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Alex Hemani, CEO & President, Ninety Nine Capital

As interest rates drop, will it be less expensive for both SFR investors and retail home buyers to purchase homes, or will the increased demand overwhelm the lower rates and result in more expensive homes?

Well, if you look at the conventional theory – lower rates typically lead to higher prices, right? But, for a period of time, I do see some stability in the future because, with lower rates, you also tend to have more inventory as well. And that’s when the market starts moving. I don’t see prices accelerating too quickly, but they eventually will. What we really should be considering is the effect of stubbornly high mortgage rates.

How are you managing rising insurance costs?

They way we’re able to manage rising insurance costs is going after policies with higher deductibles. Because almost all of Ninety9 Capital’s infrastructure is built in, we can get better deals than retail pricing. We do what we can to address issues and fix things ourselves to avoid filing the type of claims that others have to deal with.

What is the latest AI technology you are trying out?

It may not sound like much, but here at Ninety9 Capital, we’re getting a lot of traction by using’s Zoom’s AI Companion, which not only transcribes our virtual meetings, but also provides a full summary of our discussions. It’s really helped elevate the level of internal communications among the different departments and there’s been much less uncertainty or ambiguity on what the team is supposed to do next.

Have you been looking at adding ADUs to any of your properties?

Honestly, we really haven’t looked into the ADU market seriously at Ninety9 Capital. But we may take a closer look down the road.

How will the Presidential elections change the SFR industry?

Well, there are two distinct possibilities, right? I think under Trump – if he really does begin his mass deportation program – and provided they can pull it off, it will drive up costs immensely. Keep in mind, we’ll all be paying more for materials and especially labor – because minorities are the ones who are doing most of the work. So, under a Trump administration, I believe our expenses will only get higher. But under the Harris administration, things wouldn’t exactly be rosy either. Her proposed plan to offer $25K to first-time homebuyers sounds great as a campaign pledge. But what it’s really going to do is drive up the pricing of available inventory.

How do you see your capital structure change as interest rates change?

I believe that as interest rates fall, you’re going to see a lot of capital come off the sidelines. And that, in turn, will allow investment firms like Ninety9 Capital to raise more money. Right now, with the persistently high interest rates, it’s hard to raise capital. It can be really tough. The whole world of raising capital really does revolve around where interest rates are going.

How patient has your equity capital been?

I’d say my capital equity has been pretty patient. The investors we have here at Ninety9 Capital are all pretty savvy and they know what’s going on. Right now, we’ve never seen rates rise as high as they have in such a short amount of time. But I think our investors are well aware of this and it wasn’t an unexpected development. So, for now, they continue to be patient. They don’t want to have to take a loss or a write-down, so most everyone has remained onboard and continues to be patient.

What is the next market you will be investing in?

For the time being, Ninety9 Capital is going to keep all of our focus right here at home in the Dallas-Fort Worth market. It’s still the most advantageous real estate market you can find. CoStar just came out with a new emerging trends report stating that Dallas is expected to bypass Nashville and become the nation’s No.1 real estate market in 2025. So, for Ninety9 Capital, there is no next market – we already operate in the best one there is.

What has been your biggest money saver in 2024?

With the interest and mortgage rates stuck at such higher levels, I wouldn’t say we’ve found much of a money saver anywhere this year. It’s unfortunate, but it’s true.

What will be the market’s biggest surprise in ’25?

I think the biggest surprise in 2025 is that the mortgage and interest rates won’t be coming down as much as everyone thinks. And that means the housing market won’t be thawing out as much as they’re predicting – I’m just being realistic. I don’t think we’re ever going back to the days of 3-4% mortgage rates. I think the mid-fives are the new normal and everyone is just going to have to make it work.

Tell us about your latest deal.

Right now, Ninety9 Capital has a new 100-unit multi-family property under contract with a really big value-added component. We’re very excited about it because it’s our first ever multi-family play.

Any plans for Christmas break?

That still seems so far away right now. I don’t know if I have anything planned just yet, but that’s really my wife’s department. She’s usually the one who tells me where we’re going and what to wear. I just smile and tag along for the ride!

 

Tyson Schuetze, Founder and Managing Partner, Auben Realty

As interest rates drop, will it be less expensive for both SFR investors and retail home buyers to purchase homes, or will the increased demand overwhelm the lower rates and result in more expensive homes?

