1-SA 1 ea166245-1sa_arrivedhomes.htm SEMIANNUAL REPORT
 

 

United States

Securities And Exchange Commission 

Washington, D.C. 20549

 

FORM 1-SA

 

SEMIANNUAL REPORT PURSUANT TO REGULATION A

 

For the fiscal period ended

June 30, 2022

 

ARRIVED HOMES, LLC

 

(Exact name of issuer as specified in its Certificate of Formation)

 

Delaware   85-2046587
(State or other jurisdiction of
incorporation or organization)
  (I.R.S. Employer
Identification No.)

 

500 Yale Avenue North

Seattle, WA 98109

(Full mailing address of principal executive offices)

 

814-277-4833

 

(Issuer’s telephone number)

 

Arrived Homes Series 100; Arrived Homes Series 101; Arrived Homes Series Abbington; Arrived Homes Series Amber; Arrived Homes Series Apollo; Arrived Homes Series Aster; Arrived Homes Series Avebury; Arrived Homes Series Badminton; Arrived Homes Series Bandelier; Arrived Homes Series Baron; Arrived Homes Series Basil; Arrived Homes Series Bayside; Arrived Homes Series Bazzel; Arrived Homes Series Bedford; Arrived Homes Series Belle; Arrived Homes Series Blossom; Arrived Homes Series Bonneau; Arrived Homes Series Braxton; Arrived Homes Series Brennan; Arrived Homes Series Burlington; Arrived Homes Series Butter; Arrived Homes Series Camino; Arrived Homes Series Campbell; Arrived Homes Series Captain; Arrived Homes Series Centennial; Arrived Homes Series Chaparral; Arrived Homes Series Chattahoochee; Arrived Homes Series Chelsea; Arrived Homes Series Chester; Arrived Homes Series Chitwood; Arrived Homes Series Clover; Arrived Homes Series Coatbridge; Arrived Homes Series Collier; Arrived Homes Series Collinston; Arrived Homes Series Conway; Arrived Homes Series Creekside; Arrived Homes Series Creekwood; Arrived Homes Series Cumberland; Arrived Homes Series Cupcake; Arrived Homes Series Cypress; Arrived Homes Series Daisy; Arrived Homes Series Davidson; Arrived Homes Series Dawson; Arrived Homes Series Delta; Arrived Homes Series Dewberry; Arrived Homes Series Diablo; Arrived Homes Series Dogwood; Arrived Homes Series Dolittle; Arrived Homes Series Dolly; Arrived Homes Series Dorchester; Arrived Homes Series Dunbar; Arrived Homes Series Duncan; Arrived Homes Series Eagle; Arrived Homes Series Eastfair; Arrived Homes Series Elevation; Arrived Homes Series Elm; Arrived Homes Series Emporia; Arrived Homes Series Ensenada; Arrived Homes Series Falcon; Arrived Homes Series Folly; Arrived Homes Series Forest; Arrived Homes Series Gardens; Arrived Homes Series Goose; Arrived Homes Series Grant; Arrived Homes Series Greenhill; Arrived Homes Series Gretal; Arrived Homes Series Grove; Arrived Homes Series Hadden; Arrived Homes Series Hansel; Arrived Homes Series Harrison; Arrived Homes Series Henry; Arrived Homes Series Heritage; Arrived Homes Series Heron; Arrived Homes Series Highland; Arrived Homes Series Hines; Arrived Homes Series Holcomb; Arrived Homes Series Holland; Arrived Homes Series Hollandaise; Arrived Homes Series Holloway; Arrived Homes Series Inglewood; Arrived Homes Series Jack; Arrived Homes Series Jake; Arrived Homes Series Jill; Arrived Homes Series Johnny; Arrived Homes Series June; Arrived Homes Series Jupiter; Arrived Homes Series Kawana; Arrived Homes Series Kennesaw; Arrived Homes Series Kenny; Arrived Homes Series KerriAnn; Arrived Homes Series Kessler; Arrived Homes Series Kingsley; Arrived Homes Series Kirkwood; Arrived Homes Series Lallie; Arrived Homes Series Lanier; Arrived Homes Series Lannister; Arrived Homes Series Latte; Arrived Homes Series Lennox; Arrived Homes Series Lierly; Arrived Homes Series Lily; Arrived Homes Series Limestone; Arrived Homes Series Lookout; Arrived Homes Series Loretta; Arrived Homes Series Louise; Arrived Homes Series Lovejoy; Arrived Homes Series Luna; Arrived Homes Series Madison; Arrived Homes Series Mae; Arrived Homes Series Magnolia; Arrived Homes Series Malbec; Arrived Homes Series Mammoth; Arrived Homes Series Marcelo; Arrived Homes Series Marietta; Arrived Homes Series Matchingham; Arrived Homes Series McGregor; Arrived Homes Series McLovin; Arrived Homes Series Meadow; Arrived Homes Series Mimosa; Arrived Homes Series Mojave; Arrived Homes Series Moonbeam; Arrived Homes Series Murphy; Arrived Homes Series Nugget; Arrived Homes Series Odessa; Arrived Homes Series Olive; Arrived Homes Series Oly; Arrived Homes Series Osprey; Arrived Homes Series Otoro; Arrived Homes Series Patrick; Arrived Homes Series Peanut; Arrived Homes Series Pearl; Arrived Homes Series Pecan; Arrived Homes Series Piedmont; Arrived Homes Series Pinot; Arrived Homes Series Pioneer; Arrived Homes Series Plumtree; Arrived Homes Series Point; Arrived Homes Series Quincy; Arrived Homes Series Redondo; Arrived Homes Series Reginald; Arrived Homes Series Reynolds; Arrived Homes Series Ribbonwalk; Arrived Homes Series Richardson; Arrived Homes Series Ridge; Arrived Homes Series Ritter; Arrived Homes Series River; Arrived Homes Series Riverwalk; Arrived Homes Series Rooney; Arrived Homes Series Roseberry; Arrived Homes Series Rosewood; Arrived Homes Series Roxy; Arrived Homes Series Saddlebred; Arrived Homes Series Saint; Arrived Homes Series Salem; Arrived Homes Series Saturn; Arrived Homes Series Scepter; Arrived Homes Series Shallowford; Arrived Homes Series Shoreline; Arrived Homes Series Sigma; Arrived Homes Series Soapstone; Arrived Homes Series Sodalis; Arrived Homes Series Spencer; Arrived Homes Series Splash; Arrived Homes Series Spring; Arrived Homes Series Stonebriar; Arrived Homes Series Sugar; Arrived Homes Series Summerset; Arrived Homes Series Sundance; Arrived Homes Series Swift; Arrived Homes Series Taylor; Arrived Homes Series Terracotta; Arrived Homes Series Tulip; Arrived Homes Series Tuscan; Arrived Homes Series Tuscarora; Arrived Homes Series Tuxford; Arrived Homes Series Vernon; Arrived Homes Series Walton; Arrived Homes Series Wave; Arrived Homes Series Weldon; Arrived Homes Series Wellington; Arrived Homes Series Wentworth; Arrived Homes Series Wescott; Arrived Homes Series Westchester; Arrived Homes Series Wildwood; Arrived Homes Series Willow; Arrived Homes Series Wilson; Arrived Homes Series Windsor; Arrived Homes Series Winston; Arrived Homes Series Wisteria

(Title of each class of securities issued pursuant to Regulation A)

 

 

 

 

 

TABLE OF CONTENTS

 

ITEM 1. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION   1 
     
ITEM 2. OTHER INFORMATION    9
     
ITEM 3. FINANCIAL STATEMENTS    F-1
     
ITEM 4. EXHIBITS    10

 

i 

 

 

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

 

The information contained in this Semiannual Report includes some statements that are not historical and that are considered “forward-looking statements.”  Such forward-looking statements include, but are not limited to, statements regarding our development plans for our business; our strategies and business outlook; anticipated development of our company, the manager, each series of our company and the Arrived Homes platform (defined below); and various other matters (including contingent liabilities and obligations and changes in accounting policies, standards and interpretations).  These forward-looking statements express the manager’s expectations, hopes, beliefs, and intentions regarding the future.  In addition, without limiting the foregoing, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements.  The words “anticipates,” “believes,” “continue,” “could,” “estimates,” “expects,” “intends,” “may,” “might,” “plans,” “possible,” “potential,” “predicts,” “projects,” “seeks,” “should,” “will,” “would” and similar expressions and variations, or comparable terminology, or the negatives of any of the foregoing, may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking.

 

The forward-looking statements contained in this Semiannual Report are based on current expectations and beliefs concerning future developments that are difficult to predict.  Neither our company nor the manager can guarantee future performance, or that future developments affecting our company, the manager or the Arrived Homes platform will be as currently anticipated.  These forward-looking statements involve a number of risks, uncertainties (some of which, including the impact of the COVID-19 coronavirus, are beyond our control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements.

