Build to Rent with Builder as your partner or equity holder.

[Satya Ana]

Came across this interesting Build to Rent(BTR) concept. 

Basically.....

You invest the $50k-$60k up front for a single-family build or $100k for a duplex build.

BTR company creates an entity together to own the asset.

BTR company secures lending and builds out the asset over the next 6 months.

Once it’s complete, BTR company refinance out and you get your $50k back + 16% at that point (or $100k + 16%)

You retain 30% equity in the asset going forward (and therefore 30% of the cash flow or profit upon selling)

Exit: 6-7 years once BTR company packages it and sells it to 4.5 Cap rate to Wallstreet. 

So.....

Too good to be true?