Rent To Retirement Review (6 months in)

[Brian Choi]

I closed a property with Rent To Retirement about 6 months ago. So far, I'm not having a good experience with them. It's a new build in Florida, and they don't update me with anything. I personally had to follow up with the builder to find out about the progress of the construction. It's been 6 months since I closed, but construction hasn't even started because it hasn't been approved by the city yet. I'd love to know if anyone is building a property in Cape Coral, FL. 

I wish R2R was more proactive for letting me know the progress and give me some updates. 

[Zach Lemaster]

@Chad Kinsley @Brian Choi

Thank you for the feedback.  Brian, thanks for the call this morning to review specifics on where you're at in the process.  Chad, you are welcome to email or call me directly at any point in time as I encourage anyone working with us to do.  As the owner of RTR, it is very important that we are here to assist investors whenever they have questions.  I do go above & beyond to make myself available to anyone who would like to have a conversation.  There are many people that would attest to this that work with us on an ongoing basis.

We always appreciate candid feedback & are looking for ways to improve. I would like to clarify a few items discussed here, especially since this is centered around ground up, pre-construction. It's important to understand what role everyone is playing, and what the expectations are. When you hire a builder we've connected you with, it is important that you are in communication with them directly to get updates on your build. RTR does not provide direct updates on progress of permitting or construction. We work with multiple builders in many locations that all have different timelines and processes to follow. The building team will be the ones you need to be in contact with to get specific updates. We present investment opportunities to investors based on your goals & criteria to connect you with the appropriate teams. That doesn't mean we are out of touch however. We are always available to answer any questions you have at any point in time & provide guidance as needed. We do ask you to be proactive by reaching out to ask questions. It is important that each investor does take some ownership of their investments to oversee how each investment is performing. If you have questions, or there are issues, then please make us aware of them. We are a team of very experienced investors that have navigated many obstacles throughout the process of property ownership & we can help you proactively find solutions. Many of our long term investors have found our team to be vital in guiding them to scale their portfolio over time to achieve their financial goals. This would include all aspects of investing from tax, legal, accounting, financing, 1031 navigation, etc. along with guiding them to find the best investment markets & opportunities in today's dynamic market. We have key professionals in all these areas to allow you to build a sustainable business model following the same processes we have utilized to be successful investors.

It's important to understand that we are not property managers or builders. So it would be important for every person to also stay in constant contact with the teams you are working with to get specific updates. We may not be aware of a specific situation unless you make us aware & we are very responsive to follow up with questions when asked.

Specifically in the pre-construction space, there are many things that need to be considered. Most importantly, is to understand that the nation as a whole is in unprecedented times for construction which leads to delays. This would include supply chain issues, all time high housing shortage leading to a mass construction boom, city offices inundated with permits/heath inspection delays, etc. No one likes to have to deal with these things, but it unfortunately is part of the process dealing with new construction from the ground up. During the permitting process there really aren't any updates to provide if you are waiting for the city office to approve the permit. This may appear as no one is communicating with you, but the reality is that everyone is in the same boat of simply waiting for permits to be approved once the builder submits the appropriate package. We do provide resources to everyone to be able to track their progress online with the city permitting website that we encourage all to review where their property stands. Once the actual construction starts, the builder will be able to provide regular updates with progress along with updating items in their portal through software like builder trend.

Again, I understand everyone's frustration with the ongoing delays that we are all having to patiently wait for (myself included with my own personal builds). It's not uncommon to see 6+ months of idle time before a permit is even approved by the city office to start construction.

Please do not lose sight of the end goal. We do our best to set expectations on all these items upfront, but I would say it's common that many people get frustrated throughout the process of waiting without any update. That is part of the game when dealing with the construction space. However, I firmly believe the end result is still an exceptional ROI when the construction is completed in a market that is growing dramatically in demand for rentals & retail sales.

To be specific, here are some case studies for investors that have seen this process full cycle to completion along with some numbers they've experienced. I'm sure they would be happy to elaborate on their investment overview & answer any questions you have about what to expect.

@Trevor Fleck

1111 NW 20th Pl

4/2 build in SWFL

-all in costs ~$240k, total build time ~15 months

-under contract to sell for $377,500, total gross proceedings of ~$137,500. ROI would be over 300%.

-Initial projected rents $1,800/mo, actual rent $2,500/mo. If held as a rental would produce >20% CoC ROI.

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Another investor w/ a property located at:

2636 NW 4th pl

-All in ~$230K, listed for $399K, multiple offers to go under contract at $415k.Total build time ~ 17 months. This will yield gross profits of $185k (>400% ROI)
*We have many of these case studies to share with investors that have either sold their build, or held it as a rental achieving an exceptional ROI on cash flow or resale.

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@Jordan Wight

Completed a build in central FL that had roughly $30k immediate equity upon completion. I believe the build took just over a year. He also is currently in the build process in SWFL & has gone through permitting.

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Hopefully this adds some clarity about the investment potential after the home is completed along with what to expect throughout the process. I understand no one likes to wait & experience ongoing delays. That is something we all just have to deal with currently in this environment, but I do think the end result is worth the wait. If you are not someone that is up for this long of a process, no problem at all. We are happy to explore construction options that are completed now, or rehabbed properties you can purchase & cash flow from much sooner.

All, please don't hesitate to reach out directly with any questions. As I mentioned, my team is more than happy to speak with you directly about your experience, strategy, or answer any questions you have.