Learn from Expert Real Estate Agents about the current Market and what an investor can do during this time.
In this video you will learn the following…
• New Construction Rentals
• How it Works
• Resort Style Living
Basics of Build To Rent
Build to Rent: The Future of Rental Housing
With the rise of the rental market, a new type of housing model has emerged: Build to Rent. This housing model is revolutionizing the rental industry.
- What is Build to Rent?
Build to Rent is also referred to as BFR or B2R. This is a type of housing model that involves the construction of properties for renting.
Build to Rent communities are designed to provide high-quality living spaces and services. They can include various amenities such as gyms, swimming pools, and coworking spaces.
Most of these communities are built by large companies and not individual investor. This is because of the large capital needed. However, there are ways for individual investors to invest in these communities.
- Why is Build to Rent growing?
There are several reasons why Build to Rent is growing in popularity.
Firstly, the demand for rental properties is increasing as more people are choosing to rent rather than buy a home. This is due to factors such as high property prices, tighter mortgage lending rules, and a preference for flexibility and mobility.
Secondly, Build to Rent communities offer a range of amenities and services that traditional rental properties do not.
These can include:
– On-site management and maintenance,
– 24-hour security
– Communal spaces that foster a sense of community and belonging.
Finally, Build to Rent developers are investing heavily in sustainability and energy efficiency. This is becoming increasingly important to renters.
- Pros and Cons of Living in a Build to Rent Home
The pros include:
– Newer Homes
– No maintenance
– Outside living space
– Community atmosphere
The Cons include:
– Increased costs over time to rent versus buy
– Increased costs of renting a home versus an apartment
– Small, cookie-cutter homes
– The inability to remodel
- Advantages and disadvantages of building a Build to Rent Community
The advantages include:
– A stable and long-term income stream
– A potential for high returns on investment
– The ability to design and manage properties that meet the needs and preferences of renters.
The disadvantages include:
– High construction costs
– A lack of control over rent levels
– The potential for regulatory and legal issues.
– Requires significant expertise in development, design, and management.
- How can an individual investor get involved in Build to Rent
Individual investors can participate in Build to Rent in a few ways.
1) To invest in a Build to Rent fund or REIT, which allows investors to pool their money with others to invest in a portfolio of Build to Rent properties. This provides a relatively low-risk way to invest in Build to Rent. The fund or REIT is managed by experienced professionals.
2) To invest in a specific Build to Rent project as a co-investor or limited partner. This option requires a larger investment and involves more risk.
3) To invest in communities where builders are providing Build To Rent homes for sale. Check out Atlanta, Charlotte, Cincinnati, Cleveland, Dallas, Dayton, Houston, Jacksonville, Orlando, or Tampa.
Don’t forget, I lead the Encore Investment Team of Realtors. We will guide you along the path of successful investing. See below to book a strategy session.
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