Позначка: Real Estate

Arrived Raises $27 Million to Revolutionize Real Estate Investing

Seattle-based tech startup Arrived has secured $27 million in new funding to fuel its innovative platform, dubbed a ‘stock market’ for rental properties. This latest round was led by Neo, with significant backing from Forerunner Ventures, Bezos Expeditions, Core, and other prominent investors. Total funding for Arrived now exceeds $60 million.

Arrived’s platform allows everyday investors to purchase fractional shares of single-family rental homes and vacation rentals, starting with as little as $100. It provides an alternative route to real estate exposure without the complexities of traditional mortgages or property management. The company handles all aspects, from property acquisition and financing to renovations and tenant relations.

Investors can acquire shares through the Arrived website, receiving quarterly dividends from rental income plus a share of any property appreciation after a multi-year holding period. Since its launch in 2019, the platform has attracted nearly 900,000 registered investors who have invested over $340 million.

Key milestones include the distribution of more than $55 million and the funding of over 550 properties across 65 markets within the United States.

This week, Arrived announced the launch of its Secondary Market – a peer-to-peer marketplace enabling investors to directly buy and sell shares of rental homes. This market, introduced earlier this year, saw over 57,000 buy and sell orders within its first three weeks.

‘We believe real estate investing is going to move online,’ stated Ryan Frazier, co-founder and CEO of Arrived. ‘Our vision is a future where real estate investing feels just like investing in public companies – where anyone can buy and sell shares of properties in minutes, not months.’

Arrived generates revenue through various fees associated with property acquisition and management. Notably, they launched the ‘Seattle City Fund’ earlier this year, offering targeted exposure to a single metropolitan area’s housing market.

The company operates within a broader trend of tech companies applying fintech, crowdfunding, and fractional-ownership models to residential real estate, competing with firms like Landa and Lofty. Despite the innovation, concerns remain regarding the potential impact on affordability due to increased investor demand.

Notable investors include Marc Benioff (Salesforce CEO), Spencer Rascoff (Match Group CEO), and Dara Khosrowshahi (Uber CEO).

Class-Action Lawsuit Targets Zillow’s Agent Referral Program

A new class-action lawsuit alleges that Zillow unfairly inflated home buying costs through its Zillow Flex agent referral program. The suit, filed by Hagens Berman and Cohen Milstein, claims Zillow knowingly allowed agents to collect up to 40% commissions, often undisclosed to buyers and sellers. This practice, critics argue, created a deceptive system where Zillow capitalized on a dominant position in online real estate search, manipulating the market to maximize profits.

The complaint highlights concerns about the program’s incentives, where agents prioritized securing full commissions through the referral program, even if it meant reduced commissions for themselves. This resulted in increased purchase prices for buyers, as the buyer’s Flex agent received a significantly smaller portion of the commission.

Key accusations include Zillow’s deceptive practices when buyers clicked the “Contact Agent” button, leading them to Zillow-affiliated agents rather than direct sellers. Additionally, the suit criticizes Zillow’s Listing Access Standards, arguing they were strategically implemented to force listings onto Zillow.com, further benefiting the company’s revenue stream. The lawsuit alleges this created an unfair advantage, manipulating the market to inflate Zillow’s profits.

The class-action lawsuit seeks compensation for U.S. buyers who purchased homes listed on Zillow within the last four years using agents referred through the platform. The suit also cites violations of the Washington Consumer Protection Act and the federal Real Estate Settlement Procedures Act (RESPA), seeking a jury trial and triple damages.