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I am looking into Arrived Homes, a real-estate investment site. (No affiliation.) I am trying to determine, if you invest, what happens when the home is sold. Their answer to the question "Who legally has ownership of the house?" is not clear to me.

When you purchase shares in an Arrived home offering, you are directly buying ownership in the individual Series of a Series LLC that owns that home asset. So if for example, you purchase 1% of the shares in a single home offering, you would then be entitled to 1% of the economic interests of the asset over time, which may include income from rent or property value appreciation.

Can someone please paraphrase the answer in laymen terms? Is this normal jargon, or is it intentionally unclear?

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A series LLC is a single LLC filing with secretary of state where it is incorporated that includes many numbered sub-LLCs which are identical to each other in all internal governance respects except ownership.

It is implied that this particular venture uses one sub-LLC per house.

They are trying to say that if you invest x% in a single sub-LLC that owns a single house, then you own x% of the distributable income derived from that house (e.g. from rent net of management fees and operating expenses a.k.a. carrying costs) and that you also own x% of the net equity proceeds upon the sale (or other form of liquidation such as an eminent domain condemnation or insurance proceeds from a completely destroyed home) of the house after payment of any loans and closing costs.

They don't reuse the sub-LLC once the house is sold. They just discard it.

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