On the investor side, we are not sure lowering rates can offset rising operating costs (particularly insurance) and a normalizing market. So, we think impact of reduced rates on investor market will be nominal. Less rate volatility should give more confidence to investors. On the owner-occupant side, we are continuing to see issues with affordability as function of lack of cash reserves need for down payment. Anecdotally, we have heard some investors discuss the popularity of PadSplit by a lack of people who have even rental deposit reserves, let alone purchase down-payment reserves.  

How are you managing rising insurance costs?

We have been proactively diversifying our footprint of operations with mergers and acquisitions. We believe very strongly in midwestern markets like Kansas City as being havens of better affordability for operators and occupants.

What is the latest AI technology you are trying out?

Currently, we mainly use AI to improve the clarity and consistency of our writing. We are exploring other ways to meaningfully integrate into our people-centric business model.

Have you been looking at adding ADUs to any of your properties?

We have been exploring tiny homes and prefab construction for a number of years but have not found the right situations to incorporate them….yet.

How will the Presidential elections change the SFR industry?

Lots of pressures on the industry so hard to say specifically the impact of new president. The concept of owner-occupant down payment assistance is interesting

How do you see your capital structure change as interest rates change? Hopefully better rates will allow us to have more options for better term financing

How patient has your equity capital been?

Our equity capital has been patient because the basis of our investment is midterm to long-term hold periods

The next market you will be investing in is?

We love Kansas City

What has been your biggest money saver in 2024?

We are benefiting from some large economies of scale of having doubled our units under management through acquisitions of other property management companies.

What will be the market’s biggest surprise in ’25?

Not a surprise but we think that rents will continue to normalize as markets work through excess inventory for some types of assets, particularly multifamily

Tell us about your latest deal. We purchased a property management company in Dallas and love that market

Any plans for Christmas break?

My family will be back in the Midwest searching for snow

 

 

Todd Gorelick, Principal, Bridge Homes

As interest rates drop, will it be less expensive for both SFR investors and retail home buyers to purchase homes, or will the increased demand overwhelm the lower rates and result in more expensive homes?

Prices will adjust to higher demand.

How are you managing rising insurance costs?

Our costs have moderated for now.

What is the latest AI technology you are trying out?

Building repair histories for in-place appliances and mechanicals through AI analysis of prior work orders.

Have you been looking at adding ADUs to any of your properties?

No

How will the Presidential elections change the SFR industry?

It won’t.

How do you see your capital structure change as interest rates change?

As interest rates decline, raising equity will become easier.

How patient has your equity capital been?

Very.

The next market you will be investing in is?

Primarily our current markets.

What has been your biggest money saver in 2024?

TBD.

What will be the market’s biggest surprise in ’25?

Major institutional capital investment.

Tell us about your latest deal.

I leased a high performance sports EV with a 0% money factor and $7500 federal credit.

Any plans for Christmas break?

Big family trip abroad.

 

Mahesh Shetty, CEO, ILE Homes

ILE CEO Mahesh Shetty, a visionary who foresaw the potential of residential real estate investments, laid the foundation for ILE approximately four years before its establishment. His collaboration with the veteran investors he had known for many years led to the creation of a robust, operations-driven investment platform. After meticulous planning and countless strategy sessions, ILE was born, a testament to Mahesh's leadership and strategic acumen.

Industry experts and media outlets alike have consistently recognized Mahesh's exceptional leadership. He has been hailed as the top corporate executive in Dallas by DMagazine and was recently honored as a Most Admired CEO by the Dallas Business Journal. In April 2024, his outstanding contributions to corporate governance was also acknowledged with the prestigious Constantine' Connie' Konstans Award for Excellence.

Mahesh’s impactful leadership, vast knowledge, and experience in managing multi-million-dollar projects are widely recognized, inspiring others in the industry.

As interest rates drop, will it be less expensive for both SFR investors and retail home buyers to purchase homes, or will the increased demand overwhelm the lower rates and result in more expensive homes?

Homes will be more expensive since while lower rates will create more inventory of existing homes, pent up demand will far exceed supply

How are you managing rising insurance costs?

Raising deductibles and shopping for pooled alternatives.

What is the latest AI technology you are trying out?

Automating property descriptions for listings; Work order summaries

Have you been looking at adding ADUs to any of your properties?

NO

How will the Presidential elections change the SFR industry?

For the positive  - the consistent focus on housing will augur government efforts to ease supply

How do you see your capital structure change as interest rates change?

Higher debt to value – recapitalizing portfolio to monetize lower rates

How patient has your equity capital been?

Very patient

The next market you will be investing in is?

Carolinas, Phoenix, Vegas

What has been your biggest money saver in 2024?

