How Did They Do It?

Aileen Prak of Bonavest Capital sits down with Adam Stern for this episode of the “How Did They Do It?” podcast, which looks at how various people — entrepreneurs, realtors, and other experts — became successful in the industry.

Adam is the Founder and CEO of Strata SFR, a company designed to bring together build-for-rent (BFR) projects with single-family rental (SFR) firms, mostly in the Southeast United States.

In this podcast, Adam goes over his background, identifies the first steps someone should take as a single-family rental investor, provides examples of how investors could enter at different points of the build-for-rent process, discusses how current events have shaped the SFR industry, and talks about his ideal criteria for potential BFR projects.

As a result of the pandemic, many journalists and writers in the media have theorized that people are flowing out of big cities and into the suburbs. As Adam speculates, “What’s happening right now is that, to get ahead of this curve, homebuilders are buying lots more aggressively than I’ve seen in the past, and those rent companies are being more aggressive in suburban areas that are a good fit for single-family rentals.”

Essentially, SFR is growing into a much bigger segment of the real estate industry than ever before, with BFR growing alongside it in an attempt to fill the demand, and Adam Stern can teach everyone in real estate how to better navigate this market.

Podcast Episode Breakdown

1:30 Adam’s Background

  • 1:49 Focusing on SFR Portfolios
  • 2:05 Strata SFR’s Goals and Market Area
  • 2:45 Bridging the Gap Between Most SFR Investors and Institutions
  • 3:48 The One Word People Talk About When They Talk About SFR
  • 4:49 What Investors in SFR Are Looking For

5:35 First Steps

  • 5:37 Platforms You Could Use to Buy a SFR Property
  • 5:55 Platforms You Could Use to Buy Entire SFR Portfolios
  • 6:10 How the Skill-Set for BFR (Build-for-Rent) Differs from Real Estate Investing

7:01 Timeline for BFR / Examples of How To Get Involved as an Investor

  • 7:09 The Two Different Ways People Go About Building New Construction Subdivisions
  • 7:55 Entering At Different Points in the Process
  • 9:17 Explosion of the Construction Business and How It’s Affecting BFR

11:10 What’s Going On With the Current SFR and BFR Industries

  • 11:20 Groupthink in the SFR Industry
  • 11:39 How the Pandemic Fueled SFR
  • 12:13 Adam’s Observations on the Trend of People Exiting Cities
  • 14:17 How the Pandemic Affected Adam’s Projects in Particular

15:10 What To Look For in a BFR Market

  • 15:11 Adam’s Criteria: What He Looks For
  • 16:10 Looking at Largest SFR Funds as Exit Strategies

17:00 Adam’s Thoughts and Plans on Real Estate More Generally

  • 17:01 Adam’s Next Focus: Using Tech to Bridge the “Off-Market”
  • 18:10 How Real Estate Investing Impacted Adam’s Life
  • 18:59 The One Thing Adam Wished He Knew When He Started
  • 19:38 The One Thing Separating Successful and Less Successful People in Real Estate
  • 20:12 What Has Helped Adam Become More Successful

21:00 How To Contact Adam