Rent To Retirement Review (6 months in)
Salt Lake City, UT · Member since 2021 · 25 posts · 23 votes
Rent To Retirement Review (6 months in)
Most Popular Reply
Zach LemasterBusiness Member
Rental Property Investor · Denver, CO · Member since 2015 · 1k+ posts · 3k+ votesThank you for the feedback. Brian, thanks for the call this morning to review specifics on where you're at in the process. Chad, you are welcome to email or call me directly at any point in time as I encourage anyone working with us to do. As the owner of RTR, it is very important that we are here to assist investors whenever they have questions. I do go above & beyond to make myself available to anyone who would like to have a conversation. There are many people that would attest to this that work with us on an ongoing basis.
We always appreciate candid feedback & are looking for ways to improve. I would like to clarify a few items discussed here, especially since this is centered around ground up, pre-construction. It's important to understand what role everyone is playing, and what the expectations are. When you hire a builder we've connected you with, it is important that you are in communication with them directly to get updates on your build. RTR does not provide direct updates on progress of permitting or construction. We work with multiple builders in many locations that all have different timelines and processes to follow. The building team will be the ones you need to be in contact with to get specific updates. We present investment opportunities to investors based on your goals & criteria to connect you with the appropriate teams. That doesn't mean we are out of touch however. We are always available to answer any questions you have at any point in time & provide guidance as needed. We do ask you to be proactive by reaching out to ask questions. It is important that each investor does take some ownership of their investments to oversee how each investment is performing. If you have questions, or there are issues, then please make us aware of them. We are a team of very experienced investors that have navigated many obstacles throughout the process of property ownership & we can help you proactively find solutions. Many of our long term investors have found our team to be vital in guiding them to scale their portfolio over time to achieve their financial goals. This would include all aspects of investing from tax, legal, accounting, financing, 1031 navigation, etc. along with guiding them to find the best investment markets & opportunities in today's dynamic market. We have key professionals in all these areas to allow you to build a sustainable business model following the same processes we have utilized to be successful investors.
It's important to understand that we are not property managers or builders. So it would be important for every person to also stay in constant contact with the teams you are working with to get specific updates. We may not be aware of a specific situation unless you make us aware & we are very responsive to follow up with questions when asked.
Specifically in the pre-construction space, there are many things that need to be considered. Most importantly, is to understand that the nation as a whole is in unprecedented times for construction which leads to delays. This would include supply chain issues, all time high housing shortage leading to a mass construction boom, city offices inundated with permits/heath inspection delays, etc. No one likes to have to deal with these things, but it unfortunately is part of the process dealing with new construction from the ground up. During the permitting process there really aren't any updates to provide if you are waiting for the city office to approve the permit. This may appear as no one is communicating with you, but the reality is that everyone is in the same boat of simply waiting for permits to be approved once the builder submits the appropriate package. We do provide resources to everyone to be able to track their progress online with the city permitting website that we encourage all to review where their property stands. Once the actual construction starts, the builder will be able to provide regular updates with progress along with updating items in their portal through software like builder trend.
Again, I understand everyone's frustration with the ongoing delays that we are all having to patiently wait for (myself included with my own personal builds). It's not uncommon to see 6+ months of idle time before a permit is even approved by the city office to start construction.
Please do not lose sight of the end goal. We do our best to set expectations on all these items upfront, but I would say it's common that many people get frustrated throughout the process of waiting without any update. That is part of the game when dealing with the construction space. However, I firmly believe the end result is still an exceptional ROI when the construction is completed in a market that is growing dramatically in demand for rentals & retail sales.
To be specific, here are some case studies for investors that have seen this process full cycle to completion along with some numbers they've experienced. I'm sure they would be happy to elaborate on their investment overview & answer any questions you have about what to expect.
1111 NW 20th Pl
4/2 build in SWFL
-all in costs ~$240k, total build time ~15 months
-under contract to sell for $377,500, total gross proceedings of ~$137,500. ROI would be over 300%.
