In the
wake of the housing collapse of 2008, when millions of Americans lost their
homes, investors with suitcases full of cash showed up to snap up properties
at bargain prices. That began the metamorphosis of the American dream of
homeownership to one where many people prefer to rent but want a house with
the comforts of neighborhood-style living. Add to the situation advances in
AI technology that can manage thousands of homes at a fraction of the cost,
and you have a viable investment solution that satisfies todays affordable
housing needs. In Build-to-Rent: The How-to Guide for the Institutional
Investor, Charles Kriegel shares insights on this new type of institutional
investment in real estate, dispelling much of the rhetoric surrounding an asset
class that is here to stay.
Build-to-rent (BTR) is a new kind of rental community. These are communities designed for people who prefer to rent housing but want a place that feels more like home. They take the best aspects of single-family rentals and upgrade the experience by developing all homes inside a professionally managed community.
With the average sales price for a home across the US at $350,000, a mortgage is out of the reach of most people. BTR developments, which resemble traditional, gated neighborhoods, are currently one of the best options for affordable housing. These communities are ideal for families, young professionals, and empty nesters, people who want to live near good schools and shopping, want to have pets and a backyard for entertaining, and want neighbors they care about they want it all at a price they can afford. Thats what BTR gives them.
The American dream of homeownership is evolving and c u rrent conditions make this the first time in US history that its cheaper to rent than it is to purchase; already, more than 30 percent of single-family homes are owned by investors. Yet there is a lot of misunderstanding and rhetoric about the BTR model, making it difficult to get to the truth. BTR is a significant trend that is reshaping the real estate industry, so its important for builders, investors, brokers, developers, realtors, and anyone interested in real estate investing to know about.
In Build-to-Rent: The How-to Guide for the Institutional Investor, Charles Kriegel provides insights into this new type of housing and investment. As someone integrally involved in the development of BTRs in Texas, Char les shares insider information on how BTR works, identifying a valid BTR site, the feasibility period, entitlements, funding, horizontal and vertical construction, expected returns and absorption rates, stabilization, and exit strategies to help readers see that its a viable affordable housing option for today and tomorrow.
