Strategy
We currently have a two-part strategy that involves investing in two different segments of the residential real estate market:
Strategy 1:
We purchase distressed residential real estate in emerging markets across the country. Currently we are targeting properties along the Southwest Coast of Florida and Central Texas that can be acquired at 60% or below of the current fair market value after repairs. These properties generally need moderate to major renovations to go into the retail or rental market. The resale value of the properties after repair ranges from $75,000 to $200,000.
Strategy 2: 100 Unit or Larger Multi-Family Properties
This investment strategy focuses on acquiring well-located, quality properties for a 3-7 year hold period in markets demonstrating strong fundamentals and good potential for future growth. These properties are priced between $1 and $10 million dollars, as we believe that this price range reduces competition by excluding most individual investors. Additionally, this price range will typically not meet the investment criteria of most institutional investors with considerably more capital to deploy.
While our strategy focuses on markets that have robust economies, as well as excellent job growth, we also analyze the market to ensure that we are only acquiring properties at a favorable time in the market cycle. In order to create value, we will target distressed or poorly managed properties that we believe have the potential to achieve double-digit returns upon implementing a professional management program, operational oversight and financial reporting. Upon repositioning the property, it will be sold when the market matures.