Our mission is to make real estate investing more accessible. 90% of the world's wealth has been built through real estate, but the process has become increasingly harder and more time consuming for the individual investor. We want to help 100,000 people grow their net worth and achieve financial freedom by using one of the highest-yield and most stable methods to do so.
A physical asset.
Real estate is a physical, tangible asset that is in scarce supply. The growth in house supply has decreased to record lows over the past 10 years, with no end in sight. Having physical assets in your portfolio is a hedge against economic uncertainty, as they typically (but not always) perform above market average in an economic recession.
In periods of inflation, real estate has a tendency to hold up remarkably well opposed to fiat investments. Real estate prices rise, income generated from rents grows directly in line with CPI, and the debt used to secure the property depreciates in value. For example, a $10,000 mortgage payment during the first year of a mortgage will remain the same nominally but may well only be worth $8,000 in the tenth year, while the property may have appreciated in value 12%.
Major tax incentives.
Earning tax deductions through real estate investing is a powerful benefit that is rarely realized in other investment classes. Deductions include, but are not limited to:
- Interest on mortgage payments
- Property management fees
- Property repairs
- Property insurance
- Property taxes
- Property depreciation
To highlight a basic example, let's assume you purchase a rental property for $200,000 with a down payment of 20% ($40,000). The annual income of the property is $20,000 with $16,000 in expenses, which produces a net income of $3,000. The depreciation deduction allows you to deduct $7,272 ($200,000 / 27.5 years), leaving you with a net loss of $4,272. Because of this loss, you earn the entirety of the net income generated from the property without paying taxes on it.
Let's say you wish to then sell your property in 10 years for $250,000. Using a 1031 exchange, you can avoid having to recapture the depreciation amount and you can roll the $50,000 worth of capital gains into a new, higher-yield investment property without paying taxes on it.
All this together means that you have the possibility of paying little to no taxes, collected $30,000 in passive income, and rolled over the appreciation into a new investment class that yields a higher return.
You can borrow money to invest.
As opposed to other investments, you can borrow money to invest in real estate. Combined with the appreciation of real estate over time, this effectively allows you to leverage and monetize from low interest rates. This is not possible with fractional or market investing.
Yes, the investor's name is on the deed according to how it was purchased. Once an investor purchases a property with Awning, it belongs to the investor. This means that the purchaser can sell, move into it, self-manage it, hire a property manager to lease it, or renovate it.
This complete ownership also gives the investor advantages over fractional ownership and other real estate investment structures like, leveraged growth, tax deductions, and platform independence.
Before a transaction, an Awning client advisor will work to understand an investor’s strategy and goals to find the best properties.
Then the client advisor sends properties to the investor that fit those goals, until a suitable property is found.
After an investor finds a property to purchase, the Awning advisor will work to come up with a competitive price and terms, coordinate inspections and appraisals, and if the investor needs property management, an Awning certified property manager can be introduced.
The Awning advisor then works with the investor all the way through closing.
After closing, the Awning advisor is available to help with any issues that arise and will work to keep the investor informed about the latest developments in the market.
Yes. Almost all investors purchase remotely through Awning.
The best real estate investments are all over the country in different markets and at different times.
Awning leveled the playing field between individual and institutional investors by putting the same level of data and analysis into the hands of its users on a national scale.
Awning advisors act as local on-the-ground experts walking investors through different neighborhoods so they know what to expect when purchasing a property there.
Awning advisors also take care of coordinating title companies, inspections, property management, and other local parties.
After an investor purchases a property remotely, they may choose to hire a management company.
Awning can provide a certified Property Manager and manage the property handoff along with any information that will help the property manager get it repaired and leased.
The property manager handles the property and the investor just gives occasional permissions, collects income and reviews statements.
Yes, an Awning advisor can work with each investor to coordinate any 3rd party services necessary to find, inspect, purchase, and manage an investment property.
The most common services that Awning helps coordinate include:
- Lending: Awning can help investors shop for rates and terms for financing and refinancing investment properties.
- Inspections: Common inspections include the home, pest, mold, and radon. Awning also sends out roof and foundation experts to get an on-site quote as needed.
- Property management: Awning selects and partners with local property management companies to ensure that if an investor chooses not to self-manage, the property manager takes care of the property once the purchase is complete.
Awning also connects investors with attorneys, contractors, title companies, specialist repairmen, and anyone else that’s needed to complete the transaction and get the home leased.