 

All forward-looking statements attributable to us are expressly qualified in their entirety by these risks and uncertainties.  These risks and uncertainties, along with others, are also described in our Offering Circular under the headings “Summary – Summary Risk Factors” and “Risk Factors.” Should one or more of these risks or uncertainties materialize, or should any of the parties’ assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements.  You should not place undue reliance on any forward-looking statements and should not make an investment decision based solely on these forward-looking statements.  We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

 

ii 

 

 

ITEM 1. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION

 

Overview

 

Arrived Homes, LLC, a Delaware series limited liability company, was formed in July 2020 to permit public investment in specific single-family rental homes. We believe people should have the freedom to move to pursue new opportunities in their lives while still having access to the wealth creation that long-term home ownership and real estate investment can provide. To support this idea, we are building what we believe to be a new model for home ownership and real estate investment that doesn’t lock people into a single home or city. We believe in passive income, conservative debt, freedom to move, diversification, and aligned incentives.

 

Arrived is a marketplace for investing in homes. We buy single family homes, lease them, divide them into multiple interests, and offer them as investments on a per interest basis through our web-based platform. Investors can manage their risk by spreading their investments across a portfolio of homes, they can invest in real estate without needing to apply for mortgages or take on personal debt, and they can move to new homes or cities and continue holding their Arrived investments without having to worry about selling homes they’re invested in.

 

Arrived does all of the work of sourcing, analyzing, maintaining, and managing all of the homes that we acquire. We analyze every home investment across several financial, market, and demographic characteristics to support our acquisition decision-making. Every investment we make is an investment in the communities in which Arrived operates, alongside other like-minded individuals. As our community network grows, so does our access to investment and housing opportunities.

 

Arrived rents the homes we acquire to tenants who can also invest through the same process as any other member of the Arrived Homes platform, becoming part owners of the homes they’re living in at that time. By investing together, we align incentives towards creating value for everyone.

 

Emerging Growth Company

 

We may elect to become a public reporting company under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). If we elect to do so, we will be required to publicly report on an ongoing basis as an emerging growth company, as defined in the JOBS Act, under the reporting rules set forth under the Exchange Act. For so long as we remain an emerging growth company, we may take advantage of certain exemptions from various reporting requirements that are applicable to other Exchange Act reporting companies that are not emerging growth companies, including, but not limited to:

 

not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act;

 

being permitted to comply with reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements; and

 

being exempt from the requirement to hold a non-binding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved.

 

In addition, Section 107 of the JOBS Act also provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act of 1933, as amended, for complying with new or revised accounting standards. In other words, an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We would expect to take advantage of the benefits of this extended transition period. Our financial statements may therefore not be comparable to those of companies that comply with such new or revised accounting standards.

 

We would expect to take advantage of these reporting exemptions until we are no longer an emerging growth company. We would remain an emerging growth company for up to five years, or until the earliest of (i) the last day of the first fiscal year in which our total annual gross revenues exceed $1.07 billion; (ii) the date that we become a large accelerated filer as defined in Rule 12b-2 under the Exchange Act, which would occur if the market value of our common shares that is held by non-affiliates exceeds $700 million as of the last business day of our most recently completed second fiscal quarter; or (iii) the date on which we have issued more than $1 billion in non-convertible debt during the preceding three-year period.

 

1

 

 

Impact of the COVID-19 Coronavirus Pandemic

 

In December 2019, a novel strain of coronavirus, referred to as COVID-19, was reported in Wuhan, China. COVID-19 has since spread to other countries, including the United States, and was declared a pandemic by the World Health Organization.  

 

Our manager has taken steps to take care of its employees, including providing the ability for employees to work remotely. Our manager is also assessing business continuity plans for all business units, including ours, in the context of COVID-19. This is a rapidly evolving situation, and our manager will continue to monitor and mitigate developments affecting its workforce. Our manager has reviewed and will continue to carefully review all rules, regulations and orders and will respond accordingly.

 

The continued spread of COVID-19 has also led to severe disruption and volatility in the global financial markets, which could increase our cost of capital and adversely affect our liquidity and ability to access capital markets in the future. The continued spread of COVID-19 has caused an economic slowdown and may cause a recession or other unpredictable events, each of which could adversely affect our business, results of operations or financial condition. The pandemic has had, and could have a significantly greater, material adverse effect on the United States economy as a whole and in our industry in particular.

 

The extent to which COVID-19 may impact our results will depend on future developments, which are highly uncertain and cannot be predicted as of the date of this Form 1-SA, including new information that may emerge concerning the severity of the pandemic and steps taken to contain the pandemic or treat its impact, among others. Nevertheless, the pandemic; the current financial, economic and capital markets environment; and future developments in the global supply chain and other areas present material uncertainty and risk with respect to our performance, financial condition, results of operations and cash flows.

 

Further, the COVID-19 outbreak has caused unprecedented levels of global uncertainty and may impact the value of real estate. The extent and duration of this disruption cannot be accurately estimated, and the real estate industry may take a significant amount of time to recover. Although we intend to hold and manage all of the assets marketed on the Arrived Platform for an average of five to seven years, the COVID-19 outbreak and resulting economic uncertainty may impact the value of the underlying assets, and consequently the value of the interests.

 

2

 

 

Operating Results

 

Revenues

 

Revenues are generated at the series level and are derived from leases on the series property. All revenues generated during the six-month period ended June 30, 2022 are listed in the table below:

 

Series Name  Rental Income 
100  $- 
101  $- 
Abbington  $- 
Amber  $5,022 
Apollo  $- 
Avebury  $2,095 
Badminton  $11,970 
Bandelier  $4,319 
Baron  $2,500 
Basil  $8,970 
Bayside  $12,570 
Bedford  $6,885 
Burlington  $3,500 
Butter  $5,776 
Centennial  $11,370 
Chaparral  $6,341 
Chelsea  $2,195 
Coatbridge  $13,630 
Collinston  $1,814 
Cupcake  $9,870 
Davidson  $1,830 
Dawson  $6,780 
Delta  $12,633 
Dewberry  $9,980 
Diablo  $965 
Dolittle  $9,890 
Eastfair  $10,770 
Elevation  $12,135 
Elm  $9,570 
Emporia  $7,477 
Ensenada  $12,436 
Forest  $14,970 
Gardens  $1,495 
Grant  $10,067 
Greenhill  $10,960 
Grove  $- 
Hadden  $1,645 
Heritage  $739 
Heron  $- 
Hines  $- 
Holcomb  $- 
Holland  $1,445 
Hollandaise  $1,104 
Holloway  $14,970 
Jack  $4,680 
Jake  $- 
Jupiter  $4,871 
Kawana  $- 
KerriAnn  $3,458 
Kingsley  $13,580 
Kirkwood  $1,170 
Lallie  $14,970 
Lanier  $5,190 
Lannister  $- 
Latte  $- 
Lennox  $10,170 
Lierly  $10,500 
Lily  $- 
Limestone  $11,575 

 

3

 

 

Series Name  Rental Income 
Louise  $4,390 
Lovejoy  $2,527 
Luna  $10,500 
Madison  $- 
Magnolia  $903 
Malbec  $13,470 
Mammoth  $2,995 
Matchingham  $10,770 
McGregor  $442 
McLovin  $10,805 
Meadow  $4,906 
Mojave  $9,870 
Murphy  $11,801 
Nugget  $- 
Odessa  $5,429 
Olive  $11,370 
Oly  $14,175 
Otoro  $5,590 
Patrick  $8,250 
Peanut  $3,390 
Pearl  $3,000 
Pecan  $9,650 
Pinot  $13,530 
Plumtree  $9,600 
Point  $2,295 
Ribbonwalk  $1,995 
Ridge  $10,170 
Ritter  $1,000 
River  $11,970 
Rooney  $- 
Roseberry  $13,770 
Rosewood  $- 
Roxy  $- 
Saddlebred  $- 
Saint  $11,051 
Salem  $13,170 
Saturn  $2,843 
Scepter  $4,787 
Shoreline  $13,770 
Sigma  $- 
Soapstone  $9,600 
Spencer  $13,170 
Splash  $8,700 
Stonebriar  $- 
Sugar  $10,770 
Summerset  $10,170 
Swift  $842 
Terracotta  $3,176 
Tulip  $- 
Tuscan  $13,795 
Tuxford  $4,343 
Vernon  $3,729 
Wave  $5,169 
Weldon  $2,444 
Wentworth  $9,720 
Wescott  $- 
Westchester  $14,970 
Wildwood  $- 
Windsor  $15,570 
Wisteria  $2,195 

 

4

 

 

Operating Expenses

 

The Company incurred $627,763 in operating expenses during the six month period ended June 30, 2022. The operating expenses incurred prior to the closing of an offering related to any of the series are being paid by our manager and are reimbursed by such series out of the gross offering proceeds upon closing of the relevant series offering. Such operating expenses include real estate taxes, property insurance, home ownership association fees and repairs and maintenance costs. Upon closing, each series becomes responsible for its own operating expenses.

