Many investors think about getting into residential rental property. It can be a great way to pay the mortgage on a home and bring in some income while building equity.
So why doesn't everyone do it if they can afford to? Well, first you have to locate the right property. Then you have to finance it. Next, it's time to find the right tenant. And of course, managing rental properties is a job in itself. The whole thing can be incredibly time-consuming.
That's what makes single-family rental (SFR) investing platform Mynd so enticing. My colleague, Marc Rapport, first introduced our readers to this proptech start-up back in June. At that time, the company had a lofty goal of becoming the nation's largest SFR buyer and manager. And now, Mynd has raised $57.3 million from QED Investors in another funding round, bringing the company to a valuation of $807 million.
Let's take a look at what Mynd can offer investors and what this proptech start-up might have in store going forward.
How Mynd works and where it's going
Mynd's founders, Doug Brien and Colin Wiel, set out to make investing in SFR properties easier and more accessible. Their platform helps investors find the right properties to invest in and then assists with financing, purchase, and tenant screening. And if you don't want to manage the property, Mynd also offers property management services for a flat fee.
Investors with multiple properties can keep them organized using Mynd's dashboard for easier tracking and management. And the company's boots-on-the-ground system makes it easy to arrange for local vendors to tend to your properties no matter where you're located. Mynd also provides protections such as rental income and pet protection guarantees, as well as eviction protection.
In June, Mynd and investment manager Invesco (NYSE: IVZ) announced an interesting partnership. Invesco Real Estate was the lead investor in a $40 million financing round. Another exciting aspect of that announcement was that funds managed by Invesco would back Mynd to spend up to $5 billion, including debt, to purchase about 20,000 single-family rental homes in the U.S. over the next three years. Mynd already allows inventors to participate remotely in 25 markets nationwide, and the start-up plans to expand into 15 more over that three-year period.
This is just a brief overview of the services offered. You can get the full picture and see what markets Mynd currently serves, as well as where the company is expanding, here.
The Millionacres bottom line
Mynd is an intriguing platform for investors who like the idea of investing in SFR properties but don't want to deal with all the details that go into home purchasing, financing, risk management, or even property management. The company also removes geographic barriers. It makes sense that Mynd's combination of technology and local professionals ready to mobilize in each of its markets could give the start-up a significant advantage in the SFR arena.
Mynd's plans for accomplishing so much over the next three years are encouraging, as is all the funding and backing they keep acquiring to help get it done. And this latest funding round proves the company is prepared to make big strides in a short time period. If you've considered getting into the rental property game but thought it all sounded like too much hassle, you may want to dive deeper into Mynd and see how the platform aligns with your goals.