Profiting From Efficient Build-to-Rent Strategies w/Brock Holliman
Watch on YouTube!
Or listen wherever you podcast!
Episode Description
Welcome to the Freedom Point Real Estate podcast! Our host Jeremy Dyer invites Brock Holliman to share how his real estate journey got started and how he transitioned from foreclosure auctions and property flips to the build and rent business.
Brock has been in real estate since 2011 when he was in high school. During that time, Brock has successfully completed over a quarter of a billion dollars worth of real estate transactions that include - foreclosure auctions, property flips, wholesales, and now primarily new construction build 2 rent product in various areas throughout the state of Florida. Today, Brock owns roughly $50m worth of cash flowing investment real estate - all built by Brock 1/Brock Homes, his home building company that produces a couple of hundred homes per year. All of his investment properties (and his investors’ properties as well) are managed by My New Rental, his in house property management company. Brock's goal is to meet and introduce as many investors as possible to Florida real estate and to help them build wealth over the long term using his solid team along with a full proof turn key system that Brock has helped build.
CONNECT WITH BROCK HOLLIMAN!
Social Media Handle: @follow.brock
LinkTree: https://linktr.ee/follow.brock
Brock 1 (Construction Company) Website: https://www.brock1.com/
My New Rental (Property Management Company) Website: https://www.mynewrental.com/
Holliman Capital Group ( Investment Company) Website: https://hollimancapitalgroup.com/
Email: brock@hollimancapital.com
CONNECT WITH JEREMY DYER!
Website: https://startingpointcapital.com/
Instagram: https://www.instagram.com/startingpointcapital/
LinkedIn: https://www.linkedin.com/in/jeremydyer
Facebook: https://www.facebook.com/startingpointcapital
Book a Call! https://calendly.com/startingpointcapital/discuss-investing-with-jeremy-dyer?month=2023-12
Summary
Tip #1: Establish Strong Construction Processes
Brock emphasizes the importance of having a high-level person overseeing construction projects and reliable subcontractors. He highlights the necessity of efficient processes to ensure quality, timely completion, and cost-effectiveness. According to Brock, "You've got to have high-level subcontractors that they can trust, or none of this works."
Tip #2: Choose Strategic Locations
Investing in build-to-rent properties requires careful selection of locations with growing populations, job opportunities, and potential for rental demand. Brock advises investors to thoroughly research and analyze demographic trends before committing to a location. He says, "The areas have to match some demographic and check those boxes off."
Tip #3: Secure Reliable Financing
Whether using personal capital or partnering with private money lenders, securing reliable financing is crucial for successful build-to-rent investments. Brock suggests establishing relationships with lenders who understand the real estate market and are willing to provide flexible financing options. He explains, "It's about having good lenders involved. That's a given."
Tip #4: Focus on Efficiency in Construction
Efficiency is key to maximizing returns in build-to-rent projects. Brock shares insights into streamlining construction processes to minimize build times and reduce holding costs. He emphasizes the need for experienced project management to ensure smooth execution. Brock notes, "Our average build time in Central Florida is 67-68 days, which allows us to build a lot more properties with our money."
Tip #5: Mitigate Risks with Proper Due Diligence
Investors should conduct thorough due diligence to mitigate risks associated with build-to-rent projects. Brock advises analyzing market conditions, understanding zoning regulations, and assessing potential challenges before proceeding with a project. He warns against overlooking critical details that could impact investment outcomes.
Tip #6: Build Strong Relationships with Contractors
Building strong relationships with trustworthy contractors is essential for successful build-to-rent investments. Brock emphasizes the importance of collaborating with reliable professionals who can deliver quality workmanship within budget and schedule constraints. He stresses the value of communication and mutual trust in fostering long-term partnerships.
Tip #7: Adapt to Market Conditions
Market conditions can influence the profitability of build-to-rent projects. Brock recommends staying agile and adapting strategies to navigate changing economic landscapes. He advocates for flexibility in pricing, financing, and tenant management to capitalize on emerging opportunities and mitigate potential risks.
Tip #8: Leverage Technology for Efficiency
Harnessing technology can enhance efficiency and productivity in build-to-rent operations. Brock discusses the importance of utilizing construction management software, CRM systems, and digital marketing tools to streamline processes and optimize performance. He highlights the role of technology in improving communication, project tracking, and tenant management.
Tip #9: Prioritize Tenant Satisfaction
Ensuring tenant satisfaction is crucial for long-term success in build-to-rent investing. Brock emphasizes the significance of providing high-quality rental properties, responsive property management services, and fostering positive tenant experiences. He emphasizes the value of proactive maintenance, timely repairs, and clear communication to nurture tenant relationships and minimize turnover.
Tip #10: Stay Informed and Adaptive
Continuous learning and adaptation are essential for staying ahead in the dynamic real estate market. Brock encourages investors to stay informed about industry trends, regulatory changes, and emerging opportunities. He advises embracing innovation, networking with industry peers, and seeking mentorship to navigate challenges and capitalize on growth opportunities. Brock concludes, "I'm trying to help people seriously take the next step in this game."