 

During the six month period ended June 30, 2022, at the close of the respective offerings for the series, each individual series became responsible for its own operating expenses. The following table summarizes the total operating expenses by series as of June 30, 2022:

 

Series Name  Operating Expenses 
100  $5,936 
101  $1,805 
Abbington  $1,644 
Amber  $5,848 
Apollo  $1,182 
Avebury  $4,641 
Badminton  $3,545 
Bandelier  $7,148 
Baron  $1,364 
Basil  $2,628 
Bayside  $4,149 
Bedford  $6,952 
Burlington  $1,415 
Butter  $10,884 
Centennial  $6,083 
Chaparral  $2,731 
Chelsea  $3,389 
Coatbridge  $4,361 
Collinston  $11,561 
Cupcake  $3,086 
Davidson  $7,354 
Dawson  $3,168 
Delta  $16,289 
Dewberry  $5,746 
Diablo  $6,959 
Dolittle  $7,789 
Eastfair  $3,264 
Elevation  $5,090 
Elm  $2,490 
Emporia  $7,734 
Ensenada  $8,609 
Forest  $4,438 
Gardens  $2,937 
Grant  $11,521 
Greenhill  $7,813 
Grove  $1,840 
Hadden  $6,319 
Heritage  $3,561 
Heron  $1,632 
Hines  $1,724 
Holcomb  $2,171 
Holland  $12,004 
Hollandaise  $4,529 
Holloway  $4,657 
Jack  $8,651 
Jake  $1,899 
Jupiter  $11,124 
Kawana  $2,857 
KerriAnn  $7,547 
Kingsley  $4,587 
Kirkwood  $3,423 
Lallie  $3,724 
Lanier  $6,452 
Lannister  $7,209 
Latte  $1,534 
Lennox  $2,991 
Lierly  $4,121 

5

 

 

Series Name  Operating Expenses 
Lily  $8,107 
Limestone  $8,204 
Louise  $3,597 
Lovejoy  $5,974 
Luna  $3,601 
Madison  $1,643 
Magnolia  $2,636 
Malbec  $4,080 
Mammoth  $4,689 
Matchingham  $4,441 
McGregor  $4,071 
McLovin  $10,828 
Meadow  $6,950 
Mojave  $3,151 
Murphy  $7,658 
Nugget  $1,484 
Odessa  $8,127 
Olive  $3,715 
Oly  $7,763 
Otoro  $11,009 
Patrick  $4,836 
Peanut  $2,840 
Pearl  $1,333 
Pecan  $3,870 
Pinot  $4,034 
Plumtree  $3,969 
Point  $4,242 
Ribbonwalk  $8,704 
Ridge  $3,469 
Ritter  $1,608 
River  $4,063 
Rooney  $8,916 
Roseberry  $4,486 
Rosewood  $6,329 
Roxy  $2,243 
Saddlebred  $29,158 
Saint  $5,436 
Salem  $4,331 
Saturn  $4,763 
Scepter  $6,359 
Shoreline  $4,958 
Sigma  $10,220 
Soapstone  $3,831 
Spencer  $4,819 
Splash  $2,760 
Stonebriar  $1,455 
Sugar  $5,163 
Summerset  $3,240 
Swift  $3,706 
Terracotta  $5,342 
Tulip  $2,309 
Tuscan  $5,321 
Tuxford  $11,028 
Vernon  $7,413 
Wave  $5,070 
Weldon  $8,279 
Wentworth  $3,156 
Wescott  $982 
Westchester  $5,344 
Wildwood  $1,651 
Windsor  $4,983 
Wisteria  $3,907 

 

6

 

 

Liquidity and Capital Resources

 

From inception, our manager has financed the business activities of each series. Upon the first closing of a particular series offering, the manager is reimbursed out of the proceeds of the relevant offering. Until such time as the series have the capacity to generate cash flows from operations, our manager may cover any deficits through capital contributions, which may be reimbursed upon closing of the relevant offering.

 

Cash and Cash Equivalent Balances

 

Cash is held at the series level. The following table summarizes the cash and cash equivalents by series as of June 30, 2022:

 

Series Name  6/30/2022 
100  $35,759 
101  $26,339 
Abbington  $33,572 
Amber  $12,207 
Apollo  $12,848 
Avebury  $11,990 
Badminton  $18,939 
Bandelier  $15,959 
Baron  $31,291 
Basil  $14,125 
Bayside  $24,547 
Bedford  $16,542 
Burlington  $38,575 
Butter  $17,587 
Centennial  $17,199 
Chaparral  $18,287 
Chelsea  $17,323 
Coatbridge  $26,864 
Collinston  $7,011 
Cupcake  $16,464 
Davidson  $8,783 
Dawson  $19,027 
Delta  $19,572 
Dewberry  $9,882 
Diablo  $13,658 
Dolittle  $19,202 
Eastfair  $19,137 
Elevation  $23,247 
Elm  $16,538 
Emporia  $21,051 
Ensenada  $33,078 
Forest  $23,171 
Gardens  $11,518 
Grant  $22,331 
Greenhill  $17,365 
Grove  $16,965 
Hadden  $13,852 
Heritage  $16,327 
Heron  $20,121 
Hines  $15,891 
Holcomb  $23,855 
Holland  $12,532 
Hollandaise  $21,062 
Holloway  $22,802 
Jack  $20,168 
Jake  $21,339 
Jupiter  $9,861 
Kawana  $16,234 
KerriAnn  $18,460 
Kingsley  $22,246 
Kirkwood  $14,031 
Lallie  $23,861 
Lanier  $27,183 

7

 

 

Series Name  6/30/2022 
Lannister  $18,624 
Latte  $17,397 
Lennox  $22,142 
Lierly  $21,719 
Lily  $49,799 
Limestone  $26,667 
Louise  $25,758 
Lovejoy  $14,017 
Luna  $14,940 
Madison  $23,136 
Magnolia  $15,572 
Malbec  $22,115 
Mammoth  $20,328 
Matchingham  $21,802 
McGregor  $23,767 
McLovin  $30,836 
Meadow  $18,449 
Mojave  $16,235 
Murphy  $21,079 
Nugget  $27,857 
Odessa  $22,892 
Olive  $19,863 
Oly  $36,857 
Otoro  $17,270 
Patrick  $15,021 
Peanut  $11,104 
Pearl  $32,908 
Pecan  $21,620 
Pinot  $22,160 
Plumtree  $24,714 
Point  $24,092 
Ribbonwalk  $16,163 
Ridge  $20,537 
Ritter  $28,983 
River  $22,317 
Rooney  $9,532 
Roseberry  $13,661 
Rosewood  $16,706 
Roxy  $16,619 
Saddlebred  $14,117 
Saint  $25,661 
Salem  $20,901 
Saturn  $8,301 
Scepter  $13,958 
Shoreline  $17,466 
Sigma  $43,859 
Soapstone  $19,067 
Spencer  $18,919 
Splash  $18,044 
Stonebriar  $13,080 
Sugar  $22,917 
Summerset  $15,307 
Swift  $18,896 
Terracotta  $21,523 
Tulip  $14,446 
Tuscan  $21,321 
Tuxford  $10,795 
Vernon  $11,917 
Wave  $17,173 
Weldon  $9,557 
Wentworth  $14,836 
Wescott  $16,229 
Westchester  $27,187 
Wildwood  $18,326 
Windsor  $23,587 
Wisteria  $15,632 

 

8

 

 

Plan of Operations

 

We intend to list our series properties for lease with a real estate broker, if not already rented upon acquisition. The asking rent for the series properties is expected to be in the range which is consistent with other single family homes in a given market area. We intend to hold the series properties for five to seven years during which time we will operate the series properties as rental income properties. During this period, we intend to distribute any free cash flow to investors.

 

As each of our properties reaches what we believe to be its optimum value, we will consider disposing of the property. The determination of when a particular property should be sold or otherwise disposed of will be made after consideration of relevant factors, including prevailing and projected economic conditions, whether the value of the property is anticipated to appreciate or decline substantially, and how any existing leases on a property may impact the potential sales price. The manager may determine that it is in the best interests of members to sell a property earlier than five years or to hold a property for more than seven years. Additionally, any sale of a property will be subject to lessee rights and we would attempt to time sales with lessee rights in mind, either by timing sales with anticipated lease terminations or by assigning the lease to a new buyer where allowed under applicable laws.

 

We plan to launch a number of additional series and related offerings in the next twelve months.  As of the current date, we do not know how many series we will be offering, however, in any case, the aggregate dollar amount of all of the series interests that we will sell within the next twelve months will not exceed the maximum amount allowed under Regulation A. The proceeds from any offerings closed during the next twelve months will be used to acquire additional properties for the series conducting the offerings.

 

Our Policies for Approving New Tenants 

 

We intend to seek out tenants for our properties who are financially responsible and capable of paying their rent. We will conduct due diligence on prospective tenant applicants by (a) verifying their incomes, (b) running credit checks, (c) performing criminal background checks, and (d) requesting references from previous landlords. While we do not have specific standards for any of these items, we will use these screening methods to determine, prior to approving a lease, whether we believe a potential lessee is financially responsible.

