Should I invest in this real estate start up?
I've been approached about the possibility of investing in a real estate start up. It is being founded by two multifamily real estate executives who also dabble in residential real estate.
They are planning to start a real estate brokerage focused on the millennial home buyer. They feel that market is still a few years away from really heating up, but they are both big believers that many of today's renters will be tomorrow's homeowners and the demographics point to a boom in home ownership in the coming years. They are planning to hire millennial agents and train them to sell to their peers, along with creating a technology platform where the firms clients will have an app and access to information and be able to communicate with their agent via the app and track the progress of their purchase, due diligence, etc. Essentially, taking today's outdated methods and while not totally recreating it, making it more user friendly for tomorrow's homeowners. They plan to start in our local market and expand over time if successful. Their branding will be focused on many of these buyers and sellers.
Both of the guys starting the company have been successful in real estate and I believe both have the intelligence and personalities to cater to this type of crowd. I'm not going to get into the details of the deal at this point, but more curious to hear what people think of the general idea.
I work in multifamily and have been reading studies that upwards of 80% of current millenial renters aspire to be home owners in the next 5 years. I understand the headwinds they face, but I also believe if that level of demand is there, if even a percentage of that large demographic moves into the for sale market it will have a large effect on the market.
@Brian Burke @J Scott @Ben Leybovich @Joel Owens @Will Barnard @Joe Fairless