-Initial projected rents $1,800/mo, actual rent $2,500/mo. If held as a rental would produce >20% CoC ROI.
---------------------------
Another investor w/ a property located at:
2636 NW 4th pl
-All in ~$230K, listed for $399K, multiple offers to go under contract at $415k.Total build time ~ 17 months. This will yield gross profits of $185k (>400% ROI)
*We have many of these case studies to share with investors that have either sold their build, or held it as a rental achieving an exceptional ROI on cash flow or resale.
Completed a build in central FL that had roughly $30k immediate equity upon completion. I believe the build took just over a year. He also is currently in the build process in SWFL & has gone through permitting.
---------------------------
Hopefully this adds some clarity about the investment potential after the home is completed along with what to expect throughout the process. I understand no one likes to wait & experience ongoing delays. That is something we all just have to deal with currently in this environment, but I do think the end result is worth the wait. If you are not someone that is up for this long of a process, no problem at all. We are happy to explore construction options that are completed now, or rehabbed properties you can purchase & cash flow from much sooner.
All, please don't hesitate to reach out directly with any questions. As I mentioned, my team is more than happy to speak with you directly about your experience, strategy, or answer any questions you have.
9 Replies
- Investor · Kansas City, MO · Member since 2015 · 48 posts · 165 votes4y
Brian,
We completely understand your frustrations in the permitting process with the ample amount of delays the city has encountered. Unfortunately, that is something that is outside of everyone's control with how quickly the permitting office will approve the permit. This is still within the realm of normal expected timelines that we are currently seeing across the board with all builders in our network. It is important to know that we do encourage you to be in direct communication with your builder to get specific updates along with viewing the publicly available information from the city on permit status. We have shared those resources with you. We appreciate you taking the time to reach out to our CEO today to talk more about general expectations & how to track progress. We are all living in unprecedented times in construction today that have many variables and delays in the overall process. The good news is that once the home is completed you will be in an excellent equity and cash flow position well beyond what any of us anticipated due to the demand for housing in this area. We encourage you to reach out to us directly at any point in time for any guidance or assistance in obtaining the information you need along with being in direct communication with your building team you hired to build the homes as they are the ones that will provide specific updates. We work with multiple building teams in SWFL along with different areas throughout the US, and each one is somewhat unique in terms of their process. Unfortunately, there are not many updates to provide throughout the permitting process as it's really a long waiting game for everyone. We are also happy to put you in touch with other investors that are in the process of building, or that have completed builds in this area to gain a better understanding of what to expect throughout the process & to hear about their experience. We are here to do whatever we can to set you up for success & answer questions along the way.
- New to Real Estate · Wamego, KS · Member since 2021 · 15 posts · 9 votes4y
I didn’t find RTR very responsive either and have been under contract for 4 months and still waiting on permits. RTR connects you with local professionals then it’s completely hands off from there. I will say the people they connected me with have been super responsive except for the first builder who never called me back. Realtor has been amazing. First deal I have done with RTR and get the feeling this is their business model. I have asked RTR several questions and they have responded but definitely wait on the investor to reach out. I get the feeling they do all their work up front then turn the process over. Waiting for this build to be completed before I make my decision to work with them again or not. Hopefully your build starts soon. Good Luck!
- 4yZach LemasterBusiness MemberRental Property Investor · Denver, CO · Member since 2015 · 1k+ posts · 3k+ votes
Thank you for the feedback. Brian, thanks for the call this morning to review specifics on where you're at in the process. Chad, you are welcome to email or call me directly at any point in time as I encourage anyone working with us to do. As the owner of RTR, it is very important that we are here to assist investors whenever they have questions. I do go above & beyond to make myself available to anyone who would like to have a conversation. There are many people that would attest to this that work with us on an ongoing basis.
