Real estate investment brings multiple benefits to a portfolio, but only if investors select properties and subsequently manage them in such a way to optimize return. Purchasing single-family houses or duplexes, for instance, often requires an owner to handle the management needs – either through his or her own sweat equity or by personally hiring and overseeing a property manager.
Other investment opportunities could involve entities without a solid track record or could be located in cities or neighborhoods that aren’t seeing valuation growth or are exposed to other risks.
The build-to-rent segment of real estate, where Redwood found its niche, is the fastest-growing area of the industry. Supported by a growing population that does not seek homeownership or cannot achieve it, build-to-rent neighborhoods offer the feel of single-family living with the maintenance-free approach that turns tenants into long-term residents.
Redwood Neighborhoods are known for their signature two-bedroom, two-bath floor plans that emphasize features proven to add value for residents: Spacious attached garages, large kitchens with pantries and personal patios for outdoor living. These designs enable residents to easily customize their space, creating a sense of home that encourages many residents to lease for multiple years; contributing to neighborhood stability and supporting long-term asset quality.
Redwood investors also enjoy property ownership as a hedge against inflation, with property valuation and rents historically rising along with inflation. In the meantime, there are ongoing tax advantages to owning real estate in addition to an opportunity through the Redwood Equity Program to receive a return of equity during strategic refinances.
By adding passive real estate income to a portfolio, investors can generate a steady stream of income while at the same time positioning themselves for the future with assets that gain value over time.
There’s a strong alternative to those seeking to invest in real estate without the middle-of-the-night calls from tenants and weekends in property manager mode – it’s all about finding the right partner.
To learn more
Redwood is continually developing new neighborhoods in markets chosen for their growth trajectory, favorable demographics and convenient amenities.
To find out more about current deals, upcoming opportunities and Redwood’s unique approach to real estate investment, connect with a member of our Investor Relations team
here.