No liquidity - better put your money on a HYSA
Response from developer
Thank you for sharing your feedback. We understand your concerns around liquidity, pricing, and fees. Arrived investments are designed to be held for the long term, with the potential for returns through rental income and property appreciation. For investors who wish to sell shares of individual properties before the property itself is sold, the Arrived Secondary Market provides an additional option. Because this is a peer-to-peer marketplace, investors set their own prices, and shares may trade at a discount or premium to their Arrived Valuation. Sales are subject to buyer demand and are not guaranteed. Regarding fees, each secondary market transaction includes a 1% Broker Dealer Fee and a 1% Alternative Trading System (ATS) Fee. These fees go directly to the third-party partners facilitating trades, and Arrived does not collect revenue from them. We appreciate your feedback and are happy to answer any additional questions or review your specific investments at support@arrived.com.
Important to know you can’t sell when you want!
Exit Costs Larger Than Dividends
If you want to sell off and exit, you have to wait for a “secondary market” period. Unfortunately, when it finally arrives, it’s always full of others looking to fully exit. So that $10 share sells for about $8, on top of another fee to Arrive for each share sold. Your dividend gains will never equal more than your losses on exit in this buy/sell environment.
If you do want to invest though, take advantage of others who’ve already made the mistake and buy only in the secondary market for a discount.
My Worst Investment To Date
Exactly FOUR years ago (2022), I decided to dip my toe in to get a feel for the process, and the financials of it all. As recommended, I diversified my $1,500 trial cash into four properties (3 rentals & a vacation property).
At this time - again, FOUR years later, I’m sitting around a value of $1,244. I recently cashed out the $75 in dividends I’d earned over the course, so you could count the total value at $1,319. Meaning, over the course of my four year investment with Arrived, I’m negative $181. I have yet to go positive at ANY point.
Had I put this money in practically anything else, I’d be better off.
Now I just have to figure out how to get out of this mess. From what I’ve seen, I’ll be forking over another percentage when I sell during the “selling window”. Until now, I’ve only kept the investment there looking at it as “lost money”, but now I’m looking to put it to better use elsewhere.
All this being said, the App may be great & “beautiful” as so many of the suspicious reviews state, but the “service” itself has been abysmal in my experience. Somebody must be making money here, but it isn’t me!
Response from developer
Thank you for taking the time to share your experience. We understand how disappointing it can be to see your investments decline in value, especially after holding them for several years. We appreciate that you gave Arrived a chance, and we're sorry the experience hasn't met your expectations. Arrived investments are designed to be held for the long term, and returns are not guaranteed. Property valuations can fluctuate over time, and investment performance can vary based on rental income, property expenses, and market conditions. If you're considering selling your shares before the properties are sold, the Arrived Secondary Market offers a potential option. This is a peer-to-peer marketplace where prices are determined by buyers and sellers, so shares may trade at a discount, and sales are not guaranteed. Transactions are also subject to third-party fees. We'd welcome the opportunity to review your investments with you and help you better understand your options. Please reach out to us at support@arrived.com.
