Megatel Homes, a Texas-based homebuilder that funds part of its operations through private placements offered by its capital markets division Megatel Capital Investment (MCI), reported a record-breaking month with a total of more than 300 home sales and over $120 million in gross contract sales in May.
“Recently, our focus has been on targeting the more affordable end of the housing market with higher density products…,” said Zach Ipour, co-founder.
Ipour explains that factors that have contributed to the firm’s record-breaking month include the success of the company’s rent-back program as well as the booming housing market in Texas.
“Our rent-back program has directly contributed to our success as renters search for more incentives that can help them achieve homeownership in today’s surging market. Our unique program can provide renters with up to twelve months of rent back to use towards new home purchase costs. This is a concept that no other homebuilder offers, and one that will serve as a solution to one of the biggest hurdles that would-be homeowners face. We have been investing in this program for two years and are now able to see the extraordinary results of this pioneering concept.”
Megatel Homes launched the program in March 2019 to create a bridge between renters and homeownership. In partnership with select apartment communities, the Megatel Rent-Back program will rebate up to one year of rent payments at lease end to renters who choose to purchase a home.
Ipour also emphasizes that scarce inventory and strong demand are rapidly escalating housing prices, positioning Texas homebuilders in an optimal situation.
“Demand is rapidly outpacing supply in Texas,” he said. “In fact, Ted Wilson, one of the state’s foremost residential construction experts and founder of Residential Strategies, recently reported in a Dallas Business Journal article, that Texas leads the country, by far, in new housing permits. According to Wilson, in the first four months of this year, 88,209 permits were issued for new single-family homes.”
In addition, corporate relocation is still a factor in the state’s booming housing market. Among the multinational companies that have recently relocated to Texas are Tesla, Oracle, HPE, Charles Schwab, AT&T, McKesson and PGA of America.
Megatel Homes has completed more than 100 developments comprised of several thousand homes since its founding in 2006. The company currently has more than 100 communities and is spreading throughout the Dallas-Fort Worth metroplex.