We always appreciate candid feedback & are looking for ways to improve. I would like to clarify a few items discussed here, especially since this is centered around ground up, pre-construction. It's important to understand what role everyone is playing, and what the expectations are. When you hire a builder we've connected you with, it is important that you are in communication with them directly to get updates on your build. RTR does not provide direct updates on progress of permitting or construction. We work with multiple builders in many locations that all have different timelines and processes to follow. The building team will be the ones you need to be in contact with to get specific updates. We present investment opportunities to investors based on your goals & criteria to connect you with the appropriate teams. That doesn't mean we are out of touch however. We are always available to answer any questions you have at any point in time & provide guidance as needed. We do ask you to be proactive by reaching out to ask questions. It is important that each investor does take some ownership of their investments to oversee how each investment is performing. If you have questions, or there are issues, then please make us aware of them. We are a team of very experienced investors that have navigated many obstacles throughout the process of property ownership & we can help you proactively find solutions. Many of our long term investors have found our team to be vital in guiding them to scale their portfolio over time to achieve their financial goals. This would include all aspects of investing from tax, legal, accounting, financing, 1031 navigation, etc. along with guiding them to find the best investment markets & opportunities in today's dynamic market. We have key professionals in all these areas to allow you to build a sustainable business model following the same processes we have utilized to be successful investors.
It's important to understand that we are not property managers or builders. So it would be important for every person to also stay in constant contact with the teams you are working with to get specific updates. We may not be aware of a specific situation unless you make us aware & we are very responsive to follow up with questions when asked.
Specifically in the pre-construction space, there are many things that need to be considered. Most importantly, is to understand that the nation as a whole is in unprecedented times for construction which leads to delays. This would include supply chain issues, all time high housing shortage leading to a mass construction boom, city offices inundated with permits/heath inspection delays, etc. No one likes to have to deal with these things, but it unfortunately is part of the process dealing with new construction from the ground up. During the permitting process there really aren't any updates to provide if you are waiting for the city office to approve the permit. This may appear as no one is communicating with you, but the reality is that everyone is in the same boat of simply waiting for permits to be approved once the builder submits the appropriate package. We do provide resources to everyone to be able to track their progress online with the city permitting website that we encourage all to review where their property stands. Once the actual construction starts, the builder will be able to provide regular updates with progress along with updating items in their portal through software like builder trend.
Again, I understand everyone's frustration with the ongoing delays that we are all having to patiently wait for (myself included with my own personal builds). It's not uncommon to see 6+ months of idle time before a permit is even approved by the city office to start construction.
Please do not lose sight of the end goal. We do our best to set expectations on all these items upfront, but I would say it's common that many people get frustrated throughout the process of waiting without any update. That is part of the game when dealing with the construction space. However, I firmly believe the end result is still an exceptional ROI when the construction is completed in a market that is growing dramatically in demand for rentals & retail sales.
To be specific, here are some case studies for investors that have seen this process full cycle to completion along with some numbers they've experienced. I'm sure they would be happy to elaborate on their investment overview & answer any questions you have about what to expect.
1111 NW 20th Pl
4/2 build in SWFL
-all in costs ~$240k, total build time ~15 months
-under contract to sell for $377,500, total gross proceedings of ~$137,500. ROI would be over 300%.
-Initial projected rents $1,800/mo, actual rent $2,500/mo. If held as a rental would produce >20% CoC ROI.
---------------------------
Another investor w/ a property located at:
2636 NW 4th pl
-All in ~$230K, listed for $399K, multiple offers to go under contract at $415k.Total build time ~ 17 months. This will yield gross profits of $185k (>400% ROI)
---------------------------
*We have many of these case studies to share with investors that have either sold their build, or held it as a rental achieving an exceptional ROI on cash flow or resale.Completed a build in central FL that had roughly $30k immediate equity upon completion. I believe the build took just over a year. He also is currently in the build process in SWFL & has gone through permitting.
