This Income Fund Has Paid an 8.1% Annualized Dividend — And It's Open to Non-Accredited Investors

If you've spent any time looking at places to park cash lately, you've probably anchored on the same numbers everyone else has: 4–5% from high-yield savings accounts or short-term CDs, maybe a bit more if you shop aggressively.

That range has started to feel like the new normal for "safe" money.

What fewer people realize is that there's a separate corner of the market (private real-estate credit) where some funds are targeting closer to 8% in income, with returns driven by interest payments rather than property appreciation.

That's the space the Arrived Private Credit Fund operates in.

Since launch, the fund has paid a annualized dividend of 8.1% or higher, generated almost entirely from interest on short-term real-estate loans.

It's not risk-free and it's not liquid like a savings account, but for investors willing to accept those tradeoffs, it shows how private credit can meaningfully outpace many mainstream yield options.

How The Arrived Private Credit Fund Works

At its core, the fund lends money to professional real-estate operators through short-term loans, typically lasting six to 36 months.

Individual loans generally fall in the $100,000 to $500,000 range and are used for projects like renovations, rehabs, bridge financing between purchases and sales, or ground-up residential construction.

Rather than concentrating risk in a single deal, the fund holds dozens of loans at once across different markets.

Each project represents only a small slice of the overall portfolio, which helps spread risk if any individual loan runs into trouble.

Crucially, these loans are secured by residential real estate in the first-lien position. That means the fund is first in line to be repaid if a borrower defaults and the property has to be sold.

Arrived also underwrites loans with conservative loan-to-after-repair-value targets (often below 70%) creating a cushion between what's lent and the estimated value of the finished property.

The goal is to produce something closer to a bond-like income stream, even though this is still private credit, not a government bond and not a guaranteed product.

What Returns Have Looked Like So Far

According to Arrived's own disclosures, the Private Credit Fund has delivered annualized dividends of about 8.1% since launch. The emphasis here is on income, not growth.

Returns are driven almost entirely by interest payments, with little expectation of share price appreciation.

Dividends are paid monthly, which means investors see income arrive as a steady stream of smaller cash payments rather than a single annual payout.

On a simple example, a $10,000 investment at an 8.1% annualized rate would generate roughly $810 per year in pre-tax income, assuming future performance resembles the historical figure — which, of course, is never guaranteed.

Arrived has also indicated that the fund aims to keep its yield roughly 2–3 percentage points above short-term Treasury yields over time.

That means payouts may rise or fall as interest-rate conditions change, rather than staying fixed forever.

Where The Yield Actually Comes From

The yield comes from the interest paid by borrowers on their short-term loans.

These loans typically carry higher rates than traditional bank mortgages because they finance more complex or time-sensitive projects — rehabs, construction, or transitional properties that banks often won't touch.

After accounting for defaults, fees, and operating costs, the remaining net interest is distributed to investors as cash dividends.

Loan underwriting focuses on a few core pillars: experienced borrowers with established track records, conservative loan sizing relative to property value, and first-lien security on the underlying real estate.

Together, those factors are designed to support a relatively stable income stream, even though risks like project delays, borrower issues, or a housing downturn can still impact results.

Liquidity, Risk, And Who This Is Really For

This is where expectations need to be clear. Unlike a savings account or money-market fund, the Private Credit Fund has limited liquidity.

Investors are generally expected to hold for about six months before requesting redemptions, and withdrawals are typically processed on a quarterly basis, subject to available cash and manager approval.

There's no FDIC insurance, and while loans are secured and conservatively underwritten, principal is still at risk. Defaults can happen, property values can fall, and returns can vary.

Because of that profile, this fund tends to make the most sense for investors who already have their true emergency fund covered, want higher income than public bonds or CDs currently offer, and are comfortable trading liquidity and safety for yield.

It also appeals to people who like the idea of real-estate-backed, interest-driven returns, rather than relying on property appreciation or stock market growth.

Where This Fits In A Portfolio

This isn't a replacement for cash, and it's not a substitute for low-risk government bonds. It sits somewhere in between — a higher-yielding option for money you don't need immediately, but still want producing income.

For investors looking to step beyond the 4–5% world without jumping fully into equities or speculative assets, an 8%-targeting private credit fund can be a useful building block.

Not because it's flashy or guaranteed, but because it offers a clearer income profile than many alternatives, as long as you're honest about the risks and the lockup that come with it.