Single-family rental portfolios (100 or more properties as one entity) are an emerging asset class positioned for a long sustainable wave of high yield, risk-adjusted investment opportunities for institutional and retail investors. The high-yield and low-risk strategies of these investments in the US housing market were showing steady returns long before the pandemic and those trends have now been accelerated and gaining momentum. Similar to multi-family and manufactured housing portfolios, single-family rentals add a few new advantages regarding liquidity, acquisition and disposition strategies, diversification, limitation of development risk, and growth. Unlevered (no additional debt) these assets can be underwritten as core portfolio fixed income investments generating above market returns. With conservative leverage as our Rent Safe Growth & Income Fund I promotes, we can offer core-plus risk adjustments with double-digit annual returns projected. A result of technology and legislation has now made these institutional-quality investment strategies accessible to retail investors.
All people and businesses have now been impacted by the global shutdown that began in March of 2020. We have seen some businesses have become more valuable for the goods and services they provide while other businesses have lost appeal and been deemed ‘unessential’ by consumers and or the government. The good news for the US housing market is that just like Amazon or Zoom during the pandemic, the single-family home has risen in value, priority, and importance for just about all US households. Single-family rental properties were a trending and profitable investment before the pandemic, but that trend has now been accelerated by key data and sound fundamentals that suggest the momentum will continue for at least the next 5 years or more across the US. Add in new advances in technology (contactless showings, E-leases, E-pay) inflation, transmigration, work from home, paired with historic low-interest rates, on top of the already historic-low supply of affordable housing in top US markets and we’re in a perfect storm for housing prices to keep rising across the US substantially over the next 5 or more years, relative to the cost inflation and other public market equities. Historically, the value of a single-family home has outpaced inflation more than 2 to 1 and held its relative value better than public market equities during market cycles or financial instability, never has this been more true than today as demonstrated by housing data over the past 18 months. Rent Safe Growth & Income Fund I’s investment strategy allows investors to capture the appreciation of rising home prices in markets across the country as passive investors.
While yields have been reduced in the mature multi-family market and other mature asset classes, high-yield opportunities have emerged in the single-family rental space. Investors, fund managers, sponsors, RE developers, RE brokers are searching for new rental income opportunities for themselves and their clients. Rent Safe, LLC has been formed to organize and present these high-yield, risk-adjusted opportunities to meet investor demand. Would you have wanted the chance to buy Uber, Airbnb, or Zillow shares in their infancy? That is where we view our business relative to the market conditions and demand for the service(s) we can provide. The company will continue to provide new offerings of single-family rental investments nationwide but focused primarily in the southeast US.
Rent Safe, LLC management is comprised of a team of seasoned real estate owner-operators, brokers, attorneys, family office, and institutional advisors who have operated successfully and collectively for many decades on billions of dollars of single-family, multi-family, mortgages and retail projects.