 

Trend Information

 

Our results of operations are affected by a variety of factors, including conditions in the financial markets and the economic and political environments, particularly in the United States. Global economic conditions, including political environments, financial market performance, interest rates, credit spreads or other conditions beyond our control are unpredictable and could negatively affect the value of the series properties, our ability to acquire and manage single family rentals and the success of our current and future offerings. In addition to the aforementioned macroeconomic trends, we believe the following factors will influence our future performance:

 

  - Recent increases in interest rates may have a negative effect on the demand for our offerings due to the attractiveness of alternative investments.

 

  - The continuing increase in prices in the United States housing market may result in difficulties in sourcing properties and meeting demand for our offerings.

 

  - Continued increases in remote work arrangements may lead to greater rental activity in our target markets.

 

ITEM 2. OTHER INFORMATION

 

We have no information to disclose that was required to be in a report on Form 1-U during the semiannual period ended June 30, 2022, but was not reported. 

 

9

 

 

ITEM 3. FINANCIAL STATEMENTS

 

ARRIVED HOMES, LLC AND ITS SERIES

 

UNAUDITED CONSOLIDATED AND CONSOLIDATING FINANCIAL STATEMENTS

 

AS OF AND FOR THE SIX MONTH ENDED JUNE 30, 2022

 

CONSOLIDATED AND CONSOLIDATING BALANCE SHEETS AS OF JUNE 30, 2022 (UNAUDITED) AND DECEMBER 31, 2021 F-2
CONSOLIDATED AND CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS) FOR THE SIX MONTHS ENDED JUNE 30, 2022 (UNAUDITED) AND 2021 (UNAUDITED) F-23
CONSOLIDATED AND CONSOLIDATING STATEMENTS OF CHANGES IN MEMBERS' EQUITY (DEFICIT) FOR THE SIX MONTHS ENDED JUNE 30, 2022 (UNAUDITED) AND 2021 (UNAUDITED) F-38
CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2022 (UNAUDITED) AND 2021 (UNAUDITED) F-53
NOTES TO CONSOLIDATED AND CONSOLIDATING FINANCIAL STATEMENTS F-68

 

F-1

 

 

ARRIVED HOMES, LLC AND ITS SERIES

CONSOLIDATED AND CONSOLIDATING BALANCE SHEETS

AS OF JUNE 30, 2022 (UNAUDITED) AND DECEMBER 31, 2021

 

 

 

   Apollo   Avebury   Chelsea   Clover   Dogwood   Gardens   Grove   Kawana   Lannister   Latte 
                                         
ASSETS                                        
Current assets:                                        
Cash  $2,731   $1,914   $661   $-   $-   $10,139   $14,836   $353   $9,300   $15,944 
Accounts receivable   -    -    -    -    -    -    -    -    -    - 
Prepaid expenses   1,414    2,140    4,755    1,283    1,143    1,379    1,616    1,518    1,740    1,453 
Due from related party   8,703    7,936    11,907    -    -    -    513    14,363    7,584    - 
Total current assets   12,848    11,990    17,323    1,283    1,143    11,518    16,965    16,234    18,624    17,397 
Property and equipment, net   197,371    290,980    308,364    332,453    242,125    221,272    226,405    275,728    176,621    367,463 
Deposits   -    -    1,915    -    -    -    -    -    -    - 
Total assets  $210,219   $302,970   $327,602   $333,736   $243,268   $232,790   $243,370   $291,962   $195,245   $384,860 
                                                   
LIABILITIES AND MEMBERS’ EQUITY                                                  
Current liabilities:                                                  
Accrued expenses  $1,748   $3,251   $4,572   $2,013   $1,103   $2,219   $2,487   $3,772   $8,297   $1,341 
Due to related party   -    -    -    332,793    242,985    256    -    -    -    58 
Total current liabilities   1,748    3,251    4,572    334,806    244,088    2,475    2,487    3,772    8,297    1,399 
Tenant deposits   -    -    -    -    -    -    -    -    -    - 
Mortgage payable, net   133,030    200,753    213,152    -    -    134,741    155,585    190,331    112,449    - 
Total liabilities   134,778    204,004    217,724    334,806    244,088    137,216    158,072    194,103    120,746    1,399 
                                                   
Members’ equity:                                                  
Members’ capital   77,670    106,311    116,161    -    -    99,843    90,142    105,494    83,191    384,994 
Retained earnings (accumulated deficit)   (2,228)   (7,344)   (6,283)   (1,070)   (820)   (4,268)   (4,844)   (7,635)   (8,692)   (1,534)
Total members’ equity   75,442    98,967    109,878    (1,070)   (820)   95,575    85,298    97,859    74,499    383,460 
Total liabilities and members’ equity  $210,219   $302,970   $327,602   $333,736   $243,268   $232,790   $243,370   $291,962   $195,245   $384,860 

 

F-2

 

 

   Louise   Madison   Peanut   Rosewood   Stonebriar   Tulip   Wisteria   Chaparral   Cupcake   Lierly 
                                         
ASSETS                                        
Current assets:                                        
Cash  $23,928   $17,056   $3,511   $2,925   $1,839   $5,102   $12,996   $18,287   $12,852   $21,719 
Accounts receivable   -    -    -    -    -    -    -    -    -    - 
Prepaid expenses   1,830    1,454    1,685    2,012    1,793    1,945    2,360    -    1,389    - 
Due from related party   -    4,626    5,908    11,769    9,448    7,399    276    -    2,223    - 
Total current assets   25,758    23,136    11,104    16,706    13,080    14,446    15,632    18,287    16,464    21,719 
Property and equipment, net   276,593    207,360    216,396    272,722    203,920    318,504    297,559    189,611    224,298    206,530 
Deposits   2,369    -    2,503    -    -    -    3,505    1,524    1,595    1,750 
Total assets  $304,720   $230,496   $230,003   $289,428   $217,000   $332,950   $316,696   $209,422   $242,357   $229,999 
                                                   
LIABILITIES AND MEMBERS’ EQUITY                                                  
Current liabilities:                                                  
Accrued expenses  $2,947   $2,655   $886   $6,546   $2,293   $3,216   $2,738   $4,868   $4,676   $7,264 
Due to related party   10,363    -    -    -    -    -    -    6,034    -    6,650 
Total current liabilities   13,310    2,655    886    6,546    2,293    3,216    2,738    10,902    4,676    13,914 
Tenant deposits   2,369    -    2,093    -    -    -    3,293    2,484    1,595    1,750 
Mortgage payable, net   179,903    99,708    145,163    187,464    132,652    219,506    205,190    102,955    149,406    129,455 
Total liabilities   195,582    102,363    148,142    194,010    134,945    222,722    211,221    116,341    155,677    145,119 
                                                   
Members’ equity:                                                  
Members’ capital   111,950    130,588    83,734    104,273    85,333    116,941    111,138    92,844    86,672    83,969 
Retained earnings (accumulated deficit)   (2,811)   (2,455)   (1,873)   (8,856)   (3,276)   (6,712)   (5,663)   238    7    912 
Total members’ equity   109,139    128,133    81,861    95,417    82,057    110,229    105,475    93,082    86,679    84,881 
Total liabilities and members’ equity  $304,720   $230,496   $230,003   $289,428   $217,000   $332,950   $316,696   $209,422   $242,357   $229,999 

 

F-3

 

 

   Malbec   Mojave   Patrick   Pecan   Pinot   Plumtree   Salem   Soapstone   Splash   Tuscan 
                                         
ASSETS                                        
Current assets:                                        
Cash  $19,612   $11,492   $15,021   $21,620   $20,207   $24,714   $18,815   $19,067   $18,044   $21,321 
Accounts receivable   -    -    -    -    -    -    -    -    -    - 
Prepaid expenses   2,503    2,409    -    -    1,953    -    2,086    -    -    - 
Due from related party   -    2,334    -    -    -    -    -    -    -    - 
Total current assets   22,115    16,235    15,021    21,620    22,160    24,714    20,901    19,067    18,044    21,321 
Property and equipment, net   311,598    239,532    202,775    201,097    314,600    194,242    311,562    211,333    210,572    314,326 
Deposits   2,220    1,896    2,882    1,712    2,235    4,672    4,421    1,600    1,671    6,985 
Total assets  $335,933   $257,663   $220,678   $224,429   $338,995   $223,628   $336,884   $232,000   $230,287   $342,632 
                                                   
LIABILITIES AND MEMBERS’ EQUITY                                                  
Current liabilities:                                                  
Accrued expenses  $4,357   $5,021   $6,282   $6,669   $4,425   $8,612   $4,332   $7,248   $5,451   $7,787 
Due to related party   8,222    -    7,465    8,214    8,301    6,278    7,999    6,664    6,721    8,323 
Total current liabilities   12,579    5,021    13,747    14,883    12,726    14,890    12,331    13,912    12,172    16,110 
Tenant deposits   2,195    1,596    3,075    1,600    2,195    3,000    3,930    1,600    1,450    4,490 
Mortgage payable, net   204,699    159,911    107,729    112,279    206,812    109,725    208,589    126,611    121,834    180,672 
Total liabilities   219,473    166,528    124,551    128,762    221,733    127,615    224,850    142,123    135,456    201,272 
                                                   
