All Forum Posts by: Zach Lemaster

@Patrick Bavaro

Thanks for sharing Patrick!  We look forward to working with you on many future investments as well to scale your portfolio over time!

To your success!

@Dan Thomas

Thanks for the insight.  I'll let Patrick share his insight as well.  To answer your question, yes, this is very much a regional issue.  There is a lot of building going on in SWFL, and the permitting office is simply backed up & understaffed.  The actual ground up construction should be in the 4-6 month range, but unfortunately we are all at the mercy of the permitting office.  Anyone building in SWFL can attest to this timeline.  Good news is the market is growing dramatically causing a strong increase in rents & appreciation during the construction process providing excellent cash flow & immediate equity!  For example, a year ago we were projecting rents at ~$1,800 with about $20k in immediate equity on the same 4/2 model.  Now we are seeing rents in the $2,200 to $2,400 range with $50k+ of immediate equity.  It is a bit of a wait, but the wait is most definitely worth it once the home is completed!

@Paul Mezzetti I love that you explained this as I failed to in my previous post.  You are 100% correct.  We saw this conventional construction loan product virtually disappear overnight back in March 2021 when the regulations were changed for lenders limiting their overall investment loans to a total of 7% of all loan volume.  That was unfortunate to see, but that is the exact reason why private construction financing is a more viable option now for people looking to build for investment use.  Lending is always a dynamic world that we need to constantly stay up to speed with to determine what are the best options available at any given point in time.  Some investors that speak with us think that we are requiring certain lenders, but the reality only specific lenders offer certain loan products.  Thanks for sharing your insight on your personal experience.

@Khanh Nguyen

Thank you for the mention and questions. I just want to clarify for you & everyone else reading this thread. We do not require only one lender to be used. In fact, we welcome any lender that offers good terms to be used for construction. The reality is that there are not many options for the average investor that does not have previous build experience to obtain financing for new construction with reasonable terms. Because of that we have built a network of lenders that do offer construction financing to investor that lack experience. This includes private financing, institution lenders, conventional lenders, etc. There are multiple lenders on our list that we put the investor in touch with. Each of these lenders offer different loan terms, down payment requirements, etc. Because of that, not every lender is a fit for the individual. Some people simply won't qualify with some of these lenders. If it is suggested that you speak to a specific lender, it is because we have evaluated the most likely scenario for you to be successful qualifying for loan based on your specific scenario. That is why it is vital to have communication with your RTR rep to run through your scenario. We are always happy to share all lender suggestions, and have you apply with each of them. If we know upfront that you won't qualify for a certain loan product, and we can save both you and the lender time & energy, then that would be why we have suggested one specific lender. Hopefully this helps to add clarity on the overall process. The best advice I can give to anyone interested is to simply schedule a consultation with your RTR rep, and collectively devise the most strategic plan & lending options available to accomplish your goals. That is what you are here for.

@Khanh Nguyen

Thank you for the mention and questions.  I just want to clarify for you & everyone else reading this thread.  We do not require only one lender to be used.  In fact, we welcome any lender that offers good terms to be used for construction.  The reality is that there are not many options for the average investor that does not have previous build experience to obtain financing for new construction with reasonable terms.  Because of that we have built a network of lenders that do offer construction financing to investor that lack experience.  This includes private financing, institution lenders, conventional lenders, etc.  There are multiple lenders on our list that we put the investor in touch with.  Each of these lenders offer different loan terms, down payment requirements, etc.  Because of that, not every lender is a fit for the individual.  Some people simply won't qualify with some of these lenders.  If it is suggested that you speak to a specific lender, it is because we have evaluated the most likely scenario for you to be successful qualifying for loan based on your specific scenario.  That is why it is vital to have communication with your RTR rep to run through your scenario.  We are always happy to share all lender suggestions, and have you apply with each of them.  If we know upfront that you won't qualify for a certain loan product, and we can save both you and the lender time & energy, then that would be why we have suggested one specific lender.  Hopefully this helps to add clarity on the overall process.  The best advice I can give to anyone interested is to simply schedule a consultation with your RTR rep, and collectively devise the most strategic plan & lending options available to accomplish your goals.  That is what you are here for. 

