What this episode teaches an operator: how build to rent works as an asset class, why building can cost substantially less than buying, and how a first-time developer went from wanting one rental house to a 750+ unit portfolio.
Tony Torres, founder of Core13 Capital, walks through his path: the single family dream that started with HGTV, the pivot to multifamily after a string of nos, learning development by calling the city himself, and landing in purpose-built rentals. He and Abel Pacheco break down their partnered 98-unit build to rent deal near Lafayette, Louisiana (The Crest), the 158-unit Foley, Alabama project, and the Eagle Rock Fund's 752 units across three assets. Tony's pizza math on development cost versus market value is the clearest explanation of the cost-to-value gap you will hear.
In this episode: Who is Tony Torres and how did he get into real estate? What is build to rent and how is it different from a normal subdivision? Why is it cheaper to build than to buy? What does the 98-unit Crest deal look like? How do you handle rejection and keep executing?
Three takeaways: purpose-built rentals are designed as rentals from day one, not leftover homes. Developing on the early side means your equity buys the cost-to-value gap. Rejection is information, not identity: "No is just an answer, not an emotion, and yes is just an answer, not an affirmation."
"We're building for substantially less than what you could acquire it for." - Tony Torres
Connect with Tony: Tony Torres, founder of Core13 Capital, on LinkedIn.
Abel Pacheco helps operators get the ideas out of their head and into an AI operating system that runs the business, so one operator can run like a team of five. If you're ready to install it, not just learn it: www.5talents.ai. Multifamily investors: www.5talents.ai/multifamily. Host of the 5 Talents Podcast.