Today’s REI Classroom Lesson

Adam Stern discusses different exit strategies that are available for rental property owners to utilize.

REI Classroom Summary

From a local to national level, there are opportunities out there for you as a real estate investor with rental properties, as Adam Stern explains.

Listen to this REI Classroom Lesson

Real Estate Investing Classroom Show Transcripts:

Mike: Welcome back to the FlipNerd.com REI Classroom, where experts from across the real estate investing industry teach you quick lessons to take your business to the next level. And now, let’s meet today’s expert host.

Adam: Hi, this is Adam Stern, President of OwnAmerica. Welcome to the REI Classroom. I am your host for this session, where we’re going to be talking about exit options for single family property owners. I’m sorry, exit options for rental property owners.

Mike: This show is sponsored by PassiveRental.com.

Adam: So look at it in this way. OwnAmerica, my company, has been in this industry for the entire time that the SFR or single family rental industry has been institutionalized. So I could talk to you about the options that have been prevalent up until this point, the new options that are available because of the technology that’s been built for the industry, and kind of the lesser known options for rental property owners looking to dispose of their inventory.
So coming from the traditional side, if you own one or a few rental properties, you can go the traditional route. Go to your local real estate broker and see if they’ll take on your listing. Issue with that is not a lot of real estate brokers know how to market single family rental properties. There’s not a mechanism inside of the MLS to speak to the rental rate of a property. There’s not much in the way of information that a realtor could give through the MLS, that talks about the investment value of residential real estate.
But up until very recently, that’s been one of the only [inaudible 00:01:45] for a rental property owner. And [inaudible 00:01:48] that is a choice. You can go to your local real estate agent, ask him some simple questions about if they sold rental properties before, if they have a network of investors that they have garnered and developed over a certain period of time, and you can take your chances and go that route.
Another secondary option for rental property owners is going to local REIA meetings and going to national events geared toward rental property owners. There’s been quite a few of these kind of organizations that have popped up in all the different cities, and that have national conferences. One is obviously REIA. It’s a national organization, the Real Estate Investors Association. They probably have a meeting going on right now in your local city. Good place to meet other investors, people that are looking to sell properties, people that are looking to buy properties, good local resource for you as an owner to go and get to know the local investor community.
We also have national conferences, and you can look online for any number of conferences. I’ll give you a couple here. One is called IMN. IMN Single Family Rental Conference is a national conference devoted to the business of SFR. Everyone from servicers, to owners, to institutional owners, go to this conference in the hopes of either selling their inventory, finding new inventory, or getting services or selling services into the segment.
New conferences have come up by way of companies like the Five Star, companies that . . . Five Star being an organization that dealt in distressed inventory in the past and they just built a single family rental division. And going to a [inaudible 00:03:32] conference, a national conference like that, especially if you’re looking to sell or even buy new inventory, probably a worthwhile endeavor for you to go into.
Lately there have come about new technology platforms that are geared towards selling single family rental properties. You can look online for a number of different companies. I’ll name a couple here. There’s us, OwnAmerica, that specializes in selling single family rental portfolios, or more of a business-to-business platform. We have companies like HomeUnion that are geared more to retail investors selling individual single family rental properties. Companies like Roofstock that are in that same kind of genre of taking stabilized inventory and selling them to the retail investor universe.
So there’s more options for you as a rental property owner that range from going to your local broker and kind of rolling the dice till you get a competent one, to going to local meetings and national meetings to meet other people that are looking for disposition and acquisition opportunities. And now this whole new realm of technology-based disposition services and acquisition services for retail investors that try to create an experience of being able to underwrite and understand large portfolios or individual properties, where you’re getting metrics to better understand the performance of the properties, the performance of the markets that the properties reside in, and all the necessary components to quantitatively underwrite the property to make sure it fits your box, and make a smart investment decision.
So without going too much further into it, if you want to find out more, you could read more about OwnAmerica services, you’ll find our information at the bottom of the screen. And if you want to find out more about different segments, different pathways to selling, Google it. SFR, single family rentals is a key term, single family rental properties, or investment properties. You’ll see a ton of information on this subject, and it’s all out there.
So for right now, this is Adam Stern, OwnAmerica, your host signing off. Thanks a lot for watching.

Mike: PassiveRental.com is your source for turnkey, done-for-you rental properties. If you’d like to be an investor and not a landlord, please visit PassiveRental.com, to learn how to purchase cash flowing, professionally managed rental properties in the hottest rental markets across the country. We can also help connect you with financing for your next property. Invest the easy way today, and get started by visiting PassiveRental.com.
Please note, the views and opinions expressed by the individuals in this program do not necessarily reflect those of FlipNerd.com or any of its partners, advertisers or affiliates. Please consult professionals before making any investment or tax decisions, as real estate investing can be risky.
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Adam Stern
Adam is President of OwnAmerica, a National Real Estate Investment Brokerage offering disposition, acquisition and real estate consulting services to investors from small mom and pop, to large institutions. Through OA, buyers and sellers can connect to real estate service providers to execute on plans requiring both a high level of strategic vision, and boots on the ground execution.