@Don Tarinelli

Thanks for the interest!  We have many investors working with us on new construction in SWFL.  I've posted some links to threads below where investors are sharing their experience about new builds & TK in general working with RTR just as Patrick shared.  Feel free to reach out with any questions.  New construction in SWFL is an exceptional opportunity to come into immediate equity & cash flow investing in an excellent market that is quickly appreciating!

https://www.biggerpockets.com/users/ZacharyCole/references

https://www.biggerpockets.com/forums/92/topics/518583-feedback-on-renttoretirement-and-zach-lemaster

https://www.biggerpockets.com/forums/92/topics/765347-rent-to-retirement-review

https://www.biggerpockets.com/forums/850/topics/895660-my-first-investment-property-an-out-of-state-deal

https://www.biggerpockets.com/forums/92/topics/983659-first-investment-property-with-rent-to-retirement?highlight_post=5677176&page=1#p5677176

https://www.biggerpockets.com/co/RentToRetirement

https://www.biggerpockets.com/forums/92/topics/929410-rent-to-retirement-updates?highlight_post=5508807&page=1#p5508807

https://www.biggerpockets.com/forums/92/topics/893621-rent-to-retirement-review?highlight_post=5222888&page=1#p5222888

https://www.biggerpockets.com/forums/311/topics/915728-experience-with-rent-to-retirement-turnkey?page=1#p5345200

https://www.biggerpockets.com/forums/92/topics/808479-rent-to-retirement-experiences

https://www.biggerpockets.com/forums/67/topics/952977-turnkey-in-indianapolis-through-rtr-case-study

https://www.biggerpockets.com/forums/12/topics/997350-lessons-learned-from-buying-my-first-rental-property?highlight_post=5748036&page=1#p5748036

https://www.biggerpockets.com/forums/12/topics/533693-anyone-worked-with-renttoretirement-turnkey

https://www.biggerpockets.com/forums/92/topics/581730-rent-to-retirement-zach

https://www.biggerpockets.com/forums/48/topics/874096-reviews-on-r2r-and-nch?page=1&utm_source=Iterable&utm_medium=email&utm_campaign=Transactional:%20topic_notification&utm_content=Transactional#p5123754

https://www.biggerpockets.com/forums/311/topics/883772-turnkey-investing-renttoretirement-feedback-reviews?highlight_post=5171720&page=1#p5171720

https://www.biggerpockets.com/forums/92/topics/950188-rent-to-retirement?page=1&utm_source=Iterable&utm_medium=email&utm_campaign=Transactional:%20topic_notification&utm_content=Transactional#p5535505

https://www.biggerpockets.com/users/ZacharyCole/references

@Joseph Schweizer thank you for the mention.

@Patrick Bergeron can you add some insight into why specifically MF? I personally invest in both SFR & MF. I do think if SFRs in todays market offers a competitive advantage over MF in many cases with having higher appreciation, longer term tenants, financing with lower $ down, better liquidity when you need to sell it, etc. It all depends on the specific location however. We do invest across 15 different markets though, and this would be true in pretty much all of them. I strongly encourage most investors to build a well balanced portfolio including both SFR & MF.

As mentioned above Rent To Retirement is a turnkey provider that offers BOTH SFR & MF properties across multiple markets. MF would include the small 2-4 units along with mid-sized MF in the 5-50 unit range as well.

@Joseph Schweizer

Thank you for the mention!

@Andrew Brown

FL in general is an excellent market to be investing in right now.  Orlando is on the higher side for price point, but we are still very active there in the turnkey, new construction & short term rental space.  There are many other locations throughout FL that have excellent opportunities as well with more affordable entry points.  Are you just looking at Orlando because you have family there?  Part of the benefit of going with a true, full service turnkey provider is that you can invest in the markets that offer the best returns, and not be limited to invest in locations where you live or know people.  Feel free to reach out & I'm happy to answer any questions you have at any point in time.

Here are some links below from investors talking about their experience investing in FL working with us:

https://www.biggerpockets.com/users/ZacharyCole/references

https://www.biggerpockets.com/forums/92/topics/518583-feedback-on-renttoretirement-and-zach-lemaster

https://www.biggerpockets.com/forums/92/topics/765347-rent-to-retirement-review

https://www.biggerpockets.com/forums/850/topics/895660-my-first-investment-property-an-out-of-state-deal

https://www.biggerpockets.com/forums/92/topics/983659-first-investment-property-with-rent-to-retirement?highlight_post=5677176&page=1#p5677176

https://www.biggerpockets.com/co/RentToRetirement

https://www.biggerpockets.com/forums/92/topics/929410-rent-to-retirement-updates?highlight_post=5508807&page=1#p5508807

https://www.biggerpockets.com/forums/92/topics/893621-rent-to-retirement-review?highlight_post=5222888&page=1#p5222888

https://www.biggerpockets.com/forums/311/topics/915728-experience-with-rent-to-retirement-turnkey?page=1#p5345200

https://www.biggerpockets.com/forums/92/topics/808479-rent-to-retirement-experiences

https://www.biggerpockets.com/forums/67/topics/952977-turnkey-in-indianapolis-through-rtr-case-study

https://www.biggerpockets.com/forums/12/topics/997350-lessons-learned-from-buying-my-first-rental-property?highlight_post=5748036&page=1#p5748036

https://www.biggerpockets.com/forums/12/topics/533693-anyone-worked-with-renttoretirement-turnkey

