Jeff Bezos Receives Backlash For Backing A Company Buying Up Single-Family Homes

Jeff Bezos has received his fair share of criticism over the years – for everything from Amazon.com Inc.’s business practices to his large investments in space and, more recently, his investments in a real estate startup that’s been purchasing single-family homes in several states across the country.

The startup Arrived is an investment platform that allows retail investors to purchase shares of single-family homes that are used as either long-term rentals or short-term vacation rentals. The company is the first platform qualified by the Securities and Exchange Commission (SEC) to offer shares of rental properties to nonaccredited investors.

Bezos made an early investment in the company through his Bezos Expeditions Fund during the seed round in 2021, joining other high-profile investors like...

Read the full article on Benzinga: Jeff Bezos Receives Backlash For Backing A Company Buying Up Single-Family Homes

 

[sanjay.jain.05]

I have a different problem with the Arrived homes business model. They are skimming investors , by adding on huge fees upfront. I have seen that a million dollar home on their platform adds around 50% in closing + cash reserve + improvements , so the company is filling their pockets first and left overs are being handed over to the investors. The returns are a joke and its only a matter of time when the investors realize this .

 

[mikep3303]

I have a different problem with the Arrived homes business model. They are skimming investors , by adding on huge fees upfront. I have seen that a million dollar home on their platform adds around 50% in closing + cash reserve + improvements , so the company is filling their pockets first and left overs are being handed over to the investors. The returns are a joke and its only a matter of time when the investors realize this .

They have to make money somehow, plus cover the costs associated with securitizing a property like that.

Besides, reserves and improvements aren't them lining their pockets. Without reserves, how would maintenance and repairs be covered? And improvements are... well, improvements. It's just not a slumlord platform like some of the others...