[jnordwick]

How do you making money? Is it just capitalizing your fund for a specific timeframe (the lease period) and you essentially take a management fee? Is it essentially a REIT of the properties that people are leasing?

What happens to the house at the end if the period? The description wanst very clear on that.

The big one: what happens if the fund doesn't make enough and has to close up from another market downtown?

Interesting idea, but more technical description would need useful for us finance geeks.

[fvryan]

How do you make money? - We make money from fees for managing the the real estate fund and properties, currently 1% of AUM (assets under management) and 10% of rent.

What happens to the home at the end of the period? - At the end of the initial lease term, residents have the option to renew their lease, move to a new Arrived home, or move out of the platform. At that point they can either continue contributing to their account or "cash out" and use the funds they've accrued. We haven't built in an option to buy the specific home outright although it's likely an option we'd support.

What happens if the fund doesn't make enough or there's another market downturn? - Good question and we think a lot about downside protection. Typically a fund "not making enough" is based on the fund not being able to pay it's debt service payments. To protect against this and a possible market downturn right now, our fund owns the title to the homes and we aren't taking on debt. So our fund should be resilient through market changes compared to a leveraged fund.