https://www.biggerpockets.com/forums/92/topics/581730-rent-to-retirement-zach

https://www.biggerpockets.com/forums/48/topics/874096-reviews-on-r2r-and-nch?page=1&utm_source=Iterable&utm_medium=email&utm_campaign=Transactional:%20topic_notification&utm_content=Transactional#p5123754

https://www.biggerpockets.com/forums/311/topics/883772-turnkey-investing-renttoretirement-feedback-reviews?highlight_post=5171720&page=1#p5171720

https://www.biggerpockets.com/forums/92/topics/950188-rent-to-retirement?page=1&utm_source=Iterable&utm_medium=email&utm_campaign=Transactional:%20topic_notification&utm_content=Transactional#p5535505

https://www.biggerpockets.com/users/ZacharyCole/references

@Sam Abraham @Michael Din

Thanks for the shout out!  We do our best to find the best investment opportunities/markets to present to our clients to set them up for success.  This is how we've built our personal portfolio over many years by strategically investing in the areas that offer the best returns.  I would agree that you need to have a team established wherever you invest, but especially out of state.  It's taken us years to build the high quality teams we have in each location, and that is one of the main benefits of using this type of service along with learning from professionals in the space that have been successful investors already.  I'm happy to answer any specific questions either of you has.

Here are some good resources to read through as well with other investors sharing their experiences about investing from a distance:

https://www.biggerpockets.com/users/ZacharyCole/references

https://www.biggerpockets.com/forums/92/topics/518583-feedback-on-renttoretirement-and-zach-lemaster

https://www.biggerpockets.com/forums/92/topics/765347-rent-to-retirement-review

https://www.biggerpockets.com/forums/850/topics/895660-my-first-investment-property-an-out-of-state-deal

https://www.biggerpockets.com/forums/92/topics/983659-first-investment-property-with-rent-to-retirement?highlight_post=5677176&page=1#p5677176

https://www.biggerpockets.com/co/RentToRetirement

https://www.biggerpockets.com/forums/92/topics/929410-rent-to-retirement-updates?highlight_post=5508807&page=1#p5508807

https://www.biggerpockets.com/forums/92/topics/893621-rent-to-retirement-review?highlight_post=5222888&page=1#p5222888

https://www.biggerpockets.com/forums/311/topics/915728-experience-with-rent-to-retirement-turnkey?page=1#p5345200

https://www.biggerpockets.com/forums/92/topics/808479-rent-to-retirement-experiences

https://www.biggerpockets.com/forums/67/topics/952977-turnkey-in-indianapolis-through-rtr-case-study

https://www.biggerpockets.com/forums/12/topics/997350-lessons-learned-from-buying-my-first-rental-property?highlight_post=5748036&page=1#p5748036

https://www.biggerpockets.com/forums/12/topics/533693-anyone-worked-with-renttoretirement-turnkey

https://www.biggerpockets.com/forums/92/topics/581730-rent-to-retirement-zach

https://www.biggerpockets.com/forums/48/topics/874096-reviews-on-r2r-and-nch?page=1&utm_source=Iterable&utm_medium=email&utm_campaign=Transactional:%20topic_notification&utm_content=Transactional#p5123754

https://www.biggerpockets.com/forums/311/topics/883772-turnkey-investing-renttoretirement-feedback-reviews?highlight_post=5171720&page=1#p5171720

https://www.biggerpockets.com/forums/92/topics/950188-rent-to-retirement?page=1&utm_source=Iterable&utm_medium=email&utm_campaign=Transactional:%20topic_notification&utm_content=Transactional#p5535505

https://www.biggerpockets.com/users/ZacharyCole/references

Hi @Saurabh Kukreja,

Thanks for reaching out.  I will say that it's important to always run your own numbers, but you do need to know why you are inputing specific numbers into your analysis.  I think you will find that even if you use a higher number for maintenance to be conservative the numbers still make sense, and it is not a deal breaker.  There is plenty of room for variance with ample cash flow.  We input data based on historical information that we see in performance.  Many of the new construction properties have comprehensive warranties for the first 1-2 years where you will have no maintenance, but we are still factoring it into the pro forma.  Some homes have lower %, and some have higher % much depending on the tenant.  These numbers are just starting points to get a general idea for performance.  Homes that are recently rehabbed, and especially the new construction, this would be a realistic estimate.  We do have many positive reviews with people openly talking about their experience and performance.  I think if people were not having a somewhat predictable experience this would not be the case.  I will let @Joseph Schweizer add in his personal experience as well.

Please don't hesitate to reach out directly with any other questions you have, and we hope to work with you in the near future to see firsthand how properties perform.  The first property is always the most daunting to get under your belt, but it is the most important to build your confidence to scale over time.  Scaling is the goal with anyone looking to build substantial passive income!  I hope this helps.