• What are the current occupancy levels? Collection rates?... The fallout from moratoriums
• BTR homes are expected to double by 2024... High levels of asset appreciation and rent levels... Are any bubbles forming?
• All the money coming into the industry… What are the drivers? Where are the sweet spots? How high can institutional market share go?
• Will the cost side continue to go up? How are insurance costs impacting the industry?
• Will a distressed market develop for SFR?
• Will the cap rate compression continue?
• Comparisons with the multifamily industry
• Reputation management and negative publicity... As corporate ownership increases, do you foresee any public policy and legislation that could threaten the industry?
• How is the large inflow of capital impacting your business and growth strategy?
• Buying vacant vs. tenants in place vs. portfolio acquisitions vs BFR community vs. BFR scattered site… What are your preferences?
• Workforce housing and Section 8
• How do you select markets?
• Homebuilders coming into the market and their strategy
• Are you planning on adding short-term rentals to your product mix?
• Are you a buyer or seller today?
• What is your strategy in the single family rental market? How many units are you looking to own?
• Are you looking for scattered sites vs. BTR communities?
• What cap rates are we looking for for fully stabilized?
• Are you looking to go your own way or partner?
• How should you be approached by potential partners? What kind of information are you looking for? The ongoing demands
• Bulk purchases vs. JVs: What size/ terms are you looking for?
• Hold periods, promotes, prefs, splits, incentives, operator management fees and return on cost expectations
• How is tech changing the SFR industry?
• What are some of the newest business models out there?
• Outside of build-for-rent what other models do you see creating meaningful inventory for the industry?
• Where is their room for increasing operational efficiencies?
• Demographic trends and their impact
• Taking advantage of the use of big data
• Warning signs ahead… Washington DC and state regulations: Which proposals can have the most impact?
• Impact of the inflationary pressure on labor and material to build and renovate
• Working in an environment of affordable rental housing
• Dealing with labor shortages
• Are you using any prefab?
• Negotiation tactics: Getting a better deal on materials
• Technology solutions you must use
• Using 3rd parties vs. In-house... What do you look for in a contractor?
• Should you go sustainable?
• What do you replace in a typical turn? Rehab? What are your best practices?
Now that you can start to scale and hire some staff where should you add… Technology? Acquisitions? Property Management? In these tight markets should you look towards new locations or broaden your buy box? Maybe it is time to consider building your own supply? Have you tapped out your financing at the local banks? What are some other options? These and your questions will be some of the key issues we examine.
With all the money coming into the market should you start to look towards partnering with big private equity firms? Is it time to sell some of your portfolio or should you think about refinancing? Are there some technology or operational efficiencies you can apply to increase your NOI? These plus your questions will be the discussion.
• Supply/demand and will the housing market remain strong? Will affordability trend down? What are your favorite indicators?
• Will de-urbanization continue as it did during the height of covid? Will out-sized economic growth continue in those locations?
• The 55+ demographic vs. millennials… Comparing SFR appetites
• Markets and products… Where will the demand and price rise the most?
• BTR: Will economic waves sink the ship?
• As an unprecedented amount of government stimulus draws down what will be the effect on the SFR market?
• Rent affordability… When does it become an issue?
• Lumber, material and labor: Will costs continue to rise?
• How do you define a secondary or tertiary market? What are the key metrics you are examining
• Advantages, disadvantages, acquisition and portfolio management strategies vs. primary markets?
• What are the performance and risks?
• What happens to these markets during market downturns?
• How competitive are secondary markets? Specific tactics that resulted in wins? Which markets have surprisingly low institutional investment rates, and which are starting to have more institutional money come into them?
• How are current housing dynamics impacting secondary and tertiary markets?
• Is the period of time a resident remains in a rental home shorter because the transition to home ownership is more attainable/affordable vs primary markets
• Debt and equity financing differences
• How important is appreciation vs. rental income when pricing assets?
• Evaluating the benefits of full appraisals vs. the quickness of Zillow/Trulia/MLS and other automated platforms and tools
• What variables do you stress test? What ranges do you use for stressing?
