High Demand, Affordable Housing: Matt Ryan’s Model for Real Estate Success
In this episode, we’ll discuss Matt Ryan’s strategy for co-living and developing affordable housing in various markets throughout the US. Matt explains that their focus is on “thesis-driven real estate.” They aim to address significant socioeconomic issues by targeting the 22 to 35 demographic with affordable co-living options. His company, Re-viv, also aims to alleviate gentrification and invests 1% of pre-tax profits back into the communities where they operate. Matt also mentions how they focus on retaining customers by diversifying product types, such as offering traditional studios and bedrooms, and co-living spaces. Learn the importance of real estate as an investment and how it can create wealth and equity by tuning in!
[00:01 – 07:16] Opening Segment
- Introducing Matt to the show
- Matt’s company Re-viv is a real estate private equity firm focused on co-living and community revitalization projects
- They aim to tackle socioeconomic issues and provide affordable housing for the 22-35 demographic
- Co-living reduces friction and competition in up-and-coming neighborhoods, helping to alleviate gentrification
- Co-living is a turnkey model that provides furnished bedrooms and shared common spaces, reducing friction for renters and property managers
[07:18 – 13:02] Re-viv’s Co-Living Model Saves Renters Up to $500 a Month and Builds Community Engagement
- Co-living can save people $200-$500 a month compared to renting a studio or one-bedroom
- Community events and services are provided to create a sense of belonging and engagement
- Finding a market and property involves touch and feel, data analysis, and looking for growth and economic vitality
- Re-viv focuses on up-and-coming needs with good entry prices for value-add renovations
- The purchase price is vital in determining short-term and long-term cash flows and margin of error
[13:03 – 19:36] Navigating Local Regulations and Zoning Reforms in Co-Living Development
- Local regulations and zoning play a significant role in co-living development
- Heavy lift deals involve putting 20-50% of the purchase price back into the deal
- Long-term co-living is strictly a development play with opportunities for renovation
- Diversifying product types to include traditional studios, one-bedroom, and two-bedrooms to retain customers
[19:37 – 25:16] Co-living and micro-housing for millennials and gen Zs
- The trend of people leaving larger cities for more affordable areas cannot be ignored
- Work from home trend has accelerated due to COVID-19
- High-paying jobs are still concentrated in major cities
- Small-scale development, middle market or private equity, and real estate will be attractive over time
- Target tenants for co-living maybe someone in their twenties who works in the service industry or nonprofit workers, teachers, etc.
[25:17 – 34:23] Closing Segment
- Best investment: house hacking
- Worst investment: going into a business that you know nothing about
- Most important lesson: doing the deep dive and thinking about what you don’t know
Quotes:
“Sharing space isn’t always the easiest thing. You want to create a high level of engagement and a high level of sense of community and belonging and kind of work through just some of those issues that people run into from a roommate situation as well.” – Matt Ryan
“As a nation, we’re largely not building enough housing and haven’t been for a very long time.” – Matt Ryan
“Identifying the things that you don’t know or the most risky elements of investing is crucial.” – Matt Ryan
Connect with Matt!
Website: www.re-viv.com
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About our Guest
Matt Ryan
With over 10 years of experience in real estate and construction, Matt Ryan founded re-viv to re-engineer residential and commercial real estate in underserved communities. The company’s mission follows his passions for urban policy, building technology and social impact ventures. “I’ve always been fascinated by this idea of companies that make money while addressing large, socio-economic issues.” Prior to founding re-viv, Matt bootstrapped his first successful company, Elm Energy Group. Elm focused on energy efficiency and contracting services in residential, commercial and historical buildings. Matt is an expert at handling all facets of commercial transactions, including duties as a broker, property manager, and a general contractor. He has demonstrated a strong track record in commercial real estate, boasting a personal portfolio that has achieved a 25+% IRR since inception.