While the news is filled with predictions about the price of single family homes falling dramatically in 2023, the numbers aren’t the same for a different type of real estate asset class: short term rentals, also known as STRs. These are real estate properties that are purchased for the purpose – or at least the primary purpose – of serving as vacation rentals for websites like Airbnb and Vrbo.

While many potential STR investors lack the time and experience to fully immerse themselves into the market, there is one company making it easier: Techvestor. This real estate and technology development firm started off 2023 by initiating its second round of funding for its portfolio of short-term rental (STR) properties. This will offer investors a wider variety of lucrative properties to choose from and profit from when it comes to earning a passive income.

Co-founders COO Sabrina Guler and CEO Sief Khafagi say that the primary reason for the second round of funding is the company’s expansion into the Florida market. This is key, as Florida is a significant vacation destination; in fact, in 2022, over 1 million vacationers visited Florida, a number that is predicted to increase in 2023.

“With this expansion,” explains Guler, “we plan to surpass eight figures in commitments and LOIs generated by our first round of funding. Our newest properties in Florida will be part of our growing portfolio of opportunities for our passive investors.”

Khafagi adds that Techvestor’s proprietary software analyzes over 18 million data points and 250 markets each month to determine how, when, and if an investment should occur. “Our first round of funding capitalized on the growing popularity of STR properties,” Khafagi states. Indeed, the STR market is up from 10% in 2011 to 34% in 2022.

Both Guler and Khafagi agree that the increased popularity – and value – of STR properties is at least partially due to the fact that so many people started working remotely during the COVID-19 pandemic. “After the lockdown was over, people were taking longer vacations, especially since they were often able to take their work along with them,” Guler says.

The growing market allowed Techvestor to build its portfolio of STR properties in more than 10 markets, including diverse locations such as Blue Ridge, Georgia; Scottsdale, Arizona; the Pocono Mountains in Pennsylvania; and now, several different regions in Florida. Khafagi says, “We own the largest portfolio of STR assets. Our technology is key to our success. We’re able to apply a unique algorithm to analyze properties and markets, letting us know what to buy, when to buy it, and where to buy it – plus how to finance and operate it. We can even determine which markets are most sustainable and what realistic growth looks like in different markets.”

Prior to co-founding Techvestor, Guler served as an Engineer Project Manager at Apple, and grew its AirPods product line into a multi-billion dollar revenue stream. Khafagi worked as an engineer at Facebook/Meta and helped build the second-largest engineering organization there, growing it from 89 people to more than 1,100. While working as engineers, both privately invested in STR properties and experienced so much success that they decided to pursue real estate full time.

Now, Techvestor has successfully exited 8 times with an average IRR of 42%. “We see great things ahead of us,” says Guler. “It’s easy to see Techvestor becoming a billion dollar aggregate fund with over a thousand properties.” She adds that the Techvestor team is enthusiastic about moving into the Florida market and is currently analyzing potential properties in Tampa, Clearwater, Panama City Beach, and West Palm Beach.

“We are also heavily investing in R&D to make sure we have the right resources and boots on ground,” Khafagi says. “Our goal is that through this process, we can quickly ramp up our newest STRs and meet our deadlines for listing them.” He adds that current research supports the company’s decision to equip properties with desirable amenities like fire pits, murals, indoor/outdoor games, playgrounds, and beach gear.

“We have a strong desire to make our properties stand out,” says Guler. “We’re committed to putting in all the hard work so our investors don’t have to, and that includes everything from locating the right properties to financing them, renovation and repair, interior design, finding top-shelf property managers, and listing the properties for rent. We handle every detail and we take pride in creating a superior experience in each property.”

General Partner and Head of Capital Markets Sam Silverman says “We’re excited to continue partnering with investors and fund managers to create a more accessible approach to a historically hard to reach asset class. Our business is dependent on the investor experience and we prioritize it every day” 

Khafagi agrees and says that every Techvestor property is designed to reflect the integrity of the brand. “We oversee everything, down to the smallest detail, before a guest every steps foot in one of our vacation properties,” he says. “That means gorgeous accent pillows. Every light bulb working property. Every switch, each washer and dryer, the hot water, the water pressure, the bedding and linens, the paint on the walls – absolutely everything. This identifies our properties as being the ideal vacation destinations and promotes our brand without us saying a word.”

Website: https://techvestor.com/

Contact Sief Khafagi at [email protected]