Those of us from older generations remember that when you invested in real estate, you put in a lot of effort to learn about a neighborhood's demographics, crime rates, economic forecast, and dozens of other crucial factors. That was all before you actually stepped foot in the property and tried to envision its possibilities (or lack thereof), and even then, it was hard to make the right decision. The intriguing question about Techvestor, whose proprietary software analyzes over 18MM data points and 250 markets each month, is whether technology really can identify what to buy, where to buy it, how to best finance it, how to operate it, if the property is in a sustainable market, and what realistic growth looks like. While nothing is ever guaranteed in investments, it is hard to deny that with over 100k properties underwritten every month, $37MM raised, and 75+ properties in its portfolio, Techvestor may be giving us the answer: yes – but only when it's backed by the full package.
Techvestor was co-founded by COO Sabrina Guler and CEO Sief Khafagi, who are pioneering a new asset class in STRs, or short-term rentals. Since leaving their engineering careers with Apple and Facebook, respectively, the two have created a company that is quickly building a strong portfolio of STRs across North America. They explain that in starting Techvestor, they were convinced that technology could open up passive investments in STRs for a broader segment of society.
"Let's first say that Techvestor's platform, while state of the art, is not a replacement for human expertise," says Guler. "You can have the most incredible tech at your fingertips, but if you don't know how to interpret its data or understand STRs, then its impact will be dramatically reduced."
Khafagi agrees. "When we created it, we truly believed that Techvestor could eliminate so much of the guesswork from investments in real estate and STRs in particular. However, we knew that we could never let the platform get ahead of us. Instead, we had to stay in command of it and always analyze what it was telling us. There is no replacement for accurate interpretation."
To that end, Guler and Khafagi stand at the intersection of experience and today's innovation. Both executives were independent investors in real estate before founding Techvestors, and they credit that experience with giving them the practical knowledge to identify, redesign, run, and exit STRs in the U.S.' hottest markets. At the same time, Guler and Khafagi are, of course, tech enthusiasts at heart, and they understand how to use it to finetune STR investments.
They also believe in taking no chances, so the decision to invest in a property is backed by the company's 16-point strategy, which includes uniqueness, seasonality, tax benefits, diversification, and STR-friendly states as well as other crucial factors.
"That leads us to the right short-term rental for Techvestor to invest in, but once we bring it into the portfolio, we have internal programs that allow us to plan its redesign, manage the property and its revenue, operate it, and more under the same roof," Guler explains.
An investment property is useless without passive investors, so Techvestor's leaders set up attractive terms: they receive 100% of tax benefits, have zero liability for loans and lending, and enjoy instant diversification with over 70+ properties. During the first five years that Techvestor holds a property, they receive quarterly reporting and dividends, and the company targets a 7-12% cash on cash annually. After the projected hold period, Techvestor looks to sell the portfolio. It sells properties based on revenue or value, whichever is higher.
"We believe that the best marketing of our STRs is done by people who stay in them, and that includes our investors," says Khafagi. "With our Owner Stays, investors can stay at any property, at any time, for 10-30% off normal rates. It's our way of expressing our appreciation for Techvestor's passive investors."
So, will Techvestor's technology redefine how STRs are invested in?
"Techvestor's platform is powerful, no doubt about it," Guler states. "On its own, however, it is simply technology. But, in the hands of an experienced team and backed by a solid infrastructure that strategically optimizes each STR, it is magic."
About Techvestor
Techvestor is the leader in passive investments in STRs in the United States. It was co-founded by Sabrina Guler, a former Engineering Project Manager at Apple, and Sief Khafagi, who worked at Facebook/Meta and was a Forbes Business and Young Entrepreneur Council Member. Guler and Khafagi have grown Techvestor's portfolio to encompass STRs across the United States, resulting in seven and eight figures in commitments and LOIs. In 2023, Techvestor will continue to expand, listing more properties in Southern Florida and other hot markets. For more information, please see www.techvestor.com.
COMTEX_425217338/2757/2023-02-24T04:26:38