Real Investor Radio

Episode 41 | Kris Garin – Building a Rental Portfolio: Insights from Riparian Capital Partners CEO

April 16, 2024

Episode Summary:

The episode features guest Kris Garin, CEO of Riparian Capital Partners, who shares insights into their approach to building a rental portfolio and the challenges of portfolio acquisitions. In this conversation, Kris Garin discusses his experience in the single-family rental (SFR) industry and the challenges and opportunities it presents. He shares insights on the institutionalization of workforce housing and the emergence of single-family rental as an asset class. Kris emphasizes the importance of operational experience and the role of technology in the industry. He also discusses the process of valuing and diligencing a portfolio, including dealing with deferred maintenance and capital expenditures. Additionally, Kris highlights the repositioning and onboarding process for acquired portfolios and the use of UPREIT structures for exit strategies.

Overview of Episode 41

In this episode, Craig Fuhr and Jack BeVier talk with Kris Garin, CEO of Riparian Capital Partners. The discussion centers on Garin’s approach to building a rental portfolio, focusing on Baltimore, Pittsburgh, and Detroit.

Building a Rental Portfolio through Portfolio Acquisitions

Riparian Capital’s unique approach involves purchasing rental portfolios rather than individual properties. Garin’s first portfolio acquisition in Baltimore involved 272 homes, requiring complex planning and operational strategies. Consequently, this portfolio-centered strategy allowed Riparian to scale quickly while maintaining a sustainable property management structure.

Overcoming Challenges in Workforce Housing

Managing workforce housing portfolios presents specific challenges. Above all, these properties often require extensive renovations. Garin emphasizes thorough property evaluations and budgeting to handle renovation needs. Riparian conducts detailed inspections and updates each unit to their standards within the first year.

Ensuring Compliance and Tenant Qualifications

After each acquisition, Riparian ensures that every unit and tenant meet their compliance standards. Each tenant must have a qualified lease with Riparian, which helps maintain stability and long-term growth within the portfolio.

Innovative Financing for Building a Rental Portfolio

Garin highlights Riparian’s use of innovative financing, including up-REIT structures that enable property owners to contribute their assets in exchange for shares. This structure allows portfolio owners to defer taxes, providing an exit strategy while expanding Riparian’s holdings.

Conclusion: Long-Term Strategy for Rental Portfolio Growth

All in all, Riparian’s focus on property standards, tenant qualification, and innovative financing supports sustainable growth in building a rental portfolio.