fbr Build-to-Rent Communities
Discover the unique investment opportunity offered by FBR Investment Fund’s build-to-rent communities model. This innovative approach involves building a complex of individually-platted SFH properties (townhomes, detached single family homes, or small detached cluster-homes) and renting out all of the units in the neighborhood. This approach combines the advantages of a new SFH development with the long-term benefits of a SFH rental, all within a single investment.
By investing in the project during the pre-build phase, you have the opportunity to build equity in the property and defer taxes on those gains by continuing your investment into the rental holding phase. In addition, you can enjoy passive cash flow from rental income and benefit from property appreciation over time.
build-to-rent communities - multiple advantages
Several Financial Benefits.
In additional to maximized returns, our build-to-rent community model offers passive cash flow, property appreciation and tax benefits.
Regular Cash Flow.
Benefit from monthly or quarterly disbursements generated by rental income. Tenants pay monthly rent, covering property expenses and providing profit for investors.
No-Headache Investment.
Leave the property analysis, construction oversight, tenant search, and rent collection to our experienced team of qualified professionals. We handle every detail of the land acquisition, build, and ongoing rental management, allowing you to leverage our expertise and passively maximize your return on investment.
Cash-Out Refinancing Possibilities.
FBR Investment Fund regularly reviews mortgage loans every three to five years to assess current interest rates and property appreciation. If a cash-out refinance makes financial sense, we can extract equity from the deal and disburse it back to investors.
build-to-rent community development process
Development Location:
At FBR Investment Fund, we meticulously select deals with the highest return potential. Our real estate analysts undertake an extensive review process, evaluating hundreds of properties to identify the most promising opportunities.
Selecting the right lot and location is crucial for the success of a build-to-rent community project. With infill areas we watch for zoning changes that make it possible to construct multi-family structures on lots previously zoned for single-family use. We also look for areas where rental demand is high and housing prices have historically attained strong appreciation over several decades.
Through our well-established industry connections, FBR Investment Fund gains access to off-market deals, allowing us to acquire properties below market value. Our comprehensive due diligence process mitigates risks and maximizes investor returns.
The Property Purchase:
Once our real estate experts identify a winning property, we establish the entity that will hold the property, secure necessary financing, complete all title and escrow documents, and successfully close the deal.
Building the Community:
Our skilled architects design the community tailored to the specific piece of land, meeting the preferences of today’s renters. We start by preparing the land for construction, with strategies that include tearing down distressed buildings within prime infill locations to make way for new communities.
FBR Investment Fund’s properties stand out by offering large living spaces to meet the growing demand for roommate situations and are suitable for large families. By creating townhomes and SFH with three to five bedrooms and at least 3 bathrooms per unit, FBR Investment Fund meets the needs of these market segments.
Our experienced team manages every step of the construction process, ensuring that every detail aligns with our high standards. With our large building team and extensive project volume, we minimize construction time while maintaining exceptional quality. Moreover, our scale allows us to negotiate favorable deals on labor and materials, enhancing return potential for investors.
Transitioning to the Rental Holding Period:
Once construction is complete, we find qualified tenants for each unit and stabilize the property. We then order an appraisal to confirm the value of the newly built community and refinance the loan.
During the rental phase of the investment, investors enjoy regular passive cash flow and long-term appreciation of the asset. Our professional property management team handles day-to-day operations, ensuring a hassle-free experience for investors.
The Option to Sell Your Share:
While the intention of the build-to-rent community strategy is to hold the property for the long term and grow investors’ net worth, FBR Investment Fund offers the flexibility to exit the investment every five years. By selling your share, you can benefit from the property’s new appraised value, as new investors have the opportunity to purchase your share.
Staying in the investment allows you to continue receiving monthly or quarterly disbursements and benefiting from property appreciation. Additionally, by remaining invested, you may potentially recoup a portion of your original investment. Every three to five years, we review interest rates and appreciation growth to determine if refinancing the property and returning a portion of the original investment to investors is viable.
Time Frame of the Investment:
The build-to-rent community project typically spans approximately seven years. The development phase ranges from 18 to 24 months, followed by a five-year rental period. Throughout the rental holding period, investors receive their share of rental income each month or quarter, depending upon the deal. Investor distributions are prorated based on the time of investment.
At the end of each five-year investment period, we order a new property appraisal and provide projected financials for the next five-year hold period. You have the opportunity to review the projections and decide whether to exit the investment or continue for another five years.
Join FBR Investment Fund’s build-to-rent community program and unlock the potential of this lucrative investment model. Contact us today for more information or click the ‘Register | Login’ button below to begin the investment process.