Our team leverages interactive technology to manage and oversee projects in multiple markets. Here's a glimpse of our internal system:
After acquiring the 84 Garland (DFW) homes we had to seek additional financing for a portion of the purchase. 40 homes were able to fit into our original Woodforest loan, while the remaining 44 homes needed a new senior debt facility. Prior to the acquisition, our team used 65% LTV in our underwriting assumptions, but due to the decline in the lending environment and rising interest rates after acquisition, our team negotiated long-term stabilized debt at 55% LTV. The 10% difference in debt created a cash gap that needed to be filled. Accordingly, we liquidated 32 of the homes in “as-is” condition in approximately 60 days. The average net sales price per home was approximately $5,000 above our purchase price. This reflects the strong workforce housing market in Garland, TX as well as the skill of our acquisition and disposition team led by John Holland. The ability to generate cash quickly is an often-overlooked benefit to single family rental investing.
Please see the below chart detailing our projected Fund stabilization for properties owned vs properties leased.
The below chart is a snapshot of the real estate market showing the change from peak home value in 2022 to December 2022. Please note the price resilience for MSAs with median priced homes under $400,000 (i.e. Houston, San Antonio, and Dallas). This data helps support the supply/demand imbalance that still exists for workforce housing.
