Looking for a great real estate investment opportunity? People all over the country are seeking out build to rent opportunities! Find out what a build to rent situation can mean for you in our latest post!
Build to rent is a relatively new term investors use when buying land with the intent to develop. Instead of buying the land, finding the builders, and managing the process all on your own, you can now work with real estate professionals who offer these services in a one-stop-shop. You can choose where you want to build, they type of property you’d like, and a company like Chicago Home Buyers will handle the rest. It can be a great way to take a moderate financial investment and turn it into an income-producing asset that will quickly pay for itself and benefit you for years to come.
How It Works
When working with a company like Chicago Home Buyers, you will be able to choose your plot of land along with the floorplan you would like to build. We work with talented and professional builders who you can trust to give you exactly what you are looking for in less time and for less money than you may think. Because we do so much business with these builders, we are able to negotiate lower construction costs that will ultimately save you money. You will be able to create something where there was once nothing, building wealth and equity along the way. As an investor, building a new dwelling will lower your maintenance and repair costs as opposed to buying an older house and trying to rent it out. You will have to worry about less breaking and you will be able to better ensure your tenants are taking care of the property!
How Long The Process Takes
Depending on the property type and the builder’s schedule, the house can be completed in just a couple of months. This accounts for the permit process, inspections, and miscellaneous things that come up when building a new home. When you work with a company like Chicago Home Buyers, the process can be fast, efficient, and taken care of. The builders we work with understand the end goal and will work tirelessly to get you there.
What You Need To Do
You will need to do your research on the market and location before deciding to buy. While we can provide you with all the information you need, it is up to you to do the due diligence on the property. Make sure it is an investment you are comfortable with, understand, and are excited about buying!
You will also need to market the property for rent which shouldn’t be too hard as it is brand new. Make sure to properly screen all potential tenants so that you don’t wind up with the wrong people living in the house. There isn’t much worse than building a new home, just to have someone in there that will disrespect it. As an investor and a landlord, you should know how to properly screen tenants as well as a number of other tasks to ensure your success. If you feel uncomfortable with any part of the process, consider working with a property manager until you get the hang of things.
When You Can Expect To Receive Your Profits
You will start collecting rent once the property is complete and you have secured high-quality tenants. Before you break ground or sign an agreement to purchase a build to rent property, you have to make sure the numbers are there. Before there is a building on the ground, think how a landlord would, evaluating costs, the local market, and the amount you will be able to charge. There are several formulas investors use to calculate the potential profits from an investment property in Chicago.
Who’s Doing It
Investors all over the world are using build to rent situations to quickly add value to their real estate portfolios. With the trend becoming increasingly popular, these build to rent properties are outperforming older, more run-down house that are being offered up for rent in Chicago. People love the idea of moving in to a new home whether they are renting it or not. Just by creating a new property, you will be able to generate a large pool of potential tenants to choose from.
Your Escape Plan
As with anything, investing in a build to rent property can be a risk. Make sure you have a plan b and are able to sell the house should you not be able to find qualified renters willing to pay the price you need.
Build to rent properties are becoming a very popular investment vehicle for people in Chicago and across the country! We are happy to answer any questions you have about the process!