Real estate has long been considered one of the most reliable paths to financial security, but it's traditionally been reserved for those with substantial capital or access to exclusive deals.

The securitization of real estate changes this paradigm, offering a regulated pathway to fractionalized ownership that opens doors to millions of potential investors.

The road to real estate securities approved by the Securities and Exchange Commission (SEC) isn't for the faint of heart. It involves meticulous legal and regulatory compliance, robust transparency standards and deep integration with investor protections mandated by federal law.

Don't Miss:

• Arrived Home's Private Credit Fund’s has historically paid an annualized dividend yield of 8.1%*, which provides access to a pool of short-term loans backed by residential real estate with just a $100 minimum. 
• If there was a new fund backed by Jeff Bezos offering a 7-9% target yield with monthly dividends would you invest in it?

Companies must navigate the complexities of filing for Regulation A+ or other exemptions, proving their operations meet the rigorous standards that ensure investors are safeguarded. It's not just about registering an offering – it's about building trust.

The barriers to securitization are high. Legal costs, compliance requirements and the need for operational transparency have historically deterred even the most committed pioneers.

The technology to fractionalize real estate efficiently and scale the offerings has only recently matured.

Platforms like Arrived have begun cracking the code, leveraging advances in blockchain, fintech and digital marketplaces to turn the dream into a reality.

Trending: This Jeff Bezos-backed startup will allow you to become a landlord in just 10 minutes, with minimum investments as low as $100.

The implications of real estate securitization are massive. By breaking down real estate into shares, investors can diversify their portfolios without committing to a single property or market. It brings liquidity to an otherwise illiquid asset class, making it easier to buy, sell or trade real estate investments.

For millennials – a generation that values transparency and flexibility – SEC oversight provides the peace of mind necessary to step into the investment arena confidently.

The securitization process is a story of transformation: The legal rigor of SEC filings, visualized pathways of approval and investor safeguards woven into the fabric of the offering.

Platforms like Arrived demonstrate how companies can work with the SEC to provide clear, regulated access to a once-exclusive asset class. Arrived's rental home investment offerings are qualified by the SEC as Regulation A securities, a process that ensures compliance with federal securities laws.

This qualification enables the company to offer investment opportunities to both accredited and nonaccredited investors, making real estate investing more secure and widely accessible.

See Also: Warren Buffett once said, "If you don't find a way to make money while you sleep, you will work until you die." Here’s how you can earn passive income with just $100.

Arrived chose to qualify its offerings with the SEC for two key reasons:

1. Accessibility for all investors: By completing the SEC qualification process, Arrived enables anyone older than 18 – whether accredited or nonaccredited – to participate in its offerings, democratizing access to real estate investing.

2. Enhanced investor protection: SEC qualifications require rigorous compliance, including detailed disclosures for each property, semiannual financial statement filings and annual audits. These measures provide investors with transparent information about their investments and the performance of each asset, ensuring they can confidently make informed decisions.

The securitization of real estate doesn't just innovate; it levels the playing field. This is more than an evolution in investing – it's a revolution in how people connect with wealth-building opportunities.

With the SEC at the helm, investors can look forward to a future in which real estate is accessible, transparent and inclusive for all.

Arrived Achieved A Total Return of 34.7% On Their Biggest Sale Yet — Diversify Your Monthly Income Stream With Fractional Real Estate

Arrived allows individuals to invest in shares of rental properties for as little as $100, providing the potential for monthly rental income and long-term appreciation without the hassles of being a landlord. With over $1 million in dividends paid out last quarter and a growing selection of properties across various markets, Arrived offers an attractive alternative for investors seeking to build a diversified real estate portfolio. 

In October 2024, Arrived sold The Centennial, achieving a total return of 34.7% (11.2% average annual returns) for investors. Arrived aims to continue delivering similar value across our portfolio through careful market selection, attentive property management, and thoughtful timing in sales.

Looking for fractional real estate investment opportunities? The Benzinga Real Estate Screener features the latest offerings.