Wilmington, North Carolina – Our House Your Home LLC, a family-owned company, has developed a unique build-to-rent program focused on building and renting high-quality homes for underserved tenants in Wilmington, NC. By identifying infill lots and building 4–5-bedroom houses, the company can meet the needs of underserved tenants. They provide them with a happy, stable, and affordable living experience. Our House Your Home, owned by Jeffrey and Becky Maynard, has been highly successful. Their program and portfolio will include 50 homes and host over 300 people by March 2024.
Addressing the Need for Larger Homes
“There are very few 4 and 5-bedroom homes available for larger families in the Wilmington area and there were many vacant buildable lots for sale in recent years that no one else seemed to want”, explained Maynard. “These infill lots have been a great investment opportunity in our market because they do not attract the developers interested in larger land tracts, or owners interested in building custom homes,” expressed Maynard. “Further, building on infill lots improves and builds community since infill lots can attract undesirable and illegal activity. This is a real estate trash-to-treasure story. We have built several homes on lots that were being used as dump sites.”
To streamline construction projects, Our House Your Home partnered with a builder. This partnership maximized opportunities on available infill lots. Their partner, Herrington Classic Homes, is owned by Craig and Mary Johnson, trusted friends of the Maynard family. Together, they designed 4- and 5-bedroom floor plans that fit in the buildable areas of infill lots. They can be built side-by-side as duplexes where allowed. The houses were thoughtfully designed to meet the specific needs of families. They have features such as: off-street parking, private outdoor areas, accessible ground-floor bedrooms, spacious kitchens with high-quality appliances, energy efficiency and bathrooms with multiple sinks.
Focusing on Community and Tenant Priorities
Tenants discover the rental properties offered by Our House Your Home through various channels, such as tenant referrals and social media platforms. Additionally, the company uses local housing authority lists to reach potential renters. Moreover, the company prioritizes veterans and relatives of current tenants. This ensures those with military service or community connections receive preferred access to affordable rental units.
Jeffrey Maynard, reflecting on the rewarding experience of providing housing to large, underserved families, emphasizes the emotional impact of their work. “Families moving into one of our new homes always evokes tears of joy, hugs, and smiles of appreciation.” The Maynards firmly believe that it becomes “Our House and Your Home” for the families they serve.
The Maynards anticipate an average tenancy period of at least five years for their rental units. This remarkable stability is a testament to the high-quality living experience, strong community connections, and unwavering commitment to long-term tenant satisfaction that Our House Your Home delivers. “Small developers like the Maynards are aligned with their tenants when both parties have a long-term perspective,” stated Jack BeVier, Partner, Dominion Financial Services, a privately-owned lender for real estate investors. “Tenants and their families benefit from the stability and sense of community that comes from planting roots in a community. Property owners benefit financially by avoiding costly turnovers and re-leasing expenses.”
Financing Growth Through Dominion Financial Services
A crucial factor contributing to the success of Our House Your Home is its partnership with Dominion Financial Services. Serving as the essential banking ally, Dominion Financial Services has played a pivotal role in financing the company’s housing program, enabling the company to scale by building multiple homes simultaneously. “There is no way we could have developed our 50-house portfolio without Dominion Financial Services. We set our construction timeline and our build start scheduling around Dominion Financial and how they operate,” stated Maynard.
Leveraging the collaboration with Dominion Financial Services, the Maynards utilize an Investor Line of Credit to secure bridge loans during construction. After completing and leasing each property, they refinance the construction debt into Debt-Service Coverage Ratio (DSCR) loans. This ensures stable monthly cash flow for the rental units. “Dominion Financial Services has been helping the Maynards scale since 2019. Their wins are Dominion’s wins. We have a great partnership! We are excited about taking them to even higher levels of success!” exclaimed Dominion Financial’s Head of Underwriting, Kathleen Mitchell. The expertise and comprehensive financial services provided by Dominion Financial Services have been instrumental in ensuring seamless construction processes and overall scalability.
Expanding the Build-to-Rent Strategy
Jeff emphasizes that strong relationships drive any build-to-rent program. Owners and builders should treat their relationship as a partnership. The partnership between Our House Your Home and Herrington Classic Homes relies on trust and hard work. Both teams commit fully to overcoming challenges in land development. “Further, we have developed a great team that includes a project manager, Craig Johnson’s brother, Keith Johnson, agent team (Andrea Arth, Brian Baucom, and Domenico Grillo), experienced land surveyor (Derek Danford), and a law firm focused specifically on real estate transactions (Mann, McGibney and Jordan PLLC),” explains Maynard.
A Model for Sustainable Growth
Other investors can similarly build partnerships with builders to create portfolios like Our House Your Home. Moreover, Maynard is a former marine and climate scientist. He holds a Ph.D. in Environmental Risk Analysis. He now combines his science and real estate expertise to assist other investors. Maynard helps others develop successful build-to-rent programs. “This is an investment strategy that a lot of investors ignore or think only suits larger developers. Markets across the US offer opportunities to build portfolios of new and affordable rental homes on vacant and buildable infill lots. I plan to work with the US-HUD and other partners to develop a national map of markets meeting criteria for successful build-to-rent programs, considering rents, real estate values, and land and construction costs.”
The success of Our House Your Home shows its focus on excellence, community service, and sustainability. Jeff and Becky call their self-managed rental business a “lifestyle business.” This model gives their family time for raising their children, hobbies, and travel. Their blend of purpose and profit makes Our House Your Home a rental portfolio model.
