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Single-Family

9 Ways to Create a Positive Tenant Experience at Your SFR Property

Maximizing Your SFR Investment by Jason Myers As every single-family rental (SFR) property owner/operator can attest, tenant turnover is time-consuming and costly, and a tenant’s rental experience can significantly enhance (or diminish) the odds of a lease renewal. The cost to replace an SFR tenant can range from $1,000-$5,000 with a recent report from Zego finding the average tenant turnover cost in 2023 was $3,872. That can add up quickly and cut into your ROI. So, what can you do to keep tenants happy? Spoiler alert: It is a property that shines. Whether you have internal resources or outsource property services, it is imperative that every step and interaction is handled with efficiency and professionalism. Here are the nine best practices that can help you create a positive tenant experience at your SFR properties and help minimize your turnover rates. 1 — A Well-Managed Tenant Turn Process To get your relationship off on the right foot, your tenant turn process should make move-in a breeze for renters, from staying on schedule to ensuring the property is clean, repaired and move-in ready. Ease the process by keeping your tenant turn team or partner in the loop on upcoming transitions so they can mobilize quickly to make sure the property is at its best for the next renter when they move in. 2 — Effective Communication with Tenants You can keep the lines of communication open with your tenants via a robust technology platform where they make monthly payments and request assistance with maintenance and other issues. And while regular email reminders for preventive maintenance checks are a must, make sure you respond promptly to their repair questions and concerns as well. Providing regular updates and reminders on recurring items the tenant can handle (like changing furnace filters), and encouraging or rewarding participation, helps keep them involved in maintaining the property. 3 — Swift and Efficient Repairs Having boots-on-the-ground professionals available to handle occupied maintenance means fewer callbacks and headaches and higher-quality work overall. Plus, effectively managing issues and repairs means your SFR property will generally remain in better condition (and maintain its value). Even if you have your own team to handle most repair work, consider having an outsourced partner who can assist when volume is high or if you are short-staffed. While an issue may seem minor, it can be a big deal — and leave a bad taste — if it is not dealt with in a timely manner. And again, leveraging technology that allows tenants to submit repair requests with details and photos can help make repairs easier and quicker. 4 — Ongoing SFR Preventive Maintenance Repairs are obviously not the only maintenance your SFR property needs. Ongoing preventive maintenance for critical items like HVAC and water heaters can lengthen the life of those systems and even potentially prevent unnecessary breakdowns and disruptions for tenants (and costs for you). Consider implementing a comprehensive regularly scheduled preventative maintenance program for your portfolio or, at minimum, have maintenance technicians responding to repairs check HVAC filters and other basic items when they visit a property. 5 — Streamlined Processes Making a tenant’s rental experience positive can be as simple as making it easier overall where you can. From how they pay rent and request maintenance (such as via an online portal or app) to lease renewal, the focus should be on simplifying workflows and processes to remove barriers that could prevent or delay their responses or cooperation. Shorter processing timelines can lead to shorter down times which helps keep revenue flowing. 6 — Smart Home Tech Updated interiors and appliances are not the only modern perks that renters are seeking. Many also want smart home technologies that can make their lives easier and safer. Consider adding tech items like smart thermostats, locks, security systems, lighting and more to your SFR property. Buying in bulk and working with a partner to install systems can save time and expense, while adding amenities for your tenants. 7 — Responsive (and Proactive) Feedback Listening to tenants and being receptive and responsive to their feedback is one of the easiest (and least expensive) ways to create a positive experience for them. Tenants who feel heard will also be more likely to pay their rent on time and let you know about issues with the property that you can proactively address. Even if it is not possible to implement all their ideas, be sure they know they have been heard by explaining the “why” behind a decision and showing your appreciation for input. Then, take it a step further by seeking additional feedback via surveys or post-maintenance feedback forms. 8 — Incentive Offers Make tenants want to stay longer by offering rental incentives during their lease renewal process. A minimal discount on the first month’s rent of a renewed lease is a common perk, but do not be afraid to get creative with items like appliance upgrades (when they are nearing their end of life), landscaping upgrades or even the simple addition of enhanced shower heads. You may also want to consider incentives for signing a longer lease, which can enhance predictability for you and for them. 9 — Building Community Feeling like they are part of a strong community can help bond renters to your SFR property and enhance their experience. If possible, consider hosting activities or events that give them an opportunity to engage with other residents in the neighborhood. Tenant retention does require effort and focus, but following these best practices can help you create a positive experience for your tenants and maximize your SFR investment. Consider partnering with a company to assist with renovations, tenant turns and routine maintenance to help keep your properties looking and operating their best, while keeping your tenants happy.

