- Oops!Something went wrong.Please try again later.
Many investors overlook real estate simply because it has traditionally been a difficult asset class to invest in. The passage of the JOBS Act gave one company the ability to change that by securitizing single-family rentals and allowing individual investors to easily buy shares of these properties.
Jeff Bezos clearly saw promise in this concept because he was quick to invest in the first company to bring it to the market.
Arrived launched its fractional real estate investing platform in 2021 after the company’s $37 million seed round was funded by several high-profile investors, including Jeff Bezos’ Bezos Expeditions Fund, Salesforce.com founder Marc Benioff through Time Ventures, former Zillow Group CEO Spencer Rascoff and Uber Technologies CEO Dara Khosrowshahi.
The first property to hit the platform was The Lierly, a long-term rental in Fayetteville, Arkansas, that’s now collecting $1,750 per month in rent. Investors bought into this property for $10 per share and have been collecting a rental dividend yield of 7.5% annually. The property shares are now valued at $20.79 since the home has appreciated in value.
A $1,000 investment in the home would now be worth $2,079 and the total return to date is 119.9%.
The second property to hit the platform, The Soapstone, has produced similar results. The share price has climbed from $10 to $19.87 with a rental dividend yield of 6.7% and total returns of 109.4%.
Since its launch, Arrived has fully funded 203 rental properties, including 15 vacation rentals, with a total value of more than $75 million. Bezos even made a second investment in the company last year during Arrived’s $25 million Series A round.
Five new properties are set to go live on the platform with a $100 minimum investment, including long-term rentals in Tennessee, Alabama and Arkansas.
Check Out More on Real Estate from Benzinga
Don't miss real-time alerts on your stocks - join Benzinga Pro for free! Try the tool that will help you invest smarter, faster, and better.
This article If You Invested In A Rental Property When Jeff Bezos First Backed This Real Estate Platform, Here's How Much You Would Have Made originally appeared on Benzinga.com
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.