Invest in rental homes and vacation rentals
Invest in venture-backed companies
Moderate Risk
3/5
Investing in Arrived carries risks including market fluctuations, economic factors, and property-specific issues. There's also the potential for loss, and investments are generally illiquid, meaning they can't be easily sold or exchanged for cash quickly.
High Risk
4/5
Investing in Sweater's Cashmere Fund, like any venture capital investment, carries inherent risks. These risks include market volatility, economic conditions, and challenges specific to the companies in which the fund invests.
Minimum Liquidity
1/5
Arrived is designed for long-term investments with limited liquidity options. The Single Family Residential Fund offers share redemption after six months with restrictions. For individual properties, shares are held until the property is sold, typically after 5-7 or 5-15 years. A secondary market for shares is being considered but is not currently available.
Minimum Liquidity
1/5
Sweater provides biannual redemption windows for investors to access their investment before the end of the investment term. However, there may be restrictions and limitations on the redemption process.
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Low Return
5.5-15 %
Arrived investors may earn returns through monthly rental income dividends and property value appreciation upon sale, with historical annual return estimates ranging from 5.5% to 15%, depending on the property type and use of leverage.
Long-term Investment
5-15 years
Arrived targets a 5-7 year hold period for Single-Family Residentials and a 5-15 year hold period for Vacation Rentals, emphasizing a long-term investment horizon.
Long-term Investment
1-5 years
Sweater's Cashmere Fund is designed for long-term investments, but they provide biannual redemption windows for investors to redeem a portion or all of their investment.
Who can invest
United States
U.S. citizens or residents who are at least 18 years old can invest with Arrived, and accreditation as an investor is not necessary.
Who can invest
United States
Any U.S. resident over the age of 18 with a Social Security Number (SSN) is eligible to invest in Sweater's Cashmere Fund.
Moderate Volatility
3/5
Real estate assets on Arrived can be subject to market volatility influenced by economic shifts, interest rates, and local market conditions.
Moderate Volatility
3/5
The assets on Sweater's platform, including the investments made by the Cashmere Fund, can be subject to volatility.
Regulation and audits
SEC Regulated
Arrived's offerings are regulated by the SEC, requiring compliance with securities laws and provision of detailed offering circulars to investors. Audits and financial reviews are conducted for transparency.
Regulation and audits
SEC Regulated
Sweater operates under SEC regulations, allowing them to accept investments from non-accredited investors.
Insurance
Yes
Arrived properties are insured against physical damage or loss, but insurance may not cover all risks and does not protect against market volatility, economic downturns, or other investment-related losses.
Insurance
No
Specific details about Sweater's insurance policies are not available on their website.
Payouts
Dividends
Arrived pays out dividends monthly, with single-family residential properties historically averaging 45 days to lease and vacation rentals taking 3-6 months to start generating income. The first dividend payment for the Single Family Residential Fund is scheduled for February 25th for investments made by December 31st, and it may take up to 60 days to receive the first dividend after investing. Subsequent dividends are paid monthly, near the end of the month.
Payouts
No Recurring Payouts
According to Sweater's website, the Cashmere Fund does not pay dividends to investors.
Withdrawals
Investors can get their money back from Arrived after the property is sold or through share redemption options, subject to specific terms and conditions. Proceeds are distributed to the investor's Arrived wallet and can be withdrawn from there.
Withdrawals
Investors in Sweater's Cashmere Fund can redeem their investment during biannual redemption windows. However, there may be restrictions or limitations on the redemption process.
Extra Fees
Yes
For long-term rentals, Arrived charges an 8% management fee on gross rental income. Vacation rentals incur a 15-25% management fee. Additional fees include a one-time sourcing fee (3.5% for long-term, 5% for vacation rentals), and a quarterly Asset Management Fee (0.25% for the fund, 0.15% for long-term rentals). Other costs may apply for closing, renovation, and operating expenses.
Extra Fees
No
Sweater's Cashmere Fund charges a fee of up to 2% for redeeming investments during the semi-annual redemption windows.
Taxes
Tax Form
Arrived sends investors a 1099-DIV form by the end of January for tax reporting, and state taxes are based on the investor's state of residence, not the property's location. Vacation rentals are taxed similarly but do not qualify as a REIT.
Taxes
Annual Statement
Venture funds, like Sweater's Cashmere Fund, generally provide tax reporting support to investors.