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How does Arrived determine when to sell an individual property?
How does Arrived determine when to sell an individual property?
Korin Hedlund avatar
Written by Korin Hedlund
Updated over 2 months ago

The determination of when to sell a property is made based on a series of relevant factors. Below you will find Arrived’ strategy for the sale of a property: Arrived’ strategy for disposing of assets, returning principal and creating liquidity for investors is as follows:

  1. Hold Period Strategy: Arrived aims to acquire and manage properties with a long-term perspective, typically holding them for 5-7 years for long-term rentals and 5-15 years for vacation rentals. For more details on the anticipated hold period, check out this page

  2. Ongoing Assessment: Throughout the ownership period, Arrived continually assesses the property's appreciation and market conditions. In rare circumstances, should it maximize the internal rate of return (IRR) to investors this may mean that an asset will be sold before or after the hold period stated above.

  3. Strategic Asset Disposition: As a property approaches the end of its intended holding period, Arrived actively pursues a sales strategy designed to minimize the illiquidity window for investors while maximizing the IRR for the asset.

  4. Timely Asset Sales: Arrived will prioritize selling an asset as soon as the targeted holding period is reached, unless compelling reasons exist for delaying the sale. Such reasons could include factors like prevailing and projected economic conditions, the anticipation of substantial property value appreciation, the amortization status of existing loans on the property, and the timing and impact of existing leases on the sales price.

  5. Maximizing Investor Returns: When Arrived decides to sell a property, the primary objective is to achieve a selling price that optimizes capital appreciation for investors based on the current market conditions.

This approach underscores Arrived's commitment to prudent investment management and the pursuit of the best possible outcomes for its investors, balancing the need for liquidity with the potential for property value growth and maximizing lifetime IRR.

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