Amazon founder Jeff Bezos invests $500 million into crowdfunding real estate startup
The cost of living continues to rise in America and for some Americans the dream of owning a home is steadily growing out of reach.
According to website RentCafe, the average cost of renting an apartment in America is $1,702. According to an article published by USA Today, the average cost of renting a single family home in America is $2,330.
Some think it’s better to just purchase a home than to continue throwing money away in a surging rental market, but the cost of homeownership is becoming just as difficult as well. But perhaps the issue in today’s residential real estate market is investors, and the world’s richest person, Jeff Bezos, has just become one.
It is being reported that Bezos has invested $500 million into a new real estate investment corporation called, Arrived. Founded by CEO Ryan Frazier, Arrived is investment platform that uses crowdfunding to allow anyone with a minimum of $100 to invest into real estate.
According to Arrived’s website, it shows much of their investments is occurring within the southeast region of the United States. North Georgia, North and South Carolina appears to be their strongest areas of investment. Targeted homes will be purchased and rented out to potential tenants to help fulfill a return on investors investment.
Sadly to say, many of the single family homes being purchased by Arrived are within Black communities where lower property values makes it cheaper to buy homes for an easier and quicker return. Not only Arrived, but there are several other real estate companies that are profiting off of this very same practice that is killing the American dream for many struggling Americans who seek to someday own a home.
We must also note that Bezo has recently donated $120 million to help fight homelessness. I guess after investing $500 million to purchase hundreds of single family homes and charge high rates for rent. There will be people needing to place to stay, huh?