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Turnovers Are Fundamental Aspect of the Single-Family Rental Market

How to Master the Art of Turnovers By Deanna Alfredo Now more than ever, single-family rental owners need a concise turnover process in-between residents. While there is a draw to the single-family rental market, it is more challenging than ever to procure a consistent revenue stream for investors. A smooth turnover process is necessary to create efficiencies and maintain profitability as a vendor and property owner. In this article, we delve into the intricacies of rental unit turnovers in the single-family rental market, exploring the essentials of what it takes to turn a unit and what owners are seeking in their investment properties. In the single-family rental market, turnovers play a crucial role in maintaining cash flow and preserving the value of the investment property. Key to success in this arena is understanding the intricacies of rental unit turnovers. Communication // Communications and setting expectations go hand-in-hand throughout the turnover process. It is highly advantageous for property managers to work with property owners to create details around the standards they desire for their single-family rental homes. These standards can include items such as finishes and other consistencies that can be applied to each property in their portfolio. Taking the time to create the standards and expectations and having concise conversations around those details with prospective vendors is crucial to a successful turnover. Going into a turnover with communication and standards in place can lead to cost-effectiveness for both the vendor and property owner. Cost-effectiveness is directly impacted by volatility in the marketplace. Understanding current market conditions around labor and supply pricing is a large factor in successful turnovers as well. Process Flow // The turnover clock starts ticking at the point of the move-out inspection. Vacancy periods represent lost income for property owners, making swift turnovers essential for maintaining cash flow. Owners aim to streamline the turnover process to minimize downtime between tenants and maximize occupancy rates. A process tip is as simple as referring to your turnover vendor partner to assist with the move-out inspection. It can be beneficial to utilize the move-out inspection to formulate the scope for the turnover and establish pricing at the same time. Vendor Selection // Vendor selection is an integral component of the turnover process. Partnering with a trustworthy vendor can help offset economic constraints on the turnover process. Seasoned vendor partners will have a pulse on the local market and can bring cost-effectiveness. Having a large sized turnkey, trusted vendor partner can create efficiencies in internal processes which directly correlate to increased profitability. Establishing a relationship with a turnkey vendor can allow you to build your book of business without increasing your overhead. Conversely, a smaller local vendor may allow you to save money on the immediate turnover costs related directly to the scope of work being performed. Local vendors may require more of your team’s time to manage and oversee projects,as well as limiting your scalability and growth. Systems Analysis // At the point of the turnover, it is suggested to review all major systems, such as HVAC, hot water heaters and appliances. Understanding the age and condition of these products can equip you to make decisions that could decrease maintenance spend by allocating capex at the turnover. It is important to catalog each system’s age and condition to make appropriate spending decisions after a new resident has moved in. Attention to detail at the turnover stage can determine overall maintenance spend for the life of the lease with the new resident. Satisfied tenants are more likely to renew their leases or recommend the property to others, reducing turnover costs for owners. By providing well-maintained, aesthetically pleasing rental units, owners can cultivate positive tenant relationships and foster a sense of pride in the property. Curb Appeal // First impressions can play a vital role in a prospective resident’s decision-making process. Owners must prioritize landscaping and curb appeal to create an inviting atmosphere and differentiate their rental units from competitors. From an owner perspective in the single-family rental market, efficient turnovers are paramount to maximizing returns on investment. Key Factors When Preparing Rental Units for New Tenants Minimizing Vacancy Periods // Vacancy periods represent lost income for property owners, making swift turnovers essential for maintaining cash flow. Owners aim to streamline the turnover process to minimize downtime between tenants and maximize occupancy rates. Maximizing Rental Value // Investing in upgrades and amenities allows owners to command higher rental rates for their properties. By offering desirable features and modern conveniences, owners can attract quality tenants willing to pay premium rents, thereby increasing overall profitability. Preserving Property Value // Regular maintenance and timely turnovers are critical for preserving the long-term value of investment properties. Owners understand the importance of maintaining their properties in optimal condition to protect against depreciation and ensure sustained appreciation over time. Enhancing Tenant Satisfaction // Satisfied tenants are more likely to renew their leases and recommend the property management company to others, reducing turnover costs for owners. By providing well-maintained, aesthetically pleasing rental units, owners can cultivate positive tenant relationships and foster a sense of pride in the property. In summary, turnovers are a fundamental aspect of the single-family rental market, influencing both short-term profitability and long-term investment success regardless of portfolio size. By prioritizing consistent standards, partnering with trusted vendor partners, and creating curb appeal, owners can attract quality tenants and command higher rental rates for their properties. Additionally, efficient turnovers help minimize vacancy periods, maximize resident satisfaction, and preserve the value of investment properties over time. As the demand for single-family rentals continues to rise, mastering the art of turnovers remains essential for investors seeking to capitalize on this thriving market.

