Rental real estate investment startup Arrived secures $100m in credit funding to fuel its US expansion

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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 buy more homes across the United States

The real estate investment platform announced Thursday its partnership with Certain Lending, a San Francisco-based fintech start-up.

Arrived uses crowdfunding to help anyone buy equity in rental properties for as little as $100 and earn passive income while the company takes care of everything from acquiring the property to needed improvements and the management of daily operations. The idea is to open up access to real estate investment beyond high net worth individuals and institutional investors, and to 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; Dara Khosrowshahi, CEO of Uber, and other longtime tech executives.

“We believe anyone who wants to invest in residential real estate should be able to do so,” Frazier said in a press release. “Opening up access to the wealth-creating potential of single-family rentals has massive implications for the millions of Americans who have been excluded from these opportunities in the past.”

Arrived Homes co-founders, from left, COO Alejandro Chouza, CEO Ryan Frazier and CTO Kenny Cason. (Photo arrival)

Arrived previously raised $10 million in equity and $27 million in debt funding in June to help scale its model. The company says the new funding will allow it to keep pace with strong consumer demand for its properties.

Since its launch in March 2021, nearly every share of every single-family rental has been purchased within 24 hours of listing the property on Arrived’s website. Last month, Arrived’s latest batch of properties, valued at $7.5 million, were fully funded in 10 days with an average of 167 unique investors per property.

Arrived has now fully invested properties in Arkansas, Arizona, Colorado, Georgia, North Carolina and South Carolina, totaling $20 million in rental units across 11 metro areas. Arrived will also use the new capital to expand into short-term rentals as well as purchase additional single-family rentals in Texas, Florida and Washington State.