• How do you mitigate property tax increases due to sale/ deed transfer?
• How are the financing guys looking at valuation?
• Are BTR portfolios valued at higher multiple than scattered site ones?
• Pricing homes that need work vs. fully stabilized
• Will home prices continue to increase?
• What tools are you using to predict market performance?
• In which direction are defaults and foreclosures going?
• Which markets have a positive outlook? Negative? Which are your favorite?
• Cities vs. Suburbs vs Rural
• Where is there too much competition from institutional buyers?
• Which markers are working for flippers? Build-for-rent?
• Which higher-priced markets is BTR and SFR working in?
• Looking back at past periods of inflation and what happened to the multifamily industry
• Affordability: If people can’t afford a home will that pull buyers into rentals? Is there still room to raise rents?
• Are homes currently overvalued? How much will existing home portfolios rise if there is inflation? Will buying new homes be a valuation challenge?
• What if you are sitting with a lot of short-term debt on the books?
• How high can materials and labor go?
• What will the SFR market look like if buyers concentrate on appreciation over cash flow?
• Are there specific markets where inflation will be higher?
• What will be the impact of moderate vs. High inflation?
This session will detail such keys to expanding your SFR operation including the biggest challenges of moving from a DIY operation to a larger business, the key performance indicators you should be tracking for acquisitions, rehab and property management, the useful technology that is available and how you can finance this thing. We also look forward to the questions you bring.
• Who qualifies for the small servicer exemption to the servicing rules?
• Headline risk: Do you suspect investors and services will be hesitant to foreclose in the age of COVID? And might the result be more NPL sales?
• Loss mitigation and state and federal regulatory changes: State of the moratoriums, courts
• Loss mitigation processes: Which are most effective? Working with legal counsel
• Insurance coverage when buying properties and notes
• Impact of rising SFR prices on the note market
• Forecasts for the note market and supply
• How much do you offer an owner as a %? What are your fees? How much money do you make per transaction?
• Why are homeowners receptive to your pitch?
• What is your exit?
• Which markets are you in? What are the specs you look for in a market?
• Role of brokers at your shop
• Virtual house inspection and technology introduction into the inspection process: Hybrid vs. all tech approaches
• How much of your business are home flippers? The retail investor vs. Institutional SFR?
• What are you doing with your inventory?
• Creating demand/demand drivers - Considering external factors-concerts, ball games etc.
• Pricing strategy/revenue management
• GSEs and financing
• Scaling from 50-100 vs. 1-2 rentals
• Traveler expectations- Vacation renter vs. business traveler
• Mixed portfolio: choosing which units to be in rental pool vs. short-term
• Furnishing & Improvements needed to make the unit rentable
• Cash flow predictors
• Local legal/zoning
• Operational challenges
• Market predictions/overview/economy: Are short term rentals recession-proof?
• Do you foresee short-term rentals being eligible for portfolios and single asset loans without significant hurdles
• What is the typical big picture buy box criteria you look at when acquiring SFR?
• Growing your portfolio in your own home area vs. investing new markets vs. expanding the services you are providing
• Buying from MLS is crowded trade… What are other channels for inventory where you’ve been finding product?
• Flipping vs. keeping: What are the key determinants?
• Financing out there
• How much rehab are you putting into the vacant property? When do you add smart home features? In-house vs. outsource: How do you manage the rehab
• When to use people vs. technology
• Minimizing appraisal and inspection fees
• Using technology to find product
• What part of the acquisition process have you added technology to?
• What are the latest additions to your due diligence punch list?
• Packages for smaller owners
• Key methods in scaling the acquisitions side of the business
• How are you buying product? Cap rates vs. appraised valuation
• Newer build-for-rent vs. rehabbed vs. less expensive older assets vs. rent controlled… Which is your preference/avoidance? How do you underwrite?
• Preferred debt/equity structure
• What kind of portfolio can be securitized? Can you achieve a premium for those assets?