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Properly Insuring Your “Subject To” Property

Bottom Line: If You Own It, You Insure It By Jacqui Price A subject-to deal is a creative investment strategy that involves an investor acquiring a property subject to the existing mortgage, effectively taking over payments to the lender and assuming responsibility for the home. While subject-to deals can offer substantial benefits, including minimal upfront costs and quick closing times, they also may introduce complexities in terms of insurance coverage. Understanding the risks that come with subject-to deals and how to properly insure these investments are essential for protecting your financial interests. Navigating the Due-on-Sale (DOS) Clause Due-on-Sale clauses grant a lender the right to call the note due (demand full repayment of the loan) upon the transfer of ownership of the property. This clause is of importance to real estate investors engaging in subject-to deals, as the transfer of ownership without the lender’s consent can trigger this provision. There is not a guaranteed way to avoid the DOS clause, as calling the note due because of ownership change is within a lender’s rights. But generally, if payments are being made on the loan and the mortgage company is listed in the mortgagee clause, the lender is less likely to call the note due. The Wrong Way to Insure a Subject – To Property Under no circumstances do we recommend the seller of your subject-to property keep their homeowners coverage in force. For one, the seller is likely already under financial hardship. Should a loss occur, and the seller somehow receives a claim check, they could take the money and run. Now you are left with an uninhabitable building and no claim money coming back to you. Furthermore, being named as an Additional Insured on the previous homeowner’s existing policy is not sufficient coverage. If it is discovered that the ex-owner, the First Named Insured in this case, no longer owns the property, it is fully within the insurer’s rights to deny a claim since the policyholder no longer owns the property. Even if by some chance you manage to get the claim paid, as mentioned above, you are not the entity that will receive the check, as you are not the First Named Insured. Additional concerns include carrying two insurance policies on the same property. Most policies have excess clauses, stating that the policy will only pay excess amounts if any other policy exists. If one of the two (or both) policies has such a clause, it can create major problems in getting a loss paid. Consider this scenario: following your acquisition of the property through a subject-to deal, you and the former owner reach a mutual agreement allowing them to continue residing in the property and remit monthly rent payments to you. You obtain a non-owner-occupied insurance policy and the previous owner’s policy remains in place. A few months later, a fire occurs, and you file a claim with your insurer, so far, so good. However, the tenant (previous owner) has personal property damage, so they file a claim against their existing homeowners policy. The respective insurance carrier on each claim is bound to find out about the other policy’s existence and could (more than likely, would) attempt to invoke the excess clause of its own contract, potentially leaving you waiting for courts/arbitration to settle. In this scenario, we recommend requiring your tenant (the previous owner) to carry renters insurance. A renters policy will protect their personal property, whereas a homeowners policy for a structure they no longer own, will not. The Correct Way to Insure Your Subject – To Property The most important thing to remember when acquiring any type of property is this: if you (or your entity) own, or have a financial stake in the property, be the First Named Insured. The First Named Insured is the primary recipient of any potential claim benefit or liability protection. The proper way to insure a property acquired through a subject-to deal, is to have a non-owner-occupied “landlord” policy, with yourself or the owning entity (whichever is listed on the title of the home) as the First Named Insured. The lender will receive notice from the carrier once the homeowners policy is canceled. If they are doing their job, they are hounding their borrower for proof of replacement coverage. This is where the policy you purchased will suffice. When reviewing the Evidence of Insurance you provide, the lender will make sure:  »         Their mortgagee clause is listed correctly to protect their interest in the property.  »         The insured value meets or exceeds the amount of the loan to satisfy the lender’s interest in the location.  »         Most importantly, their borrower must be listed somewhere on the certificates.             The seller should be listed as an Additional Interest only on the liability certificate. Should there be a liability loss where the buyer (you) and seller are named in a lawsuit, the seller would have protection. Once again, do not add the seller as an Additional Insured on the property coverage or list them as a Named Insured on the property policy. If the property suffers a loss and the seller’s name is on the property policy, it is also on the claim check. You do not want to have a check you are unable to cash if you cannot reach the seller to get it signed. Bottom line: if you own it, you insure it. Do your due diligence and make sure the insurance company you work with can insure your subject-to properties the right way.

