Published on 17, Feb 2023

Techvestor, the Leader in STRs, Will Kick Off 2023 with Its Second Round of Funding

If you believe the pundits, your chances to invest in real estate are shrinking. There is, after all, only so much available property still left. While there may be some truth to this, it doesn’t account for creativity and vision. As COO Sabrina Guler and CEO Sief Khafagi, the co-founders of Techvestor, are showing that when you have both, you can find new opportunities where none were assumed to exist. With their proprietary platform that analyzes over 18MM data points each month, Guler and Khafagi are able to identify what, where, how, when, and if an STR investment should occur. A successful first funding round led to over $37MM raised, 75+ properties in Techvestor’s portfolio, and the capability to underwrite more than 100k properties monthly. Now, with 2023 approaching along with Fund 2, Techvestor is preparing to acquire more STRs that will allow investors to earn passive income and some great memories along the way.

History of Techvestor

To understand how Techvestor became an investment platform, you must first start with Guler and Khafagi. 

Guler worked as an Engineering Project Manager at Apple, developing extensive expertise in business and technology and growing the AirPods product line into a revenue stream worth multiple billions of dollars. While this career path was fulfilling, she had also developed a significantly profitable side business: investing in single-family homes and renovating them into AirBnB rental properties.

“I have a fascination with architecture and home design,” Guler shares. “This opportunity allowed me to flex myself creatively, which is the very aspect of the business that causes many to hesitate when it comes to investing.” She explains that as she began to see success with this investment sector, she had friends interested in participating; but they were reluctant, due to the complexities involved. 

“There is a lot to be aware of,” Guler says. “You must choose the right property, choose efficient and attractive renovations, apply interior design and furnishings, and get the property to the point where it’s generating profit, not just revenue. It’s an exciting source of potential income, but many are overwhelmed by the details.”

Guler had a vision of creating a business that would apply the latest technology to streamline the process, making it more accessible. She partnered with Khafagi, who had experienced great success at Facebook, growing its second-largest engineering organization and expanding that team from hundreds to over thousands. They both knew that building the right team was going to be the most important thing they could do to ensure the success of Techvestor at scale. 

“People are the most important backbone of our business.” says Khafagi. “We realized early that in order to scale, it wasn’t money or product - it was people. This industry is incredibly early, and there isn’t a lot of definitive, experienced talent. We were incredibly selective in building our team today that includes key team members from places like Vacasa, Dr. Horton and even as the industry calls him, ‘the airbnb data guy’ as a part of our team.”

The Strategy

Guler says that the key to Techvestor’s success lies in two factors: its team and its software platform. The process of acquiring a home, designing and operating it is hard to do at scale, so she sat down with Khafagi and created a plan for how short-term rental properties are identified and managed, and they counted 4 key exit strategies.

“We got really specific and designed a 16-point strategy for analyzing the potential of both a property and its location,” Khafagi states. “We think about seasonality, tax benefits, diversification, STR-friendly states as well as other crucial factors that drive the highest yield.”

Guler and Khafagi also ensured Techvestor was vertically integrated. From acquisition, design, property and revenue management, everything is in house, and it shows in the performance of the assets. In one market, the company holds 4 of the highest ranking homes. 

Techvestor’s software was designed to pinpoint the right properties to be added to the company’s portfolio. Khafagi explains that its proprietary assumptions mean they know what to buy, where to buy it, how to best finance it, how to operate it, if the property is in a sustainable market, and what realistic growth looks like. “It’s not rocket science, but you have to remember that 99% of other operators in this space aren’t thinking about it like this.” 

Techvestor’s Cutting-Edge Software and Strategies

Techvestor is accomplishing the goals that Guler and Khafagi have set out for it. The company has successfully exited eight times and is beating its revenue projections 96% of the time. “Our homes are more than outperforming in some cases. Some as much as 2-3x the average property in the market,” Khafagi states. Their goal is for Techvestor to become one of the largest institutional STR operators in the world. 

Stress-free Passive Income for Investors

Techvestor’s 16-point plan, ability to handle all aspects of running and exiting properties in-house, and innovative rental platform have led to 7 and 8 figures in commitments and LOIs for the company’s STR portfolio. 

“We have a realistic, effective approach to identifying, renovating, operating, and exiting STRs (when needed), and it’s resulting in great results for our investors,” Khafagi says.