Build to Rent with Builder as your partner or equity holder.
Came across this interesting Build to Rent(BTR) concept.
Basically.....
You invest the $50k-$60k up front for a single-family build or $100k for a duplex build.
BTR company creates an entity together to own the asset.
BTR company secures lending and builds out the asset over the next 6 months.
Once it’s complete, BTR company refinance out and you get your $50k back + 16% at that point (or $100k + 16%)
You retain 30% equity in the asset going forward (and therefore 30% of the cash flow or profit upon selling)
Exit: 6-7 years once BTR company packages it and sells it to 4.5 Cap rate to Wallstreet.
So.....
Too good to be true?