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Keeping Customer Experience on the Radar

How Innovation & Sustainability are Helping Halstead Grow By Carole VanSickle Ellis In the world of flooring, the customer experience never ends. You start with wherever you are standing when you realize you need new flooring, and you’re still going years later when you have to answer the questions:  » “Is this pleasing in my sight?  » “Is my floor functioning properly?  » “Did it provide me with everlasting beauty? “That is why our number one focus, our whole focus, is on the customer experience, because if you focus on providing the best customer experience in the flooring marketplace, the other elements take care of themselves.” With this bold statement, Eric Anderson, president of global flooring manufacturer Halstead, a member of HMTX Industries, sums up his view of flooring. This view is elegant, sweeping, and surprisingly comprehensive. It also explains a lot about how the company operates on such a successful global scale today. “We have incredible resources and very strong strategic partners,” said Anderson proudly. “Innovation, quality, supply-chain excellence, and sustainability are all things that keep you ahead of competition and ahead of the curve. We achieve all of that by never taking our eyes off the customer experience radar.” Anderson, who has served as Halstead’s president since 2019, started out in the industry as a “manufacturer’s rep” selling a variety of home-repair and -maintenance products to “big box” DIY stores like The Home Depot. He recalled driving 92,000 miles during his first year on the job, but added, “It was really fruitful for me [later on] because I was able to learn so much about the type of customers we serve at Halstead today.” He remained in that position for five years before moving on to national account management with another company and, eventually, transitioning to his current position at Halstead. “That foundational learning really set me on the path to position myself to be a great supplier as well as a helpful and knowledgeable source of information,” he concluded. During those foundational years, Anderson worked closely with The Home Depot, the company upon which Halstead’s supply focus rests today. “Getting to know their culture and their values so early has been invaluable to me since then,” he said, adding, “What is really awesome is that 34 years later, HMTX’s values and culture very much align with that of The Home Depot’s.” Succeeding Throughout the Customer Experience Halstead employs every medium available to create the “seamless” customer experience Anderson describes so passionately. In addition to offering written product and installation guides, the company also hosts detailed videos, offers live chat with installation experts, supports a phone service team, answers emails, and has created a “DIY Genius” social media brand featuring practical information and videos as well as décor and design advice. “It is not enough to only work to drive innovation and product development, although we certainly are doing that on a daily basis,” Anderson said. “You have to bring it all together from the idea and the creation of the product all the way to the sale of the product off the shelves and the execution of that product for customers.” In this case, “execution” refers to the acquisition, installation, and ongoing use of Halstead products in a residential or commercial setting. Anderson explained Halstead’s resources are designed for professionals and DIYers. “I have to keep my eye on the ball so that we are always in alignment with product development when it comes to presenting a value-add proposition to customers that they can effectively execute,” he said. The company prioritizes communication with vendors and customers alike so that all parties can make good decisions about what types of flooring to install and how that flooring should positively affect the ongoing use of the building. “We have a product for every application,” Anderson explained. “The formula for success is, ‘application equals product type plus spec.” One of the things Halstead is particularly proud of, Anderson said, is the level of authenticity in its LVT (luxury vinyl tile) flooring. This type of authenticity costs more to achieve in LVT and LVP (luxury vinyl plank) because it requires the texture of the flooring to match the pattern of the wood or tile pattern exactly. “At Halstead, we invest in EIR (Embossed in Register) embossing plates to create this authenticity,” Anderson said. EIR creates a highly realistic effect that contributes to higher home values as well as more general aesthetic appeal. “With real wood, if you pick up a piece of flooring and there is a knot, you will be able to feel the knot when you touch it,” Anderson explained. “In most types of LVT flooring, the texture will not line up with the image of the knot even if it is scraped or otherwise textured to make it look a little more authentic. Our team realized years ago that achieving this match would be incredibly valuable to property owners by providing a premium flooring look, so we heavily invested in EIR.” Research & Development Sets Halstead Apart Once the authenticity angle had been “mastered,” Anderson said, HMTX Industries began developing a new product it would name Isocore. “Isocore is the proprietary formula of the core of Halstead’s products and comes with a number of advantages over traditional vinyl flooring options,” he explained. The core brings rigidity to the flooring, which creates a more realistic look once the product is installed because it does not “telegraph” (conform) to the underlying topography of the floor. A particularly attractive element of Isocore for contractors is that there is no “weathering” period, Anderson added. “Customers can order and install our flooring immediately rather than waiting for the product to acclimate to the local environment,” he said. Anderson noted Isocore has an excellent track record of resilience post-installation as well, exceeding performances from more rigid products in the market like the near-ubiquitous stone plastic composite (SPC) products available in many markets today. “SPC products have been out in the market for several

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Opportunities in Single-Family New Construction