Awning can fetch them. Investors just need to let an Awning advisor know about their strategy.
While almost every investor is seeking cash flow and appreciation, the strategies they employ to get there are different.
Awning selects the best deals on the market, using both our algorithms and the human review process.
This human review from our advisors allows Awning to customize search criteria and parameters to find the properties that will fit an investor’s portfolio.
Here are some strategies that Awning can help investors execute:
- 1% rule
- 1031 exchange
- New constructions
- Rent by rooms
- Tenant occupied listings
- ADU opportunities
- Fix and flip
- Carbon neutral potential
Many first-time investors speak to our advisors about their goals instead of strategies like: FIRE, check-in-the-mail security, financial freedom, wealth building, and more.
Awning advisors then work with them to craft a strategy based on market conditions to meet their goals.
Properties listed on Awning are not exclusive.
Awning selects and highlights properties in the top 5% of investment opportunities in every market, allowing investors to screen the best deals on a national scale.
So while investor’s could find the properties on their own, Awning is here to build a short-list so investors can search less and earn more.
In some cases Awning can make off-market listings available to our investors directly.
Most properties that get listed aren’t competitive investments, so it doesn’t make sense for them to show up on Awning. Investors looking into a specific area or strategy and not seeing properties should speak to an advisor. Awning client advisors can work internally to surface properties that fit specific investor goals.
At Awning, client advisors make all the difference.
Investors should expect an Awning client advisor to:
- Be licensed and an experienced investor’s agent in their state
- Be an expert on the local market they cover
- Understand the priorities and metrics of different investment strategies
- Explain and answer questions about real estate investing
- Be dedicated and resourceful in helping investors identify and secure a property
Awning advisors work to prevent investors from making a bad deal.
At Awning, investor confidence is important and long-term financial success is beneficial for both parties.
When an investor submits an offer on the Awning website, the investor’s advisor
- Gets an alert and starts drafting an offer letter.
- Schedules a call with the investor to cover offer strategy, price point, and terms.
- Sends a completed offer letter to the investor via e-sign.
- Submits the offer to the listing agent, confirms receipt and gets an expected answer date
- Notifies the investor if the seller accepted or rejected the offer.
At this stage the offer is accepted or rejected. If an offer is:
- Accepted, the advisor works with the investor and coordinates multiple local parties to complete due diligence and get the property ready for closing and leasing.
- Rejected, the advisor works with the investor and dissects the deal to understand why they lost the property and prepares to place offers on other properties.
Good investments in hot markets get competitive.
Most investors are competing with other individual investors, traditional homebuyers, and sometimes even institutional buyers resulting in the number of offers exceeding double digits.
The key to winning an offer is having an excellent strategy and executing it.
Awning makes money as a buy-side brokerage.
For on-MLS transactions, Awning receives the cooperating commission offered in the MLS. For off-market transactions, commission is negotiated between the parties. Any variation in this will be disclosed to you.
Here are some things Awning isn’t doing to make money:
- Referring users to specific companies, instead, Awning asks partners to create special promotions for investors.
- Selling advertising of other services but a client advisor may mention it, just not for money.
- Marking up the services of partners when investors use them. Investors should receive the most value for their money.
- Selling user data or by violating user privacy.
Investors that work with Awning don’t pay hidden fees or subscriptions for using the platform. Awning doesn’t charge a sign-up fee and there is no cost to speak to an advisor.
There’s also no fee to submit an offer on a property and no contract users need to sign to be exclusively a customer of Awning.
Awning receives a brokerage commission when an investor purchases a property. Simple, the way it should be.
Awning is across the nation in the fastest growing, highest returning, and fastest appreciating markets for single-family home investors.
The company is expanding into markets all over the country and it wouldn’t make sense to list every single one here.
Fractional investing companies enable individual investors to buy into real estate with less capital by selling fractional ownership of a larger real estate investment.
Investors that work with Awning instead of fractional investing companies potentially benefit from:
- Aligned financial return priorities: Awning selects the best properties for investors, not internal returns.
- Predictable investment liquidity: Investors that own property always have a large pool of potential buyers, shares in fractional investments don’t.
- Leverage and growth strategies: A mortgage on an investment property gives an owner 5x leverage, owning fractional shares doesn’t provide any leverage.
- Tax advantages: Investors have many tax deductions they can claim and they can defer capital gains tax when they own property, by using a 1031 exchange.