• Minimum/sweet spot portfolio size you would consider
• Using existing vs. new management
• Exit strategy options
Operating expenses, NOI margins, Schools, FEMA reports and DQ/eviction rates will be among the information featured when 2 SFR portfolios are pitched to potential buyers
Tank Leader: The Moderator
The Sharks: Are Interested In Acquiring Portfolios Of Homes
The Property Owners: Will Present The Portfolios For Sale-
We are looking for your questions on such areas as…
• Planning, layout, entitling, and designing of sites for all types of BFR/SFR
• Detached, townhouses, duplexes, horizonal apartments… The what and why
• Acquisition, lot development, construction and what you need to know
• Financing the lifecycle
• Joint venture structures
• Exit strategy options
• What kind of cap rates are you seeing these BFR operators buy at? What is the expectation on the exit cap rate?
• Are you getting local pushback? How are you addressing?
• Property management… On site vs. centralized among all BFR and scattered site communities
• What is the optimal BTR unit size, and bedroom mixes in infill vs near suburb vs. other locations?
• How much does property management and maintenance cost for each building type vs. scattered site SFR
• Dealing with rising land prices
• Capital coming into the industry… Is it here for the long-term?
• What kind of buyers are out there at a sub-4 cap?
• How and when do you determine product type: Existing density requirements vs. working with the local government for a variance
• What kind of OPEX costs are you seeing on a per unit basis?
• Rent level compared to Class “B” SFR and Class “A” apartments
• What is the optimal BTR unit size, and bedroom mixes
• Amenity mix for different community types
• Looking at BFR in different markets: What are the similarities and differences?
• Being part or a mixed-use or master planned community
• Would you take permit risk? Expand roadways/bring utilities to the site?
• What do you look for in a builder?
• What determines if you map each unit and how does that impact the budget/timeline
• Do you go vertical before finishing the site work?
• What are you doing to keep exit options opens?
• Working with municipalities and overcoming planning, engineering and political issues
• How are you finding deals/competing with homebuilders for sites? Making it pencil in higher cost markets… Is it all about density? Are you considering paying more vs. moving to B/C locations?
• Garden/BTR and other blends
• Prefab, solar or sustainable: Can you make them work?
• Expense ratio cap rates
• What types of high leverage construction loans are you doing? Comparing small vs. large builders
• Considerations for secondary and tertiary markets; Higher end vs. more affordable product
• Terms and duration: Land vs. pre-development vs. ground up construction terms
• Financing terms you are getting on raw land before plans and permits are available and after
• Partnerships & JVs
• The takeout: Refinancing and long-term debt
• Which markets aren’t you financing?
• Do you have one or many strategy and how do you allocate deals to various buckets based on those strategies?
• What cap rate do you typically model your exit to? How much spread is needed between your going-in cap rate and exit cap rate? When modeling to a sale, what leverage points are you assuming?
• Is there a cap rate discount if selling pre-stabilized vs stabilized?
• How do you negotiate your sales commissions with real estate brokers? What percentage do you usually pay when you sell?
• Exit buyer profile and when do you break from the target strategy? ‘
• Changing from institutional bulk to individual retail sale… What needs to be done?
• Is it part of your overall strategy to build internal property management, and when it comes time to sell, do you believe that PM infrastructure will go with the portfolio and be additive to your exit strategy?
• Asset type specialization: Is it more or less attractive to find exits for age targeted or lifestyle communities centered around specific demographics?
Join other BFR owners and builders to hear about real life problems and solutions on everything in the BFR lifecycle from buying the dirt to building, financing, managing and selling. And of course, your questions are always welcomed.
As home prices, material cost and labor scarcity and expense continue to kill your margins how are you keeping the lights on? Where is the best ROI on your rehab today? How are you scaling when there is limited supply? And the question you bring to the table will be among the key issues to be discussed.
• The lending side… where advance rates are
• Finding off market sellers
• Available software
• Competing with institutional capital and the i-buyers
• Are you expanding other parts of your real estate business?
• Are you keeping more inventory for rental?