Be Picky and Find an Ideal Project in an Ideal Area By Mitchell Zagrodnik In the ever-changing real estate investment space, investors are always on the lookout for potential deals that can help them take advantage of the market and get them the best returns on their investments. Throughout the first half of 2024, the market outlook has been persistently stagnant. Rates do not appear to be dropping anytime soon, home prices are rising, and low inventory continues to be a hurdle as demand is outpacing supply. When rates experienced that first big jump back in mid-2022, it was quite a jolt. Eighteen months later, the mindset has adjusted to acknowledge this current environment as the new norm. There is optimism in the market for homebuyers and investors, as new home construction has been more robust than expected at the start of 2024. Housing starts and permits are also headed in the right direction. Overall housing starts are down, but if you look deeper, that is mainly due to multi-family starts being down significantly. The single-family market, however, has been showing consistent signs of improvement. The most recent data from the Department of Housing and Urban Development shows that new single-family building permits have continued to climb for the 13th consecutive month. This shows that builders are actively addressing market need, with an emphasis on building affordable, entry level homes for prospective buyers. Granted, this isn’t going to solve the supply issue overnight, but the takeaway is that single family new construction has been stepping up to help address this ongoing issue. The general consensus is that rates are not likely to drop until late 2024, and increased demand should raise prices on new builds that are starting in the next 3-6 months. Those new builds should then experience rapid appreciation in late 2024 and early 2025 by the time these finished builds hit market. Planning and Experience are Key The recent uptick in building permits over consecutive months showcases that builders are acknowledging the inventory issues for single family homes. This rise also shows an increase in entry-level starter homes, where there has been a significant need, as opposed to the recent trends of new construction projects being more geared towards the non-starter home market. Builders are tackling the need for entry-level homes, with the ultimate goal being to add affordable housing for a target audience of first-time homebuyers and investors with lower capital. With a great game plan and experienced builders onboard, ground up construction projects can offer great returns for investors as well, while addressing the inventory issue we have been experiencing in recent years. It is important to note that new construction builds can not only be difficult ventures for newer investors, but it will also be more difficult to get your loan approved. Most lenders in the investment space are going to require some form of experience when taking on these projects. Any previous rehab project or ground up experience is going to be a focal point when it comes to approval. The more experienced you are the more appealing the terms will be. It can also speed up the process if the plans and permits are already in place by the time you speak to your lender about the project. It is crucial that the lender gets a clear understanding of the scope of the project, and that the builder has completed projects of a similar scale prior. For single family homes, lenders are going to want to see these projects in established neighborhoods and be sure the newly built project will conform to that neighborhood. For example, if the median home value in the neighborhood is $350,000, but the finished product is expected to appraise for $600,0000, that is going to be a difficult deal to get approved. The value heavily exceeds the average for the area, making it less attractive to buyers and therefore riskier for lenders to want to fund. Setting Expectations and Doing Research Experienced fix-and-flip investors know that purchasing an existing property can come with surprises. Existing issues with properties will require repairs and potentially hidden issues like water and structural damage that might not be noticeable upon the purchase. With a brand-new build those issues should not come into play which can be a major selling point when the property is listed for sale. Whether the plan is to sell the property or hold onto it as a rental, the allure of being the first to live in a brand-new home is very attractive to prospective homebuyers. The builder gets a sense of accomplishment for executing their building plan and providing a new, stable home for the buyer as well as the financial benefits since new construction homes tend to sell for more. Especially if you have a great building plan that incorporates cost effective features into the property that can add significant value. It is important to know that even though the reward is often worthy of the time put in, these projects are not to be taken lightly and it is imperative that you can financially afford to take on such an endeavor. As opposed to typical rehab projects on existing properties, upfront costs are higher due to permits, fees, materials and labor. Just like with fix-and-flips and ready to rent properties, not every property is a good investment property. Be picky and find an ideal project in an ideal area that can pay huge dividends. The recent single-family construction trends highlighted here are signs of optimism that the lack of inventory is being addressed and there are existing opportunities. If you are a builder and have a resume of flip projects, maybe it’s time to talk to your lender about new construction deals. If you are someone that has a portfolio of rental properties but have never taken on a rehab project, look to connect with contractors and experienced builders that are working on construction projects and let them know that you are interested

