During the recent release of six rental properties, high demand from investors caused problems. But homes worth more than $1.7 million sold in minutes.
After two weeks of high demand from investors site crashedpartial home platform Arrived Homes sold a home in Huntsville, Alabama, in three minutes.
A second home was sold in Atlanta a minute later, and within eight minutes, six homes worth more than $1.7 million had been sold to hundreds of small investors.
The site continued to work with timber under high demand. Several people seeking to buy shares in homes that will be rented and paying cash dividends of up to 12 percent annually have reported that they have encountered errors when trying to buy in homes released on Friday.
“Wow, we’re sold out in minutes,” the company wrote on Twitter. “If you are not able to invest in this round, don’t worry, we have new properties coming next week.”
Arrived Homes is a startup that buys homes, turns them into LLCs, and sells shares of that company to independent investors for less than $100.
Arrived at the rental and property management, dividends are paid to investors based on the monthly rent and price estimate.
It is considered a leader in modern partial home ownership for small investors, and the loopholes and errors showed that the growing company had more work to do to cement the platform that enables individual investors to purchase its properties.
CEO Ryan Fraser, who arrived at Inman the next morning after the site crashed during a previous real estate release, said the company was taking the site’s problems seriously and would work to fix them.
“One of our values as a company is [to] We always build for customers. “We’re thinking about that constantly,” Frazier said. “So it’s bittersweet when we see, ‘Wow, there’s so much interest in this. “
Homes that appear to have sold will display available stock if the page is reloaded. Several potential investors wrote to Arrived to report that they were unable to view available homes or purchase stock.
One user wrote to the company on Twitter: “Getting left and right errors when buying shares and signing documents.” “Bad experience so far.”
This was the second time in a row that the company had to defend its public relations to make it clear that its product was simply too popular.
The company responded to several people who reported errors that prevented them from investing before the homes were sold: “Sorry, the demand was really high and the properties sold out in minutes.” “If you encounter any technical difficulties, send us a direct message and we can try to help you.”
The glitches Inman experienced during Friday’s release included a complete failure to load, properties appearing to be available and already sold out, and loading delays.
Those issues hampered the rollout of more than a dozen properties in early May, when the company said it saw 100 times more traffic than previous launches.
It has since secured $25 million in funding, including from Amazon founder Jeff Bezos’ personal investment firm, Bezos Expeditions, and former Zello CEO Spencer Raskov.
The funds will be used to add employees, buy more properties in new markets, and begin offering short-term rentals on the platform.
“It’s something we will eventually look at with fondness even though the customer experience wasn’t exactly what we had hoped for that day,” Frazier said. “But I think it’s a huge validation of the mission and that what we build is important to people.”
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