Members’ equity:                                                  
Members’ capital   117,106    92,601    101,182    95,578    118,104    95,529    112,936    89,618    95,299    141,729 
Retained earnings (accumulated deficit)   (646)   (1,466)   (5,056)   90    (841)   484    (904)   261    (468)   (369)
Total members’ equity   116,460    91,135    96,126    95,668    117,263    96,013    112,032    89,879    94,831    141,360 
Total liabilities and members’ equity  $335,933   $257,663   $220,678   $224,429   $338,995   $223,628   $336,884   $232,000   $230,287   $342,632 

 

F-4

 

 

   Walton   Wentworth   Bandelier   Diablo   Rooney   Saint   Scepter   Terracotta   Baron   Burlington 
                                         
ASSETS                                        
Current assets:                                        
Cash  $-   $11,941   $11,799   $-   $6,670   $20,414   $10,559   $13,827   $31,278   $31,211 
Accounts receivable   -    -    -    -    -    1,995    -    -    -    - 
Prepaid expenses   1,250    1,946    4,160    2,784    2,862    3,252    3,399    3,388    13    2,709 
Due from related party   -    949    -    10,874    -    -    -    4,308    -    4,655 
Total current assets   1,250    14,836    15,959    13,658    9,532    25,661    13,958    21,523    31,291    38,575 
Property and equipment, net   302,367    231,822    346,263    295,622    366,821    318,248    268,252    319,136    582,719    653,831 
Deposits   -    3,215    2,194    169    -    608    1,125    1,649    -    - 
Total assets  $303,617   $249,873   $364,416   $309,449   $376,353   $344,517   $283,335   $342,308   $614,010   $692,406 
                                                   
LIABILITIES AND MEMBERS’ EQUITY                                                  
Current liabilities:                                                  
Accrued expenses  $2,413   $4,849   $7,416   $11,821   $4,153   $3,452   $3,265   $3,433   $6,024   $6,419 
Due to related party   76,128    -    1,184    -    4,158    5,739    3,568    -    7,017    - 
Total current liabilities   78,541    4,849    8,600    11,821    8,311    9,191    6,833    3,433    13,041    6,419 
Tenant deposits   -    1,595    2,195    -    -    2,495    1,795    2,095    1,500    3,500 
Mortgage payable, net   226,700    154,950    242,401    205,629    256,367    209,684    186,881    220,207    -    - 
Total liabilities   305,241    161,394    253,196    217,450    264,678    221,370    195,509    225,735    14,541    9,919 
                                                   
Members’ equity:                                                  
Members’ capital   -    88,817    127,525    105,630    135,080    123,979    100,336    123,501    598,333    680,402 
Retained earnings (accumulated deficit)   (1,625)   (340)   (16,303)   (13,631)   (23,405)   (832)   (12,510)   (6,928)   1,136    2,085 
Total members’ equity   (1,625)   88,477    111,222    91,999    111,675    123,147    87,826    116,573    599,469    682,487 
Total liabilities and members’ equity  $303,617   $249,873   $364,416   $309,449   $376,353   $344,517   $283,335   $342,308   $614,010   $692,406 

 

F-5

 

 

   Ensenada   Jake   Lily   McLovin   Nugget   Odessa   Oly   Pioneer   Ritter   Saddlebred 
                                         
ASSETS                                        
Current assets:                                        
Cash  $24,992   $16,866   $41,973   $17,446   $25,483   $15,453   $25,966   $27,814   $26,056   $7,908 
Accounts receivable   -    -    -    -    -    -    2,895    -    -    - 
Prepaid expenses   8,086    2,334    7,826    13,390    141    7,439    7,996    227    2,051    6,209 
Due from related party   -    2,139    -    -    2,233    -    -    -    876    - 
Total current assets   33,078    21,339    49,799    30,836    27,857    22,892    36,857    28,041    28,983    14,117 
Property and equipment, net   553,326    593,485    527,977    520,575    564,188    526,013    521,337    588,956    508,362    465,305 
Deposits   3,172    -    -    7,198    -    -    374    -    -    - 
Total assets  $589,576   $614,824   $577,776   $558,609   $592,045   $548,905   $558,568   $616,997   $537,345   $479,422 
                                                   
LIABILITIES AND MEMBERS’ EQUITY                                                  
Current liabilities:                                                  
Accrued expenses  $8,300   $3,817   $10,221   $10,797   $6,428   $10,687   $10,271   $2,693   $2,147   $8,214 
Due to related party   6,498    -    78,165    9,872    -    4,994    5,151    11,993    -    23,382 
Total current liabilities   14,798    3,817    88,386    20,669    6,428    15,681    15,422    14,686    2,147    31,596 
Tenant deposits   3,295    -    -    3,495    -    -    3,045    -    -    - 
Mortgage payable, net   388,392    -    308,491    364,052    -    371,030    364,757    -    -    329,337 
Total liabilities   406,485    3,817    396,877    388,216    6,428    386,711    383,224    14,686    2,147    360,933 
                                                   
Members’ equity:                                                  
Members’ capital   200,649    612,906    210,868    183,814    587,100    188,968    182,391    605,434    535,806    170,455 
Retained earnings (accumulated deficit)   (17,558)   (1,899)   (29,968)   (13,421)   (1,484)   (26,774)   (7,047)   (3,123)   (608)   (51,967)
Total members’ equity   183,091    611,007    180,900    170,393    585,616    162,194    175,344    602,311    535,198    118,488 
Total liabilities and members’ equity  $589,576   $614,824   $577,776   $558,609   $592,045   $548,905   $558,568   $616,997   $537,345   $479,422 

 

F-6

 

 

   Delta   Emporia   Grant   Heritage   Holcomb   Kennesaw   Lanier   Lovejoy   Magnolia 
                                     
ASSETS                                    
Current assets:                                    
Cash  $13,176   $6,754   $18,692   $7,183   $21,655   $17,925   $23,739   $7,120   $3,052 
Accounts receivable   3,535    4,590    -    534    -    -    -    -    - 
Prepaid expenses   2,861    4,043    3,639    3,134    2,200    1,885    3,444    2,968    2,201 
Due from related party   -    5,664    -    5,476    -    240    -    3,929    10,319 
Total current assets   19,572    21,051    22,331    16,327    23,855    20,050    27,183    14,017    15,572 
Property and equipment, net   340,555    351,227    368,383    292,689    357,651    427,035    380,009    294,579    252,345 
Deposits   -    3,365    -    -    -    -    2,295    1,933    - 
Total assets  $360,127   $375,643   $390,714   $309,016   $381,506   $447,085   $409,487   $310,529   $267,917 
                                              
LIABILITIES AND MEMBERS’ EQUITY                                             
Current liabilities:                                             
Accrued expenses  $5,697   $4,454   $4,927   $3,721   $3,104   $1,976   $2,642   $5,531   $2,565 
Due to related party   14,317    -    4,346    -    1,987    -    5,149    -    - 
Total current liabilities   20,014    4,454    9,273    3,721    5,091    1,976    7,791    5,531    2,565 
Tenant deposits   2,295    4,590    -    -    -    -    2,295    1,995    - 
Mortgage payable, net   224,383    242,448    256,367    200,740    -    -    261,186    202,837    170,774 
Total liabilities   246,692    251,492    265,640    204,461    5,091    1,976    271,272    210,363    173,339 
                                              
Members’ equity:                                             
Members’ capital   124,081    131,720    141,106    110,174    378,585    447,255    143,284    109,404    98,687 
Retained earnings (accumulated deficit)   (10,645)   (7,569)   (16,033)   (5,618)   (2,171)   (2,146)   (5,068)   (9,238)   (4,109)
Total members’ equity   113,436    124,151    125,073    104,556    376,414    445,109    138,216    100,166    94,578 
Total liabilities and members’ equity  $360,127   $375,643   $390,714   $309,016   $381,506   $447,085   $409,487   $310,529   $267,917 

 

F-7

 

 

   Mammoth   Otoro   Reynolds   Swift   Wave   Amber   Centennial   Collinston   Davidson   Holland 
                                         
ASSETS                                        
Current assets:                                        
Cash  $18,462   $8,846   $19,148   $17,971   $13,383   $8,024   $12,780   $5,907   $6,822   $6,862 
Accounts receivable   -    -    -    -    779    -    -    -    -    - 
Prepaid expenses   1,866    3,906    1,848    -    3,011    4,183    4,419    1,104    1,961    2,114 
Due from related party   -    4,518    579    925    -    -    -    -    -    3,556 
Total current assets   20,328    17,270    21,575    18,896    17,173    12,207    17,199    7,011    8,783    12,532 
Property and equipment, net   342,046    393,818    433,033    345,587    335,055    301,372    278,840    207,948    208,629    208,144 
Deposits   -    530    -    -    4,606    2,843    -    -    1,806    - 
Total assets  $362,374   $411,618   $454,608   $364,483   $356,834   $316,422   $296,039   $214,959   $219,218   $220,676 
                                                   
