HomeUnion, an online real estate investment management firm specializing in single-family rental (SFR) investment properties for the individual investor, has launched an investment management website that acts as a SFR marketplace and gives investors access to HomeUnion‘s end-to-end services. This allows individual investors to more effectively identify and invest in single-family properties in various parts of the U.S., without the hassles of being a landlord.
HomeUnion also significantly expanded its offerings by adding new analytics, customer support services and additional investment locations. Currently, HomeUnion operates in 14 markets that it believes offers the greatest potential returns to investors. It expects be in a total of 25 markets by the end of the year becoming the largest online marketplace of its kind in the United States.
HomeUnion chooses its markets and properties using proprietary computer models and algorithms. It also relies on the input of on-staff, local market experts, who have an intimate working knowledge of a particular real estate market. The factors involved in the choosing of markets include home prices, rents, vacancies, historical trends, employment and population growth.
“For the past two years, we have been piloting our real estate investment management program in a limited number of markets: fine-tuning our models and asset management practices so investors can find and buy properties based upon their preferences, without having to become hands-on landlords,” said Don Ganguly, cofounder and chief executive officer of HomeUnion. “We can now offer individual investors the efficiency and simplicity enjoyed by institutional-level SFR investors. These services include identifying markets, neighborhoods and properties chosen for best cash flow; professional, fully-outsourced, turnkey property management; online analytics for selection, acquisition and full reporting with transparency throughout the life of the investment.”
The company said, the properties range in value from $65,000 to $225,000 and are expected to offer annual returns ranging from 6.5 to 16%. Expected return on investment is based on final purchase price, the amount of financing needed at closing, fees, rent and expense projections. Appreciation is not considered in the calculations.
“In 2013, more than one million single-family homes were purchased as investment properties—three quarters of them by individuals, according to CoreLogic,” said Ganguly. “Our company’s mission is to make this new asset class more accessible to individuals looking for greater yield and return but who don’t want to be hands-on landlords.”
Specifically, HomeUnion helps individual investors:
>> Understand the cash-flow potential of alternative investments in SFR properties by projecting future returns based on the cash-flow and leverage.
>> Select individual properties and/or build mini-portfolios across stable markets.
>> Buy properties, including help in obtaining financing.
>> Overcome the challenge of remote property ownership by providing end-to-end rental and property management services.
>> Monitor actual investment returns, via detailed monthly reports.
>> Help investors sell their properties.
Ravi Renduchintala, co-founder and chief operating officer of HomeUnion added, “We are using data, analytics and the reach of the Internet to level the playing field between institutional and individual investors, giving individuals the same turnkey, high-return, low-risk investment options enjoyed by large investors.”
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