- No platform attachment: Homes purchased through Awning have value with or without the company, Fractional investing companies are required to give fractional investments value.
- Flexible investor involvement: Direct real estate investors can select their level of involvement, fractional investors can only be passive or exit the investment.
Fractional investing offers individual investors some advantages over working with Awning:
- Low initial investment: Fractional investors only need a small amount of money to start, Awning investors need at least $25,000 to start investing.
- Commercial properties: Fractional investors can participate in apartment building and large-scale commercial real estate, Awning investors purchase single-family homes.
- Blame assignment: Fractional investors can blame the company for underperforming investments, direct real estate investors have more individual control over outcomes.
Turnkey real estate companies offer individual investors a property that’s bundled with property management and other services.
These companies save investors time by making the process completely passive, but they prioritize offloading inventory over finding the best investments.
Advantages of working with Awning over a turnkey real estate company include:
- Aligned objectives: Awning gets the best deals in front of investors, turnkey real estate companies prioritize selling existing inventory.
- Inventory variety: Properties selected by Awning represent a significant majority of the real estate market, turnkey real estate companies focus on a specific type of property, which can make all the inventory very similar.
- Clear fee structure: Awning makes money as a buyer’s broker by receiving a commission at closing. Turnkey real estate companies often have hidden fees and charge recurring management fees.
- Property management choices: Awning partners with local property management companies and offers investors choices, turnkey real estate companies self-manage the properties and offer no choices to their customers.
- No front-running: Awning doesn’t purchase properties to sell them at a higher cost to investors, turnkey companies purchase properties and markup the cost after repairs for their investors.
Advantages of working with a turnkey real estate company over investing with Awning:
- No time commitment: With a turnkey real estate company, investors don’t even have to select the property, with Awning, investors can be passive, but they must select from the top investment opportunities.
Real estate investing marketplaces offer individual investors the opportunity to purchase properties that are found only on their platforms.
The question with these companies becomes, if the properties are high quality, why do the investors selling them not want everyone on the market to bid on them.
Advantages of working with Awning over a Real Estate Investing marketplace include:
- Source of inventory: Awning sources its inventory from the local MLS, marketplaces often get most of their inventory from individual and institutional investors, which can create adverse selection.
- Clear costs: Awning makes money by collecting a buy-side brokerage commission, marketplaces usually have a host of fees.
- Aligned interests: As a buy-side brokerage, Awning advisors help investors achieve their goals, marketplaces focus on selling inventory, which doesn’t always align with investor goals.
- More signal, less noise: Awning properties are hand-picked to be the most competitive investments in a market, marketplaces display inventory that investors must invest time to sort through.
- Buyer representation: Awning represents the buyer in an investment transaction, while most marketplaces represent the seller in a transaction and must represent their interests over the buyer.
- Hands-on service: Awning provides a great customer experience, marketplaces don’t have resources dedicated to customer experience and are self-service platforms.
Advantages of working with a real estate investment marketplace over Awning include:
- More exclusive inventory: Real estate investment marketplaces have more unique inventory investors can’t find anywhere else, Awning curates a short-list from publicly available inventory and some off-market deals.
Awning handles the finding, valuation, offer, due diligence, and closing with key input from the investor.
An Awning advisor can introduce and coordinate a property manager that will handle leasing an investment and property management.
So all the investor has to do is collect rent checks and build equity.
Here are the eight steps to investing in real estate and how Awning helps:
- Find a property: Awning does most of the work by finding the top 5% of investment properties.
- Assess financials: Awning handles that too and puts the tools in investor hands, allowing them to customize the estimates.
- Place an offer: An Awning advisor helps come up with a competitive offer price and terms.
- Take the property to closing: An Awning advisor will also coordinate inspections, contractors, and everything needed to feel certain about the investment.
- Find tenants: Investors can self-manage or work with an Awning certified property manager that will find tenants.
- Maintain the property: If investors choose to work with a property management company, that company will handle all maintenance and billing.
- Collect rent checks: Since the property belongs to the investor, they’ll be collecting all the proceeds from the rent.
- Build equity through mortgage payoff and appreciation: Investors are best equipped to handle this one. Results aren’t guaranteed.
Awning makes investing in single family rentals easier for professional, part-time, and first-time real estate investors alike.
Investors should trust Awning data and they should verify that it’s correct.
Trust and verify is what Awning does.
First the algorithm reviews the data points from multiple sources, then a team of analysts reviews each property for accuracy.