LIABILITIES AND MEMBERS’ EQUITY                                                  
Current liabilities:                                                  
Accrued expenses  $2,078   $4,142   $2,547   $4,795   $3,372   $3,432   $6,974   $4,227   $3,289   $8,110 
Due to related party   3,587    -    -    -    13,829    3,134    1,835    5,787    4,943    - 
Total current liabilities   5,665    4,142    2,547    4,795    17,201    6,566    8,809    10,014    8,232    8,110 
Tenant deposits   -    2,795    -    -    2,744    2,843    1,895    2,168    1,806    - 
Mortgage payable, net   235,486    271,615    -    -    221,597    198,630    187,446    134,771    145,189    145,194 
Total liabilities   241,151    278,552    2,547    4,795    241,542    208,039    198,150    146,953    155,227    153,304 
                                                   
Members’ equity:                                                  
Members’ capital   127,388    143,444    453,488    363,341    120,853    121,070    106,342    85,089    75,462    85,662 
Retained earnings (accumulated deficit)   (6,166)   (10,379)   (1,427)   (3,653)   (5,562)   (12,687)   (8,452)   (17,082)   (11,471)   (18,290)
Total members’ equity   121,222    133,065    452,061    359,688    115,291    108,383    97,890    68,007    63,991    67,372 
Total liabilities and members’ equity  $362,374   $411,618   $454,608   $364,483   $356,834   $316,422   $296,039   $214,959   $219,218   $220,676 

 

F-8

 

 

   Jupiter   KerriAnn   Meadow   Ribbonwalk   Saturn   Sigma   Weldon   Badminton   Basil   Bayside 
                                         
ASSETS                                        
Current assets:                                        
Cash  $5,589   $14,773   $8,692   $12,892   $5,669   $40,291   $7,866   $16,256   $12,453   $20,107 
Accounts receivable   -    -    -    -    -    -    -    -    -    - 
Prepaid expenses   4,272    3,687    3,767    3,271    2,632    3,568    1,691    2,683    1,672    4,440 
Due from related party   -    -    5,990    -    -    -    -    -    -    - 
Total current assets   9,861    18,460    18,449    16,163    8,301    43,859    9,557    18,939    14,125    24,547 
Property and equipment, net   207,944    336,465    315,933    315,880    218,604    383,912    207,948    249,515    198,194    251,150 
Deposits   1,073    1,992    -    -    1,385    13,066    1,642    1,224    -    2,619 
Total assets  $218,878   $356,917   $334,382   $332,043   $228,290   $440,837   $219,147   $269,678   $212,319   $278,316 
                                                   
LIABILITIES AND MEMBERS’ EQUITY                                                  
Current liabilities:                                                  
Accrued expenses  $3,522   $5,669   $3,795   $6,850   $2,889   $33,728   $3,245   $4,694   $3,682   $5,630 
Due to related party   2,347    13,429    -    7,701    8,727    22,329    6,793    3,693    3,227    4,420 
Total current liabilities   5,869    19,098    3,795    14,551    11,616    56,057    10,038    8,387    6,909    10,050 
Tenant deposits   1,869    2,369    -    -    1,806    2,000    2,168    2,993    1,495    2,619 
Mortgage payable, net   137,997    235,421    212,597    221,624    138,002    266,775    134,771    171,798    129,633    163,423 
Total liabilities   145,735    256,888    216,392    236,175    151,424    324,832    146,977    183,178    138,037    176,092 
                                                   
Members’ equity:                                                  
Members’ capital   87,394    126,718    139,510    118,875    91,280    135,991    85,584    91,002    76,350    101,540 
Retained earnings (accumulated deficit)   (14,251)   (26,688)   (21,520)   (23,007)   (14,413)   (19,987)   (13,413)   (4,502)   (2,067)   685 
Total members’ equity   73,143    100,030    117,990    95,868    76,867    116,004    72,171    86,500    74,283    102,225 
Total liabilities and members’ equity  $218,878   $356,917   $334,382   $332,043   $228,290   $440,837   $219,147   $269,678   $212,319   $278,316 

 

F-9

 

 

   Bazzel   Bedford   Butter   Coatbridge   Dawson   Dewberry   Dolittle   Dorchester   Eastfair   Elevation 
                                         
ASSETS                                        
Current assets:                                        
Cash  $-   $14,514   $12,151   $18,400   $15,620   $5,208   $15,855   $-   $15,809   $15,284 
Accounts receivable   -    -    -    3,950    339    2,960    -    -    -    - 
Prepaid expenses   1,261    2,028    5,436    4,514    3,068    1,714    3,347    1,573    3,328    7,963 
Due from related party   -    -    -    -    -    -    -    -    -    - 
Total current assets   1,261    16,542    17,587    26,864    19,027    9,882    19,202    1,573    19,137    23,247 
Property and equipment, net   268,900    280,214    374,504    265,807    221,838    185,974    303,351    345,852    210,413    260,251 
Deposits   -    4,205    3,140    2,750    1,811    3,107    3,468    -    2,105    5,159 
Total assets  $270,161   $300,961   $395,231   $295,421   $242,676   $198,963   $326,021   $347,425   $231,655   $288,657 
                                                   
LIABILITIES AND MEMBERS’ EQUITY                                                  
Current liabilities:                                                  
Accrued expenses  $1,357   $2,209   $6,302   $5,866   $4,174   $4,806   $3,709   $1,829   $4,569   $8,912 
Due to related party   270,142    1,402    8,131    6,312    6,786    1,745    10,230    347,153    4,041    4,068 
Total current liabilities   271,499    3,611    14,433    12,178    10,960    6,551    13,939    348,982    8,610    12,980 
Tenant deposits   -    4,590    2,795    2,993    1,695    2,393    3,443    -    3,590    3,990 
Mortgage payable, net   -    193,805    259,760    173,079    144,111    119,334    205,315    -    147,831    170,276 
Total liabilities   271,499    202,006    276,988    188,250    156,766    128,278    222,697    348,982    160,031    187,246 
                                                   
Members’ equity:                                                  
Members’ capital   -    103,523    133,671    108,324    90,349    77,868    109,505    -    70,653    108,161 
Retained earnings (accumulated deficit)   (1,338)   (4,568)   (15,428)   (1,152)   (4,440)   (7,183)   (6,180)   (1,558)   971    (6,749)
Total members’ equity   (1,338)   98,955    118,243    107,172    85,909    70,685    103,325    (1,558)   71,624    101,412 
Total liabilities and members’ equity  $270,161   $300,961   $395,231   $295,421   $242,676   $198,963   $326,021   $347,425   $231,655   $288,657 

 

F-10

 

 

   Elm   Folly   Forest   Greenhill   Hadden   Heron   Holloway   Kingsley   Lallie   Lennox 
                                         
ASSETS                                        
Current assets:                                        
Cash  $13,777   $-   $18,993   $13,872   $11,613   $1,362   $17,797   $17,099   $18,893   $20,603 
Accounts receivable   595    -    -    -    -    -    405    440    -    - 
Prepaid expenses   2,166    1,701    4,178    3,493    1,322    1,774    4,600    4,707    4,968    1,539 
Due from related party   -    -    -    -    917    16,985    -    -    -    - 
Total current assets   16,538    1,701    23,171    17,365    13,852    20,121    22,802    22,246    23,861    22,142 
Property and equipment, net   162,592    312,858    343,118    325,852    219,911    288,530    332,606    308,245    362,994    212,074 
Deposits   3,190    -    3,119    5,611    -    -    3,752    949    1,933    1,695 
Total assets  $182,320   $314,559   $369,408   $348,828   $233,763   $308,651   $359,160   $331,440   $388,788   $235,911 
                                                   
LIABILITIES AND MEMBERS’ EQUITY                                                  
Current liabilities:                                                  
Accrued expenses  $2,620   $1,430   $5,266   $3,384   $5,601   $1,894   $6,527   $6,690   $3,877   $4,108 
Due to related party   2,294    315,391    7,764    2,414    -    -    6,480    4,145    8,291    6,162 
Total current liabilities   4,914    316,821    13,030    5,798    5,601    1,894    13,007    10,835    12,168    10,270 
Tenant deposits   3,190    -    3,119    3,119    -    -    3,119    2,869    2,495    1,695 
Mortgage payable, net   105,739    -    225,126    225,360    141,699    198,656    218,147    212,205    237,459    137,675 
Total liabilities   113,843    316,821    241,275    234,277    147,300    200,550    234,273    225,909    252,122    149,640 
                                                   
Members’ equity:                                                  
Members’ capital   67,064    -    144,592    118,637    95,531    112,258    136,086    110,611    140,894    87,217 
Retained earnings (accumulated deficit)   1,413    (2,263)   (16,460)   (4,085)   (9,069)   (4,157)   (11,198)   (5,080)   (4,228)   (945)
Total members’ equity   68,477    (2,263)   128,132    114,552    86,462    108,101    124,888    105,531    136,666    86,272 
Total liabilities and members’ equity  $182,320   $314,559   $369,408   $348,828   $233,763   $308,651   $359,160   $331,440   $388,788   $235,911 

 

F-11

 

 

   Limestone   Luna   Matchingham   Murphy   Olive   Osprey   Ridge   River   Roseberry   Shoreline 
                                         
