents were under by like 18%. Um you know, they’re they this is a market that supports $2,500 rents for a two-bedroom apartment. Um and they were only getting like 2,000 or 21,100 for their largest units and 1,700,800 for their smaller units. So, what this uh what this operator is doing is they they bought the property, they got a really great mortgage on it. um it’s constantly at 36 out of 37 or 37 out of 37 fully unit uh fully occupied units. So as soon as somebody moves out then they rehabil they they rehab it to a much more modern clean standard. They made improvements across all the common areas um and they’re achieving rents now that is you know like $300 uh higher than their $2,000 base. So, it’s been a really great project and you know they have a exit plan of around 5 years 7 years uh to basically get all those units renovated as they move out get the rent roll higher and then sell for appreciation because instead of um you know getting $2,000 per unit and now they’re getting 2,300 so 15% increase on the rents minimal expenses and like very clean rehabs that they’re doing. So, it’s just a really great project that is a great addition. We’re looking for more of these uh whether they are going to be individual offerings or within the different fund. You know, we’re adding that as a tool uh as an investment option at arrive to find those opportunities that really leverage kind of a flipping opportunity uh more so than a buy hold appreciation because you know we have plenty of those and those uh you know are real steady climbers. But you know in a higher interest rate environment it can also be really great to participate in those flips because you’re a little bit less interest rate sensitive because you’re you’re you’re creating your own value. So you’re not kind of depending on the market appreciation which can be a little bit slow when interest rates are higher. So we we liked this as an investment because we could try to manufacture um stronger gains in a shorter period of time despite a more challenging environment of higher interest rates. So that’s been the idea behind investing into it. So, we’re going to look all over the country for more of these operators, more of these opportunities, really empower some of the third party operators that are really specialists in their local markets because you have to have boots on the ground for this and you have to really have to know your market, live, breathe it, um, and find those opportunities, which, you know, it’ be impossible for a company of our size to have all of the boots on the ground looking for all of these individual investments and have it make sense. So operate like what we really do well is um raise the capital have a great platform for investors um to be in and then have really disciplined underwriting and saying like what are the greatest investments and then support those operators by providing capital and then they’re providing the labor to you know do all of the renovations. So that’s uh that’s the game plan of how we’re looking for multif family assets but there’s probably also some good uh buy and hold assets as well. um duplexes, forplexes, some of that is the de facto residential um SFR for east coast and west coast and higher density living areas where you don’t have quite as many single family homes that are affordable. So looking at both options there, but really liking the value ad thesis where a really good operator is creating their own value instead of waiting for the appreciation by the market. Absolutely. Yeah, very much appreciate you walking through it, Cameron. And a cool part too is if you go directly to our Seattle City Fund offering page, you can go over to properties, scroll down, and then you’ll be able to take a look at uh the different properties for like multif family fund that we have in there. Uh so this is the Olympic West apartments that Cameron was just walking through. Um, another thing I’ll share too, I know I had just shared in chat about like expected first dividend for Seattle city fund, real estate income fund, and single family residential fund. Uh, Elvis, to your point, if you invest by the end of this month, so what is that? That’s today, June 30th. Uh, then you will expect your first dividend around September 25th. So that is outlined on each of these offering pages. I was just correcting myself because I mentioned uh REF and SFR fund in chat and I left out Seattle City Fund when we were chatting about it. So very much appreciate you asking. Uh Cameron, we have another followup on Seattle City Fund in particular. Uh what are the rate of return are you anticipating for Seattle Multifamily? Yeah. Um, so you know, as you can see on the page right there, the overall dividend yield for the fund itself is 5.7% and the the city or the the multif family investment is a small part of that total $4 million of net assets that you see there. Um, you know, with uh securities rules, uh, we’re not allowed to make forwardlooking statements about what do we anticipate, you know, all all in at the end, you know, to uh, return. But I can I can just say generalize. You’d expect um a significantly higher return in a shorter period of time when the thesis is value ad because you’re creating the value where you’re increasing the rent roll and you’re trying to sell for that higher appreciation. Um because you’re you’re creating the opportunity to get a higher income stream off of that. Um so with that said, you know, 57 for the dividend yield on the fund itself. And with the multif family fund, what they’re doing with the rents is that they’re using that as the rehab money for the next unit. So they’re collecting rents and instead of making capital calls saying, “Hey, we need money for the next rehab unit and the next one and the next one,” they’re taking all of the rents and they’re reinvesting it back into the property. So in that 5 to sevenyear um exit window, that is when the returns are going to be realized. So, you know, we shall see on, you know, when when that point comes, but I got the actually the most recent operational report this morning and they are at 97% occupancy. So, basically there’s and the reason why there’s one unoccupied unit out of the 37 is because it’s currently going through renovation. So, you know, all that to say very strong operational performance on that multif family unit. has consistently stayed at, from what I’ve seen, 100% occupancy when there’s full units, but as soon as one is um vacated, they go through the renovation and they you’re they’re usually pre-leasasing that property as well. Um so, super strong performance on it, but it it just behaves very differently than our traditional um asset because all of the returns are expected to be um on the sale because they’re reinvesting the rents into the property itself.

Nope, you’re muted. Thanks, Cameron. It’s been a minute. We still got to start our podcast. Oops, you’re on mute. You’re on. Awesome. Well, I think we cruise through all the questions. We’ll give folks 30 more seconds here. Camera, we’re jumping right into Q3 starting tomorrow. What would you say you’re most excited about? Yeah. Um it’s it’s along the lines of uh finding those value ad investment opportunities. Um that’s one and then the other is 1031 exchanges. I think that that is a um really great tool for a lot of people that have owned real estate for a long time. And 1031 exchange is basically a tax deferred exchange where you can sell a property that you have that has a lot of gains in it and then roll it into the next investment property. So that way um you there’s ways of not having to pay that tax in the moment. So um it’s a service that you know a lot of our investor base they’ve they’re you know existing real estate holders they’ve been writing in to us saying like hey do you offer these exchanges and um you know we have created a product that you know speaks directly to them in the sense that it’s it allows you to go from active to passive. It’s probably the easiest real estate investing experience that I’ve seen at least. um and they’re just kind of tired of being an active landlord and they want the benefits that Arrived has offered with the fractional product but for a whole home of theirs while getting to um defer a lot of the taxes. Um so those two products where I’m really interested in and I’m getting more of the 1031 program off the ground. So if you have any interest in it uh yourself or you think you might be a candidate then go ahead and write in um and then you know we’ll we’ll get back to you um very immediately as it’s a high priority for us. Uh and but otherwise, you know, we’re looking for a lot of good value ad opportunities um in addition to some more buy and hold of uh multif family. Absolutely. Yeah, I just dropped a link. This is our 1031 landing page if you’re curious on learning more. Uh if you click in to get started, like Cameron’s mentioning, writing in, we’ll ask a few questions there, but you can always email supportive.com too if you just like to get on a call. Um Jake, who you heard from earlier today, u would be thrilled to. So feel free to jump in here. It’s definitely one we’re very excited about and Cameron’s been an integral part of building the foundation of this uh this product. So, very excited. All right, cruising back over here. Uh Joseph, very much appreciate the kind words in chat. We’re very uh thrilled to hear that you’re excited. So, um Cameron, thanks so much for your time today through walking all through all the questions in great uh detail. We so appreciate you and for all the folks that spent 53 minutes uh in prepared remarks and then asking incredible questions. Thank you. The engagement was fantastic today. As mentioned, if you have any other questions, feel free to reach out to support do supportive.com. You can use our chat function in the bottom righthand corner of our platform. We’re also live on all social channels, so feel free to jump in. The one that is most community based would be our subreddit. Uh so we always have a lively group there, which is absolutely fantastic. Other than that, I hope you have a great rest of your day and happy investing. Thank you all. Take care. Bye all.