• Can a turnaround in margins be expected soon?
• Low cost, high ROI amenities
• Anatomy of your favorite market
• Underwriting on valuation relative to rental income: Where are levels trending?
• Which area of fix and flip financing do you feel could benefit most from technology and/or automation
• Geo hot and cold spots
• How much additional capital beyond down payments/costs do you recommend a fix and flip investor have?
• How high will you go with leverage?
• Advance rate levels
• What are typical default rates on fix & flip? How do you manage the customer post default?
• Special consideration for luxury/jumbo properties?
• Are you financing short-term rentals?
• Are Lenders looking for local market brokers to sell loan products?
• Do you see Fannie and Freddie getting involved in SFR portfolio lending?
• Financing the fix & flip market
• What financing options are available for developing BFR communities and what do those terms look like?
• How can an investor position themselves for the most favored terms?
• Are you following your customers into the secondary and tertiary markets?
• Rental and home appreciation you are underwriting for 2022
• Working with borrowers that have a recent bad history due to covid-restrictions
• What are your typical liquidity/reserve requirements for SFR
• IO vs. Arms: Which way to go and why
• Cost of single asset vs. portfolio of loans… Is the difference narrowing?
• What are you looking for in coverage on cash out refis?
• New originations: What are the keys to getting to the finish line?
• Terms vs. multifamily
• Leverage and valuation
• Deferrals, defaults and workouts
• What is the appetite for duplexes, triplexes, and quadplexes? Why is it so much more difficult to finance 6 units than 1-4 units?
• Bridge loan structure and terms for a vacant SFR
• Are equity and cross-collateral pledges required?
• Liquidity and reserve requirements
• Can I structure a mezzanine loan on top of my mortgage?
• Negotiable points and recent credit history
• Recent changes in underwriting practices
• Fixed vs. Floating? Should you lock in?
• The people side… Working from home & finding renovation and maintenance staff
• Do you slow down or pause acquisitions if renovations and property management need to catch up?
• Mitigating risk as the moratoriums on evictions and foreclosures ends
• Are programs like not charging late fees, payment plans and extra covid-related expenses a positive on returns?
• Growing rent while keeping vacancies low… What is the secret sauce? What are your current renewal rates? When do you start to cut rent/offer incentives?
• BTR vs. traditional SFR lease up and maintenance cost
• What is the most recent technology that you have added that has increased ROI? The resident experience?...
• Current impact of covid on operations
This panel will consist of owners and property managers asking pointed questions to vendors, the types of questions you would want answered when evaluating a new product or system for your operation including the time and money saved by using the product, the problem that is being solved and different packages for different sized operators
Moderators: (SFR Owners/Property Managers):
On the Hot Seat (Technology Service Providers:
• How will foreclosures compare to 2008 in this cycle?
• The newest wrinkles from the GSEs, federal and local government
• Owner equity and debt service ratios
• Helping tenants with state payment program: Is the red tape getting less sticky, making actual payouts?
• Cash for keys and minimizing tenant damage
• Security deposit and other unique solutions
• What should be in the resident benefit package? What should be the fees charged?
• Which services offered result in the most ancillary revenue? Highest ROI?
• How high-end should finishes be? Are energy-efficient appliances an amenity?
• Privacy and backyards in BFR communities vs. shared amenities like pools, fitness centers, clubhouses and walking paths
• Amenities in BFR communities vs. scattered-site SFR
• Tenant insurance, ways to promote participation and generate revenue
• Has enhancing services led to longer-staying tenants?
• On the technology side…
• What are the latest in demands from the renter? Is there ROI there?
• How do you keep residents safe from nonresident self-tour visitors? What are some of the other challenges for occupied buildings?
• How do you measure ROI on virtual tours?
• Self showing vs. Virtual tour vs. Agent showing: How do you optimize amongst these options?
• Tech and training implementation challenges
• Managing vendors and contractors
• Beyond virtual tour photography… What other useful data can be captured from the digital content?
• Practical tips for operators who want to start doing virtual tours