Our Investment Strategy
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Market Selection
As we look to our target markets, we identify tier 1 markets with strong apartment fundamentals, established economies and desirable schools and facilities.
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Key Economic Indicators
Further, we extensively evaluate employment drivers, unemployment rates, GDP growth, new businesses coming into town, job diversity, supply constraints and rental absorption rates.
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Value Add Opportunities
Most importantly, we seek underperforming properties with a potential for significant value add either through ratio utility billing systems, professional management improvements, renovations to drive market rent growth, landscaping, etc.
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Deal Sourcing
We follow a 100/30/10/1 approach. We review 100 properties, conduct detailed underwriting on 30, extend offers on 10 and ultimately acquire just 1. This is our way of being thorough and finding the gem investments in each market.
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Deal Analysis
As we look at individual properties, we review a variety of factors including proximity to employment drivers, quality of competition, history of property, demographics, condition of property, deferred maintenance, rental comparisons, etc.
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Business Plan
For each investment, we create a comprehensive 3-5 year business plan that maximizes ROI, defines interior and exterior renovation plans, considers repositioning the demographics of the tenants and rebranding of the entire property.
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Profits!
Most importantly, we target investor preferred returns of 8% or more on an annual basis, 14%+ internal rate of return (IRR) and a 2.1x or greater multiple on any investment you make with us. Hence, investors would more than double their money if all metrics are met.