With the launch of the Arrive secondary market, investors can now access investments in over 500 rental properties across more than 65 cities. This includes a range of properties from single family homes like the Larly and Soapstone to vacation rentals like the Beatbox and The Buyer’s House. It’s a major step forward in making real estate investing more dynamic, flexible, and accessible for all investors. For investors who want to exit investment before the end of a typical hold period, the secondary market offers an opportunity to sell shares, a level of liquidity that was not previously available for offerings like this. Whether you’re adjusting your portfolio strategy or responding to new financial priorities, this new marketplace gives you more ways to manage and shape your investments. Traditional real estate has always been hard to buy and even harder to sell. It’s a liquid, time consuming, and expensive to navigate liquidity. With the arrive secondary marketplace, we’re changing that. This platform introduces a new level of flexibility directly addressing one of the top requests from investors, access to liquidity when they need it, and broader access to all of the properties that are available on arrived. So, what really makes this such a gamecher? Investors can now buy and sell shares each month, providing more control and flexibility than traditional real estate investing. You can now purchase shares in properties you may have missed during their initial offering period, making it easier to diversify across the country and rebalance your portfolio. With over 500 properties across 65 cities, Arrive is building the most expansive secondary trading marketplace for residential real estate investing. It uses a marketdriven pricing model which which means investors can set their own buy and sell prices uh adding a level of transparency and control. And when investors match on pricing um or when investors buy and sell prices overlap that’s when their prop their trades match. Ultimately this gives investors more ways to adjust their strategy over time unlocking new paths for long-term portfolio growth. So what does this all mean in practice? Whether you’re invested in a single family home, a vacation rental property, or a real estate fund, you now have the opportunity to access liquidity by selling shares on the secondary market or participating in our funds redemption programs. This is really more than just a new feature. It’s really a foundational shift in how real estate investing works. It transforms what used to be a long-term locked up investment into something far more dynamic and responsive to your goals as they may change uh throughout your life. So, let’s take a closer look now at how it really works in practice. The arrive secondary marketplace will open for one week of trading every month. During that week, investors can submit buy and sell orders in any of the properties that Arrived has offered in the past and that are available for trading. Investors will be able to view the property, the market information, and then decide whether they would like to submit their buy or sell order. When a buyer and seller match on price, um we facilitate the exchange of cash for shares um and pay out the investors. The experience of using the secondary trading marketplace will be very similar to interacting in the public stock markets. Investors can submit buy and sell orders at any time, including on evenings and weekends during the trading week, but transactions will only occur during market hours on weekdays during the trading week. Importantly, a share can only be transacted once during a secondary market trading week. There will not currently be an option for day trading within a given um secondary market week. So, if you buy shares on the secondary market, you’ll have to hold them until the next monthly window opens. A couple of important logistical points. Once a new property launches on our site, it will typically be eligible to start trading on the secondary marketplace around 6 months later. We’ll require that buyers are already investors on arrive for at least 60 days with at least one settled trade. And this is both to reduce potential for fraud and ensure that participants have at least some experience with our investments and how they work before using the secondary marketplace. Critically, purchases on the secondary market will be funded by a from an investor’s bank account. That way, investors don’t have to bring cash onto the platform before making a buying decision. trades and a payments will not process until a match has occurred. And so you don’t need to transfer funds into arrive before submitting orders. So that provides a quick overview on the secondary marketplace and now I’m going to kick it over to Jake to talk through a little bit more of the details. Thanks Ryan. We’ve gotten a lot of great questions from investors about the secondary market and we’re going to use those as our guide for this walkthrough. Let’s dive in. First, I’ll review three terms about trading that are new for arrive with the launch of the secondary market. The first is trading window. This is the oneweek period during which the secondary market is open each month. All of the secondary market activity takes place during the trading window. Market hours are probably a familiar term from stock market trading. During each trading window, the market hours are from weekdays from 9:30 a.m. to 5:00 p.m. Eastern time. And lastly, you’ll hear me talk about matches. This is when a buy and sell order overlap on price, initiating a trade between the buyer and the seller. This can happen for all of the shares in an order, or you can have a partial match where some, but not all, shares execute. So, what’s the best way to find properties to buy on the secondary market? I’ll talk about two approaches here, and I’m sure as you start using it, you’ll find even more. Using filters can be a great way to discover properties when you have a clear idea of what you’re looking for and want to narrow down your options. Many of the available filters on the secondary market will look familiar from our new property filters. We have filters for property type, market, rental status, and properties in your portfolio. And then we have two filters to make secondary market browsing easier. The first is minimum number of shares listed. This filter will help you find properties with a large number of shares available. This is useful if you’re looking to deploy larger amounts of capital per property. There’s also a filter for markets in your portfolio. This is a great filter if you’re looking to diversify into new markets, especially opportunities to invest in markets that haven’t been offered by arrived recently. Selecting notowned here will show you all of the properties in markets that you don’t currently have in your portfolio. The last three columns in the secondary market table are useful on their own and in conjunction with the filters I just showed. Sorting by the shares listed column will help you see the properties at the top of the list that have the most number of shares available. And sorting by best available price helps to bring the best deals to the top of the list. This shows you the best available price in the order book in relation to that property’s arrive valuation and how far above or below it is. Realistically, you’ll probably end up using a mixture of filters and sorts to find the right properties to invest in. We also have a demand chart on the far right. This shows the distribution of shares from buyers and sellers, so you can quickly get a sense of the market activity. It’s showing the number of buy and sell orders relative to the arrived valuation, allowing you to quickly see where the buying and selling opportunities are. But once you have a good list from filtering and sorting, you’ll probably need to do some kind of manual analysis to understand the story of each property. The best place to do this is the property history section, where you can find information on historical dividends, rental status, and performance over the entire property’s life. Only you can decide exactly what you’re looking for, but this is a great place to start. Now, on the flip side, how might you determine which properties to sell on the secondary market? While the secondary market can offer an optional path to liquidity, all properties are still managed with a long-term rental mind strategy in mind. Arrive continues to hold and sell properties accordingly according to the planned timelines and based on market conditions. So, if selling on the procary market isn’t something you’re interested in doing, that’s totally fine. It’s a decision that only you can make. With that said, if you’re looking to strategically sell properties based on performance, we recommend starting in your portfolio. From there, you can review individual property performance and click on a property’s name to place an order to buy more shells shares or sell directly from there. There’s also a handy shortcut to sell shares from the main secondary market page, but less ability to analyze property formance when you take that route. Now, why are all orders limit orders? We use limit orders so that investors can have more control over the prices that their shares are trading at rather than simply executing at the best available price, which could be far from the arrive valuation. Every time you place a limit order, you’re essentially stating the highest price you’re willing to pay or the lowest price you’re willing to sell for. You might wonder what might change um in your order after it’s placed. You can you change your mind? The answer is yes. You can change and edit your price until it’s matched. When you submit your order, we’ll check the order book for matching shares immediately if it’s during market hours. If the market is currently closed, we’ll check the order book for potential matches immediately when it opens the next day. If your shares don’t match right away, you may want to adjust your order using market data, which you can do in the manage orders area. Again, this is totally up to you. Remember that the order price is the highest you are willing to pay for shares or the lowest you are willing to sell shares for. Only adjust your prices to thresholds that you are comfortable with because once a match occurs, the trade is final. So, how do I go about setting a price for my order? Only you can decide. Take in the arrived valuation, the market data, the trade history, and the property history into consideration. Compare that to the activity that’s happening on the order book in real time. All of these data points are conveniently available when you click on any property in the secondary market. For full details, you can always open up the property’s original offering page, but take note that the data here is frozen in time from its initial launch. When you review your order, you’ll see that we’re only giving you an estimate of what may be due or paid at match. Why is that? In the case that a seller is willing to sell for a lower price than you’re willing to buy or vice versa, your order may match at a better price than what you submitted. The rule of thumb is that everyone gets what they want or better. You can’t do worse than the order price that you submitted. Now, since we don’t know your final price or how many shares out of your order have matched until the match actually happens, the source of truth for what happens is in the transactions history or activity area. Until then, you’ll see us refer to subtotals as estimated. And now that we’re talking about activity, let’s go over the trade statuses and money movement. When will you see newly purchased or sold shares reflected in your portfolio? As soon as an order matches, it is final and will populate in your activity table with the status processing. Shares from buy orders will immediately be shown in your portfolio. Shares from sell orders will not move to your closed positions until after the trade has settled. This usually occurs 7 to 10 business days after the trading window closes. You’ll see a green check mark as the status to note that the trade has successfully settled. If you’ve sold any shares, the trade settling will also be when you uh when you see the cash from the sale reflected in your arrived cash balance. Now, one last easy question. Where can you go to find all this information and more after the webinar? We have helpful guides to getting started in app when you click learn how to get started on the main secondary market page as well as lots of FAQs at help.arive.com which is also linked in app.

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 wealth-b 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 their 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 backed 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 residents. 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 often times 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 se 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 principal 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 non-reourse 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. Arrived 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 funds 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.

Hello and good evening. I’m just going to give it another minute or so uh just to make sure people have a chance to get logged in. I will be right back with you. Thank you. Well, good evening everybody. Thank you so much for joining me to talk about the home stretch, the seven things you need to do before you retire. Uh we’ll get into the presentation in just a moment. Um just so I can just make sure people are getting logged in here still. Um but uh but we’ll get going here. So I do have uh just a one announcement here that we are not able to record these presentations for compliance reasons and we’ve had some people try to record our presentations and uh that is also uh not allowed. We cannot uh have our any of our presentations recorded by anyone listening or by ourselves. So I do apologize if some people do ask if we are able to uh get recordings of these uh but uh sorry about that but we are not able to record. Planning on long-term care that presentation is coming up on Wednesday July 1st. That’ll be a 2 in the afternoon presentation on that day central time. And then after that I have estate planning. The basics of all those important documents that you might need whether it’s a will or a trust or the power of attorney for health care, power of attorney for financial uh and those important things on setting up uh for your estate. Uh you do also have access to our uh see what other webinars we have. We probably have an average probably maybe five or six uh webinars a week uh depending on uh varying parts of the country. We have people in LA, Denver, San Francisco, Houston. Uh we actually have someone in Utah that does these presentations. So scattered around the country that we do these. Um I do them myself every two weeks. And again, we have someone’s doing something pretty much every week. And you can see what other topics maybe you would like to listen in on. We have our invests podcast that you can listen to and you can check out our Aerys website and blog. Aerys meaning Alliant Retirement and Investment Services. That’s the team that I am on. My name is Joe Gaspari. I am one of the finan financial consultants here at Alliant. And uh I am a full services uh you know financial services person that I can work with people on saving for retirement, saving for maybe purchasing a home or education uh and working up that financial plan. That’s one of the biggest things that I do is financial planning. And that might be someone might say, “Joe, here’s what I have. Here’s what I want. Am I on the right path? Should I be saving more? Should I be investing more aggressively or even more conservatively? what should I be doing with assets? How can I invest uh to get where I’d like to be? And then how much can I spend in retirement? And we’re going to be talking about some of that here today. As I go through the presentation uh on the home stretch here, you do have access to the Q&A box, the question and answer box, or the chat box. Either one of those is sufficient. I have them both up that if you do have a question, you can a uh ask that question at any time. just type away and if you think of a question, go ahead and type it in and I will get to those questions at the end of the presentation. I’ll make sure I have a little uh enough time to get to these questions. But again, either the chat box or the Q&A box will get uh get us to those answers at the end of the presentation. So, with that, uh we’ll be jumping right in. Uh the seven things you need to do the decade before you retire. Determine when the time is right. Take aim at your retirement target. Maximizing your nest egg, getting a portfolio checkup, create a social security strategy. We’re going to touch on how social security works and building a retirement income stream. And then looking beyond the money. Uh so determining when the time is right. the godfather of retirement, Ado van Bismar, chancellor in Germany in the late 1800s came up with the concept of retirement uh and you know retirement income. Uh so he had come up with the strategy of uh starting a retirement income stream a government sponsored plan starting at the age of 70. That’s the good is that all right someone’s thinking about uh you know getting a guaranteed