Create your own freedom and build generational wealth through the power of real estate.
Investment Criteria
Class B or C+ stable value add properties in Class B/C+ areas in emerging markets. Focus on cash flow and forced appreciation via improving operations.
We achieve this by:
- Carefully selecting markets that meet our criteria of population growth, job growth, income growth, and job diversity. For more detail on how we select markets, please refer to our previously published article.
- Prudently and conservatively underwriting properties to ensure they meet our investment criteria.
- Securing the right financing based on the business strategy for the underlying asset.
- Performing detailed diligence.
- Carefully curating the right local property management team to execute on the business plan and collaboratively managing the asset to achieve optimal returns.
- Partnering with experienced operators with a proven track record.
Why Invest in Apartments
- Multifamily has historically outperformed other asset classes, including during recessions.
- Potential for multiple sources of return, including forced appreciation.
- Tax deferral benefits.
- Hedge against inflation.
- Strong long term outlook.
- Economies of scale.
- Diversified tenant base and ability to adjust to market.
For more detail on why we like multifamily as an asset class, please refer to our previously published article.
Acquisition Criteria
- Markets: Emerging markets that meet our population growth, job growth, income growth, job diversity, and business friendly states criteria.
- Sub-markets: Low crime rate, min median household income of $40K, low poverty rate under 20%, unemployment rate of no more than 2% above the city average
- Property type: Class B/C+ stable value add properties in Class B/C+ areas.
- Loan To Value: 60-75%
- Hold Period: 3-7 years
Our Investment Approach
We focus on cash flow and forced appreciation via improving operations. We achieve this by:
- Carefully selecting markets that meet our criteria of population growth, job growth, income growth, and job diversity. For more detail on how we select markets, please refer to our previously published article.
- Prudently and conservatively underwriting properties to ensure they meet our investment criteria.
- Securing the right financing based on the business strategy for the underlying asset.
- Performing detailed diligence.
- Carefully curating the right local property management team to execute on the business plan and collaboratively managing the asset to achieve optimal returns.
- Partnering with experienced operators with a proven track record.
How We Create Value
Operational improvements are achieved via revenue growth and/or expense optimization.
Revenue Growth
- Improving the building – catching up to deferred maintenance or updating the exterior of the property
- Updating the units
- Reducing vacancies
- Improving collections
- Catching up rents to market
- Utility bill back via RUBS
- Creating other revenue streams – e.g. pet rent, laundry income, valet trash, etc.
Expense Optimization
- Renegotiating vendor contracts, if rates are out of market
- Reducing repair expense by updating units and/or catching up with deferred maintenance
- Utilizing smart technology, as applicable
The Process From A to Z
Step 1
Find a property that meets our investment and market criteria.
Step 2
Submit a Letter Of Intent.
Step 3
Negotiate The Purchase And Sale Agreement.
Step 4
Conduct Thorough Due Diligence.
Step 5
Secure Financing and Raise Capital.
Step 6
Communicate With Investors.
Step 7
Complete Investor Diligence and Documentation. Investors confirm commitments and wire proceeds.
Step 8
Fund and Close.
Step 9
Take Over the Asset and Begin Business Plan Execution.
Step 10
Continue Ongoing Communication with Investors via monthly updates. Send periodic (monthly or quarterly) distributions.
Step 11
Refinance or sell the property to return investor’s capital and target returns.