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Many investors overlook real estate simply because it has traditionally been a difficult asset class to invest in. The passage of the JOBS Act has allowed one company to change that by securitizing single-family rental properties, making it easier for individual investors to purchase shares in these properties. .
Jeff Bezos The concept had clear promise as he quickly invested in the first company to bring the concept to market.
Arrived The company will launch a partial real estate investment platform in 2021 after a $37 million seed round was funded by several high-profile investors, including Jeff Bezos. Bezos Expedition Fundfounder of Salesforce.com Marc Benioff Use time venturesFormer Zillow Group CEO Spencer Raskoff and CEO of Uber Technologies Dara Khosrowshahi.
The first property to hit the platform was The Lierly, a long-term rental property in Fayetteville, Arkansas, which is currently collecting $1,750 per month in rent. An investor purchased the property for $10 per share of his, earning a 7.5% annual rental dividend yield. The share of the property is currently valued at $20.79 as the house has increased in value.
A $1,000 investment in a home is worth $2,079 for a total return to date of 119.9%.
The second property to hit the platform, The Soapstone, produced similar results. The stock rose from $10 to $19.87, yielding a 6.7% rental yield and a 109.4% total return.
Since its inception, Arrived has funded 203 rental properties, including 15 vacation rentals, totaling more than $75 million. Bezos made his second investment last year in his $25 million Series A round of Arrived.
Six new properties will be live on the platform with a minimum investment of $100, including a $1.03 million vacation rental in Broken Bow, Oklahoma and long-term rentals in Tennessee, Alabama and Arkansas.
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This article originally appeared on Benzinga.com
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