source of income for retirees. The bad is that life expectancy was only about a 43 and a half to 44 years old at that time. So a much lower life expectancy. But if you were around then you know income would start around that age 70. Today when we look at what uh how this is constructed is that we look at a retirement age for social security between the age of 66 and 67 based on your birth year of when you get your full social security income. And at least now we do have a longer life expectancy beyond what the uh average life expectancy uh beyond what the retirement age is. And when we look at men 7980, women 82 83 um and we’ll talk about that uh life expectancy a little bit later as well. So what age do you think to retire when we look at age 65 as maybe that one of those target numbers? What if it was as late as age 70 or what if it was as early as age 60? And what’s the average age? About 62 is the median retirement age. Why do people retire early? Sometimes it’s for personal health issues, caretaking for a family member, a job loss, downsizing, stress, burnout, early retirement, uh, buyouts. But when we look at 70% of retirees, it’s not their choice. So when people say, “Oh man, I wish I could retire at 62 like this average.” Sometimes it’s not a voluntary uh retirement. So um you know so where would that where would you be on your retirement age or your desired retirement age when I do a retirement plan for someone and this is again and I’m going to be asking u you to say yes to a survey at the end of the presentation when I put that up to say yeah I’d like to have a one-on-one conversation. What does that conversation look like? Basically we go through to see what’s important to you in your retirement. Are you on the verge of retirement? Are you retired already? Are you still 10, 15, 20 years away from that? And we can kind of work up a plan. So, for example, if I have someone that I’m looking at maybe retiring in the next 2 to 3 years, they might be saying, did I save enough? Did I do enough? What can I spend in retirement? And I work up a full comprehensive plan, complimentary. We do not charge for this plan. And we can dig into many different scenarios. What if you wanted to take social security earlier? What if you wanted to take it later? What does that look like for your retirement plan? Would you want to spend more? Would you want to spend less? We can figure out what a good spending amount is taking inflation into account and we’ll build this full retirement plan for you. Again, complimentary. And then maybe we can start to say, how do we invest? where we put these assets to get to this end result of this retirement plan. So nearly half of people retire in their uh early 60s. So 44% of people in that 61 to 65 range. You could see some much earlier and again some much later as well. So depending on what uh your strategy is, maybe we can help you figure out what your retirement age will be. couples planning for age differences. Now, when we look at sometimes you might have a couple with a 5year or 10year age difference. In this case, we’re looking at a modest two two-year difference. In this scenario, it’s assuming the husband is age 25 in this and the wife age 23 uh when they get married. And where does that come into? It’s not a big difference. But why is that important to even talk about when we get to the age of retirement age in that retirement era there and we look at age 65? The Medicare. So if someone says I want to retire at age 65 and I’m going to go on Medicare, but my spouse is only 63 at the time. Uh so how much is healthcare going to cost? you know, if you do it outside of that, if you don’t have that work plan anymore to cover both of you, yes, the 65year-old is eligible for Medicare, but what if there’s pre-existing conditions? What if there’s issues on the on the spouse in this case that is 63? How much is that going to cost? So, it’s an again, it’s an important thing to think about about retire retirement and the age differences. And then when we look at the later years of life expectancy when we when we talk about age 65 if you if someone reaches the age of 65 statistically a male might live till on an average to age 82. Uh it’s again on average some longer some shorter but an average of age 82. So that’s why we have 82 and 80 here. So assuming that what if the husband in this case passes away at age 82 and the spouse age 80. A a female a woman age 65 has a potential or actually a age 80 in this case you have that woman would have the potential to live another 9 years again alone not having the spouse here. What kind of income difference would that be? Instead of two sources of social security come in, there’s only one now. What does spending look like? What do the assets look like? Is there a home? Is it owned? We can work up a plan again just to see if one if both of you are here, what does that plan look like? What if it’s only one of you? What does that plan look like? And again, we can certainly work that up for you. But that age difference does come into play. and important ages for retirement. So, we’re going to cover from age 50 up until about age 75 here. And some target things that will happen starting at age 50, you can do what are called catch-up contributions, which means if you are contributing to a 401k or traditional or Roth IAS, at age 50, you can contribute a little bit more than if you are 49 and younger. So, starting at age 50, you can start to pad those a little bit more. If you’re able to save as much as you would like to, you can do a little bit more starting at age 50. At age 55, there’s ways to early retirement, setting up uh qualified employer plan, HSA catchup, uh at age 65. So, there’s ways to start income streams at age six at age 55 if you are retiring that early. age 59 and a half. If you are under the age of 59 and a half, traditionally you cannot withdraw from any retirement accounts like 401ks or traditional IAS or even Roth IAS to get the full benefit under age of 59. You have a 10% penalty in addition to any taxes that would be paid uh if you are under the age of 59 and a half. If that once you get that age, then you can take those out penalty-free. You’re still going to pay taxes on those traditional and 401k withdrawals, but you will not be paying that 10% penalty. Age 60, that’s the earliest that a widow or widowerower can start social security. If a spouse passes away, they’re uh you can normally it’s age 62. The next number that I’ll be talking I could would talk about is the earliest you can take social security is age 62. But if you are a widow or widowerower situation, then you can take it as early as 60. Age 65, that’s your plus or minus 3 months before usually typically a month or two, maybe even up to 3 months prior to your 65th birthday, you should be starting to apply. If you especially if you don’t have that work plan anymore, uh then you need to start applying for Medicare. That’s when it’s uh eligible. And that plus or minus three months, you can defer as late as three months without penalizing uh yourself. So uh you have that plus or minus three months. Age 67, that’s for many people the full social security age of getting your full benefit is either it’s between 66 and 67. The majority of people now based on where we are. Uh most people at that 66 range are getting into uh social security already. Age 70, that’s the maximum for social security. So 62 is the earliest you can take it. Age 70 is the latest you would take social security. If your full retirement age is 67 and you defer till 68 to take your social security, you’ll get an 8% increase if you defer it that year. If you wait a nut till age 69, you will get another 8% added on. And age 70, another 8% and it stops increasing. So there’s no reason to wait past age 70 to take your social security. And then finally, age 73 and 75. Those are the ages that you have to start taking out of retirement accounts. 401ks, traditional IAS, and the SE IAS, you have to start withdrawing. It’s called a required minimum distribution. Typically, when you are the age of currently at 73. If you are born 1960 or later, it’s age 75 will be that age. So, if you were 73 this year and let’s say you had a $100,000 IRA, you would have to take out roughly about 3,800. It’s about a little under 3.8% 8% is that first year, but that percentage that you have to take up take out goes up a little bit every year. So again, I’ll throw a little reminder that if you do have any questions, uh you can um you know, I’ll get to those at the end of the presentation. Uh taking aim at your retirement target. Rule of thumb number one, save enough to generate 70 to 90% of your pre-retirement income. So if you’re making an income and you know some expenses might go away and maybe you can live on 70 to 90% of that, some of those costs that would potentially go down. Maybe your mortgage is paid off and you’re driving less because you’re not going back and forth to work. Maybe you’re buying less clothes and you’re not going out for lunches and things like that that you might have done when you were working. Uh so some of those costs that might go down, some of the costs that do go up, health care costs, uh travel, utilities, your home more, maybe using more heat, more air, more water. Uh so utilities could potentially go up and home maintenance. If you’re like myself, I’m sitting in my basement right now uh where I finished my own basement and I had a couple of contractors uh for for some help, but uh I’m a fix it guy around the house and I love to do those things and hopefully I’ll be continue to do that in retirement. Uh when I talk about health care, health care costs going up, uh some people are aware of what they’re really going to be paying for health care costs in retirement when we talk about Medicare. Traditionally, if you are a married filing joint couple and you are uh both on Medicare and maybe a supplemental insurance, what you’re going to be paying currently right now, it’s $22.90 each for your Medicare Part B. Your Medicare Part A you don’t have to pay for. That’s covered. A covers your hospital coverage. B is your doctor visits and you have to pay per for B. that comes out of your social security check or your social social security payment. And that so a little over $200 each if you have a supplemental plan each would be paying estimated about $200 for a supplemental plan. And then if you have prescript prescription drug coverage part D. So Medicare part D prescription coverage and that’s another 40 to 50 a month. So if we’re looking at Medicare part B at 200 each that’s 400 total. Your supplemental is another 400 total and then your so we’re we’re looking at about 800 and then your Medicare part uh part D is going to be another 100 total um you know for about 40 to 50 $40 to $50 each. We’re looking still at about a $900 healthc care coverage and that does not include medical I’m sorry it does include dental or eye coverage. So there might if there’s that need, there could be some a little bit more additional cost on there. So, but we’re still looking at, you know, kind of the minimum $900 a month for Medicare and supplemental coverage costs that will go away in retirement. You’re not paying into Social Security anymore if you don’t have a paycheck coming in. And retirement contributions um would be stopping. So, if you don’t have a paycheck, you’re not putting in a percentage of your salary into a 401k. So again, maybe you know with some of those costs going up, some going down or being eliminated, maybe you can live on 70 to 90% of your pre-retirement income. Rule of thumb number two may save a multiple of your salary. Now some people will look at this and say maybe I’m way over that or maybe I’m not where I should be based on certain ages. You can see from 30 to 65 every 5 years. basically saying if you are this age based on a salary maybe you should have this much saved up right now. So if you’re 55 years old uh $100,000 salary you should have 600 to 800,000 saved. Now maybe you’re more than that maybe you’re less than that. Again that’s part of the planning that we do. Um it doesn’t mean that someone cannot retire. It depends on what you’re looking to accomplish. I’ve done many different retirement plans and some very wealthy and some getting by in uh in their working years. Some are paycheck to paycheck and can they still retire based on maybe what they’ve been able to save in a 401k or some other retirement accounts. So again, it’s a complimentary plan that I’ll be offering to you and uh so we’ll see what that what that means to uh some people. So again, here’s just some um rule of thumb numbers on here. So don’t read too um directly into those uh that depending on where you are. So rule of thumb number three, save enough to generate a 4% withdrawal rate. Statistically, it’s a very safe amount that you can start to draw from accounts and make sure that you don’t run out of money. So, what does that look like for 20 years? If someone wants to take out a 4% withdrawal rate and they want a desired income of 25,000 a year, if go back to the when we had very low interest rates, in this case, we’re looking at a 1.5% rate of return. someone very conservative go back when interest rates were much lower. They would have to fund $545,000 in something to earn that 1.5% on average to get 25,000 a year income. And this is also showing an increasing by a 2.5% a year for inflation. So this is increasing income. So but what if you got a 5% kind of where we are on some interest rates? I do have some interest rates available in some investment accounts that are earning a 5 plus% interest rates. So if based on that 545,000 that someone would need to save at 1.5% interest, if you earn more, you could fund less uh to get that same 25,000. Then you can see for generating 50,000 of income or even 100,000. So, this is something in addition to maybe social security or maybe some pension income that you could um you know get some higher income, but you would have to fund some type of an account to generate that income. So, sustainable withdrawal rates, how long will a portfolio last based on how much you withdraw? So, starting at the top is a 3% withdrawal rate and then four, five, six, seven, all the way up to 10. Obviously, the less you take out, the longer that will last. Uh, but this again is just looking at a stock and bond portfolio. It’s not a specific portfolio. This is just a hypothetical. Uh, so this is not it’s like a 60/40 stock, bond, cash uh, mix, but basically saying that if you take out little 3% that’ll last a good long time. If you want to take a much bigger percentage like 10% it could be gone within 10 years. And again why is that uh 10 years exactly? It’s around that range but again this is counting on increasing income as well at 2.5% a year for inflation. So, what you need to say for a 20 years of withdrawals based on a 3% rate of return to get 25,000 a year income, you would need 476,000 that will last for 20 years increasing by 2.5% a year for inflation. And oh, you would need 952,000 to fund 50,000. Uh 1.9 million to fund a 100,000. But what if you got much more return? you would be funding less. That 476 goes down to 370 or 365,000 to generate 25,000 a year plus 2 and 12% increases per year inflation. Uh so this is just an idea of how if you want to get income from your plan and this is one of the things when I do the retirement plan for example my wife and myself we have our desired income range. We know what we’re going to be getting as well estimated for social security at our desired ages and what I’m going to get, what my wife will get. What else would we like to do? We’re probably going to be doing a couple of months out of Illinois in the winter months uh to and we know that’ll be a little bit more expensive, but we’re built up a budget of what can we spend in retirement based on what we’ve saved, what income we have, social security and a very small pension, and what can we spend. So, we’ve worked up that plan for ourselves. Mass maximizing your nest egg. Take advantage of worksponsored plans. So, this we’re going to talk about a couple age 50 and one is an earnner of 150,000 a year and one is a volunteer with no uh earned income coming in. But what would they have the opportunity to save each year? Maybe they’re saying, “Okay, we’re age 50. We need to pump up our saving a little bit more. What’s their maximum that they could save in retirement accounts?” So when we look at like a 401k, let’s say that Mister in this case has a 401k and he can put in 24,500 a year typically. So we’re going to add that 24 thou,500 and he might get a company match of 4500. But if we go back to one of those screens earlier where it said how much can uh it’s called a catch-up contribution on one of those screens that we talked about and all those varying various ages of target uh ages that were on that page. Uh so in this case he is age 50 50 and over can put an additional 8,000 in a 401k. So he could put in his 24,500. He gets a company match of 4500 and he can put in an additional 8,000 to for that catch-up contribution. Then what if he wants to contribute to some type of an IRA, whether it’s a traditional IRA or a Roth IRA and we could see that his income here is 150,000, but the maximum for married income for a traditional IRA is 149,000. So, he’s not eligible to contribute to a traditional, but he can contribute to the Roth IRA because that income limit is 252,000. So, he can put 7500 plus the additional 1,100 for the ketchup contribution. Excuse me.