Cannot think of any

What will be the market’s biggest surprise in ’25?

SFR’s addition to the ODCE funds will increase presence of long term capital

Tell us about your latest deal.

Portfolio acquisition in Atlanta

Any plans for Christmas break?

Family time

 

 

Kathy Fettke, Co-CEO, Real Wealth Network

With a passion for researching and sharing the most important facts on real estate and economics, Kathy is a frequent guest expert on such media as CNN, CNBC, Fox News, NPR, CBS MarketWatch and the Wall Street Journal. She is the author of the #1 best-seller Retires Rich with Rentals, Scaling Smart, and host of two long-running RealWealth podcasts, “The Real Wealth Show” and “Real Estate News for Investors.” You’ll also find her on BiggerPockets “On the Market” podcast as one of several co-hosts. Kathy received her B.A. in Broadcast Communications from San Francisco State University and worked in the newsrooms of CNN, FOX, CTV and ABC-7. She’s past president of American Women in Radio & Television.

Kathy became a certified personal coach through the Coaches Training Institute in San Rafael, California. In 2001, she took the coaching process to television and produced a cable show called “DREAM,” which followed the process of six people going after their dreams over 90 days. Kathy noticed a theme on her Dream coaching show: most people don’t have time for their dreams when they are spending all their time at work to make money to pay the bills. Her show sponsor was a real estate expert and the segments they produced changed her life. After interviewing dozens of real estate millionaires, Kathy discovered their best strategies for creating passive income streams. She and her husband bought numerous investment properties and since then learned the highs and lows of investing that can only come from hands-on experience. She is passionate about learning more and sharing that information with the members of RealWealth and her podcast listeners. Kathy loves the freedom that real estate investing can bring. She is an avid traveler and enjoys hiking, rock climbing, skiing, figure skating and surfing. She lives in Malibu, California, with her husband, Rich. She also has two daughters and one grandson who live nearby.

1. As interest rates drop, will it be less expensive for both SFR investors and retail home buyers to purchase homes, or will the increased demand overwhelm the lower rates and result in more expensive homes?

I believe home prices will increase if rates drop. They will also increase if rates stay the same or even increase. The problem is supply vs demand, not rates. While most people are priced out, there are enough people who can afford the limited inventory that's out there.

2. How are you managing rising insurance costs? 

Insurance costs are low on new builds

3. What is the latest AI technology you are trying out? 

Wizehire for hiring.

4. Have you been looking at adding ADUs to any of your properties?

We have been subdividing and selling lots on parcels that are larger than we need.

5. How will the Presidential elections change the SFR industry? 

Both candidates understand affordable housing is needed so I don't think it matters.

6. How do you see your capital structure change as interest rates change?

Not a problem at this time. We raise equity and then finance construction and long term debt

7. How patient has your equity capital been?

2-3 years for construction before distributions on build to rent.

8. The next market you will be investing in is?

San Antonio

9. What has been your biggest money saver in 2024?

Smaller lot, building sq footage vertical

10. What will be the market’s biggest surprise in ’25? 

Peace on Earth. :-)

11. Tell us about your latest deal.

26 duplex build to rent in North West San Antonio

12. Any plans for Christmas break?

Park City with the fam in one of the homes we built in our subdivision there.

 

Scott Phillips, SVP, Strategic Partnerships, SES Insurance

As interest rates drop, will it be less expensive for both SFR investors and retail home buyers to purchase homes, or will the increased demand overwhelm the lower rates and result in more expensive homes?

Lower interest rates typically increase purchasing power for both investors and retail buyers. However, given current supply constraints in housing stock, increased demand will likely drive home prices higher, potentially offsetting the benefit of lower rates.

How are you managing rising insurance costs?

We're addressing rising insurance costs through multiple strategies:

• Enhancing risk modeling and data analytics
• Implementing stricter underwriting guidelines
• Investing in loss prevention programs
• Working closely with carriers to optimize pricing models.

What is the latest AI technology you are trying out?

• We're currently implementing AI solutions for:
• Automated property risk assessment using satellite imagery.
• Claims prediction modeling.
• Underwriting automation for standard risks.

We're currently implementing AI solutions for:

• Automated property risk assessment using satellite imagery.
• Claims prediction modeling.
• Underwriting automation for standard risks.

How will the Presidential elections change the SFR industry?

We closely monitor any potential regulatory changes that could affect property insurance markets and adjust our strategies accordingly.

What has been your biggest money saver in 2024?

