Techvestor, a real estate firm optimizing investment in short-term rental properties, has announced that it's passed on $2 million in cash flows to its investors.
SAN FRANCISCO, Sept. 14, 2023 /PRNewswire-PRWeb/ -- Techvestor, a tech-enabled real estate firm offering a proprietary platform for investment in short-term rental properties, is excited to announce it has passed on more than $2 million in distributions to investors as passive income.
The company, led by co-founder and managing principal Sief Khafagi, Sabrina Guler and Sam Silverman, has booked over 39,000 guests across more than 5,600 reservations. The second quarter of 2023 was Techvestor's highest-performing quarter to date, with all of its key KPIs positively increasing.
"We are just ecstatic that our STR1 fund, which we launched in late 2021, has produced such positive return to our investors who are seeking passive income," Sief Khafagi said. "The value we have added in such a short amount of time has already been recognized by parties of large institutional scale, who have shown interest in the acquisition or build-out of an STR portfolio."
Sief Khafagi elaborated that Techvestor aims to optimize for a balance of Cash-on-Cash and Internal Rate of Return over a long period of sustainable equity growth.
The company has raised over $60M across multiple portfolios and expects to cross over $100M in as. Its occupancy for the second quarter of 2023 checked in at 81%, which is 37% more than the market average of 59%, according to several data sources.
Techvestor also eclipsed market averages in many other key categories for the second quarter, including gross rental revenue (25% higher than their own projections), market rental revenue (69% higher) and yearly revenue pacing versus seasonality (25%).
Sief Khafagi explained that Techvestor had a net operating income of about $1.1 million, with a distributable cash flow of $675,900.
"While we are very pleased with all of the accomplishments we achieved in the second quarter, we are particularly excited by the fact that we drove 25% more revenue than projections," Sief Khafagi said. "We're also pacing well ahead of seasonality, which showcases that there is strong demand for our homes."
As owner-operators, a big advantage that Techvestor has over the market is that it utilizes a strategy of optimizing for revenue and profitable bookings, which is fueled by the fact that the company is vertically integrated and owns the process from the start.
Sief Khafagi further explains that Techvestor is constantly optimizing for the user journey. The company measures and identifies supply and demand metrics of not just travelers but of physical real estate infrastructure. It also analyzes who's traveling and why, how long they plan to stay and what they're searching for, among other key metrics.
The strategy also pays off in terms of being found by prospective renters. According to Sief Khafagi, Techvestor's homes are viewed 2x more in search, plus prospective renters are clicking into their listings 25% more often.
Sief Khafagi describes the next 12 to 24 months ahead as a "meat and potatoes era" for Techvestor, during which the company will focus on collecting cash flow and optimizing yield. The ultimate goal, he said, is to position the portfolio for the best eventual exit and/or hold period, for as long or as short as necessary.
For more information on the company, please visit techvestor.com.
About Sief Khafagi
Sief Khafagi is an entrepreneur, real estate investor, and co-founder of Techvestor, a remote proptech company. With more than a decade of experience in real estate and technology, Sief Khafagi and his team use industry-leading data insights to scale their short term rental portfolio alongside their investors.