And what about the spouse? So, she’s not working. You have to have earned income to contribute to a 401k or a traditional IRA or a Roth IRA. You have to have earned income if you want to contribute to those. But she doesn’t have earned income, but she can because they’re married filing joint. She can use his income to make IRA contributions. So, she’s going to put in her 7500 plus an additional 1,100 because she is age 50. And what’s the grand total? 54,200 per year that they can do. So if they do that 54,200, bear with this screen one moment because it does say 51,000. This page did not get updated. This was previous numbers from previous year, but it’s updated to that 54,200. But the next page is going to be corrected again where if you could save 54,200 a year with growth at a 6% average rate of return. Again, not a specific investment. Just saying hypothetically, what if we had an investment that averaged 6% average rate of return for 15 years, about 1.3 million that they could save in that 15 years if they maxed out what they are able to do in retirement accounts. So, if you are in that age range and you’re thinking, man, I don’t know if we saved, you know, if we’re are we on pace, are we on the right track? uh there’s still room uh for uh to get some some of that money going. Getting a portfolio checkup. Again, if you do have questions, chat box, Q&A box, and type away, and I will get to those at the end of the presentation. I do know we have some questions there already. Uh getting a portfolio checkup. Uh how’s today’s job uh um jobs uh complicate retirement planning? The average worker, Wow, this is a big one. I don’t think I’m here at 12 times, but the average worker switches jobs 12 times. 63% of workers have access to defined contribution retirement plans. 401k, 403b, if you’re a government worker, 457. Um, and so there’s different types of plans that you can contribute to. 69% of plans have an automatic enrollment. What if you are a 6040 investor? Which what this means kind of a a moderate. You have stocks in your 401k, maybe some bond funds in your 401k. You’re not too aggressive but not too conservative. You’re that moderate 6040 mix. That’s maybe your goal to be that type of an investor. But what if you have some old 401ks out there and previous job one, you see it’s all blue. That’s basically that’s 100% stock. And then we have job two that is about 90% stock and the overall you might be way more aggressive than you think because your goal you’re only kind of paying attention to that current 401k. What if you have some other investments that you’re not keeping an eye on? Having a portfolio checkup is a huge thing that you should be doing. Making sure you know what you have. How are you invested? Are you too aggressive? too conservative and especially when it’s in an old 401k sometimes companies can make changes within the plan but you’re not working there anymore so maybe you’re not getting all the news on that 401k that maybe they’ve done some changes and that does happen within 401ks where they might remove funds maybe it’s something that you were invested in they remove it from the plan so if you don’t do anything it might just go through like a money market in that 401k and not earning as much. So again, getting a portfolio checkup. What do you do if you do have too much invested in stock? And so we’re going to look at a scenario here. So this is the person that has 900,000 saved for retirement. And their goal is to get to the million. And you got three years to go to retirement. You got three years, you’re almost there. And thinking that, okay, I’m at 900,000. If I just get an average of an 8% rate of return and that’s about 1.1 million, a little more. And so you’re saying, okay, that’s a doable thing. If I get 8% average rate of return, I hit my goal and then some. But in this case, we’re going to look at years 1999 and then 20201 and 2002. So we had three years in a row, if you remember that time period back then, uh where we had three years in a row of the stock market going down. It went down a total of about 50% on the S&P 500 over that three years. Quickly, what happened in that time period? The.com bust happened at the end of 99 going into 2000 or the internet bubble, however you want to term that, but basically tech stocks tanking, dragging the stock market down in 2000. And then 2001, we had 9/11 happened. So compounding on top of the.com bust and then 9/11 and the stock market. I remember the stock market was closed for about a week at that point. uh right very close to Wall Street and they shut the market down for a week and uh what a what a brutal time that was. And then at the end of uh 2001 going into 2002, if you remember a company called Enron going out of business, Enron, World uh um WorldCom, Tao, uh so there’s a few companies that there was corporate scandals going on. Arthur Anderson, the accounting firm, took a fall for some of these things, but uh you know, so we had the dotcom bust, 911, some corporate scandal things going on. Three years in a row, stock market going down. That portfolio in this case, 584,000 and uh and then you’re retiring. If you were more in a 50/50 portfolio, you would have had 871,000. And then when the markets did rebound, being a little bit uh you know more moderate, that 50/50 investor at that time rebounded faster than digging out of that big hole by being more aggressive. Think of when people start to get nervous about when the markets go down and we’ve had volatility even over the last months with the Iran uh uh war going on and many different things and people start to get nervous about the markets. Um, but uh this is in this case what you got three years to go. You got your 900,000 and you’re a 50/50 investor and now we’re looking at 2007208 where the we had the financial crisis going and the stock market tanking and this again is a 50/50 portfolio goes down to that 700,000 and then in this case this is the person that got too nervous and jumped out of the market and just went into safety. the tea bills here, but basically savings CD type of interest and so going back up. But then when the market did rebound, not fast, but quick enough that in this 50/50 portfolio, uh you would have rebounded by the time that retirement uh time period came for this person, that three-year time period. But if you were in T bills or savings CD type of investments and interest rates were pretty low for many many years and you still didn’t reach your goal because you got out of the market. So that’s one of those where are you invested? How should you be invested at your age, risk tolerance, time period that you’re looking to be investing and what is appropriate for you. part of that retirement plan or financial plan is something that you and I would work up together and see how should you be invested updating beneficiaries again very important you can see new spouse if there’s children or if you need a trust or or have a trust the new spouse situation I do know of a family that uh there was a husband wife three children husband wife get divorced husband at you know few years later, gets remarried. Fast forward about 15 to 20 years later, husband passed away. There was a $700,000 life insurance policy that the ex-wife was still named as the beneficiary. I believe it should have been the kids. Some are saying that it should have been the new wife. I don’t know. I know there was lawyers involved in that. However, that ended, but uh uh still had the ex-wife as the primary beneficiary. creating a social security strategy. So, we’ll dig into a little bit on social security, how what’s going on with that. We see this blue line in this green uh area in here. So, the blue line is below the green, meaning the money coming in was more than the money going out. That’s what was happening for years with social security. As baby boomers were getting into the workforce back then and getting into working, their funding, you know, their percent currently 6.2% of your paycheck goes into social security. If you work for a company, your company matches that 6.2%. So 12.4% of your income goes into social security. And that’s been going on for years that you’re you’re funding social security out of your paycheck and then money goes out. And then around 2020ish is that where that crossed over. There’s more money going out than there is coming in. As those baby boomers are retiring at record paces right now, there’s more people going out of the workforce than there is coming into the workforce. So, we’re starting to see this surplus, which is this big social security trust fund, couple trillion dollars in there, and it’s been building, building, building all these years. Now, it’s starting to decline a little bit. And it’s estimated by about 2033 2034 range that that could go to a zero balance. Now that doesn’t mean social security is done and gone but if nothing is done then people could take an estimated about a 20% cut in their social security that we it’s the assumption is that you know the paychecks in the future will cover about 80% of people on social security. So what are they going to do? Who knows what? I know it’s talked about all the time during uh elections, but doesn’t seem like much ever gets done. Uh one of the solutions is to raise the social security 6.2%. Increase that. Uh that would stretch it out much much much longer. Uh or tax higher income earners. Currently, if you make more than about 180,000, you stop putting into social security. So if you make 250,000 there’s about 70,000 of income for that person that is not taxed at the 6.2%. So are they going to raise that much higher 250 500 or all income? Uh that would assist in that too. So who knows what’s going to happen. Um the one of the things is they could take away this the cost of living increases in social security. Currently it’s you know average two two plus% on average per year increases. Are they going to take that away? Your full social security age is based on your year of birth. So right now we’re into that 1956. If you’re in there, you’re already reached a full retirement age. So 57, 58, 59, and age 60 or later is age 67. So you can see based on the birth year, there’s a couple of month difference on each of those years. Uh so depending where your birth year is, you can be determined if you have not done so already and you don’t know what you’re going to get in social security because if you and I do have that conversation on a retirement plan, that’s an important part of your retirement and we need to know what you’re going to be getting in Social Security. If you haven’t done so yet, ssa.gov will get you there. There’s a couple of things you’ll kind of navigate through, but that’ll get you started to see what is your benefit going to be for social security based on your full retirement age, based on these years of birth. If you want to take it as early as 62, you could find out what your number is. If you want to wait till age 67, you can find out what your number is. So, you can start to get a gauge of when do you want to take Social Security based on how much you’re going to get. These are the maximum benefits actually that we’re seeing on here. So currently at age 62, the most someone can earn at age 62 is 29.69 a month all the way to age 70 at 51.81 a month. And you can see all the ages in between here. Now the averages much less than that. So when we look at uh um you know the average is a little bit more than half of what the maximums are. So you might have some high income earners, you might say have lower income earners. Your social security income is based on your highest 35 years of working, not your last 3, your last 35 or the first 35, it’s your highest 35. And just for reference, if you took some