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The Housing Hunger Games

Why Speed Has Never Mattered More By Jason Simpson Anyone keeping a pulse on real estate can likely relate to the famous line from the movie Hunger Games, “May the odds be ever in your favor.” Never has this been truer than in today’s single-family rental (SFR) real estate investment market. As demand for affordable homes surges, investors and individuals alike face extraordinary economic conditions and unforeseen challenges in securing properties. In this high-stakes environment, it seems like a contest, where success hinges on being there first to outpace the competition. The Current Reality of Real Estate Investing The inventory and availability of existing stock homes is dwindling rapidly while prices are scaling to insurmountable heights, and yet competition grows fiercer daily. Taking a few beats back to arguably our nation’s greatest leader, Abraham Lincoln, his wisdom holds true in today’s SFR real estate investment market: “Things may come to those who wait, but only the things left by those who hustle.” Young, first-time homebuyers, primarily in the 18-34 age bracket, vie for entry-level properties priced at a record high of $243,000 in 2023 according to the National Association of Realtors (NAR) and Redfin. With 77 million Americans from the Millennial and Gen Z cohorts hunting and hustling for starter homes, demand has soared to historic levels. Adding to the complexity, investors are also eyeing these affordable properties, with a staggering one in every four homes (26%) in this category now under investor ownership according to Redfin — a trend showing no signs of slowing down. Consequently, the delicate balance between supply and demand has been severely skewed, with active listings across the U.S. plummeting to (nearly) record lows according to the latest Federal Reserve Economic Data (FRED). This inventory scarcity is coupled with historically high prices — $417,500 the current median, also according to FRED data. In addition, FRED data also reveals fewer than half of all (severely low supply) for-sale homes are in the affordable sweet-spot of starter home prices (avg. $215,000). Meaning, precious few starter homes are now also being simultaneously hunted by 77 million young Americans and investors too. Speed Reigns Supreme In this ruthless environment, where competition mirrors the intensity of the Hunger Games, speed reigns supreme. The solution lies in stimulating supply by incentivizing homeowners to “trade up,” thereby releasing more starter homes into market supply. While lower mortgage rates and innovative financing options may offer some help, the immediate imperative is crystal clear: act quickly to secure properties before your competitors do. To thrive, investors must embrace technologies and services that streamline acquisitions. From identifying opportunities to conducting due diligence and crafting offers, every link in the acquisition chain must be fine-tuned for efficiency. By compressing the acquisition cycle and minimizing turnaround times, investors can secure a pivotal advantage. This points to instant listing alerts and access to on-demand inspection resources, creating a rapid-response team ready to secure essential diligence insights and imagery for swift offer decisions. A team on the ground is also essential in optimizing speed-to-offer, especially for remote investors who can’t