The Strategy
What our Investment Strategy is based on:
Path of Progress Strategy:
A Path of Progress, characterized by the highest concentration of current or imminent building and development activities, serves as a strategic focal point for real estate investment. This strategic approach is underpinned by several key dynamics:
1. Rapid Appreciation: Properties within the Path of Progress experience accelerated appreciation due to the heightened demand associated with ongoing or upcoming development projects. This swift uptick in property values positions investors to realize substantial gains over a relatively short period.
2. Thriving New Construction: The majority of new construction and development initiatives are concentrated in the Path of Progress. This surge in building activities not only enhances the overall appeal of the area but also contributes to the rising value of existing properties as the community undergoes transformation.
3. Population Influx: The Path of Progress often attracts an influx of families and individuals seeking to capitalize on the area's growth potential. This demographic shift, fueled by the development momentum, further stimulates demand for housing and commercial spaces, creating a favorable environment for real estate investment.
By strategically investing in the Path of Progress, investors stand to realize the greatest returns within a condensed timeframe. This approach capitalizes on the synergy of rapid appreciation, significant new construction, and a growing population, making it a lucrative strategy for those seeking substantial and timely returns on their real estate investments.
Acquisition Criteria:
Location: We focus on Emerging market areas with indicators for strong near and long-term economic growth.
(Mainly markets within the South and Southwest regions)
Asset Size: We focus on complexes that are 60 to 100+ units and can be acquired in the $16MM – $25MM range.
Asset Type: We look for class C+ to B- properties located in B+ to A areas that were constructed in 1980 or newer.
Hold Period: Each asset is typically held for 3-5 years depending on its exact business plan.
Unit Mix: We prefer to invest in properties where no more than 30% of the unit mix can be made up of one bedroom apartments.
Operating History: Occupancy above 80% with the exception of properties that require renovation, providing properties are well located and present value-add opportunities.
