Traditionally, there has been a lack of options for investors to diversify into real estate without any experience in the field. With the majority of real estate investors investing in properties within a 20-mile radius of where they reside, most markets are not conducive to producing their expected returns. And most investors never take the leap out of fear of getting in over their head.
By evaluating its assets with compressed risk in mind, Capaven enables investors to invest in long-term rentals or lease options by focusing on stable mid-range returning assets. The company identifies the tenant or option holder first and allows them to select their property from pre-underwritten inventory. Capaven then pairs the tenant and property with one of the company’s investors.
Lauren Taylor, Capaven’s founder, said this provides the tenant with more stability and satisfaction by offering them more options than they have elsewhere.
Many investors don’t have the time to manage their own properties and need a solution to capitalize on the industry without all of the headaches. Capaven controls this process by underwriting the tenants first on their net income, selecting only well-qualified and stable candidates. The strategy of using net income is not just a benefit to the investor, but an education process for the tenants.
“We are in the business of preparing our clients, by telling them what they can actually afford. There is a disparity in this industry of mortgage companies and others setting the consumer up to fail, by putting them in properties they technically cannot afford. The process takes more time, but we want our investors and tenants to win,” Taylor said.
For Capaven’s investors, the tenants will move in after the property is purchased to provide cash flow for the investor faster and more effectively, putting them in a position to start earning cash flow from day one.
“These things, coupled with our underwriting strategy and strong focus on utilizing experienced real estate experts, ensure that our asset selection is unlike any other,” Taylor said.
“The primary issue is that buying a property, renovating and then waiting for it to perform can affect the returns, as well as being stressful on the investor,” she added. “This is an antiquated model in terms of an individual. With rent demand constantly growing, investors need not expose themselves to the unnecessary risk that comes with using this tenant placement process that was built for companies with more assets and diversified risk.”
Capaven’s investors get excited about the thorough vetting process for its tenants and they rely and trust the company’s experienced market experts in their prospective markets. The start-up company was founded in January 2017 and is out to prove that providing great returns doesn’t have to be at the expense of the consumer. Capaven’s goal is to improve the real estate industry by educating the consumer and client, centering on changing the dynamic of the tenant and landlord relationship for the better.
Taylor said Capaven will be expanding and offering its investors more options in the top real estate markets. “We will use this platform to create more opportunities for consumers to achieve their goals of home ownership or give renters better, more stable homes to live in,” she said.
Why did you create this company?
"After working with local investors, institutional funds, and investment companies, I wanted to create a company that would solve issues for not only the investors but for the public as well. I feel there is an opportunity to put the power back in the hands of local expertise, allowing us to take the time needed and focus on quality investments and great experiences for consumers.”