years off, maybe you raised children, uh, or for whatever reason, you did not have earned income in some years. Let’s say you had 30 years of income. You have 30 numbers and you have five zeros. That bring your your your average down a little bit. Let’s say you work a 31st year, so 31 years of working and four zeros. So every year you work, you knock a zero off or potentially a lower number. Myself when I was 16, 17, 18, 19, you know, going through school, I was not making big income. So hopefully those are not part of my calculation. Um, so but every year I work and make a higher income than pre, you know, those old younger years, then uh my average kind of creeps up and I can see what my estimated uh income is going to be. income replaced by social security. So basically what this is saying is that if you are getting social security at an average amount and you want to get let’s say 50,000, you want to have 50,000 of income, your social security is covering about 50% of that. Where do you get the rest from? If you want to make 200,000 a year, social security is a much smaller percentage of that. So, um you need to come up with other investment or withdraw opportunities from other accounts or maybe you have a pension too. But again, social security based on the amount that you’re looking to spend each year, what type of income you’re looking for and how much social security you’re going to get, how much do you need to fund yourself? Building a retirement income stream. Uh so living off of income generating investments. So go back to when we had very low interest rates covid year right after 20 uh 2122 we had very low interest rates until the high inflation hit and then we had much higher interest rates but this is looking at what money markets and there were money markets I know some big banks pay actually currently less than this uh on this 22% and basically this is a $500,000 investment what type monthly income can someone get based on these very low interest rates? Not a whole lot of income. And if you’re looking for other interest rate things like bonds, things that pay interest, um if you put a little bit more risk on there, then you can get higher yields and higher income. sell 500,000 getting in a high yield bond getting 6.57% you’re looking at 2700 per month in income based on that 500,000 investment versus putting it in your mattress basically or in this money market getting $93 per month income. Uh so we’re get we’re not quite at the end here but we’re getting a little closer. So just again questions type away and I will get to those at the end of the presentation. Uh systematic withdrawals. What if you just have an investment account that you want to just draw from and this again is this is a let’s say a stock account. So you have a stock XYZ stock. This is just a generic thing. No no no specific investment. Uh, let’s say the share price is $5 a share and you have a h 100,000 shares for that $500,000 investment and you want to generate $1,500 a month income from your investment account. What do you have to do? You have to sell shares each month. So, in January, the price is at $6 a share. It went up. So, you need to sell 250 shares to get $1,500 based at $6 a share. What if that stock price goes down to $4 and now you have to sell more shares to get that same 1,500? So, are you looking for interest? Are you looking to sell some type of investment? Or where are you going to get your income from? So, if you have income producing bonds and things like that, you’re not taking from your savings, but you have fluctuations in the interest rates. Uh sometimes sometimes those interest rates could go up, they could go down, and it’s out of your control. If you’re doing just a systematic withdrawal, you have very consistent income, that $1,500 in that example per month income. The questionable part is you might be taking from your principal, your balance might be going down. Looking beyond the money. So as we look at uh retirement looking beyond the money basically a happiness curve when we’re younger when we’re more happier less responsibility as we get more and more responsibility with children and saving and doing things and the happiness curve goes down and then in the retirement years the happiness curve starts to go back up again. So where are you on your level of happiness? Uh when we look at health, friendship and your family, eeky guy, excuse me, Japanese term, something to live for, what you love, what the world needs, what you get paid for, and what are you good at? All combination of your eeky guy. Are you contributing to a cause, visiting family and friends, pursuing hobbies in retirement, traveling, starting a business, going back to school? I have a cousin that uh she is 67 and just graduated. She got her uh like a master’s uh uh degree and just in her 60s, went back to school. Never too late on some of these ages. Look at Peter Roier invented the thesaurus at age 73. Colonel Sanders KFC 65, triathlete at age 82. Uh look at started painting. Grandma Moses at age 76 and could you imagine climbing Mount Everest at age 80. I know that’s something that’s not on my bucket list. So retirement is wonderful if you have two essentials. Much much to live on and much to live for. Determine when the time is right. Take aim at your retirement target. Maximizing your nest egg. Getting a portfolio checkup. Again, part of that retirement plan that I can offer. And uh a portfolio checkup is a big part of that. Create a social security strategy. That’s another big part of the plan. When should you take your social security based on varying factors? Uh build a retirement income stream. And then again looking beyond the money. I would love to work with you on these types of things and hopefully you and I will have that. I’ll be putting up the survey here very shortly. Here’s some of the things that I do. Financial planning. The left side talks a lot about the uh the planning, estate planning, complete financial plan, retirement planning, and looking at all your different sources of income and savings that you have. And then on the right side, different types of investment products that I do offer and full financial services that uh that I do offer. Um whether you want to be very conservative or much more aggressive, we have wonderful products and services available for you that I would love to work with you on as I go through here. So you see my contact information up here. I’m going to be going through some questions and then uh I’m going to put up the survey here while I’m doing those questions. So you are able to um I’m going to put that up right now. And so if you would like to have a one-on-one conversation, please select yes on here and we can schedule a time to get together or Zoom where however we do that. Start even by phone if you wish. But hopefully you see that uh survey up on the screen right now. You also see on the screen the um make an appointment with Joe. You see the QR code. If you have your phone handy, you can put uh um you can just aim your camera on there and it’ll bring up just tap on the yellow thing that comes up and you’ll have access to my calendar and um you can just schedule it at your convenience, but that you can do that right now if you so choose. Okay, let me go through some questions here. Um so, what about pension? I think that came up during the varying ages. Some pensions can be as early as age 55. Um, I have a current one from I used to work for a grocery chain if you’re here in the Chicago area, Dominic’s way back when, and I was in the union long enough to get a small pension. Uh, I’m able to get my full pension on that at age 60. So now, typically age 55 is the earliest for for many of those types of pensions, but it could be dependent on your plan as well. So, what about pension plans as far as when can you take them? Uh, typically 55. Mine is age 60. Some companies might make you wait till age 65 to take that age, uh, 60 and still working. And no, um, uh, can I go 100% in the Roth 401k? Uh, yeah, you can. If you want to put 100% of your 401k in Roth or the regular traditional 401k or put 50/50 6040, you can mix and match it any way you want. But if you if it works in your um tax budget, I’ll call it. Uh many people do the regular 401k so they get the deduction so they don’t have to pay taxes, especially if you have someone has higher income. They’re trying to get their tax bracket as low as possible. that person would be contributing to the regular 401k to get their income down. If uh some people say well it’s okay we have our other deductions or however that might work and someone might want to just contribute or max out the all in a Roth 401k. Yes, you can. Uh I would like a comprehensive plan looking at two years to retirement. I got your info on there. Hopefully you did select yes already. Uh but absolutely we can uh have that discussion. Um, what happens to social security income amounts if I decide to work part-time after your full retirement age and already receiving social security? So, yeah, you can work. So, if you wait till your full retirement age um, and you want to continue to work, you can be on social security, you can work as and earn as much as you want as long as it’s after your full retirement age. And how does that affect your social security income? If you are currently on social security, currently working and you have higher income, if it knocks off a a lower income year, your potential, your income can increase. It won’t go down, but it can increase if you are knocking off lower income years. So, that’s certainly something that uh you know, if you want to work and maybe just work part-time, it might not increase your social security income. if it’s just part-time, lower income. But yes, you certainly can do that. If I retire at 57, but wait till 67 to take Social Security, will I get the full amount or uh uh that I would have gotten if I worked until 67? Uh maybe, maybe not. So, here’s what that is. Your full Social Security is uh generally finalized at your age 62. So, when you get your social security number at age 57 and you uh stop working, social security has the assumption that you’re going to work until 62. So, when you see your number, it’s possible that it could be lower because you did not work until age 62, unless you had 35 years of higher income. So, I’m not saying it will be lower, but it could be uh because your final number is calculated at 62. Uh when do you start adjusting a portfolio prior to retirement, 10 years or 5 years? Um always want to make sure based on what is your risk tolerance, what is the time period that you’re looking to invest? Uh and what’s the goal that you’re trying to accomplish. So, some people will say, uh yeah, I’m 65, but I’m still more aggressive. I have risk tolerance. I think if I lost a little bit of balance, I think I’m still okay. Some people will still have that tolerance. I have many people here at the credit union, we have many conservative people that if someone says, “Here Joe, I have 100,000 for you to please invest it.” But if this goes down to 99,999 or lower, I don’t sleep at night. So, I need something guaranteed. So, uh, riskreward, time period, what is your So, hopefully you’re a yes on there and we will have that conversation about how you should be invested. Okay, I think that was Let me see if anything else has popped up here and I don’t see any other questions. Um, that’s it. That’s all the questions that I have. I’m a couple minutes early. I’ll just wait just another minute or so just to see if anything else comes up. Again, I look forward to speaking with you one on- one. Thank you so much for your time and have a great rest of the evening. We’ll hopefully talk to you soon. Thank you. Bye-bye.

