Investors need to be aware of the risks associated with Build-To-Rent (BTR) models and the importance of partnering with experienced and trustworthy developers. Today, Bethany Finch talks about the BTR model, and why it may work for passive investors. She also provides us with the answers we need to know about investing in this asset class.
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She discusses how the pandemic has shifted rental demands towards larger homes with more outdoor space and shares with us how their Build-To-Rent product has been successful in addressing the housing crisis. Listen now and discover the various risks that investors need to be aware of when investing in BTR models and how to mitigate those risks! Tune in now!
Key Points From This Episode:
- Bethany’s background and introduction.
- The housing crisis and the typical Build-To-Rent (BTR) models.
- The key to investing in Build-to-Rent models.
- Bethany shares the risks passive investors should know and how to mitigate them.
- Why should you be picky with your partners?
- How do business models work despite the high-interest rates?
- The biggest fear of people who want to invest.
- Bethany’s thoughts on the market 12 to 18 months from now.
- Bethany’s best source of meeting new investors.
- The important metrics that she tracks and her daily habit that produced the highest return for her.
“It [BTR] also allows them the benefits a lot of people like the community feel of living in an apartment, they just don’t like hearing from all their neighbors, they don’t like you know, having to tell their kids to be quiet because they’re on the top floor, things like this. So this allows the best of both worlds and does it in a way that’s still continuing to meet the community’s needs.”
“One of the things that most people may not be aware of, they require us to go do the work and pay for it. And then they reimburse us. So if we can’t show them that the work is already done, we don’t necessarily get that draw, we don’t necessarily get that paid.”
“We wanted to mitigate the risks not just for us, but for our investors.”
“We always encourage people to look, come visit, come see us, we always have somebody on site that will tour around, and it’ll give you an opportunity to take a write off and take a vacation and use it as a business write off, we allow people to do that. And sometimes people don’t realize that they can do that.”
“The more inventory you have, the more competition, then you’ll start to see those price reductions as well.”
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