Strata SFR is a highly specialized brokerage focused on the listing and sale of Single Family Rental portfolios nationwide. Strata has experience in this focused segment going back more than a decade. We have led the disposition of SFR portfolios ranging from less than 10 units to hundreds of units. As a dedicated SFR Portfolio Brokerage, Strata helps owners of multiple property portfolios devise and execute a disposition strategy that results in a highly efficient sale while ensuring maximum value upon the sale is achieved. Read on to learn how Strata can help you with your SFR portfolio.
SFR Portfolio Types
Strata works with SFR Portfolio owners on a diverse array of SFR Portfolio types including:
Who Buys SFR Portfolios From Strata?
The disposition strategy has been developed over more than a decade of packaging, pricing, and selling these portfolios to a diverse array of SFR investors including:
- Institutional SFR Funds
- Private Real Estate Funds
- Professional Real Estate Investors
- Family Offices
- High Net Worth Individuals
What Does the SFR Portfolio Sales Process Look Like?
Strata SFR employs a time-tested process that starts with us working in an advisory capacity for our SFR Portfolio clients and ends with a systematic sale of the portfolio to high-value, targeted investors. The process includes:
- Portfolio Pricing
- Portfolio Packaging
- Creation of a Portfolio Sales Presentation
- Buyer Targeting/Buyer Outreach
- Due Diligence Oversight
- Closing Oversight
What Is An SFR Portfolio?
An SFR Portfolio refers to multiple rental properties–usually Single Family Detached Homes, 2-4 Unit Homes, and Townhomes, sold as a group. A portfolio generally has one operator that is charged with overseeing the management of the portfolio either through a third-party property management firm or directly managed by the owner.
Why Sell Rental Properties As a Portfolio?
When people refer to selling a portfolio, generally, they are talking about selling all homes owned in a single transaction to a single buyer. There are several advantages of selling rental properties packaged as a portfolio vs. one-by-one sales through the MLS or through traditional real estate brokers. Some of these advantages include:
- Being able to sell all homes with tenants in place, without vacating the properties
- Selling all homes without having to do rehabs or renovations on each property
- Avoiding the time and headache of selling multiple properties to multiple buyers
- Reducing the cost of sale including paying higher brokerage fees, rehab costs, and vacancy days
- Ability to do a 1031 exchange into a larger real estate investment
What Are the Different Types of SFR Portfolios That Strata SFR Specializes in Selling?
- Single Market SFR Portfolios
- Multi-Market SFR Portfolios
- Seller Financed/Seller Note Carry Portfolios
- Value Add Portfolios
- Stabilized SFR Portfolios
How do you price an SFR Portfolio?
SFR Portfolio sales are a hybrid of a traditional home sale and a commercial property sale. The pricing and packaging strategy includes a multiple-step process that Strata SFR guides you through:
- Individual property retail pricing, generally done by utilizing multiple Automated Valuation Models (AVMs). This allows an owner to understand the top-end value of each home
- Estimating deferred maintenance and potential Capital Expenditures (Cap Ex) that an end buyer would have to spend in order to maximize each home’s value
- Calculating the As-Is value of each home based on the Retail Value and assumed Cap-Ex
- Identifying the top-end market rents each home can achieve once its value is maximized through renovations
- Calculating current returns vs future potential returns in order to come up with an appropriate total portfolio value