“There is a lack of new builds in America which has been fueled by labor costs as well as high material cost, so just getting projects done has been challenging,” Robert Greenberg, chief marketing and technology officer with Patch of Land, explained.
“We are seeing a lot of investors shifting to a buy to rent strategy. We are still seeing a healthy fix and flip business, but in addition to the fix and flip business, we have added the long-term rental business which is now about half our business,” he added.
Greenberg highlighted that in the fall of 2019, prior to the onslaught of the pandemic, Patch of Land had introduced the long-term rental program to its business. Interest in the long-term rental side had already generated considerable buzz from investors which only intensified during the COVID pandemic.
“The pandemic did bring us a host of challenges and changes, but in relation to market dynamics it has really been favorable for our business and for the whole industry,” Greenberg pointed out.
Addressing the rental squeeze
While fix and flip options remain a favorable option, Greenberg explained that for many investors the types of properties investors are interested in are geared towards residential properties to restore with the intent to rent out once the project is completed.