By Marc Courtenay
Good news is worth celebrating, and there’s good news for the property management business: A huge increase in residential rental real estate will soon need your services.
As I’ve reported numerous times during the past two years, more and more homes are being purchased for conversion to single-family rentals (SFR). Since the crash of 2008-2009 the number of SFRs soared. In the past six years the big players in the SFR market were multi-billion dollar companies like Blackstone Group (symbol BX). If you were an individual trying to compete you’re chances were slim to none.
Many small investors, myself included, who wanted to buy foreclosed properties and rent them out in hopes of generating more income, were stymied. Before we could make an offer the house was sold. The housing crash had created a plethora of foreclosed properties for the big players. It’s been estimated that institutions spent over $20 billion the past seven years buying over 100,000 properties.
Now the appetite for quality SFR properties is expanding to the crowd-funding arena. I recently caught up with Scott Pickens, co-founder and CEO of Wealth Migrate. This innovative firm is “…the leading global real estate investment marketplace, giving investors direct access to exclusive real estate investment opportunities in premier markets around the world.” Pickens explained that the company makes it possible for millions around the globe to have access to quality real estate opportunities. Pooling the crowds’ funds with their “best qualified partners,” Wealth Migrate endeavors to live up to its name, allowing investment capital to “migrate” towards good deals.
An example of a “qualified partner” is the company’s President Dolf de Roos, best known for his New York Times best seller Real Estate Riches, and renowned for his real estate investing prowess. Dr. de Roos is currently working on his next project, “…balancing all the lessons of traditional real estate investing with the power of crowd-funding to enable investors to create global wealth together.”
Pickens knows what a boon this is for outstanding property managers. In fact, great property managers will directly benefit from the company’s robust growth plans. Pickens told me, “We’re constantly looking for seasoned property managers with a niche [like SFR] and a proven success formula. We look for well-connected visionaries in the field of property management.”
Investors in the SFR space know that investing in quality properties is just the beginning. The most challenging step is attracting quality renters and successfully maintaining the homes.
While organizations like Blackstone and Wealth Migrate concentrate on finding great deals, they can’t successfully keep the residences profitable without a proven process of finding qualified residents. As Pickens told me, “we’re looking for property managers with scale, who know how to take good care of our properties and can grow with us.” He kept emphasizing competence, thinking big, and experience.
The SFR market in the U.S. will only grow hotter. Institutional investors already own about 200,000 single-family homes. SFR properties now make up 13% of U.S. housing supply which is a 9% increase from just ten years
From:: Property Management