Fantastic. Jake and team, thank you so much for prepared remarks as always. You probably saw we have folks from all over the country today, which is absolutely fantastic. Coast to coast. Uh for folks that are new here, feel free to drop any and all questions in chat. Uh I will either answer directly in chat or we’ll throw it right up on the screen and answer them live. So this is your time. Feel free to drop any and all questions. We’ll go ahead and get started here. Um, and one thing to mention, sometimes if we see like kind, I’ll group those together. So, if there’s a little bit of moving around, um, that would be why, but then at the end, I’ll definitely make sure we’ve answered all so you all feel supported. We’ll jump right in here. I briefly answered in chat, but always a good one to touch on live. Can we use IRA funds to invest with arrived? And how do we do this? Yeah, it’s been a long requested feature. Um, the answer is not really. right now we can take investments from checkbook IAS but that’s a very very niche subset of you know IAS that you know 99% of people don’t have the better answer is that it’s something that we know people are interested in um and we’re going to try working on over the next year it’s a great way to kind of pair your retirement dollars which are already kind of a a larger chunk of what you have available to invest and already has a long-term mindset which is perfect for investing in real estate so we’d love to enable some retirement account investing on arrived Um, I’d say look for that over the next year or so. Fantastic. Awesome. Great feedback. Definitely appreciate the question. Um, I can take this one quickly from Stephen. It’s a great question. Which short-term rental platforms, if any, do you use to connect guests to our short-term rental properties within our portfolio? So, our most common are Airbnb. You’ll see that directly on each of the individual offering pages. You can click directly into that listing. But then there’s also VBO, Marriott, Bonvoy, Booking.com, Expedia. This does vary on who the PM is and where they’re sharing it explicitly and there can be more there as as well. So, uh, we work hard to get those listings in as many places as possible. I also dropped a link, it’s called our Airbnb wish list, but that’s where all of our vacation rentals live, too. So, if you want to take a peek, uh, again, those are directly on Airbnb. That’s the one we’re constantly adding to, but we have a lot of investors uh that like to to view that one. That’s nice. I didn’t know we had that. That’s a super cool page. Yeah, it’s awesome. It’s an easy way to see all of them in one place. We’re at 3940 vacation rentals, so it’s definitely grown over time. Um I can take this one quickly, too. Can we call you on the telephone? Great question. We previously did offer a phone number, but it wasn’t monitored 24/7, so it left folks um unable to reach us quickly. That said, we host these webinars uh once a week right now at 9:00 a.m. PT. We have investors that jump in here just for Q&A. We also have live chat support in the bottom right hand corner of our platform. You can always click in there. Uh we do have a few steps that run through an agent before it goes to a human. You can suggest or ask for a human at any time, but our responses there are relatively quick. Um, and then we have other social channels as well, but I would say our webinars and our live chat are our easiest ways to connect with our team. All right, cruising through here. Uh, folks, keep the questions coming. This is your time. So, we want to be sure you feel supported. Um, Jake, one that’s really relevant for right now. I know Ryan talked about liquidity uh during prepared remarks, but we have a live window right now. So maybe we walk through a little bit of the history of secondary market um how it operates essentially and what properties are included. Yeah. So our secondary market is how you can get liquidity for the individual properties. The funds products, the single family fund, the private credit fund, the Seattle fund, they have a separate program for exiting the investment which is called a redemption program. The secondary market is specific to shares in the individual properties. And Ryan talked a lot about it, but the way it works is it’s really like the stock market where you if you own shares in the property, you can list them for sale. If you want to buy shares in a property, you can put in an order to buy them. And the price at which the transaction happens depends on kind of what’s available on the open market and where buyers and sellers tend to overlap in price. Just like with the stock market, you submit a price, you know, you submit a limit order that has a um, you know, a buy order or an a sell order. um you have a bid and ask and the order book will match up you know buyer and seller together. Um you guys as new arrived investors will have eligibility to start participating in the secondary market 60 days after your first investment. So you know we definitely want people to kind of get familiar with arrived and get to know how everything works by kind of buying you know into the new investments. But once you’re kind of an arrived investor then you’re allowed to participate in the secondary market which runs every month. every month generally toward the beginning of the month there’s a full week where properties are trading on the secondary market and so for you know you if you’re looking to invest right now that might be an opportunity where in you know a year or two or three you say hey I actually want to free up some of the capital that I put into some of these individual properties you can go and list your shares for sale and be able to exit the investment that way or close out a position or shift capital around however you may need it also for you guys in particular gives a cool opportunity to buy into older properties unrived so you’ll have all, you know, 400 450 some properties um that we’ve ever offered that are trading on the secondary market and it’ll give you an opportunity in about two months to be able to say, “Hey, I want to be able to buy properties that are in, you know, a market that arrived may not have. You can buy properties that have, you know, loans on them that have interest rates that are very favorable compared to where today’s interest rates are.” Um, so it’s a cool way to kind of be able to build out your portfolio and kind of piece together pieces of different individual properties from across the country because generally the best returns are going to come from having a well diversified portfolio. And while we usually have, you know, four to six individual properties that are available on the site at any given time, it’s nice to be able to go back and kind of backfill your portfolio with kind of the back catalog of arrived investments. So that’s a bit about the secondary market. Um, if you go to our site, you’ll see it in the kind of the top right corner. there’s a little sun button that says secondary market. You won’t be able to do anything on it right now, but you can go and kind of take a look at things, kind of see how properties are trading, what information is available. Um, and generally, you know, when you buy into properties on the secondary market, there’s a lot more information than when you buy into a new investment. Reason being, we have, you know, say four years of operating history for a property. So, we know how it’s, you know, valuation has changed over time. We know what dividends it’s paid out over time. Um, we’ve got a whole timeline that shows you all the events of when the property was leased and for how much and for how long and when it was vacated. Um, so it’s a cool way to kind of see all of the kind of suite of information that you’ll have available for your investments once you start, you know, um, investing with arrived as well. Absolutely. And Jake, very timely. Uh, we had another question come up here about how we find out the property’s historical appreciation and cash flow return to investors. So, Matthew, if you go directly to uh the invest page, and again, you do not have to have an account to view all this information. You’ll go to invest, and then I went over to the performance tab here. If you scroll down a little bit, you’ll see view full property timeline. Now, this is a brand new property that just recently uh was offered to investors. So, there hasn’t been a dividend on this property yet, but let me pull up one really quick where we can see more info. I’d even go to go to go to the secondary market and pull up the sheet from there or go to your or go to your portfolio and pull it up. Great idea. Yeah, because that then I’ll have the full the full set of information. Yes, I’ll go back here one moment.

Perfect. Okay, so what I did like Jake mentioned, I clicked on that secondary market icon, scrolled down here. Let’s just pick one of these properties in here. Oh, what a great property. But we’ll pick the bean. Uh, so again, here’s all that information directly on um the page as well about this property, what the arrived valuation histories look like, dividend history, so on and so forth. You’ll also see that property timeline in here. Um, if you want to go direct to the property, too, you can always do that as well. But here’s that full property history. So, Matthew, you’ll be able to see dividends paid, more details on it, so on and so forth, if the lease started, if it ended, um, renewals, so on and so forth. You can also go to our learn blog or excuse me, our about section and we have historical returns and this will showcase historical returns on all properties to date on arrived. So, a couple different locations, but to Jake’s point, I think the property history page is definitely the easiest place to go. Jake, any color to add there? No, that was great. All right, moving back over to the key. Some good ones coming through here. Let’s see. A great one from Antonio. Can y’all create a way for us to tag properties in the secondary market to circle back to? Yes, it’s um like favoring properties has been discussed. Um, I don’t think we have anything in the works right this second, but I know the team is definitely aware, particularly as their secondary market has gone from having a couple properties trading at a time to having, you know, close to 500. I think now it’s, you know, a little bit unruly to try to figure out, wait, what was the name of that property that I was looking for? For right this second, the best workaround is to just, you know, oldfashioned, you know, piece of paper and a pen, write down the names of the properties you were interested in or, you know, put it up on a a notes file on your computer. longer term, yes, we’re definitely looking at, you know, how we can, you know, add a favorites list or a wish list like we were just looking at on Airbnb. So, you can kind of tag the handful of properties you may be interested and then even track them across multiple secondary markets to figure out when you actually make a trade in them. Kind of like your, you know, your stocks, you know, watch list. Absolutely. Yeah, great feedback, Antonio. I know, Jake, that’s been one of our most requested features since we launched Secondary Market. So, heard you loud and clear on favoring. We’ll be sure to share more um as we build out. I can take this one quickly right now. How do we uh how do new investors get help when starting to invest? Fantastic question. You can always email supportive.com or you can use that chat chat function menu in the bottom right hand corner of arrive.com. If you actually want to try it right now, I’m more than happy to respond on my side. Um it’s just a little black circle with a trying to describe it correctly with like a smiley in there. Um, so feel free to jump in there. I’m happy to respond so you can see what the chat function looks like, but we have folks that reach out um daily with any and all questions. Happy to help. All right. And I would say too, if there’s any questions that you have here too, we’re happy to answer them live. So, this should be a safe space for 101, 501 questions, anything and everything. Uh, good question from Scott. I can take this one. Do you anticipate adding more vacation rentals in the future? There were none listed in the search the last time I checked. Fantastic question. I would say we’re currently hyperfocused on operational efficiencies for our vacation rental uh segment that we have today. We have roughly 40 on arrived. Uh that said, Scott, they can always become available again on the secondary market which is live right now. Uh but again, that will be an existing vacation rentals at the mercy if existing investors are placing those shares for sale. Uh but we’ll be sure to share your feedback. again hyperfocused on those operational efficiencies for that segment. All right. Uh a good one from Renee. With the real estate market ever changing again, is a ride moving away from those volatile markets? Yeah, we’re constantly, you know, Oh, did I lose my video? You did lose video, but audio is still working. Weird. Um Okay. Um anyway, we are constantly evolving our strategy as the market shifts. You know, when we first started the Arrive platform, you know, interest rates were really, really low and we were buying each property with 60 to 70% debt. You know, investors were funding the other 30% or so with cash and we had this nice leverage investment because interest rates were low and it made a lot of sense. As time has gone on, you know, interest rates went up in 2022. We shifted our strategy a bit and started funding properties with all cash with the hopes that we would refinance them in the future. That hasn’t happened yet since, you know, interest rates are still high, but we continue to monitor the credit markets to see, you know, when that might be a possibility. Similarly, we’ve shifted around market strategies as well. You know, in that kind of similar time frame, we started to buy properties that were in more, you know, appreciation and kind of growth focused areas. Think places like Denver or Phoenix. And you know, as interest rates came up and appreciation leveled off a little bit, we’ve shifted more toward markets that, you know, cash flow really well on day one. So, properties like uh Huntsville, Alabama, Oklahoma City, Knoxville, Tennessee, Chattanooga, um some of these, you know, markets that you may not think of as being like the best place to invest in real estate right off the bat, but when you look under the surface, they really do provide a nice kind of steady stream of cash flow and some consistent appreciation. We kind of continued to evolve the strategy again probably 2023 when we launched our private credit fund. Um that was kind of in response again to interest rates being high and kind of recognizing the opportunity to take on an investment where investors can kind of play the role of the bank and invest in you know debt that is secured by real estate rather than investing in the equity portion of the capital stack. So we’ve continued to evolve our strategy and we will continue to evolve our strategy. the arrived model is really really really flexible. So we could end up investing in land in commercial and industrial um with all sorts of you know multif family. There’s all sorts of different strategies that we may be able to t tackle. It just really is a matter of kind of reading the market, you know, reading ourselves and understanding what we’re good at and what we’re not as good at and then making sure that we kind of place the right bets, you know, seeing what, you know, we are aware of today from, you know, the projections on