Buy small to midsize multifamily properties that have demonstrated cash flow but have value opportunities such as deferred maintenance or poor management. Together with a group of equity partners, we’ll acquire, reposition (fix them up), increase cash flow and value, all while creating safe, clean, and efficient living space for individuals and their families.
We aim to achieve returns better than traditional assets, all secured by a physical asset you can see and touch. Typical return goals include 8 to 12% cash on cash return with potential upside of a total 20% IRR target over 5 years. We focus on B and C properties (workforce housing) from 80 to 200 units that are well located in its respective market.
People need 3 basic things; food, clothing, and shelter. Through business cycles and fluctuations in the market, residential real estate is a proven, resilient asset because everyone needs a place to live. Today’s changing demographics have made the U.S. a nation of renters, which benefit multifamily apartments.
Multifamily offers economies of scale and an investment with relative control versus the typical Wall Street paper assets:
- Solid monthly cash flow
- Equity thru leverage and appreciation
- Forced appreciation through value additions
- Tax advantages
We look for markets with positive economic indicators including job growth, population growth, a diverse employment base, landlord friendly, reasonable cost of living, economic investment, and good supply and demand for rentals. Some examples include Dallas-Fort Worth and Atlanta.
We believe communication, transparency, and integrity are mandatory for a successful partnership. The hardest ship to sail is a partnership, so having an alignment of values or goals with investors is critical for success for all parties. When values are aligned, decisions are easy. We also look to invest alongside our partners in every property acquired which helps keep interests soundly aligned.