Our investment in automated underwriting technology has significantly reduced operational costs while improving accuracy and consistency in risk assessment.

As an insurance professional, I prefer not to make market predictions, but we're preparing for continued evolution in climate risk modeling and its impact on property insurance.

I plan to spend time with family while ensuring our operations remain fully supported during the holiday season.

 

Ray Mazzie, Managing Partner, Southern Waters Development

Ray Mazzie is a Co-Founder and Managing Partner at Southern Waters Capital (“SWC”) and focuses his time on sourcing and operating SWC’s investment opportunities. Ray graduated from Florida State University with an MBA, a dual degree in economics/political science, is a licensed attorney in the state of Florida, and is a former Gubernatorial Fellow for Governor Rick Scott. Ray has extensive experience working with legislators and within government agencies from his time spent at the FL Department of Business & Professional Regulation, Florida Housing Finance Corporation, and the Florida Lottery. Before entering the agriculture and research space, Ray spent time advising corporate clients on business structuring and transactions which included real estate, asset & business dispositions, among other secured transactions. Ray specializes in fostering collaborative business relationships and strategic partnerships that often emerge at the intersection of business and bureaucracy.

As interest rates drop, will it be less expensive for both SFR investors and retail home buyers to purchase homes, or will the increased demand overwhelm the lower rates and result in more expensive homes? I don’t see a clear path to lower prices, but normalization in price increases will arise via the decrease in materials cost due to the recent drop in construction starts. However, that may be mitigated by persistent inflation in cost of labor, insurance costs, and other operating expenses.

How are you managing rising insurance costs?

We are working with property management groups that have insurance programs and staying away from coastal markets.

What is the latest AI technology you are trying out?

We are using ChatGPT to run different UW scenarios as well as during the due diligence.

Have you been looking at adding ADUs to any of your properties?

No, that’s not a strategy we are currently interested in.

How will the Presidential elections change the SFR industry?

I don’t see those having direct correlation.

How do you see your capital structure change as interest rates change?

We see it mostly in the availability of LP capital and higher initial hurdles for the capital that is available. Additionally, pref equity has become more attractive along with similar products, such as PACE and stretch senior products.

How patient has your equity capital been?

Thankfully, we work mostly with long term focused investors as we enter projects pre-entitlement, so the storm has been more tolerable for them than for most others.

The next market you will be investing in is?

Texas, Austin and Dallas specifically, but we have plenty of work to do in TN, NC, SC, GA, and FL.

What has been your biggest money saver in 2024?

Reducing overhead wherever possible and using more technology wherever possible. We have also focused on working closely with architect and GC groups that have prototype products.

What will be the market’s biggest surprise in ’25?

Rent rates will increase.

Tell us about your latest deal.

We have +1400 units coming shovel ready over the next 6-8 months with 70% of that being MF and 30% BTR. Our first to come to market is SoLiv at Northern Oaks is a 33-acre ground up development project located at 221 NE 35th St. in fast growing Ocala, FL. The project is a fully amenitized ”shovel ready” 250-unit BTR townhome community, featuring multiple 3BR / 2.5BA floorplans for tenants to choose from. Ocala is seeing approximately 269 new residents per week and was the fastest growing city in America in 2023 and is a hub for transportation, distribution, and related industries as it sees 70% of Florida’s commercial logistics traffic.

The property is in a prime location nearby a massive employment hub, wide array of essential businesses, services, recreational activities, the local high school, and a recently renovated Publix anchored shopping center. The Project is located within 6 minutes of the Ocala/Marion County Commerce Park which is home to distribution and fulfillment centers for Amazon, Chewy, AutoZone, FedEx, and an additional 5,000,000 SF of spec industrial space currently in lease up.

The Project is located on NE 35th St. which is being expanded to 4 lanes and is home to the new I-75 interchange, which is under construction and will be home to the nation’s largest Buc-ee’s just a few minutes from the project site. Additionally, the project is located just 3.5 miles from the downtown district and is the largest remaining undeveloped assemblage within Ocala’s city limits.

PROJECT LEVEL RETURNS

Timeline to Close: Q1 2025

YOC Untrended: 7.02%

IRR: 33%            

EMx: 3.39 EMx

Debt Yield: 8.84%

Entitlement Status: Shovel Ready

Units: 250 TH | Build to Rent

Acres: ~ 33 Acres

 

Jeff Cline, Executive Director, Principal, SVN | SFRhub Marketplace

As interest rates drop will it be less expensive for both SFR investors and retail home buyers to purchase homes or will the increased demand overwhelm the lower rates and actually result in more expensive homes? 

