31-07-2025
The 4‑Hour Landlord: How Tech Is Changing The Way We Invest In Real Estate
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Buying a rental home has typically required large amounts of cash, a mortgage, and the willingness to manage tenants and maintenance.
Fractional real estate investing has introduced a new model. Instead of purchasing an entire property, investors can now buy small shares of a home and receive a portion of the rental income along with any appreciation in value over time, Forbes reports.
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Platforms in this space, such as Arrived Homes, purchase single‑family homes using funds pooled from multiple investors. According to Forbes, they handle all property operations, including screening tenants, collecting rent, and managing maintenance. Investors simply own shares and receive their portion of the income. The structure is similar to how robo‑advisors transformed stock investing by automating research, allocation, and management.
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Pros and Cons for Investors
Fractional investing lowers the barrier to entry for real estate, Forbes says. Investors can participate with far less money than would be needed for a down payment or a mortgage. They may also receive some of the same tax benefits as full property owners, such as depreciation and expense deductions, but proportional to their share.
Investors should understand a few key considerations before choosing this approach. "On average, fractional ownership will produce returns similar to a savings account or treasury bond," Strand Capital founder and CEO Daniel Erb told Forbes.
Investors should expect long holding periods because many platforms require that money stay invested for five to seven years. Forbes says that fees can also be significant, including asset management and acquisition costs, which can reduce returns. Critics argue that fractional platforms can add competition for single‑family homes, potentially driving up prices in certain markets and making it more difficult for first‑time buyers.
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Who Is Best Suited for This Strategy
Fractional real estate investing can work well for patient investors who want to diversify beyond stocks and bonds without taking on the responsibilities of being a landlord. "You get to brag about being a landlord without ever fixing a leaky faucet," Harmer Wealth Management founder Chad Harmer told Forbes.
Investors who choose this route should understand the risks, fees, and illiquidity, Forbes says. Experts recommend approaching these platforms with a long‑term mindset rather than expecting quick gains.
Arrived Homes Offers a Simple Entry Point
Arrived Homes is one of the platforms in the space that provides this service. Investors can browse pre‑vetted properties, choose how much to invest starting at $100, and buy shares online. The company handles everything from property management to tenant relations, while investors collect dividends and potential appreciation when homes are sold.
"Our team follows a process designed to provide our investors with what we believe are going to be top-performing investments," Arrived Homes Vice President of Investments department Cameron Wu said.
Arrived Homes was created to remove the traditional barriers that made property ownership expensive and time‑consuming. The company designed an experience that streamlines the entire process so that anyone can begin investing in rental homes with just a few steps.
Investors start by browsing a curated selection of homes that have already been vetted for income and appreciation potential. After choosing a property, they decide how much to invest and purchase shares online. Arrived Homes then manages every aspect of ownership, from tenant placement to maintenance and accounting. Investors collect monthly dividends from rental income and may earn additional returns if the property value increases when it is sold.
The platform also offers options for investors who want diversification beyond a single property. Arrived Homes provides fully managed funds, including its Single Family Residential Fund, City Funds that focus on specific markets, and a Private Credit Fund for those seeking short‑term real estate debt opportunities. These funds give investors flexible ways to create a portfolio that matches their goals while still benefiting from the same hands‑off approach.
Arrived Homes has attracted backing from Jeff Bezos through Bezos Expeditions, Marc Benioff's Time Ventures, former Zillow (NASDAQ:Z) CEO and 75 & Sunny General Partner Spencer Rascoff, and Uber (NYSE:UBER) CEO Dara Real Estate Platforms Projected to Hit $349 Billion by 2032
The real estate crowdfunding sector has exploded in recent years, being estimated at around $12.2 billion in 2023, with forecasts projecting growth to $349 billion by 2032, at a compound annual growth rate of about 45%, according to a Facts & Factors study. This rapid expansion shows how digital platforms are reshaping real estate investing, democratizing access in ways similar to robo‑advisors in stocks.
Arrived Homes isn't the only player in this space. According to Wired, platforms like Fundrise, CrowdStreet, Lofty, and Pacaso offer alternative tech‑enabled paths to fractional investing.
These options typically allow you to start with as little as $10 to $100, and operate with streamlined dashboards, automated analytics, and managed property portfolios, reinforcing the concept of the "4‑hour landlord" by minimizing hands‑on time.
Impact on the Housing Market
Fractional real estate platforms have opened the door for more people to invest in property, but some experts believe this trend can create challenges for traditional homebuyers, Forbes says.
"Fractional investing platforms can add more competition for single‑family homes. This can push prices up in certain markets," Approved Funding President Shmuel Shayowitz told Forbes. "That can make it tougher for first‑time buyers. Making real estate investing accessible to everyone can also make buying less accessible for people who just want a home."
Harmer shared a similar concern. "Every house sliced into shares is one less starter home for a first‑time buyer," he told Forbes. "It's not the sole culprit, but it doesn't help."
A Tech‑Enabled Path to Real Estate Ownership
Residential real estate has historically delivered strong long‑term returns with less volatility than stocks, according to a Bartlett Faculty and University College London study. This makes it attractive to investors seeking diversification beyond traditional asset classes.
Fractional investing provides a way to access this potential without the high costs, time commitment, or responsibilities of being a landlord. Platforms like Arrived Homes operate much like robo‑advisors by automating property selection, management, and income distribution.
For investors seeking passive income and long‑term growth, Arrived Homes offers a low‑effort path to becoming a landlord. Users can get started in minutes, invest in curated rental properties, and let the platform handle the operational work while they build their portfolio.
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