This human review often includes:
- Comparisons to recent local sales and rentals
- Flood risk analysis
- Picture analysis for renovation and repair estimates
- Review of the seller’s disclosure for major appliance and feature conditions
- Confirmation of the estimated rental figure and the output cap rates and rates of return
When a property makes it through this process, an Awning Advisor will see the listing first and can provide local context and raise any additional issues or opportunities.
But the thoroughness of trust and verification doesn’t stop there.
When investors go through due diligence, an Awning advisor will help get inspectors, specialists, and contractors to provide a full assessment of the property and potential costs.
If investors choose not to self-manage, Awning works with a local property management company to get them to verify estimates of the repair costs and rental rates, so they can invest with confidence.
Although Awning is not a mortgage company and a mortgage expert can provide the best guidance for your specific scenario, we have compiled some general guidelines.
Investors need $25,000 to invest in single-family homes through Awning. Here are estimated expenses for a $100K single-family home investment in Alabama: 20% or $20K as a down payment, $2.5K in closing costs and $2.5K to get rent ready.
Down payment requirements are higher for investment properties, with 20-25% as a general minimum. While closing costs can sometimes be lower, we suggest investors expect at least $5,000 in expenses to close on the property. Getting a home rent ready can vary, depending on the level of renovations. However, the initial costs of cleaning and preparing a home plus finding a tenant are around $5,000.
Investors should get a pre-approval letter to figure out how much they can qualify for. Work with a lender or use one of the online lenders we partner with that can provide that letter in minutes.
There are no other qualifications to invest with Awning.
Great investment opportunities are rare. In fact, Awning only selects the top 5% of properties in an area to be screened by our team of analysts for potential selection.
Here is how the selection process works in a hot market like Houston:
- 300. That’s the number of new listings posted on the multiple-listing service (MLS) daily.
- 20. That’s the number of listings selected by our algorithm for analyst review.
- 3. That’s the number of properties approved by the analyst team and added to the feed on Awning in a day.
In slower markets where properties don’t appeal to investors, the number of listings can be as low as 2-3 per week.
Before Awning, investors selected a tiny area, spent hours reviewing listings, and then did the legwork themselves. Now, our team is reviewing deals all over the country and selecting the best ones to look through. So investors start with the short-list.
Awning services can accommodate real estate investors with different levels of experience.
Many of our investors are growing existing portfolios, other investors are looking into purchasing their first property.
Awning Advisors work with customers at different skill levels and can teach investors the basics and answer questions they have.
Awning analysts are reviewing properties selected by our algorithm.
In hot markets, with high demand, they publish up to 5 new properties every single day. In cooler markets, with fewer opportunities, analysts add one property per day.
The best way to determine how much money investors can invest is by receiving a letter of prequalification or speaking with a financial advisor to determine what is comfortable.
This is the most accurate estimate and beats some back of the napkin math, especially with quick online lenders.
Most customers can qualify for an investment of 5x the amount they saved for a down payment. So if you have $40,000 saved for a down payment, you’re likely to qualify for up to a $200,000 investment property. That being said, we advise you to speak with a lender or financial advisor to get an accurate understanding of what you’re able to invest.
Yes. Now is a good time to buy real estate somewhere, and it’s always better to buy now than to buy later. There are three types of investors:
- Those that buy the rally
- Those that buy the dip
- Those that buy and hold
Only one of these investors isn’t a gambler, the third one.
Investing in real estate has to make sense for an investor's overall financial situation because it’s a long-term investment, with potential tax benefits and opportunities to use large amounts of leverage backed by real assets.
In real estate, market timing isn’t as important as other asset classes. Sure, it can help, but the key to success is to invest wisely with long time horizons.
Awning is in the busiest markets when measured by investor activity and offers the most immediate opportunities for high-quality, high-yielding, and quickly appreciating investment.
The role of an Awning advisor is not to convince investors to buy in one market that the company operates in. The Awning team is here to enable investors to transact in the markets that they are most interested in. Awning is expanding into new markets. Connect with an Awning advisor and let them know which markets are most enticing right now.
Awning advisors don’t push a location on investors, they explore it together. Awning is a buy-side brokerage, so it is focused on the long-term success of investors that work with us.
No, Awning doesn’t require investors to sign an exclusive agreement to discuss, find, offer, or purchase a property. State-mandated disclosures will be presented when required, as they should be by any agent you are discussing this type of information with.