Scalable Real Estate Investing

Adam Stern, the CEO and Founder of Strata SFR, sits down with Mason Klement of Scalable Real Estate Investing to talk about “Building Your Business with Land Developers.”

On the show, they review Adam’s previous business, OwnAmerica, and how it helped him broker large off-market transactions. Eventually, Adam’s clientele demanded more and more build-for-rent deals, so he went directly to land developers and connected bridges that otherwise wouldn’t exist.

That’s how Strata SFR came into being: as a purpose-driven business to connect institutional investors and single-family rental builders and investors. 

On the show, Adam and Mason dive into the details of exactly how the process works with examples of multiple deals, talking about the monetization structure, the timeline for building communities, the differing levels of expertise with people in the BFR (build-for-rent) space, and more.

Adam gives some direct, no-nonsense advice to people interested in getting involved in the SFR and BFR markets, including the importance of networking if you want to function successfully in the off-market: “If I was to give anyone some real advice it’s that there’s no rules to this thing. I work in this space called the off-market, and… it’s a function of your network. It’s who you know, how they see you, and the tools you can bring to them… and you’re gonna find people who want to work with you.”

Additionally, Adam goes on to say, “I think the most important thing in building long-term relationships is putting your cards on the table so people can see what you’re doing and how you’re doing it, so people can decide whether they’re interested.”

Podcast Episode Breakdown

2:05 History of OwnAmerica, Adam Stern’s Previous Business

5:00 How Adam’s Platform Works – Characteristics of Most Deals

9:49 The Monetization Structure: Not Acting as a Principal

13:45 The Target Number of Units Depend on the Buyer and How Adam Prioritizes Deals

18:10 Timeline for Building a Community

19:30 Factors That Could Delay a Deal

20:40 Example of How Adam Earns Money, and Clarifying Details

22:34 The Importance of Having People with Expertise Involved in Deals

24:30 Examples of Novices Converging with Experts in the BFR Space

26:40 How Often Adam Has to Deal with Zoning

28:10 Key Markets for BFR, What to Look For

31:10 What’s Driving the Surge in Demand for Single Family Homes

33:00 How COVID Contributes to the Demand (Does It?)

34:40 How, as a Land Developer, You Would Go About BFR

37:20 Acreage You Should Look For Depending on Your Capital

38:00 Advice Adam Would Give to Anyone in Real Estate

40:05 How to Add Value to Builders

42:30 Who Adam is Looking to Work With and How They Can Contact Him