appreciation forecasts, macroeconomic um situations, you know, um the situations in Washington on the political world. So, we are kind of constantly evaluating our strategy and how it compares to what’s going on and changing the world and figuring out how do we need to change and what other investment products should we offer as a result. I’m going to leave the room and come back real quick to try to get my video back. Yeah, that’s absolutely perfect. Um, we’ll give Jake a moment here um and see if the video will come back. There we go. We’re back in action. Perfect. And Jake, you just brought up very timely. mentioned um the political climate or environment that we have right now. So, a very pertinent one from Matthew. I answered in chat, but this is always a good one to take live. If large institutional investors um like folks have seen out there are restricted from purchasing single family homes, how would that affect arrived offerings or is arrived grandfathered in? It’s still a little bit TBD based on, you know, how they end up defining everything. So far, you know, we’ve got um, you know, folks that we work with in Washington that, you know, are kind of keeping us a breast of the situation, and we feel really good about where we’re positioned. You know, it really helps that the arrived investments aren’t, you know, consolidated under one group of ownership. Each individual property is owned by a different set of investors. So, it’s a little bit different than, you know, say one investment fund that owns, you know, 5,000 properties. We have 500 properties, but they’re each owned by a different set of investors in each of those 500. So that provides us kind of some protection. Um there’s also a lot of you know caveats and you know asterisks in all of the the you know way that some of the bills are written. Um and so far we feel really good about our positioning and kind of where we sit in you know how all of that stuff is shaking out. You know similarly it is a risk in general of operating a business and so it’s one that we kind of continue to monitor and be tracking. Um, and so we will keep everybody breast as we learn more, but right now we feel really good about the positioning. Fantastic. And moving into taxes, I’m so glad Larry asked. These are always my favorite. Tax situation. Will these investments involved uh filing different state tax returns of earnings? So yes, as Antonio Crim pointed out in the chat, the the 1099 DIV you receive will be consolidated. So you’ll get one tax form even if you invest in 20 different properties. What’s even better is that the investments are taxed as REITs. And what that means is that there is no state tax filings. So if you live in California and you invest in 15 different properties, all you have to do is file your federal state federal tax return and your California state tax return. You don’t end up filing a South Carolina state tax return and an Arkansas state tax return. uh which would be really really annoying because you’d have a little bit of income in a whole bunch of different states. Generally means that you know you have a high cost for your CPA and for actually putting together all of the filings. So um it’s really really really nice that you know one you can get it all in one form and two that unlike a you know a uh a partnership like a real estate syndication where you get a K1 it doesn’t trigger any of these other state tax implications. So makes it really nice and easy. Um, you get the one halfpage PDF. It’s about 30 seconds in Turboax to drag and drop or your CPA can handle it no problem. Absolutely. Yeah. For anybody that’s dealt with K1s, they’re a true nightmare. I can’t imagine having to submit like let’s say you you’ve invested in 100 properties havingund 100 different K1s. So, our goal from inception at arrived is to be as passive as possible. So, we try to do that for every uh single piece of our platform today. It’s a great question. Oh, a great one in here from Michael. Uh, how is Arrive different from I believe they used Mogul as an example. I think Jake, there’s a lot of u great prop great properties, great companies out there, different fractional options, traditional ways to invest. What would you say is Arrive’s biggest differentiator? Yeah, there are a bunch. Um, as far as mobile specifically, I haven’t looked deeply at their offerings in a while. Um, not not a knock on them or anyone else, but my recommendation is just, hey, look at all the disclosures, look at all the details. There’s been other investment platforms that have, you know, gone out of business where you kind of look at their, you know, underlying SEC documents and going, you know, you kind of go, they’re taking what kind of fees? You know, you’re kind you have what kind of control? You know, that seems a little bit extreme. Um, so definitely look at all the details and not just the shiny stuff that’s on the front page because there’s kind of always more than meets the eye. That said, kind of where does Arrive sit in the world of real estate investing? You know, we sit in a really unique place. So, for one, as far as, you know, competitors, it’s very indirect, but one that we often hear when we talk to folks is just buying a property on your own and just saying, “Hey, why don’t I just buy the property down the street and own it all myself and then I’ll just rent it out?” And that can be a great option, and it’s one that some people love, particularly if you’re handy and you like working on things. Um, you like kind of being in the physical world. Um, for other people it’s, “Oh my gosh, I just bought myself a part-time job and now I have to commit, you know, 15 hours a week, whatever to management, maintenance, paperwork, learning things, etc.” So, that’s kind of one angle. And again, if you do that type of thing, people tend to invest, you know, where they live because it’s easy for you to be able to work on things and do things. It’s a lot harder to buy a property that’s across the country and still kind of manage it correctly. Um, and you have a huge chunk of your investments tied up in the one property. So you have the opposite of diversification. You’ve got a lot of cash tied up in one particular property. So that’s kind of one kind of angle of competitor that we see. The other is just investing in REITs online. So you can go right now and invest in you know American Homes for Rent or you know one of the Blackstone funds. There are you know investment vehicles online like that. Um they tend to trade more so with the public markets. So American homes for rent invitation homes etc. you know, public storage. If you think about the, you know, all the self- storage facilities you see, um, it can be a way to get some exposure to real estate, but those tickers tend to trade a lot more on the broader, you know, macroeconomic cycle. So, you know, the president comes out and says something and the market moves, those stocks kind of go up and down even though the value of the real estate hasn’t really changed, you know, from yesterday to today. You know, gas prices tick up and instantly the the share price adjusts. Um, and so they can be a lot more volatile. And what really hits you is because you’re investing in a in a a stock that is fully liquid, you pay what’s called a liquidity premium. So you end up paying more for the ability to be able to sell those shares on the market any given day. But for people that want to invest in real estate long term, you’re effectively paying extra for this liquidity feature that you don’t really want to use. If you’re evaluating the arrive platform, I assume you are comfortable with saying, “Hey, I want to invest in real estate, put a certain percent of my portfolio into real estate and not touch it for five or 10 years.” And that is, you know, not generally how the best approach is on the stock market where you kind of pay this extra liquidity premium because of course, if you have something that is liquid every day and something that’s not liquid every day, you’re willing to pay more for the one that gets you that extra liquidity feature. So you end up kind of paying extra for a feature you might not even use effectively and it’s more volatile kind of on a day-to-day basis. And the last knock there is that you end up getting more operating company exposure than real estate. So if you invest in, you know, LAR homes on, you know, the stock market, yes, it’s real estate, but they’re a construction company. So you’re really betting more on their ability to buy land, develop land, build houses, which is a different business than just saying, “Hey, I want to invest in the Charlotte market and bet on Charlotte as an area that I think we’ll appreciate over the next several years.” So that’s kind of the the two main set of indirect competitors that we have. There’s all sorts of other kind of investment platforms, you know, Mogul and Fundrise and uh Yield Street, etc. Um, they all kind of vary a little bit on what they offer as far as types of investments, ability to pick investments, if they’re in funds, if they’re not in funds. Um, and again, definitely recommend looking at reviews, details, track records, um, etc. The, uh, the one last thing I’ll throw in on this topic because I know I’ve been rambling here for a little while, is that with Arrive, you have this kind of cool ability to pick and choose what you invest in. And so, a lot of, you know, real estate funds are going to be kind of all or nothing. just hey here’s our um single family fund and you get what’s in it or you don’t and with arrive you can really pick and choose and kind of customize what you’re buying. So, say that you go and you buy into, you know, um, American Homes for Rent online. You get an instant exposure to the 50,000 some properties that they own. Obviously, you can’t do due diligence on 50,000 some properties. You don’t know how kind of good they are, how bad they are, where they’re located. There’s not really a lot of details and visibility you can see. With Arrive, there is kind of the transparency and ability to look into what do you actually own. If you’re investing in these individual properties, you obviously are investing in that single address. So you can look it up on Google Maps. You can look it on street view. You can look at the school rating. You can check out the area. Um, and even in our single family funds, we list all the properties that are in it. So you can kind of take a peek around to see, you know, where you actually have exposure to. So you kind of have that transparency angle with Arrived. And you also get that customizability angle where you may say, “Hey, I want to invest in the US, but I am not investing in Florida because I’m worried about hurricanes.” You have the ability on arrive to just pick and choose properties that kind of fit that criteria. you can kind of filter and look around by what areas are in good school district. You know, you may only want properties that are, you know, have a certain price to rent ratio, properties that are in a certain location. And so, you have this kind of customizability aspect that you don’t really get if you’re buying whole properties, if you’re buying rates online, or if you’re investing in kind of these other, you know, um, investment platforms that have general funds. So, there’s a lot of really cool things that set Arrived apart. Um there’s a number of other companies that try to do the same types of thing with these individual property investments that we have, but we kind of grew faster right out of the gate and the rest of them kind of have uh have tailed off. So um right now we are really the the only and the largest player for single family home investments. Um and you know we are kind of continuing to expand and kind of grow grow our market share. Fantastic. Awesome. Yeah, great question. Uh very much appreciated. All right, moving back over here. Another good one from Matthew. I shared some details in chat. Always good when that’s live. What are the guidelines for selecting properties? How do you evaluate each property and their appreciation potential and or cash flow? Is there a go or no go threshold uh required in each, which is a great question. Yeah, awesome question. So, it’s really the the annoying answer is obviously it depends. You know, the underwriting for Phoenix is going to be different than the underwriting for Jacksonville, Florida, which is going to be different for Northwest Arkansas. Each market has, you know, a different flavor as far as what’s the expected appreciation in cash flow really as a function of what are home prices in the area and what are rents. So if you go to areas on the coast, you have really high, you know, property values and you have comparatively low rents relative to properties that are in the sun melt that have, you know, more moderate um prices but still have pretty strong rents. So we generally look at, you know, markets first. You know, we’ve got 50 or 60 some markets that we’re operating in right now. And from there, our team is kind of looking across the nation every day. So, we’ve got, you know, some some tech enablements that allows us to look at, you know, what’s been listed um and what kind of new construction opportunities do we see coming up from some of our, you know, partner partners. From there, we kind of do a first glance overview. So, you know, we just look at some easy screeners. You know, what’s the price to rent ratio? Um what are the zip codes? You know, there’s areas that we like, there’s areas that we don’t like. And from there, it kind of helps our team narrow down from the the world of infinite properties you can buy to, okay, here’s the ones we actually want a human to take a look at and and really kind of dive deep on. Um, from there, we can make the best acquisitions that we see. So, we don’t have, you know, a quota of we need to buy this many homes in this particular market. Um, and that really allows our team to be flexible. You know, we’ve got this nationwide presence. And so to us, it doesn’t matter if we buy three homes in Nashville this month or three homes in Tucson. We can kind of do either one just as easily. And so it allows us to, you know, really kind of go wide, find the best opportunities across the states and then make acquisitions accordingly. And so to the the question earlier about shifting strategy, that’s meant that we’ve kind of gone through dips and waves on different areas. You know, there’s been times where it’s like, hey, we are buying, you know, almost only Tennessee properties because we see a lot of great deals and a lot of uh, you know, it’s really a buyer market and then all of a sudden the tides may shift and we pull back a little bit and start buying more in different areas. Um, and so we we can kind of be flexible and shift along with the market as we go. Um, we do have kind of hurdle rates for each type of property that we have. You know, more broadly speaking, you know, you’ll see that a lot of our properties are going to be similar. you know, we’re generally looking for more suburban homes. You know, we’re not buying at properties that are in the kind of the downtown core area. Um, we’re generally looking for newer properties and so properties that are built in, call it 2018 and more recent. Uh, we’ve got a couple properties that are the early 2000s, maybe one from the ‘9s, but we’re not buying properties that were built in the ’60s that were remodeled by Joe and his brother a couple times. Um, you generally like the newer properties because you get a new roof, new HVAC system and pretty high confidence that, you know, over the next couple years, you’re going to have relatively low