HOUSINGNEWS REPORT
FEATURED ARTICLE
STATES WITH MOST OUT-OF-STATE SFR OWNERS
People look to invest in our kind of single family, because it allows them to have a fixed-income bond- like return , with a significant upside in real estate while being tax-efficient through depreciation .”
Alberto Chocron COO, Transcendent Investment Management in Florida
Click to view interactive visual showing where each state’s owners reside.
“People look to invest in our kind of single family, because it allows them to have a fixed-income bond-like return, with a significant upside in real estate while being tax-efficient through depreciation,” said Chocron, COO and partner at Transcendent Investment Management, the private-equity firm behind Build US Back. Chocron noted that the company’s strategy for acquiring single family rentals has evolved dramatically from buying distressed homes to buying new homes. “The opportunity back in 2010, 2011, even 2012 was more to acquire distressed inventory, fix it and rent it out,” he said. “As the market dried up in terms of that opportunity … we started to partner up with some of the country’s most prominent home builders and we basically acquire bulk new homes from them.”
a relatively short time horizon before selling, according to Chocron.
not be stuck with a loan expiration that may come at a point in time where the financial markets may be crazy and there is no debt available.” With average rents in his company’s portfolio increasing about 7 percent annually and strong price appreciation on top of that, Pintar is bullish on the future of the SFR market — particularly given the efficiencies and innovation brought to bear in the last few years. “This has been a business that has been around for hundreds of years. It’s one of the largest real estate businesses that no one has ever known about ... he said. “The only thing that’s new about it is in the last few years it has started to become institutionalized. I think that is a good thing for the tenants. I think it’s a good thing for investors. It’s a good thing for neighborhoods.”
“We will rent them out, hold on to them for a period of four to five years. And then sell,” he said, noting that the Build US Back operating arm handles everything from acquisition to property management to sale. “That is one of the added benefits to our investors. We have a very streamlined operation that allows them to operate very efficiently while producing maximum returns.” Holding Rental Homes ‘Forever’ Back in Southern California, Pintar said his fund plans to hold on to its portfolio indefinitely. “Our strategy is that we’re going to hold these forever and put long-term debt on them,” he said, noting that the company is now looking to transition from short- term debt to long-term debt. “We’d like to take that expiration date off the table and
Build US Back typically holds homes for
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