Value Add Strategy
We focus on the cash flow an existing property can generate, rather than relying on price appreciation to drive investment returns. Our approach is a value add or known as forced appreciation. We are extremely selective on our deals; we look for properties where we can reposition from its current state.
We look for Internal Rate of Return (IRR) of 8 to 15% compounded over five years. Generate significant distributions to investors from increased asset value upon disposition. Complete disposition of the properties on a 5 or 10-year timeline.
Identify & Analyze
We work to identify and analyze potential real estate opportunities utilizing strict, conservative criteria. We focus on emerging markets with positive population and job growth and other indicators. We also work with other experienced, trusted, operators to provide opportunities for our investors. In ensuring that the properties acquired are perfect for your investment, we ensure that we stick to strict criteria. We also assess the valuation of asset classes and individual securities to help ensure we are not overpaying for the
fundamentals.
Acquire Assets
We negotiate with sellers and lenders to acquire properties meeting our criteria that allow us to achieve the highest possible returns for our investors. We perform exhausting due diligence to uncover and address any concerns prior to purchase. It is also common for us to partner with other operators to assist in the acquisition of larger properties.
Reposition & Stabilize
With our professional, third party, asset management partners, we implement our business plan for each asset. This often includes capital improvements, re-branding of the asset, and expense reductions to achieve the highest net operating income. This dramatically increases the overall value of the asset and is referred to as Forced Appreciation.
Distribute Cash Flow
Every asset we acquire is done so to create a stable, reliable cash flow for our investors. A well-positioned stabilized asset can withstand all economic cycles and create long-lasting value for investors with significant tax advantages. We typically pay distributions quarterly basis.
Refinance or Disposition
We seek opportunities to refinance or disposition the asset, returning a significant portion of equity to investors, while allowing them to maintain their equity ownership. Or provided market conditions are optimal for a sale, we market the asset, after the hold period, to take advantage of the increased value created through the stabilization process. We then repeat the process, over and over again.
Hold Asset Appreciation
Though our goal is to hold long term, we understand that there are other opportunities that could come into play. We plan multiple exit strategies as each investment opportunity in itself, and it’s own. Our investors will have the chance to review a variety of scenarios long or short-term holding periods.