The short answer is yes, but the reasons differ. Over the next two years, several factors will shape homebuyer and rental home investor acquisitions. Investor funding costs fluctuate differently from residential mortgage rates, which may lead to varying demand trends as rates decrease. In the SFR investment sector, lenders heavily rely on rents and operating expenses to assess the viability of investments—both of which have shifted significantly post-COVID.

While short-term trends remain uncertain, property values are rising due to limited supply. If interest rates continue to drop and buyers return to the market, the combination of lower borrowing costs and constrained inventory could drive prices even higher.

How are you managing rising insurance costs? 

Insurance remains a critical factor influencing both homeownership and rental investment costs. In some cases, landlords can secure lower insurance rates through bulk discounts for multiple units, further widening the cost gap between renting and owning—making renting a more attractive financial option. From an investment standpoint, we are prioritizing regions less vulnerable to severe weather events, such as hurricanes, tornadoes, and high winds, and are avoiding coastal markets to mitigate risk

What is the latest AI technology you are trying out? 

The impact of AI on rental home marketing and operations has been nothing short of revolutionary. From streamlining property listings with dynamic pricing tools to enhancing tenant communication through AI-driven chatbots, the possibilities are endless. As we engage with clients and homebuilders, it’s exciting to hear about the countless ways AI is transforming the industry. Advanced analytics are enabling better market predictions, while AI-powered property tours and virtual staging are creating seamless experiences for potential renters. On the operational side, automated maintenance requests and predictive maintenance scheduling are improving efficiency and tenant satisfaction. AI is not just enhancing the process—it’s reshaping the rental experience, making it more intuitive and enjoyable for everyone involved. The future of home rentals is here, and it’s powered by innovation!

Have you been looking at adding ADUs to any of your properties? 

Not at this time, but I see great potential for ADUs in the future. They provide affordable housing options for tenants and allow property owners to maximize their space and income. With zoning changes favoring higher-density housing, ADUs could become a key solution to housing challenges. They appeal to diverse renter demographics, from young professionals to multigenerational families. While I haven’t pursued this yet, ADUs align well with the evolving needs of the rental market.

How will the Presidential elections change the SFR industry? 

Each change in administration brings a level of uncertainty, and we hope any new policies will address the needs of both the home rental industry and homeownership. Policies such as tariffs on imported goods, a reduced labor supply, and rising development and construction costs could have significant negative effects, making it challenging for the supply chain, developers, and builders to thrive. If implemented, these measures may not result in a win-win scenario for the housing sector. However, time will reveal their impact. In the short to mid-term, we anticipate an influx of foreign capital into the U.S. market as the new administration focuses on deregulation, which could provide opportunities despite potential challenges.

How do you see your capital structure change as interest rates change? 

Since the onset of COVID in 2020, capital structures have undergone significant evolution, driven by a range of external factors affecting all sides of transactions. These changes have created opportunities for investors, lenders, and sponsors to adapt swiftly to shifting market conditions. Over the next 12 months, we anticipate capital structures becoming even more flexible and opportunistic, given the looming financial landscape. With nearly $2 trillion in commercial paper maturing in 2025—much of it deferred or extended from 2024—market participants are preparing for another pivotal shift. This environment demands a strategic approach to capitalize on emerging opportunities while navigating potential challenges.

How patient has your equity capital been? 

Equity dynamics have been heavily influenced by the rapidly changing markets. In today’s environment, building a truly transparent partnership with equity providers is essential for seizing opportunities and navigating challenges together. Over the past two years, LP equity has exercised notable patience, with minimal capital deployed in the SFR and BFR sectors. As 2025 approaches, we anticipate LP investors to adopt a more aggressive stance, seeking strong sponsors and deploying capital to capture emerging opportunities. This shift will likely coincide with changes in interest rates, evolving market conditions, and the substantial volume of commercial paper maturing in 2025. Investors and sponsors who prioritize collaboration, transparency, and adaptability will be best positioned to thrive in this increasingly dynamic landscape. The upcoming period represents a crucial inflection point for the equity market in the SFR/BFR space.

The next market you will be investing in is? 

Most of our focus has been on the Sun Belt region, which continues to show strong demand. However, we’re also seeing growing interest in the Midwest markets, where there’s clear need and opportunity. While we haven’t made a definitive decision to expand into the Midwest yet, it’s becoming increasingly evident that many investors are beginning to turn their attention to this region. With its more affordable housing stock and steady demand, the Midwest offers a promising avenue for future growth.