perform inspections themselves. Without a highly trained (and scalable) team—ready to mobilize as purchase opportunities arise—competitors will dominate and seize the better properties. Readily available financing and offer capabilities are paramount to capitalizing on opportunities, as success in real estate investing boils down to a singular principle: speed. Those who move swiftly and adapt to a shifting market will triumph. Not only is speed to acquisition essential, but speed to fill vacant homes with renters is equally important. Vacancy becomes a crushing element on any investor’s P&L and having resources ready to inspect and rehabilitate a property to put new renters under contract also becomes a key component of speed in your business cycle. A defining feature of today’s real estate landscape is the staggering level of demand for affordable housing, particularly among younger demographics. Millennials and Gen Z comprise a significant portion of the population and are driving the surge in demand for entry-level properties. Often new in their careers, they face student debt and strive to achieve the American Dream of homeownership but are met with fierce competition, limited supply, historically high prices, and interest rates not seen since the first Bush administration. This creates a cocktail of competition for when the limited supply of homes does come open in their price range. Simultaneously, investors, recognizing the potential for lucrative rental returns and low vacancy rates at this high-volume price point are turning their attention to the lower end of the market. The allure of affordable properties, coupled with the promise of rental income or appreciation, has spurred an influx of investment activity. As a result, starter homes once sought after by first-time buyers, are now subject to intense competition from cash-rich investors, further exacerbating the challenges faced by aspiring homeowners. Temper Speed with Prudence and Foresight With these obstacles, agility is key. Time matters and those who hesitate get left behind in the property race. Rushing into transactions without due diligence leads to costly mistakes and missed opportunities. Thus, investors must balance expediency and thoroughness, leveraging technology and data-driven insights to make decisions. Technology is an indispensable tool for real estate professionals seeking a competitive edge. Immersive visual data, advanced analytics, AI, and ML algorithms empower investors to identify opportunities, assess risk, and transact with efficiency and precision. Plus, digital platforms and mobile applications offer seamless access to real-time market data, enabling investors to stay informed and agile in an ever-evolving landscape. Crowdfunding platforms and online marketplaces have also democratized access to investment opportunities, allowing individual investors to participate in projects once exclusive to institutional players. This landscape diversifies capital sources and fosters innovation and entrepreneurship. Nevertheless, amidst the proliferation of technology, it’s essential to remember that real estate investment remains rooted in human relationships and local knowledge. While data and analytics provide valuable insights, they must be complemented by a nuanced understanding of market dynamics, regulatory frameworks, and socio-cultural factors that shape the local

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