Sief Khafagi

Sief Khafagi [Live Link]

Published on 27, Feb 2023

Short Term Rentals Made Accessible by Techvesor

Real estate is a complex and varied industry that can make or break an investor. It’s a massive field - the global market value is over $4 trillion USD for 2022 - and a thorough understanding of the market is nearly impossible without years of education and experience. Then you add in the current conditions - home prices, which have skyrocketed for several years, are anticipated to plummet in many US markets in 2023.

This leads to short term rentals, or STRs - a novel asset that has thus far proved to be exempt from the type of price drops forecast for residential housing. The STR market is booming. It started with Airbnb in 2008, which had a market cap of $54.40 billion as of December 2022. 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.

If a casual investor is looking to make a passive income from STRs, it can still be a monumental task. You have to determine what to buy, where and when to buy it, how to best finance it, how to run the property, if the property is in a sustainable market, and what realistic growth looks like. Then you have to think about renovations, home decor and interior design, and upkeep.

But what if a company existed that could make technology work for you? Imagine a digital platform that analyzes the market on your behalf - and is run by a team of dedicated experts who can interpret that data.

Meet Techvestor. The company’s proprietary software analyzes over 18MM data points and 250 markets each month, and the team behind it scrutinizes details about neighbor demographics, crime rates, the overall economic forecast, and many other crucial factors. On top of that, the company also handles renovations, style and design, and keeps things running smoothly. In addition, passive investors are invited to utilize the portfolio of properties at deeply discounted rates for their own memorable vacations.

While nothing is ever guaranteed in investments, it is hard to deny that with over 100k properties underwritten every month, 37MM raised, and 75+ properties in its portfolio, Techvestor is changing the way passive investors earn profits from STRs.

Techvestor was co-founded by COO Sabrina Guler and CEO Sief Khafagi, who are pioneering a new asset class in STRs, or short-term rentals. Since leaving their burgeoning engineering careers with Apple and Facebook, respectively, the two have created a company that is quickly building a strong portfolio of STRs across North America. They explain that in starting Techvestor, they were convinced that technology could open up passive investments in STRs for a broader segment of society.

“Let’s first say that Techvestor’s platform, while state of the art, is not a replacement for human expertise,” says Guler. “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.”

To that end, Guler and Khafagi stand at the intersection of experience and today’s innovation. Both executives were independent investors in STRs and in general, real estate, before founding Techvestors, and they credit that experience with giving them the practical knowledge to identify, redesign, run, and exit STRs in the U.S.’ hottest markets. At the same time, Guler and Khafagi are, of course, tech enthusiasts at heart, and they understand how to use it to finetune 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 shares that this is just the first step. “Once Techvestor decides to acquire a property, our work is just getting started,” she says. “Almost every property can be significantly improved by renovations or at least a redesign. We handle interior decorating and any repairs or maintenance; then, once it’s ready to rent, we handle property management, revenue management, all operations - essentially, we take care of every detail on behalf of our investors.”

Techvestor is committed to the satisfaction of its investors, which is why the team is so passionate about allowing passive investors to be just that - meaning no headaches or complications. In addition, investors enjoy all the benefits of renters at 10-30% off 

normal rates. “Our investors are invited to enjoy our properties with Our Stays,” says Khafagi. “The best marketing for our rentals is done by those who stay in them, including our own investors. They can stay at any property, any time - just our way of saying ‘thank you’.”

The company also offers attractive terms - investors receive 100% of tax benefits and have zero liability for loans and lending. Investors receive instant diversification through Techvestor’s large portfolio and enjoy full transparency from the Techvestor team. “During the first five years we hold a property,” Khafagi says, “investors receive quarterly reporting and dividends, and we target a 7-12% cash on cash annually. After the projected hold period, we look to sell the portfolio, and we sell based on revenue or value, whichever is higher.”

She and Khafagi feel that as powerful as Techvestor’s platform is, on its own, it’s merely technology. It’s only once this technology is in the hands of an experienced team, backed by a solid infrastructure that strategically optimizes each STR, that passive investors really feel the difference.

“We’re here to take the guesswork out of STR investment,” Khafagi says. “It’s stress-free investment at its best in a constantly expanding market with no end in sight.”

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

 

Sief Khafagi
Author
;