---------------------------
Hopefully this adds some clarity about the investment potential after the home is completed along with what to expect throughout the process. I understand no one likes to wait & experience ongoing delays. That is something we all just have to deal with currently in this environment, but I do think the end result is worth the wait. If you are not someone that is up for this long of a process, no problem at all. We are happy to explore construction options that are completed now, or rehabbed properties you can purchase & cash flow from much sooner.
All, please don't hesitate to reach out directly with any questions. As I mentioned, my team is more than happy to speak with you directly about your experience, strategy, or answer any questions you have.
- Atlanta, GA · Member since 2020 · 24 posts · 59 votes4y
I’ve closed two properties with RTR last year, and these two properties weren’t in FL nor they were new constructions, but my experience with them has been phenomenal. These two properties were my very first rental properties, however, RTR folks helped from the beginning to the end in terms of analyzing the property, getting me list of potential lenders, insurance vendors, and closing, and also post closing services. I still email them time to time with questions related to the properties, and they are very responsive.
Again, my properties were not in FL nor they were a new construction, therefore very different from what you are going through, but one thing sure is that RTR folks do work with you very closely and responsive in general. - Salt Lake City, UT · Member since 2021 · 25 posts · 23 votes4y
Zack -- thanks for your response. This really helps and I think there was miscommunication. Thanks for the clarification. Will definitely reach out if I have more questions. Thank you so much for being available!
- Investor · San Francisco, CA · Member since 2019 · 26 posts · 33 votes4y
I have a property in progress in Cape Coral, feel free to reach out to me to compare our experience.
I think we all agree the construction is taking longer than expected, due to things outside our control.
My permitting is complete and they are starting to go vertical.
I think it will still be a good investment once complete.
- Investor · Fort Collins, CO · Member since 2014 · 123 posts · 329 votes4y
@Chad Kinsley I'm happy to report my first build with Rent to Retirement (RTR) is under contract for $377.5k as @Zach Lemaster mentioned in his post. The permitting process does take a good bit of time and many elements are out of the hands of the builder. Below is a more comprehensive listing of all the items that go on behind the scenes when a builder references the "permitting process." As you'll see, it's quite a bit more complex than most investors appreciate. It's a long road and patience is key, but a 300% ROI in a little over a year is worth it in my opinion!
With the builders I've worked with in Cape Coral through RTR, I was provided a builder POC and instructions on how to monitor progress - usually through software like BuilderTrend. The expectation and process was to work with the builder who has direct knowledge on an investor's particular build. In my experience, RTR responded immediately anytime I had questions the builder couldn't answer or that were more strategic in nature. For example, when my first build neared completion, I had a great conversation with RTR to discuss my rental options vs. selling and undertaking a 1031 exchange into multiple RTR investment opportunities. However, the first step was always to follow the process clearly laid out and contact the builder's POC. It's key to proactively reach out to the builders and stay in communication with them.
Phase 1:
· contract signed
· deposit sent in (no work begins until a deposit is received)
· survey ordered
· power location ordered
Phase 2 (once survey completed and power location determined):
· Plans and Site Plan ordered
· Truss Layout Ordered
Phase 3 (once plans completed):
· order septic design
· order energy calcs
Phase 4 (after septic design completed)
· septic and drainage sent to update plans set
· septic sent to DOH for review
· septic design approved by DOH
· approved septic design transposed into plan set
Phase 5 (after updates completed to plan set):
· Completed updated plan set sent back to DOH for final permit approval and permit issue
· Completed updated plans set sent to engineer for final sign and stamp
Phase 6
· Plan set signed and stamped submitted to City of Cape Coral Permitting along with permit application
· Septic Permit Issued
Phase 7:
· Initiate loan closing process
· review in City of Cape Coral
· Permit Approved/Fees paid
· Permit Issued/Picked up
· Loan closed (either just before or after permit pick up)
· Site Prep begins
Construction Begins!*
- Investor · Fort Collins, CO · Member since 2014 · 123 posts · 329 votes4y
@Branden Yang is that a question for me? If yes, I financed the construction (i.e., a downpayment and a construction loan on the rest).
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