HOUSINGNEWS REPORT
FEEDING THE SINGLE FAMILY RENTAL BEAST
of the only unmarried women on the island. We’re having a really good time right now.” Beasley said that Roofstock acquired Streetlane to help facilitate the newer wave of institutional demand for single family rentals, which tends to be more passive in nature. “You’ve got new investors coming into the space …who are looking to get exposure to SFR but don’t want to build an operating platform,” he said, explaining that the newer institutional investors “want us to handle the property and asset management … they view us as the real estate cloud and we can sort of execute on their behalf. “Without the property management capabilities, some of these groups were hesitant,” Beasley added. Build-to-Rent or Bust The continued flow of capital to SFR along with the now-proven staying power of the asset class helped convince Dennis Cisterna to go out on a limb and
start his own SFR business in 2018 after several years as an executive in SFR businesses run by others. “Starting Guardian — or at least my own investment firm — is something that I have thought about almost daily since I was 27,” said Cisterna, whose new company Guardian Residential focuses on the build-to-rent business. “When the recession hit, I was a new husband and father and I became a lot more conservative in my entrepreneurial dreams but as I time has gone on, I gained enough confidence and knowledge to know that if I didn’t do this now, I never would.”
where he was CEO, helped instill Cisterna with the confidence that the industry has legs. He identified the build-to-rent strategy as one that would help address the industry’s inventory challenge. “I believe purchasing newly built properties in bulk is the most efficient way to scale the business, as I have seen firsthand how resource-intensive it is to acquire, renovate, and manage properties on an individual basis,” Cisterna said, adding that the build- to-rent strategy also allows operators to “create imputed equity without having to manage renovations that create the same type of value.”
Previous stints at SFR lender FirstKey and SFR service provider Investability,
“A properly priced rental home today, there is almost limitless demand for it. We have to get creative about how to attract this inventory, and if it isn’t available to create it.”
GARY BEASLEY CEO, ROOFSTOCK
iBUYER SALES TO INSTITUTIONAL INVESTORS INCREASING
SALES TO INSTITUTIONAL INVESTORS
SHARE TO INSTITUTIONAL INVESTORS
9.1%
727
6.3%
3.7%
285
62 2016
2017
2018
ANALYSIS OF SALES BY ENTITIES ASSOCIATED WITH FOUR iBUYERS: OPENDOOR, OFFERPAD, KNOCK AND ZILLOW
4
NOV 2018 | ATTOM DATA SOLUTIONS
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