All Forum Posts by: Dan Rowley

@Danny Randazzo

Sorry - Build to rent operators (not Could to rent)

Dan

I've invested with Nighthawk on a property in Huntsville, AL about 1 year ago - and my experience has been good so far and they are exceeding their projections.  If anyone wants more info you can message me.

@Danny Randazzo    
good question = my phone auto-corrected and so my question didn't make much sense. 

I was inquiring whether anyone knows of any build to rent operators in the Raleigh MSA (new construction for rental properties - SFH or townhome variety). For investment and/or partnering...

Does anyone here know of any (reputable) could to rent operators in the Raleigh metro? Either SFH or townhome

Thanks in advance

Dan

following

@Derek Bennetsen. I am investing in my third deal with them. I do t have long term experience with them yet but They have a good track record and seem to really have it together from my experience.

@Josephine Wilson. There are Some macro economic reasons why so much money is chasing real estate and thus driving prices up

- financing rates are historically cheap and so that lowers cap rates

- flight of capital from stock market as folks look for less volatility and more relative ‘safety’

- the FED is printing money at an unprecedented rate and it has the effect of inflating asset prices

Dolf,

I don't want to say it's too late to get in, but as others here have suggested 2-3 years ago you'd have seen much better cap rates and yields given the rapid price escalations there.  This is a dynamic not exclusive to just the Boise metro as others have also seen it.  Fundamentals and growth are strong in Boise area, but just know cash flows won't look as strong and you may be banking more on growth/appreciation.

For smaller buildings (i.e. your 8-20 units example), you might consider a much simpler JV structure with just a few partners. Will be hard to justify the formation/legal and related costs unless you're pursuing a much bigger purchase. Just my 2 cents...

Hi Scott,

I have used Neal's method to validate many of my purchases (my own as was as investments in passives syndication deals).  While I don't have many years of experience post my purchases, I do think his framework is solid.  Though I wouldn't want to say any method is foolproof becuase probably nothing is.  For example, it's possible that the effects of Covid are severe in a particular Geo/neighborhood that pre-pandemic that prior would have scored very high using his method.  This could be becuase of the mix of the service vs. other job types in that geo (E.G. think Las Vegas or Orlando - heavily weighted to service/tourism jobs).

Dan