This week a small Tampa, Florida-based builder, ERC Homebuilders, is launching a "soft" IPO, hoping to raise $100 million to build more than 1,000 rental homes across the state. It is offering investors private shares using Regulation A+, a form of investment crowdfunding that allows small companies to raise limited funds from the general public. Accredited and nonaccredited investors can participate.
"It's viewed as an ancillary income stream. We see this as more and more renters may prefer to raise a family or live in a single-family home versus an apartment complex or community or building. And so it is part of our Apartment Living group," Toll Brothers CEO Douglas Yearley said on the company's second quarter earnings conference call last month.
With all respect I would like to bring it to your knowledge that I have found a house for me and my family. As I told you that they are moving to Miami from Pakistan, your apartment is very good but it’s not possible for me to accommodate a family of 5 members in this apartment, I have got a new house on rent in the same area near your house. I would highly appreciate if you clear my all bills and rent. And hand over me my deposit as I have to give it to my new land lord. I shall be really thankful to you.
The only operating expense for landlords is the landscaping. In addition, the rents for single family are growing fast at 4.5% annually now compared with 3% rent growth for multifamily apartments, according to John Burns Real Estate Consulting. There is also much less turnover in single-family rentals, and the rental market is much less volatile than the home sales market.
Real estate in MumbaiFlats in MumbaiFlats for Rent in MumbaiNew Projects in MumbaiReal estate in BengaluruFlats in BengaluruFlats for Rent in BengaluruNew Projects in BengaluruReal estate in HyderabadFlats in HyderabadFlats for Rent in HyderabadNew Projects in HyderabadReal estate in PuneFlats in PuneFlats for Rent in PuneNew Projects in PuneReal estate in ChennaiFlats in ChennaiFlats for Rent in ChennaiNew Projects in ChennaiReal estate in DelhiFlats in DelhiFlats for Rent in DelhiNew Projects in DelhiReal estate in GurgaonFlats in GurgaonFlats for Rent in GurgaonNew Projects in GurgaonReal estate in NoidaFlats in NoidaFlats for Rent in NoidaNew Projects in NoidaReal estate in KolkataFlats in KolkataFlats for Rent in KolkataNew Projects in KolkataReal estate in AhmedabadFlats in AhmedabadFlats for Rent in AhmedabadNew Projects in AhmedabadReal estate in FaridabadFlats in FaridabadFlats for Rent in FaridabadNew Projects in FaridabadReal estate in GhaziabadFlats in GhaziabadFlats for Rent in GhaziabadNew Projects in Ghaziabad
Foreclosures, however, are now few and far between. Distressed properties — foreclosures and short sales ) — make up just 2% of home sales today, down from a high of 49% in March 2009, according to the National Association of Realtors. The regular existing home market is very pricey, so investors are now turning to a new strategy: Buy new. And suddenly, the so-called build-to-rent market is exploding.
"I think that these funds, these investor groups are looking at a cultural move away from your garden apartment with elevators, swimming pools, tennis courts and common areas," Ellenburg said. "Homeownership is looking less desirable to some, particularly in the affordable arena, and they have a chance, for very close to the same price, to rent a three-bedroom, two-bath or a four-bedroom, three-bath home and are able to call it their own."
×