Building Investors Curated Portfolios of Cash Flowing Assets in Recession Resistant Real Estate

We are on a mission to help investors get access to some of the best private real estate deals available, whether you want to look at individual deals and build your own portfolio or invest in one of our funds for immediate diversification, we can help. Our investment philosophy centers around value-add real estate opportunities with a focus on capital preservation.

Our Model is Simple: identify best in class operators in the multi-family, Self-Storage, and mobile home park business that have a proven track record of delivering attractive risk adjusted returns. Our direct access allows investors to invest alongside these operators while taking advantage of our due dilligence process.

It’s no secret that some of the greatest long-term wealth building opportunities exist only in commercial real estate. For decades, investors have flocked to commercial real estate for tax advantaged passive income, equity growth, diversification, and stability. However, not just any commercial real estate asset class will achieve our goal of capital preservation with income and capital appreciation opportunities.

Based on our research, despite the economy, we want to be in Multi-Family Apartments, Self-Storage, and Mobile Home Park Communities. A passive portfolio constructed of these three asset classes will serve investors well now, and for many years to come.

Multi-Family Apartments

Investing in large apartment communities has been a sound strategy for years, and we believe it will benefit your investment portfolio for years to come. It’s an asset class that has proven to be stable while providing higher returns with lower risk than other property types. Multi-Family has a low correlation to equities, bonds, and other paper assets that move with the whims of the market

  •  Historically, less risk & better returns than stocks and bonds
  • Evergreen business model with shelter always in demand and future demographics are 
  • Apartments are an IDEAL investment providing a unique combination of returns
  • Held up well during recessions providing stability to your portfolio
  • Serves as a hedge against inflation via rental increases
  • Tax advantages through depreciation, cost segregation, and accelerated depreciation

 

Investing in apartments gives investors lower risk and better returns than stocks and bonds

Apartments dominate other property classes in terms of risk-adjusted returns, which holds true regardless of holding period and has been consistent over a long period of time.

Investing in stabilized, cash flowing Multi-Family Apartments provides capital preservation throughout a downturn and are much better protected than single-family rentals

Self-Storage

Adding Self-Storage to your portfolio offers investors ongoing cash flow with value-add opportunities allowing for capital appreciation. Purchased and operated with excellence, self-storage makes for an outstanding addition to a investment portfolio.

  • Recession-resistant history with lowest risk and highest return of all asset classes over decades
  • Benefit from the 4 D’s (Divorce, Displacement, Downsize, Death) as well as population movement, both up and down
  • Low operating expense ratios with ongoing cash flow
  • Fragmented ownership leads to favorable acquisition opportunities
  • Opportunity for forced appreciation through the addition of ancillary income, operational excellence, and focused marketing

 

 

Source: NAREIT, https://dqydj.com/sp-500-return-calculator/

Source: Green Street Advisors, September 2020.

Mobile HOme Parks

Mobile home parks are an emerging investment class that provides investors with a stable and predicable income stream in any economic environment. Mobile Home Parks have a stigma and therefore aren’t being developed, and actually decrease in supply every year. Combine that with the growing demand for affordable housing, and investors have a great asset class to invest in for the long haul.

 

  • Growing demand for affordable housing with a continued decrease in national supply given the stigma creates a moated business
  • Lack of mobility via high switching costs lead to stable long-term tenants with less turnover
  • Fragmented ownership leads to favorable acquisition opportunities
  • Low and predictable repair, maintenance, and capital budgets due to owning just the land as tenants own their own homes
  • Provides a much needed social service for families seeking affordable housing and homeownership

Same Store NOI Growth from 2000-2020 showing MHP leading the way

High risk-adjusted expected returns with strong projected NOI Growth

Source: Green Street Advisors, September 2020.

Our Vetting Criteria

Operating Partner

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Track Record of Performance

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Conservative Assumptions in Underwriting

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Background Checks

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Reference Checks

Asset Type

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C to B class multifamily properties

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Self-storage properties

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Mobile home parks

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Focus on quality vs. high cap rate

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Minimum 100 units

Market

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Diverse Employment

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Well located with potential for Appreciation

General Criteria

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Cash flow from day 1

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Must have value-add component (renovations, management play, etc)

Target Returns

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Target returns varies based on property, operators, and specific asset

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Minimum $50,000 investment (some opportunities higher)

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5-10 year hold period