Velocity Investments LLC is a private investment firm founded in 2008 and headquartered in Westport, Connecticut. The company specializes in acquiring and managing single-family rental homes across the United States. Here is a brief introduction to Velocity Investments LLC and its business model.
Velocity Investments aims to be one of the premier providers of investment opportunities related to single-family rental homes. The company acquires, upgrades and manages rental homes in attractive locations to generate steady cash flow for investors. It focuses on markets with strong job and population growth.
The typical Velocity Investments property is a 3-bedroom, 2-bath home built after 1990. The company upgrades each home with amenities preferred by tenants, such as granite countertops, new carpeting and fresh interior paint. Professional property managers oversee each home to ensure tenants are satisfied.
Velocity Investments partners with accredited investors to purchase portfolios of 50 or more stabilized rental homes in a target market. Investors can earn an estimated 8-12% annual return from the cash flow and appreciation of the properties. The company handles all aspects of acquiring, managing and selling the homes.
In summary, Velocity Investments LLC provides a turnkey platform for investors to own and profit from portfolios of single-family rental homes across the United States. The company’s fully integrated business model aims to deliver strong risk-adjusted returns over the long term.
Velocity Investments Focuses on Acquiring and Managing Single-Family Rental Homes
Velocity Investments LLC specializes in single-family rental homes as an asset class. The company believes single-family rentals offer investors two key benefits compared to multifamily properties:
1. Preferred by tenants: Surveys show most renters prefer to live in a single-family home rather than an apartment community. Tenants are often families who want more space, privacy and a yard. This strong demand helps produce lower vacancy rates and turnover costs compared to apartments.
2. Upside from appreciation: While apartments rely mostly on cash flow, single-family homes have significant potential for appreciation over time. Velocity Investments acquires homes in neighborhoods with rising home values, allowing investors to profit from both steady cash flow and back-end appreciation when the homes are sold.
Velocity Investments has a fully integrated platform to acquire, renovate, lease, manage and sell portfolios of single-family rental homes on behalf of investors. The company’s team contains real estate experts across each part of the business model, from sourcing homes to managing tenants.
The Company Partners With Accredited Investors to Purchase Rental Homes
Velocity Investments LLC utilizes private capital from accredited investors to purchase its single-family rental home portfolios. The minimum investment is $100,000 to acquire a diversified basket of at least 50 rental properties.
According to the company, key benefits for investors include:
– Hands-off ownership: Velocity Investments fully manages the homes, including renovations, tenant placement and maintenance. Investors have a turnkey rental property investment.
– Diversification: Investors gain exposure to multiple markets and neighborhoods, spreading out economic and market risk.
– Stable cash flow: The rental income, projected to be 8-12% annually, is generated from hundreds of tenants across many properties.
– Appreciation potential: The value of the underlying homes is expected to increase over the long term, allowing for a profitable exit.
– Accessibility: The minimum investment of $100,000 is much lower than directly buying 50 single-family rental homes outright.
Velocity Investments sources capital from individuals, family offices, institutions and retirement accounts seeking passive real estate investment opportunities. The company handles all aspects of acquiring, managing and disposing of the properties.
The Company Has Experienced Management and a Proven Track Record
Velocity Investments LLC is led by an executive team with extensive background in real estate investment and management.
Key executives include:
– Jeffrey Zinn, Managing Director – 25+ years of real estate experience, former executive at Starwood Capital Group
– Michael Finlay, Chief Investment Officer – 20+ years of experience, former MD at Starwood Capital and PCCP LLC
– Gurinder Sangha, Chief Financial Officer – 20+ years of experience, former finance executive at Colony Capital
– Patricia Goldstein, VP of Property Management – 30+ years of experience in real estate management
This experienced leadership team provides investors confidence in the company’s ability to execute its business strategy and manage portfolios effectively.
In addition, Velocity Investments has a proven track record of successfully acquiring and operating single-family rental homes since its founding in 2008. The company has purchased over 5,000 homes on behalf of investors and currently manages a portfolio valued at over $500 million across multiple states.
The Company Focuses on Growth Markets with Strong Economic Fundamentals
When selecting target markets to invest in single-family rental homes, Velocity Investments evaluates several aspects of each area:
– Job growth – Areas with expanding employment and incomes can support higher rents over time.
– Population growth – More residents need housing, supporting demand for rentals.
– Affordability – Lower cost areas tend to attract more renters.
– Supply constraints – Limitations on building new housing increases demand for existing stock.
– Public schools – Areas with higher-rated schools are attractive for families.
– Local economy – Diversified industry base provides stability.
Based on these factors, Velocity Investments is currently invested in major metro areas such as Atlanta, Charlotte, Dallas, Jacksonville, Memphis, Nashville, Orlando and Tampa. These markets offer a combination of steady population and job growth plus affordable home prices.
By targeting economically vibrant metro areas, Velocity Investments aims to generate stable income and strong appreciation potential within its single-family rental home portfolio.
In summary, Velocity Investments LLC is a leading provider of single-family rental home investment opportunities for accredited investors. The company’s fully integrated platform allows investors to benefit from portfolios of professionally managed rental homes across the United States. With seasoned leadership and a proven track record, Velocity Investments remains well positioned to capitalize on demand for single-family rental housing.