On The Market Smart Money is Going After New Homes as Builder Desperation Grows
Oct 28, 2025
Doug Brien, CEO of Roofstock and a former NFL player, dives into the changing landscape of real estate investing. He reveals why new construction is becoming appealing again, with institutions drawn back by falling interest rates and excess supply. Doug contrasts the benefits of new builds, such as predictable cash flow and lower maintenance, against older properties. He also shares strategies for negotiating with builders and highlights the advantages of single-family rentals, including longer tenant retention and financial stability.
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Founder Background And Origins
- Doug Brien founded Roofstock and previously built Waypoint Homes, buying 17,000 houses from 2008–2016.
- His background includes a 12-year NFL career as a place kicker that funded early real estate investing.
Institutions Reentering Market
- Institutions largely paused home buying when interest costs exceeded unlevered returns, but recent shifts have changed that.
- Perceived falling rates and builders' excess inventory are drawing institutional capital back into single-family homes.
Push For Rate Buydowns
- Check builder offers that buy down mortgage rates as a primary lever to improve cashflow math.
- Compare financed returns with cap rates and play with rate buydowns in your pro forma.
