— Firm also Hires David Guy as Investment Location Manager for the Area —
Irvine, Calif. — September 29, 2015 — HomeUnion, an online real-estate investment management firm, enabling value investing in single-family rental (SFR) properties, announced today that it has added Raleigh-Durham, N.C. to its list of active investment markets. Investors can now find pre-vetted, SFR investment properties in the Raleigh-Durham market on the company’s secure website.
Raleigh-Durham was identified as a prime investment market by HomeUnion’s proprietary model that factors in variables such as home prices, vacancies, historical income trends, employment, local economy and population growth among other criteria. The area offers investors favorable cap rates (the relationship between rental income and purchase price) and a positive economic outlook.
According to a report from Moody’s, the Raleigh-Durham economy features a highly educated workforce that allows for high-value added production; technology clusters centering on private firms and universities; a positive influx of highly skilled and educated employees and, a highly diversified industrial structure. HomeUnion’s “Raleigh-Durham Investment Report” for the third quarter noted that Novo Nordisk is building a $1.85 billion manufacturing facility that will create 700 new jobs and that HCL Technologies, an IT services firm, plans to expand in the area creating more than 1,200 new jobs by 2018. The report also states that the area has maintained a relatively wide, stable, opportunity spread for investors, all of which supports long-term SFR investment in the area.
“Individual investors are seeking alternative investment vehicles that are secure and produce cash; single-family rental investments fill that need,” said Don Ganguly, CEO of HomeUnion. “Raleigh is a solid investment market with an economy supported by local universities and a technology-industry infrastructure. It also features housing stock and favorable cap rates well suited to the SFR investor.”
Once a new market has been identified, HomeUnion hires real estate professionals who have an intimate working knowledge of the neighborhoods, property values and rent rates in order to verify the investment potential. HomeUnion has hired real estate veteran David Guy, who brings more than 20 years of real estate investment experience in the Raleigh-Durham area, to fill this role. The company, therefore, combines advanced analytics and local expertise before offering any SFR investment property.
In addition to Raleigh-Durham, HomeUnion is actively listing investment properties in:
- Baton Rouge
- San Antonio
- Southern California
Properties in HomeUnion markets generally range in value from $65,000 to $225,000 and are expected to offer annual returns ranging from 6.5 to 14% − depending on leverage. Expected return on investment is based on final purchase price, the amount of financing used at closing, fees, rent and expense projections. Appreciation is not considered in the calculations.
HomeUnion’s investment site allows individuals to invest remotely in single-family real estate, an asset class that was previously not available to the individual investor. With HomeUnion’s guidance, investors choose a property from HomeUnion’s database of vetted investments that best fits their investment needs (income generation, growth or balanced). HomeUnion manages the acquisition for the owner and then handles the ongoing management of the property. The site has been operational since May 2014.
HomeUnion is an online real estate investment management firm, bringing value investing to the individual investor in single-family rental (SFR) properties. Based in Irvine, Calif., it provides all the services needed for individuals to invest remotely in SFR properties. The company uses a combination of data-driven proprietary analytics incorporating over 120M homes and 200,000 neighborhoods, delivering its solutions to an on-the-ground infrastructure currently serving 20 locations and expanding. HomeUnion’s role spans the lifecycle of the investment transaction: from identifying sound investments; handling all aspects of acquisition; maximizing income; protecting asset value; and selling it when the time comes.