Arrived Homes, the Seattle startup that helps people invest in single-family rental properties, is taking on $100 million in new credit financing to fuel its expansion and the ability to purchase more homes across the U.S.
The real estate investment platform announced Thursday that it’s partnering with Certain Lending, a San Francisco-based fintech startup.
Arrived uses crowdfunding to help anyone purchase shares of rental properties for as little as $100 and earn a passive income while the company handles everything from property acquisition to necessary improvements and management of daily operations. The idea is to open up access to real estate investing beyond wealthy individuals and institutional investors, and use technology to help identify and manage rental properties.
The startup was founded by tech veterans including CEO Ryan Frazier (Simply Measured and Sprout Social); CTO Kenny Cason, (Simply Measured); and COO Alejandro Chouza, (Oyo and Uber). High-powered backers include the venture capital arms of Jeff Bezos (Bezos Expeditions) and Marc Benioff (Time Ventures); former Zillow Group CEO Spencer Rascoff; Uber CEO Dara Khosrowshahi, and other longtime tech execs.
“We think anyone who wants to invest in residential real estate should be able to do it,” Frazier said in a news release. “Opening up access to the wealth-building potential of single-family rentals has massive implications for the millions of Americans who have been locked out of these opportunities in the past.”
Arrived previously raised $10 million in equity and $27 million in debt financing in June to help scale its model. The company says the new financing will allow it to keep pace with high consumer demand for its properties.
Since launching in March 2021, almost all shares for each single-family rental were purchased within 24 hours after the property was listed on Arrived’s website. Last month, Arrived’s latest batch of properties, valued at $7.5 million, fully funded in 10 days with an average of 167 unique investors per property.
Arrived now has fully invested properties in Arkansas, Arizona, Colorado, Georgia, North Carolina, and South Carolina, totaling $20 million in rental homes across 11 metropolitan areas. Arrived will also use the fresh capital to expand to short-term rentals as well as purchase additional single-family rentals in Texas, Florida, and Washington state.