Published on 27, Feb 2023

The STR Market Opens Up With Techvestor

In 2008, Airbnb changed the vacation industry forever by creating a brand new asset class: short term rentals - or STRs. Now, the STR industry is booming in a market when single-family home prices are forecast to drop sharply. The STR global market was valued at $99.38 billion USD in 2021 and is expected to grow at a CAGR of 11.1% from 2022 to 2030.

It’s the perfect time to invest in an STR property. But there’s a lot to know - how to find a property, how to determine which cities and neighborhoods are ideal for STRs, assessing crime rates and nearby amenities like restaurants and shopping, and much more. Once you find a property, you’re often faced with repairs and/or renovations and interior design; then, once it’s ready to rent, there’s maintenance and upkeep, property management, financing, determining if the property is even in a sustainable market …

There’s an answer for all these hurdles, and that is Techvestor. Co-founded by COO Sabrina Guler and CEO Sief Khafagi, former Apple and Facebook employees, this platform utilizes proprietary software that analyzes over 18MM data points and 250 markets each month, taking the guesswork out of STR investment. Techvestor solves the problems of figuring out what to buy, where to buy it, how to finance it, how to operate it, and what realistic growth looks like.

Guler and Khafagi are well-suited to handling this bold new asset class. At Apple, Guler served as an Engineering Project Manager at Apple, where she grew its AirPods product line into a multibillion-dollar revenue stream. And at Facebook, Khafagi - a Forbes Business and Young Entrepreneur Council Member - helped build the second-largest engineering organization at Facebook/Meta from 89 people to over 1,100.

Techvestor has over 100k properties underwritten every month, $37MM raised, and 75+ properties in its portfolio, and while investments are never a surefire guarantee, the company makes it as easy as possible to safely invest in a short term rental property and enjoy financial returns. Techvestor is swiftly accumulating a varied portfolio of STRs across the US and continues to grow along with the STR market.

Guler explains that when starting Techvestor, she and her partner firmly believed that technology could open up passive investments in STRs for a broader segment of society. “Our platform, while state of the art, is no replacement for human expertise,” she points out. “You can have the most incredible tech at your fingertips, but if you don’t know how to interpret its data or understand STRs, then its impact will be dramatically reduced.”

Khafagi agrees. “When we created it, we truly believed that Techvestor could eliminate so much of the guesswork from investments in real estate and STRs in particular. However, we knew that we could never let the platform get ahead of us. Instead, we had to stay in command of it and always analyze what it was telling us. There is no replacement for accurate interpretation.”

Both Guler and Khafagi already had experience with STRs, as both were independent investors prior to founding Techvestor. Thus, they had already gained significant first-hand knowledge about how to identify profitable properties, renovate and style them, manage the properties, and successfully exit these properties. As tech engineers, they both also saw the value in applying cutting-edge technology to the analysis of STR investments.

They also believe in taking no chances, so the decision to invest in a property is backed by the company’s 16-point strategy, which includes uniqueness, seasonality, tax benefits, diversification, and STR-friendly states as well as other crucial factors. Guler adds that simply acquiring the right property is just one step in the process. “Once we bring a property in our portfolio, we have an internal system to plan any repairs and renovations, provide for interior design, property and revenue management, operations, and, finally, an exit strategy.”

An investment property is useless without passive investors, so Techvestor’s leaders set up attractive terms: they receive 100% of tax benefits, have zero liability for loans and lending, and enjoy instant diversification with over 75+ properties. During the first five years that Techvestor holds a property, they receive quarterly reporting and dividends, and the company targets a 7-12% cash on cash annually. After the projected hold period, Techvestor looks to sell the portfolio. It sells properties based on revenue or value, whichever is higher.

Investors also enjoy the Techvestor Owner Stays reward program. “Our investors are invited to stay at any property, at any time of year, for up to 30% off our normal rates,” says Khafagi. “It’s a way for us to thank our investors and give them the opportunity to see exactly what they’re investing in - while they make life-long memories.”

By allowing passive investors to participate in a hot-button market that is continuing to demonstrate measurable growth, Techvestor has truly opened up the STR market for anyone who’s interested in earning passive income. The proprietary software, and (more importantly) the dedicated team behind it, is backed by a solid infrastructure that optimizes every property.

About Techvestor

Techvestor is the leader in passive investments in STRs in the United States. It was co-founded by Sabrina Guler, a former Engineering Project Manager at Apple, and Sief Khafagi, who worked at Facebook/Meta and was a Forbes Business and Young Entrepreneur Council Member. Guler and Khafagi have grown Techvestor’s portfolio to encompass STRs across the United States, resulting in seven and eight figures in commitments and LOIs. In 2023, Techvestor will continue to expand, listing more properties in Southern Florida and other hot markets. For more information, please see www.techvestor.com.