EP273: How to Make Extraordinary Wealth with Build-to-Rent Developments

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Imagine this: You’re building an entire neighborhood from the ground up, designed to serve a community.

Sounds wild, right?

But that’s exactly what we’re doing with one of our multifamily projects, and today, we’re giving you the behind-the-scenes scoop so you can do it too.

But first things first—how do you build a successful “build-to-rent” business?

Spoiler: It all starts with finding the right dirt.

Did we know much about construction before diving in?

Well, yes and no. Sure, we’ve knocked down a few walls in our time (hello, fixer-uppers!), but nothing compares to the scale of building an entire community.

In today’s episode, we’re breaking down exactly how we started our build-to-rent development business, where the opportunities lie, and some key advice to help you get started too.

And trust us, we’re not just talking the talk—we’re walking the walk, with years of experience under our belt in multifamily real estate.

Ready to dive into the exciting evolution of real estate? Let’s go!

What Is Build-to-Rent (BTR)?

Build-to-Rent (BTR) communities are popping up everywhere. These are typically neighborhoods of single-family homes or townhomes that are designed for rental purposes. They offer all the benefits of homeownership—without the hassle of down payments, mortgages, or property taxes.

From an investor’s perspective, BTR allows you to invest in income-producing assets right from the ground up. It’s a win-win.

We started in fashion, which is a far cry from real estate development, right?

But actually, there are a lot of transferable skills. Managing fashion lines involves coordinating different pieces from across the globe—just like managing different parts of a large development project. Our secret sauce? Partnering with experienced pros who fill the gaps in our knowledge so we can scale bigger and faster.

How Do We Find the Right Dirt?

It all comes down to demand. We do extensive market research to identify areas primed for growth—because location is everything. And let’s face it, understanding the path of progress is a non-negotiable when it comes to ground-up development.

Why Build-to-Rent Is Booming?

Let’s talk numbers: BTR is becoming the darling of the commercial real estate world.

While its trade volume is smaller than traditional multifamily complexes (around $2.4 billion compared to $311 billion), BTR is growing fast. According to CBRE, BTR transaction volumes have increased by 250%!

Why? People are craving more space, especially in the post-pandemic, work-from-home world. BTR developments are answering that call, offering larger units in suburban markets at a time when everyone is looking for room to breathe.

Why BTR Over Other Asset Classes?

You might wonder: Why BTR? Why not car washes, storage units, or Airbnbs?

Simply put, the data doesn’t lie. BTR projects are seeing significant rent bumps compared to multifamily, and they’ve remained stable—even through the pandemic.

Plus, we prefer to invest in what we know: housing. People will always need a safe, comfortable place to live, and that’s where we come in.

What’s the Timeline for a BTR Project?

Development isn’t quick, but we’ve learned to speed things up.

From pre-construction (which includes land purchasing, civil plans, and city approvals) to breaking ground, the process can take about two years.

Once we start building, it’s another 12 months for horizontal development and 16 months for vertical construction (aka putting up the actual homes). The good news?

We de-risk the process for our investors by securing entitlements and approvals before we even raise a dime.

That means less risk and a quicker path to income-producing assets.

Key Amenities That Attract Tenants

Want to ensure a BTR community thrives?

It’s all about the amenities.

▶️ Think smart home features

▶️ Pickleball courts

▶️ EV charging outlets

▶️ Pet-friendly areas

▶️  co-working spaces.

People are willing to pay more for a home that feels modern, connected, and convenient.

Pros and Cons of Build-to-Rent

Let’s be real—every investment has its ups and downs.

Con – Market Sensitivity.

Pro – High Demand for Rentals.

Con – Longer Development Timeline.

Pro – Attractive to Millennials and Young Families.

Con – High Initial Capital Investment.

Pro – Using Other’s People Money

Con – Regulatory Hurdles

Pro – Higher barrier to entry reduces competition flooding the market. As a passive investor, you won’t need to deal with zoning laws, building permits… this is our job. 😏😏

The Big Picture

It’s Not Just About Wealth, It’s About Impact

With the U.S. short by 4.5 million homes, we’re not just building houses—we’re solving a problem. We’re creating communities where people can feel safe, secure, and at home. And there’s no better time to get started than right now.

Ready to build your legacy? Let’s do this together! Head to www.everythingmultifamily.com and join our FREE community on this exciting journey!