ASSETS                                        
Current assets:                                        
Cash  $13,527   $13,626   $19,209   $17,386   $16,678   $17,340   $17,483   $19,384   $9,857   $14,401 
Accounts receivable   1,881    -    -    -    179    -    -    -    1,645    - 
Prepaid expenses   2,336    1,314    2,593    3,693    3,006    1,493    3,054    2,933    2,159    3,065 
Due from related party   8,923    -    -    -    -    1,767    -    -    -    - 
Total current assets   26,667    14,940    21,802    21,079    19,863    20,600    20,537    22,317    13,661    17,466 
Property and equipment, net   287,723    210,413    208,580    293,546    226,801    352,002    213,052    260,925    321,932    303,280 
Deposits   3,293    155    2,045    2,320    1,563    -    2,543    2,993    4,148    645 
Total assets  $317,683   $225,508   $232,427   $316,945   $248,227   $372,602   $236,132   $286,235   $339,741   $321,391 
                                                   
LIABILITIES AND MEMBERS’ EQUITY                                                  
Current liabilities:                                                  
Accrued expenses  $4,311   $4,472   $3,631   $3,671   $4,293   $2,873   $4,009   $4,975   $7,049   $4,822 
Due to related party   -    2,003    4,523    3,014    3,382    -    5,058    4,624    9,672    2,429 
Total current liabilities   4,311    6,475    8,154    6,685    7,675    2,873    9,067    9,599    16,721    7,251 
Tenant deposits   3,293    1,750    1,795    2,295    1,895    -    2,543    2,993    3,443    2,295 
Mortgage payable, net   200,784    147,831    144,557    205,010    124,156    -    138,318    170,276    208,987    209,135 
Total liabilities   208,388    156,056    154,506    213,990    133,726    2,873    149,928    182,868    229,151    218,681 
                                                   
Members’ equity:                                                  
Members’ capital   116,442    73,505    77,372    106,950    122,057    371,970    86,300    105,316    120,088    112,443 
Retained earnings (accumulated deficit)   (7,146)   (4,053)   550    (3,997)   (7,557)   (2,241)   (96)   (1,948)   (9,498)   (9,733)
Total members’ equity   109,296    69,452    77,922    102,953    114,500    369,729    86,204    103,368    110,590    102,710 
Total liabilities and members’ equity  $317,683   $225,508   $232,427   $316,945   $248,227   $372,602   $236,132   $286,235   $339,741   $321,391 

 

F-12

 

 

   Spencer   Sugar   Summerset   Tuxford   Vernon   Westchester   Windsor   100   101   Abbington 
                                         
ASSETS                                        
Current assets:                                        
Cash  $15,535   $19,495   $12,019   $428   $9,490   $21,298   $21,850   $32,007   $22,183   $28,877 
Accounts receivable   -    -    390    -    -    -    -    -    -    - 
Prepaid expenses   3,384    3,422    2,898    8,492    2,427    5,889    1,737    -    2,342    - 
Due from related party   -    -    -    1,875    -    -    -    3,752    1,814    4,695 
Total current assets   18,919    22,917    15,307    10,795    11,917    27,187    23,587    35,759    26,339    33,572 
Property and equipment, net   294,372    304,889    249,515    262,305    259,751    334,198    343,183    617,888    639,380    482,364 
Deposits   1,189    3,590    2,306    -    1,640    3,300    3,321    -    -    264 
Total assets  $314,480   $331,396   $267,128   $273,100   $273,308   $364,685   $370,091   $653,647   $665,719   $516,200 
                                                   
LIABILITIES AND MEMBERS’ EQUITY                                                  
Current liabilities:                                                  
Accrued expenses  $5,746   $4,660   $4,822   $5,611   $3,662   $7,554   $7,662   $12,424   $2,491   $5,709 
Due to related party   3,500    5,762    4,216    -    3,211    2,841    5,336    -    -    - 
Total current liabilities   9,246    10,422    9,038    5,611    6,873    10,395    12,998    12,424    2,491    5,709 
Tenant deposits   2,744    3,590    2,119    1,895    2,843    3,119    3,893    -    -    - 
Mortgage payable, net   192,398    198,827    163,429    176,434    179,764    196,252    224,576    -    -    - 
Total liabilities   204,388    212,839    174,586    183,940    189,480    209,766    241,467    12,424    2,491    5,709 
                                                   
Members’ equity:                                                  
Members’ capital   115,060    130,329    100,051    100,359    94,691    160,556    133,626    648,566    665,033    512,136 
Retained earnings (accumulated deficit)   (4,969)   (11,772)   (7,509)   (11,199)   (10,862)   (5,638)   (5,001)   (7,344)   (1,805)   (1,644)
Total members’ equity   110,091    118,557    92,542    89,160    83,829    154,918    128,625    641,222    663,228    510,492 
Total liabilities and members’ equity  $314,480   $331,396   $267,128   $273,100   $273,308   $364,685   $370,091   $653,647   $665,719   $516,200 

 

F-13

 

 

   Collier   Dunbar   Hines   Hollandaise   Jack   Johnny   June   Kirkwood   Lookout   McGregor 
                                         
ASSETS                                        
Current assets:                                        
Cash  $-   $38,125   $13,276   $11,478   $6,635   $601,306   $659,380   $486   $40,026   $20,313 
Accounts receivable   -    -    -    -    -    -    -    -    -    - 
Prepaid expenses   1,388    1,366    1,019    2,462    4,083    2,131    2,131    2,332    1,254    - 
Due from related party   -    -    1,596    7,122    9,450    -    -    11,213    -    3,454 
Total current assets   1,388    39,491    15,891    21,062    20,168    603,437    661,511    14,031    41,280    23,767 
Property and equipment, net   357,769    324,859    257,400    366,222    416,019    588,748    588,748    262,820    347,707    302,316 
Deposits   -    -    -    6,602    2,586    -    -    -    -    - 
Total assets  $359,157   $364,350   $273,291   $393,886   $438,773   $1,192,185   $1,250,259   $276,851   $388,987   $326,083 
                                                   
LIABILITIES AND MEMBERS’ EQUITY                                                  
Current liabilities:                                                  
Accrued expenses  $1,263   $1,606   $2,099   $2,971   $3,162   $1,246   $1,415   $2,538   $1,529   $4,919 
Due to related party   358,664    150,126    -    -    -    176,106    175,990    -    174,488    - 
Total current liabilities   359,927    151,732    2,099    2,971    3,162    177,352    177,405    2,538    176,017    4,919 
Tenant deposits   -    -    -    -    2,995    -    -    -    -    - 
Mortgage payable, net   -    -    -    252,863    286,731    462,700    462,700    179,897    -    - 
Total liabilities   359,927    151,732    2,099    255,834    292,888    640,052    640,105    182,435    176,017    4,919 
                                                   
Members’ equity:                                                  
Members’ capital   -    214,088    272,916    147,576    155,336    557,458    615,532    98,962    214,162    325,482 
Retained earnings (accumulated deficit)   (770)   (1,471)   (1,724)   (9,523)   (9,451)   (5,326)   (5,379)   (4,545)   (1,193)   (4,317)
Total members’ equity   (770)   212,617    271,192    138,053    145,885    552,132    610,153    94,417    212,969    321,165 
Total liabilities and members’ equity  $359,157   $364,350   $273,291   $393,886   $438,773   $1,192,185   $1,250,259   $276,851   $388,987   $326,083 

 

F-14

 

 

   Pearl   Point   Riverwalk   Roxy   Wescott   Wildwood   Consolidated 
                             
ASSETS                            
Current assets:                            
Cash  $29,135   $19,793   $-   $14,073   $7,505   $15,998   $3,182,203 
Accounts receivable   -    -    -    -    -    -    27,112 
Prepaid expenses   2,263    4,003    1,517    2,546    2,893    2,328    360,425 
Due from related party   1,510    296    -    -    5,831    -    243,419 
Total current assets   32,908    24,092    1,517    16,619    16,229    18,326    3,813,159 
Property and equipment, net   549,882    384,122    397,101    327,722    276,118    221,797    43,444,340 
Deposits   -    -    -    128    -    349    196,512 
Total assets  $582,790   $408,214   $398,618   $344,469   $292,347   $240,472   $47,454,014 
                                    
LIABILITIES AND MEMBERS’ EQUITY                                   
Current liabilities:                                   
Accrued expenses  $6,589   $3,446   $1,720   $2,067   $2,635   $2,050   $638,015 
Due to related party   -    -    398,811    7,140    -    600    3,551,202 
Total current liabilities   6,589    3,446    400,531    9,207    2,635    2,650    4,189,217 
Tenant deposits   -    -    -    -    -    -    197,065 
Mortgage payable, net   -    265,007    -    218,110    132,785    107,066    21,334,056 
Total liabilities   6,589    268,453    400,531    227,317    135,420    109,716    25,720,338 
                                    
Members’ equity:                                   
Members’ capital   574,534    145,636    -    122,601    158,373    134,038    22,618,091 
Retained earnings (accumulated deficit)   1,667    (5,876)   (1,914)   (5,448)   (1,446)   (3,283)   (884,411)
Total members’ equity   576,201    139,760    (1,914)   117,153    156,927    130,755    21,733,680 
Total liabilities and members’ equity  $582,790   $408,214   $398,618   $344,469   $292,347   $240,472   $47,454,019 

 

See the accompanying to these consolidated and consolidating financial statements.