maintenance and capex requirements. We’re generally looking for kind of familyfriendly areas and homes. So, especially when we buy new construction homes, we’re often adding a fence. We’re often adding um, you know, uh, maybe a little bit of landscaping, things that are going to appeal to renters that have a dog, that are going to appeal to renters that have kids. Um, and so that’s kind of what we look for in the properties. We also kind of look at the path of progress. So, as I said, we aren’t really investing in like the downtown core areas, but we’re kind of looking at, well, where is this market growing? As more people move in, where are areas that are going to become the areas that you go, dang, I wish I had bought there 15 years ago. So, we look a lot at kind of the highway systems, where kind of the city is naturally expanding, and a lot of what the geographic constraints are. So take an area like Salt Lake City. You’ve got the Salt Lake, you’ve got mountains on two different sides. And so the city can really only grow north south. And so knowing that um and knowing that you know an area like Salt Lake City is attracting a lot of tech talent and you know the economy is really growing down there, we can kind of make some educated bets on okay well where in this market makes sense and we know that an area like that is a little bit more expensive and we’re going to kind of trade off some cash flow today for the hope of more appreciation tomorrow. Uh there’s a lot that goes into it. Um our team is really experienced and a lot of them come from American Homes for Rent. Um and so they have a lot of deep institutional experience in, you know, buying residential real estate. Um and so that’s a little bit of an overview on on the general guidelines. Everything kind of goes through our investment committee. So we take a look at everything. We analyze it. We kind of come up with some numbers. Gets presented to a group. And that kind of group goes through and figures out, okay, do we like this property or not? And then of course it goes into all of our due diligence process which I won’t go into now but similarly we kind of you know dot all the eyes and cross all the tees to make sure that it actually does make sense for us. Absolutely wonderful. Thanks for walking through it. Jake Matthew had a very kind comment. This has been very enlightening. Thank you. Well thank you Matthew and for everybody today for the awesome engagement in chat. It’s absolutely fantastic. I know we have a few more in here before we close our virtual doors. I touched on this lightly in chat from from Renee, but I feel like it’s a good one to walk through live, too. Uh because Jake, you walked through the political environment, and I think it’s a good differentiation between HOA. So, who keeps a breast of HOA’s changing their rules about fractional ownership, rental restrictions, in the event they change and can’t own a rental there? Does the property get sold and the net shared among owners? If if that were to happen, then yes, you know, we’d probably say, “Hey, let’s sell the property and and just kind of distribute what we can.” Um, in general, that’s one of the things that’s in our speaking of which, that’s one of the things that’s in our due diligence. And as we’re kind of doing that kind of second and third level evaluation of a particular property, some HOAs will have a cap on how many rentals can be in that community. They say, “Hey, only 20% of the properties here can be a rental home, and if you know there’s extra people that want to do it, then you’re going to get put on a waiting list.” And so, we don’t buy properties there. Um, it’s always possible that some of those rules change. Um, HOAs are known for always being cordial and polite with no drama or politics, of course. Um, that was sarcasm. So, we definitely keep an eye on things and are aware of what’s going on, but it hasn’t hasn’t really been an issue. You know, generally people buy their house. Um, you know, even the HOA is kind of fine if they rent it out. We try to avoid the ones that do have restrictions because that means it’s more likely that there will be more restrictions in the future. Um, but yes, in case something were to happen, you know, it’s not like your investment just goes up in smoke. You know, we still own a property. It may be that for whatever reason that we can’t rent that property out, we would just sell the property. Yeah. And I should have mentioned, Renee, cuz I misunderstood your question um more I thought you were referencing more of the political environment with like removing rental properties um from major conglomerates that are buying a lot. So, my apologies in the comment there uh but definitely appreciate yours. I would say too, I know a lot of times you would get questions on, well, what if vacation rentals are no longer allowed in a certain community, so on and so forth. We haven’t had that to date. Obviously, to Jake’s point about due diligence, that’s definitely there. Um, as you know, those are ever changing. We do have the option to move that from a vacation rental over to a long-term rental. We haven’t had to do that to date, but it is nice to have flexibility in the future if we should decide. I would say that’s not an ideal case because we’re typically making those vacation rentals into a true vacation rental, not a single family residential property. So, the funds that are being allocated to make um different features that would be exciting for a vacation wouldn’t necessarily pertain to a single family residential, but there’s lots of options there and flexibility, which is something that our team’s done a great job with. All right, I’ll take this one quickly from Antonio. Uh they asked if we have an app for Android. It’s a great question. As of right now, we’re currently live on all browsers, mobile and desktop. And then we have an iOS app as well. We do not currently have an Android app. We are hoping to build this in the future. Uh but it’s not on to be transparent our immediate road map for context. Uh we our secondary market was a massive build that we have and we have a few fast follows from that. The other thing I’ll say is our iOS app doesn’t have full parody with our browser. So I would say browser is still our easiest way to be able to do all things on arrive from account changes so on and so forth. However, we definitely know that accessibility for both iOS and Android is imperative. So more to come here. Uh if you haven’t already, Antonio, we’re happy to add you to the Android beta. um feel free to drop your private email in the or private DM or you can um email supportive.com or use our chat function and that goes for anybody on the line if you would like to join that beta in the future. So definitely let us know. All right, I think we cruised through all the questions here today. I know we have about 2 minutes left. So folks, keep me honest in the chat if I either missed a question or you have one last burning one in here. Uh ooh here’s a good one uh from Renee. Are arrive fees staying the same and do we get a notice if they go up? There definitely be a notice. Um all the fees for each of the investments are listed on their pages. Once you make an investment, the fees for that investment generally aren’t going to go up. Um it’s much easier to lower fees than it is to raise them because everything we do goes through the SEC process and it’s kind of like a mini IPO. So once we kind of have a new investment, it’s more likely that we end up lowering our fees um just because it’s very very very very difficult to raise them. So with some asset classes, we’ve kind of started with a fee level and over time as we’ve gotten bigger and more efficient been able to lower fees on some of those investments. Um the only time fees would really go up is if we launch a new investment product. So, say that we have a, you know, I don’t know, a new investment where you can invest in fractional data center real estate that might have a new fee set and that fees might be higher than some of our other products, but we wouldn’t be taking the fees on our, you know, individual properties and raising those. Fantastic. And Jake, um, maybe we one last mention like our redemption fees. We actually made a change to those. What was it? Was it Q425? Um, and we actually decreased the percentage of fee based on the time held. Um, and that was notified by to all investors. Maybe you have some more color on that one, too. Yeah, it’s a good example of of um, you know, being able to decrease fees over time is um, K’s talking about when you do the redemption program, so you get liquidity for the funds products. There is a early redemption fee. So um it was you kind of had to hold the shares for I think 5 years and then there was you know the fees kind of drop off completely. So after 5 years there was no fees for redeeming and we were able to accelerate that so that now after three years there’s no fees for redeeming your shares. So it’s another there’s another good example of yeah it’s easier to lower fees and and that’s the more likely direction that they go rather than being raised. Um and just it’s just something where as we continue to grow and get larger and have you know kind of better economies of scale and can you know run the whole business more efficiently it’s easier for us to you know be able to lower fees which you know obviously then helps the investor incentive to want to reinvest and to put more capital to work. So, um that um yeah, um as far as where are fees listed, fees are going to there current will drop the the FAQ that has kind of the the summary of information, but each investments page has it. Um I think it’s on the financials tab. Um if you click over to there, it’ll have something that shows you here’s what the fees are for this investment. Here’s kind of an example of it. And then there’s also the SEC documents linked from each of our investment pages. So you can also go into the SEC documents and those will also have all the mentions of you know what fees arrived earnings. Fantastic. Um and R rene I love your question on any bonus code for signing up after the call on sale today over here too. Fantastic idea. I’ll be sure to share with our team. Um but we don’t have this to date. Uh but I just took a screenshot and sent it over to our team. So very much appreciate you. Uh Jake, any closing remarks before we shut our virtual doors today? That’s all I’ve got. Thanks for a good set of questions. Um thanks for letting me ramble around a little bit. I hope it was helpful and I know there’s a lot of information we went through across the um that presentation and Q&A. So feel free to reach out. You know, you can find Karen and my emails really easily. Shoot us a note at supportive.com and um would love to keep the conversations going with you guys as you get started investing. Fantastic. Well, Jake, thanks so much for your time in prepared remarks, walking through the diversity of questions in great detail. Always appreciate you for the folks that spent what an hour or two with us on your Tuesday morning and afternoon. Absolutely exceptional. Fantastic questions. Your engagement was wonderful. Uh it’s the reason why we do these. So, thank you so much for showing up. Uh like Jake mentioned, if any other questions come up, feel free to reach out to supportive.com. You can use our chat function in the bottom righthand corner of our platform. Uh, and then we host these webinars every Tuesday at 9:00 a.m. PT. A lot of folks, even existing investors, just come for the Q&A portion. So, it’s typically 25 minutes prepared remarks and then you can jump in here. But, hope you all have a great rest of your day and happy investing. Thanks, folks. Talk to you later. Bye y’all.

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

You’re muted.

Thanks, Jake. Always a good question to ask, especially when you’re choosing where to park your hard-earned funds. So, uh, definitely appreciate it, Tony. I can take this one really quickly from you. If I was to pass, what would happen to my account? Can I add beneficiary? So, folks can add multiple beneficiaries on your account. Very easy. I dropped a FAQ on how to do so. Upon death, uh the beneficiary would reach out to supported arrive.com. We would ask for uh the accompanying documents to verify all info and then the beneficiary would create a new account and then we would transfer shares over to that new account. The only thing I’ll mention is that uh that beneficiary will follow the same terms that you had agreed to um when investing. So, when it comes to liquidity, uh, just wanted to call that out so when you’re making notes about your investments, but very straightforward. All right. Oops. Package came, huh?

Fantastic. Sorry about that. The CBOS’s, chief parking officers are on it this morning. Um, yes, absolutely, Michael. Everyone needs somewhere to lay their heads regardless of the direction the economy is heading. And I think one thing that Cameron Woo always mentions um typically on webinars that obviously we’re not registered adviserss. We’re not able to give any investment advice on here. We’re heavily regulated by SEC, Finner, etc. But uh I know personally we only recommend investing what you feel comfortable going to bed at night with. That’s just like a common practice. Um so we definitely appreciate it, Michael, when you’re thinking about where to invest and what to do, especially um with shifts in the economy. So, all right, Jake. Any um I think we cruised through all the questions here. Folks, keep me honest in the chat if I missed anything. I’m happy to jump back in, but Jake, we’re well in our way in Q2. Uh we’ve got some kind words in chat. Anything that you’re looking forward to? Um I’m looking forward to the continued growth of our of our private credit funds. There’s been a lot of interest in investing in the debt side of real estate where, you know, unlike our equity options where you can invest and actually own the property, the private credit fund is an opportunity where you can invest into a fund that owns real estate loans. And that’s been a really exciting um opportunity in the last couple years with interest rates high. Um that fund’s been generating really strong interest income returns by you know buying loans that are uh you know say a fix and flip uh developer or a new construction home or a bridge loan. So that fund has been really exciting to see that grow over the last couple years and I’m looking forward to seeing some of the new things riding into it soon. Absolutely. Well Jake, thanks so much for your time. Uh for all the folks that spent 47 minutes with us on your Tuesday afternoon and evening or morning, thank you so much. We very much appreciate it. The engagement chat was wonderful. Awesome diversity and all the questions asked. If any other questions come up, feel free to email supportive.com. You can also use our chat function in the bottom righthand corner of our platform. We’re typically releasing new properties on Thursday mornings and afternoons. So, feel free to jump in on those. Our fund investments are always open. And then, um, secondary market for folks that are interested to uh, take a look there. there’s a little bit of a lead time uh to be able to enter, but it’s one to pay attention to as it unlocks properties that have previously been full fully funded. So, very much uh very excited for that as well. But I hope you have a great rest of your day. So, appreciate the kind words in chat, Michael, Amy, David, uh and happy investing. We’ll chat with you all soon. Thanks for joining, folks. Don’t be a stranger. Feel free to shoot us a note. Bye all. Bye.