Getting straight to the point: it's time we re-think real estate. That's part of the message author, founder, consultant, and investor, Dror Poleg, wants to share with the world. He's gone through the painstaking process of documenting the details of what, why, and how it's time we rethink what we know about real estate. "Rethinking Real Estate: A Roadmap to Technology’s Impact on the World’s Largest Asset Class", is not a book about proptech, per se. It's more about how technology is impacting real estate as a whole. During our interview, Dror discusses more than just the book though. We talk about startups who are getting things right and some that may be missing the boat. We talk trends in tech and funding. And of course, WeWork, wiggled their way into the conversation, but no spoiler alerts from me. Listen in for the details!
There's this constant pressure as a renter to buy, because of equity advantages and potential upside for when you sell. But with that comes committing to living in one house, with a 30yr mortgage, and the expense of fixing the water heater. Ryan Frazier, Co-Founder of Arrived Homes, has a different vision for today's generation. Arrived Homes is building a new model where tenants can rent a home while still enjoying the upside of owning. This model uses a real estate fund. In short, renter's get an opportunity to put up a small investment (first months rent and deposit) and then 7% of their monthly rent through Arrived Homes earns them a stake in a fund to buy investment properties. Those tenants then get to enjoy dividends, so long as they retain their shares in the fund even after they move out of an Arrived Homes property. It's an interesting model, but I think Ryan does a better job explaining it. Listen in.