The Megatel Group Expands Investment Offerings to Include Section 1031 Delaware Statutory Trust Private Placements

DALLAS, June 25, 2019 /PRNewswire/ -- The Megatel Group announced today that the company has made a strategic decision to begin offering Delaware statutory trust investment funds through their investment affiliate, Megatel Capital Investment (MCI). The expansion of the MCI platform to include these funds, which are designed for investors seeking the tax deferral benefits afforded by Section 1031 of the Internal Revenue Code, expands the private placement opportunities sponsored by the company, which first entered the retail investment space in 2015.

This announcement comes on the heels of the company's recent introduction of their Rent Back incentive program, which is designed to help bridge the gap between renting and homeownership by offering renters a credit of their previous year of rent to be applied towards upfront home purchase costs.

The company, which is an active homebuilder, has determined many potential homebuyers continue to rent due to a lack of funds to pay the often-considerable upfront costs associated with home ownership. Megatel believes the Rent Back incentive will help many renters buy their first home by mitigating these upfront costs.

The DST initiative and Rent Back program are part of Megatel's push into higher density housing, including the acquisition and development of multifamily communities. The company will focus on acquiring stabilized multifamily programs with its DST offerings and introduce the Rent Back program to those properties. Megatel's believes the Rent Back program will add greater value to the multifamily properties owned by its DST investors, as the program should drive greater occupancy and lower rent concessions, which are not available to renters who choose to participate in the incentive program.

"We have launched this rent-back program to create a bridge between renters and homeownership," said Zach Ipour, co-founder of Megatel Homes. "We are seeking to provide a solution to one of the biggest hurdles many would-be homeowners face – the lack of funds to pay for upfront homeownership costs. In concert with our multifamily DST offerings, we believe the Rent Back program will deliver a unique value add component to our investors while continuing to expand access to this unique program."

"We are building a better housing model and a stronger, more diverse, company at the same time, which is an important step forward to our ultimate goal of listing Megatel on a public stock exchange," explained Aaron Ipour, co-founder. "We are very proud of this revolutionary program, which will propel our company to new heights while opening the door to the American dream to a whole host of people who would never be able to purchase their own home."

About Megatel Homes
Founded in 2006, Megatel Homes has emerged as one of the most successful homebuilders in the state of Texas. The company has had considerable growth, with more than 100 developments comprised of several thousand homes, completed since its founding. The company currently has more than 100 communities and is rapidly spreading throughout the Dallas-Fort Worth metroplex.

SOURCE Megatel Homes