What has been your biggest money saver in 2024? 

One of the most impactful cost-saving measures in 2024 has been optimizing Build-for-Rent assets, starting with the entitlement process and continuing through stabilized operations. Streamlining the entitlement process—ensuring zoning, permits, and approvals are secured efficiently—has significantly reduced delays and associated carrying costs. Additionally, we’ve focused on improving efficiencies during construction by leveraging economies of scale, using advanced project management tools, and negotiating favorable terms with suppliers. Once the assets are operational, implementing smart technology and proactive maintenance strategies has lowered operating expenses while improving tenant satisfaction. By taking a holistic approach to optimization—spanning pre-construction planning, development, and long-term operations—we’ve been able to enhance profitability and deliver better value across our portfolio. These strategies not only save money but also position us for sustained success in the competitive BFR market.

What will be the market’s biggest surprise in ‘25 

New capital is entering the acquisition market, targeting scattered assets and built-for-rent properties. After being on the sidelines for several years, this capital has had the opportunity to evaluate most active sponsors and platforms and is now poised to deploy. With a significant amount of debt coming due, sponsors who are unable to refinance or are falling short of their pro forma projections may face the need to sell sooner than expected. While this does not signal real distress, it creates opportunities for those in a position to capitalize on potential deals.

Tell us about your latest deal. 

Our distinctive acquisition and operational platform allows us to effectively 'reverse-engineer' capital deployment, tailoring it specifically to meet the needs of both equity partners and lenders. This flexibility enables us to strategically align capital allocation with the unique requirements of each project, ensuring optimal results. The ability to customize this approach is particularly exciting, as it opens the door to expanding multiple investment pipelines simultaneously, all while meeting diverse capital needs and timelines. This capability not only enhances operational efficiency but also positions us to adapt quickly and successfully to changing market conditions and opportunities.

Any plans for Christmas break? 

For Christmas break, I plan to spend quality time with family and friends, enjoying the festive season together. I'll be making the rounds to visit multiple households, savoring delicious meals at each one, and soaking in the warmth of the holiday spirit. After a day of celebration and indulging in good food, I’ll make sure to wind down with a restful night’s sleep to recharge for the next day of festivities. It’s all about balancing fun, food, and relaxation with the people I care about most.

 

 

Steve La Terra, CEO I TerraLane Communities 

Steve La Terra serves as the CEO of TerraLane Communities (“TLC”), a multi-family development company based in Arizona. He focuses his efforts on the evaluation of new opportunities, portfolio management and investor/partner relations. Prior to joining the company, Mr. La Terra was the Managing Director of Meyers Research, where he was the lead analyst on horizontal apartments opportunities throughout the US. Mr. La Terra’s background includes senior executive and principal-level positions with Acacia Capital Corporation, Apex Capital, Land Advisors Capital, and Paradigm Private Equity Holdings. Mr. La Terra is a Full Member of the Urban Land Institute and has served as the Chair of a National Product Council and as Chair of ULI Arizona. He is currently the co-chair of the Pacific Coast Builder’s Conference Land and Capital Conference. Mr. La Terra earned his finance degree from San Diego State University and his development certificate from the Master of Real Estate Development program at Arizona State University.

As interest rates drop, will it be less expensive for both SFR investors and retail home buyers to purchase homes, or will the increased demand overwhelm the lower rates and result in more expensive homes?

It will be cheaper. The demand will only increase modestly from already high levels.

How are you managing rising insurance costs?

We are doing fewer deals. Insurance rates are so high that they are killing deals.

What is the latest AI technology you are trying out?

I am not expanding beyond ChatGPT and Perplexity.

Have you been looking at adding ADUs to any of your properties?

No

How will the Presidential elections change the SFR industry?

I don’t think the election will have much of an impact. Taxes will likely change, but you don’t do deals because of taxes.

How do you see your capital structure change as interest rates change?

We have to raise more equity because lenders are getting more conservative.

How patient has your equity capital been?

Pretty patient because the future looks brighter than the present.

The next market you will be investing in is?

Austin, TX

What has been your biggest money saver in 2024?

None – everything is more expensive.

What will be the market’s biggest surprise in ’25?

How fast cap rates change.

Tell us about your latest deal.

We bought 62 lots to build single family rental homes in El Paso, TX.

Any plans for Christmas break?

What is a Christmas break???

 

Have your ticket for the cornerstone industry event in single family rentals? REGISTER TODAY - Hosted on December 3-5 at the Fairmont Scottsdale Princess, AZ