 

F-15

 

 

ARRIVED HOMES, LLC AND ITS SERIES

UNAUDITED CONSOLIDATED AND CONSOLIDATING BALANCE SHEET

AS OF JUNE 30, 2022

 

 

 

   Series   Series   Series   Series   Series   Series   Series   Series   Series   Series 
   Chaparral   Cupcake   Lierly   Malbec   Mojave   Patrick   Pecan   Pinot   Plumtree   Salem 
                                         
ASSETS                                        
Current assets:                                        
Cash  $13,754   $6,540   $15,054   $13,709   $6,496   $10,913   $16,203   $14,131   $18,569   $13,926 
Accounts receivable                                                  
Prepaid expenses   331    1,834    396    2,090    2,109    369    353    1,663    358    1,796 
Due from related party   -    6,230    -    -    6,605    -    -    -    -    - 
Total current assets   14,085    14,604    15,450    15,799    15,210    11,282    16,556    15,794    18,927    15,722 
Property and equipment, net   192,311    227,192    209,462    315,986    242,676    205,661    203,960    319,030    197,009    315,949 
Deposits held by property management companies   1,450    1,595    1,750    2,195    1,596    1,500    873    2,195    1,450    4,421 
Total assets  $207,846   $243,391   $226,662   $333,980   $259,482   $218,443   $221,389   $337,019   $217,386   $336,092 
                                                   
LIABILITIES AND MEMBERS’ EQUITY (DEFICIT)                                                  
Current liabilities:                                                  
Accrued expenses  $1,883   $1,360   $3,541   $1,199   $1,537   $2,973   $3,134   $1,248   $3,054   $1,246 
Due to related party   1,886    -    2,857    3,127    -    3,428    4,270    3,160    1,508    3,050 
Total current liabilities   3,769    1,360    6,398    4,326    1,537    6,401    7,404    4,408    4,562    4,296 
Tenant deposits   1,450    1,595    1,750    2,195    1,596    1,500    1,600    2,195    1,450    3,930 
Mortgage payable, net   102,876    149,345    129,359    204,632    159,845    107,696    112,245    206,741    109,643    208,521 
Total liabilities   108,095    152,300    137,507    211,153    162,978    115,597    121,249    213,344    115,655    216,747 
                                                   
Members’ equity (deficit):                                                  
Members’ capital   98,188    91,779    88,886    123,585    98,151    106,158    100,602    124,639    101,731    119,718 
Retained earnings (accumulated deficit)   1,563    (688)   269    (758)   (1,647)   (3,312)   (462)   (964)   -    (373)
Total members’ equity (deficit)   99,751    91,091    89,155    122,827    96,504    102,846    100,140    123,675    101,731    119,345 
Total liabilities and members’ equity (deficit)  $207,846   $243,391   $226,662   $333,980   $259,482   $218,443   $221,389   $337,019   $217,386   $336,092 

 

F-16

 

 

   Series   Series   Series   Series   Series   Series   Series   Series   Series   Series 
   Soapstone   Splash   Tuscan   Wentworth   Bandelier   Diablo   Rooney   Scepter   Ensenada   Lily 
                                         
ASSETS                                        
Current assets:                                        
Cash  $12,913   $12,537   $15,689   $6,607   $-   $-   $101   $-   $-   $- 
Accounts receivable                                                  
Prepaid expenses   415    439    613    2,843    2,702    1,926    2,134    2,329    6,722    5,063 
Due from related party   -    -    -    5,092    -    -    -    -    -    - 
Total current assets   13,328    12,976    16,302    14,542    2,702    1,926    2,235    2,329    6,722    5,063 
Property and equipment, net   214,333    213,550    318,765    234,858    350,433    299,193    371,243    271,490    559,992    534,897 
Deposits held by property management companies   1,600    1,450    2,195    3,215    -    -    -    -    -    - 
Total assets  $229,261   $227,976   $337,262   $252,615   $353,135   $301,119   $373,478   $273,819   $566,714   $539,960 
                                                   
LIABILITIES AND MEMBERS’ EQUITY (DEFICIT)                                                  
Current liabilities:                                                  
Accrued expenses  $3,623   $2,426   $2,818   $1,403   $3,639   $436   $359   $357   $3,500   $4,186 
Due to related party   2,967    2,605    2,231    -    107,139    95,092    116,797    86,617    174,883    230,475 
Total current liabilities   6,590    5,031    5,049    1,403    110,778    95,528    117,156    86,974    178,383    234,661 
Tenant deposits   1,600    1,450    2,195    1,595    -    -    -    -    -    - 
Mortgage payable, net   126,515    121,823    180,658    154,889    242,357    205,591    256,322    186,845    388,331    308,439 
Total liabilities   134,705    128,304    187,902    157,887    353,135    301,119    373,478    273,819    566,714    543,100 
                                                   
Members’ equity (deficit):                                                  
Members’ capital   94,319    100,559    150,001    95,085    4,516    -    5,004    4,003    7,063    5,715 
Retained earnings (accumulated deficit)   237    (887)   (641)   (357)   (4,516)   -    (5,004)   (4,003)   (7,063)   (8,855)
Total members’ equity (deficit)   94,556    99,672    149,360    94,728    -    -    -    -    -    (3,140)
Total liabilities and members’ equity (deficit)  $229,261   $227,976   $337,262   $252,615   $353,135   $301,119   $373,478   $273,819   $566,714   $539,960 

 

F-17

 

 
   Series   Series   Series   Series   Series   Series   Series   Series   Series   Series 
   Mclovin   Odessa   Oly   Saddlebred   Grant   Amber   Centennial   Collinston   Davidson   Holland 
                                         
ASSETS                                        
Current assets:                                        
Cash  $-   $-   $-   $-   $-   $122   $9,856   $-   $-   $1,110 
Accounts receivable                                                  
Prepaid expenses   7,532    5,525    5,746    4,487    2,201    2,600    3,320    657    1,321    1,516 
Due from related party   -    -    -    -    -    -    1,595    -    -    - 
Total current assets   7,532    5,525    5,746    4,487    2,201    2,722    14,771    657    1,321    2,626 
Property and equipment, net   526,794    533,345    527,604    472,947    372,834    305,580    282,758    215,103    214,858    214,423 
Deposits held by property management companies   -    -    -    -    -    -    1,895    -    -    - 
Total assets  $534,326   $538,870   $533,350   $477,434   $375,035   $308,302   $299,424   $215,760   $216,179   $217,049 
                                                   
LIABILITIES AND MEMBERS’ EQUITY (DEFICIT)                                                  
Current liabilities:                                                  
Accrued expenses  $6,462   $5,223   $4,956   $3,495   $453   $524   $4,908   $1,117   $801   $1,054 
Due to related party   163,870    165,595    163,696    147,851    118,260    112,665    -    81,658    70,380    72,774 
Total current liabilities   170,332    170,818    168,652    151,346    118,713    113,189    4,908    82,775    71,181    73,828 
Tenant deposits   -    -    -    -    -    -    1,895    -    -    - 
Mortgage payable, net   363,994    370,971    364,698    329,283    256,322    198,593    187,402    134,741    145,158    145,163 
Total liabilities   534,326    541,789    533,350    480,629    375,035    311,782    194,205    217,516    216,339    218,991 
                                                   
Members’ equity (deficit):                                                  
Members’ capital   -    6,512    -    5,476    5,067    -    110,601    -    -    - 
Retained earnings (accumulated deficit)   -    (9,431)   -    (8,671)   (5,067)   (3,480)   (5,382)   (1,756)   (160)   (1,942)
Total members’ equity (deficit)   -    (2,919)   -    (3,195)   -    (3,480)   105,219    (1,756)   (160)   (1,942)
Total liabilities and members’ equity (deficit)  $534,326   $538,870   $533,350   $477,434   $375,035   $308,302   $299,424   $215,760   $216,179   $217,049 

 

F-18

 

 

   Series   Series   Series   Series   Series   Series   Series   Series   Series   Series 
   Jupiter   KerriAnn   Meadow   Ribbonwalk   Saturn   Sigma   Weldon   Badminton   Basil   Bayside 
                                         
ASSETS                                        
Current assets:                                        
Cash  $-   $209   $-   $-   $77   $-   $-   $10,370   $7,938   $3,337 
Accounts receivable                                                  
Prepaid expenses   3,018    2,433    2,723    3,522    2,176    1,172    2,803    2,241    1,385    3,463 
Due from related party   -    -    -    -    -    -    -    -    -    - 
Total current assets   3,018    2,642    2,723    3,522    2,253    1,172    2,803    12,611    9,323    6,800 
Property and equipment, net   214,419    341,151    320,343    320,275    221,804    389,239    214,173    253,020    200,978    254,675 
Deposits held by property management companies   -