Adam Guest-speaks on The Real Estate Experiment

Adam Stern, the CEO and Founder of Strata SFR, talks about the ins and outs of the single-family rental (SFR) and build-for-rent (BFR) markets, and what you have to do to get involved in these burgeoning asset classes.

In this episode, Ruben Kanya of The Real Estate Experiment asks Adam Stern about the growth of the SFR market, what interested parties need to do to get involved in the SFR market, and the ins and outs of both assets.

Strata SFR was built to find build-for-rent opportunities after Adam Stern saw the demand from his institutional clients. As workers flock from big cities to more suburban areas, the single-family rental space is taking off, and there are opportunities in the space that many people are missing because there simply isn’t a network to connect those parties.

When talking about these missing gaps in the off-market, Adam says, “I see this as an opportunity for innovation. Maybe not to disrupt, but at least organize the space into something that’s at least resembling a professionally functioning type of market.”

Along with tips on how to operate in these specific real estate markets, Adam gives some tips on how to stay on top of your game more generally, with the same advice that he gives his sons: “I always talk about the 3 P’s: passion, persistence, and perseverance. Find something you love to do, do it always, and get better at it.”

Podcast Episode Breakdown

The episode is full of helpful tips, interesting insights, and great banter. To find specific points, jump to the time markers below.

2:07 How Adam Got Started in Off-Market Single-Family Rentals During the Housing Meltdown

5:50 Adam Explains the Institutionalization of the SFR Market, Going from “Mom and Pop” Investors to Wall Street

8:34 How Many Units You’d Have to Own to Get Bought Out By Institutional Investors

11:42 Two Things Institutions are Looking for in an Attractive SFR Property

12:57 Why a $10m Portfolio Might Be Worth More Like $8m (Friction)

15:39 Is Selling a Single Property Better Than Selling a Portfolio? Two Examples

19:35 Making Deals That Make Sense for Both Parties

21:18 What Strata SFR Does, Where and Why

22:38 What “Build-for-Rent” Is

25:31 How Adam Got Involved in this Niche

28:20 How the Asset Portfolio Market Developed

31:23 How Adam Monetizes His Transactions

33:32 The Role of Technology in the BFR Space

36:09 Saying No More Than Yes

38:30 The Importance of Focus for Most People

41:05 Adam’s Two Favorite Books

44:00 Adam’s #1 Tip for Excelling Through the Day

46:55 Adam’s Favorite Tool

47:40 Conclusion