Anyone have experience in Arrived.com real estate investing? Returns seem modest and have a very low buy in.

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I’ve heard of it… it doesn’t really seem worth it to me for a 4% return and no control over the investment decisions… you can’t raise the rent… you can’t force them to renovate… you can’t force a sale…

There’s a couple of things in their disclosures that signal illiquidity, reinvestment and interest rate risk…

1) The membership Interests may not be resold or otherwise disposed of by an investor unless there are available exemptions from registration…

2) Only investors who can bear the economic risk of the investment for an indefinite period of time and the loss of their entire investment should invest in the membership Interests.

It’s easier to just buy a REIT ETF, if you want real estate exposure and modest returns, with diversification, leverage and scale… but comes with liquidity if needed

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I did not know about Arrived.com before this post but am active in the commercial real estate space assisting investors with transactions.

The pitch seems to be that your money is locked up for a fairly long time and you are to trust that you will get a fair return and the money is not being squandered by overpaying to management companies, contractors and realtors and the properties are being bought at a fair price with some level of research and planning to buy properties with moderate potential for appreciation. And that the residential properties are as advertised. I would rather invest in a REIT. Way too much risk for low rewards.

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