Build-to-rent communities — is this a real opportunity for brokers?

Ingrid, BTR is absolutely real and it's a significant opportunity. I've done 4 BTR construction loans in the past 18 months. Here's the landscape: Deal size: typically $5M-$50M+ for a BTR community. Larger than most SFR construction loans. Lenders: institutional lenders, debt funds, and some larger private lenders. Not your typical hard money shop. Underwriting: they underwrite the stabilized rental income, not just the construction cost. The exit is usually a permanent loan or a portfolio sale to an institutional buyer. Broker opportunity: the fees are larger (1-2% on $10M+ is significant) but the deals are more complex and the lender relationships are different. If you want to get into BTR, start by finding a developer who's doing it and learning their business. The financing follows the deal.

Daniel — this is incredibly helpful. I have a developer contact who's been talking about BTR. Going to have a deeper conversation with them about the financing needs.

BTR is a great niche for brokers who want to move up in deal size. The relationships are different but the fundamentals are the same. DM me if you want to discuss — we've done several BTR construction deals.