Arrived.com (REIT)

[Solomon960]

Greetings, fellow Mustachians. As an investor traditionalist who wants nothing to do with managing properties as a landlord, my only prior exposure to "real estate" has been investing in REITs. Today, I came across a unique REIT site that promises the same drama-free investing, but with more choice in the actual properties I "own." The site: https://arrived.com/

Questions: Would participating in this investment design provide a more stable annual income vs a standard REIT index fund? Would the annual return be higher than a traditional REIT?

I am tempted to invest on arrived.com, but prefer monthly reinvested dividends, which this opportunity does not provide.

Thank you, in advance, for sharing your thoughts.

[ChpBstrd]

1) Why would it be an advantage to personally pick which of the company's projects in which to invest? Is it because regular REIT management makes worse decisions than you would make? Is it because diversification across hundreds or thousands of tenants is less appealing than buying shares in particular projects? Is it just more fun? I'd like to know the assumption here for why this process of browsing will work better than committees of highly experienced real estate experts making the decisions.

2) Have you analyzed any of the company's projects using the spreadsheet in the "Evaluating a Rental Property" thread at the top of the real estate section of this forum? Do the individual projects make financial sense, given some basic assumptions about taxes, repairs, remods, insurance, external management, etc?

3) What is the expense ratio for this, and how do we compare it to an REIT? I didn't find any info after a few minutes of searching.

4) Why is this company going to do well in an environment of unaffordable house prices and high mortgage rates, even as companies like Zillow are ending their unprofitable experiments with owning real estate?

[Rob_bob]

What is the liquidity of this REIT?  Usually non publicly traded REITs sell for much lower than what they say the value is, think time shares, and/or you can only sell when the company has a window to get out.

Personally I would, and do, only buy publicly traded REITs.