Managing Partner, Business Relations
Devon Chellevold earned his dual engineering degrees from Arizona State University and worked for NASA-JPL and Aerojet Rocketdyne where he built things from scratch. Devon is an accredited investor and his investment style favors high quality, undervalued assets. Apartment investing is a natural expansion for Devon to capitalize his analytical skills, real estate experience and personal network in his hometown Phoenix, Arizona
Managing Partner, Operations
Imee Chellevold earned her Masters in Physics from the Philippines’ top University and worked for ON Semiconductor in Phoenix, Arizona. She assumed a variety of roles over 10 years in education, engineering, equity & options trading and her own startups where she sharpened her skills in web development, research, data analysis and business management.
CRITERIA FOR MULTIFAMILY
LOCATION AND DEMOGRAPHICS
The Property must be located in a Good Location in a Good Area (and in a Top Market).
We identify neighborhoods in Metropolitan Phoenix, AZ and Dallas Fort Worth, TX with growing population, increasing number of jobs and availability of diverse employers. We select class B or better areas as determined by median 1-mile HH income, house prices, house rents, market & nearby property rents
BUILDING AND BUSINESS PLAN
The Asset must be in Good condition with an appealing look (or could be easily made appealing).
We focus on class A and B apartments (with 50-200+ units in Phoenix, AZ or 100-400+ in Dallas TX) that we can renovate and where we can implement other revenue-generating updates as part of our value-add & yield strategy. We are very selective in the assets we chose as it must make good returns for the investors (which includes us as we are a major investor in all of our properties) We had success with Class C assets in Class B Areas in the past, but are currently focusing on only 1980s and newer properties.
Our Business plan includes upgrading interiors (quartz countertops, LED lighting, VPF, 2-tone paint, & brushed nickel fixtures + high efficiency toilets), and adding other income streams (covered parking, in-suite W/Ds, Tech package, lockers, storage, valet trash, & RUBS).
Conservative Underwriting (No big rent growth, small exit Cap rate, Refi, or unproven other income needed to make the deal good >1.8x EM, >6% Cashflow 5-yr, avoid high-risk loans).
Risk management is always in mind. Ideally, the building has cashflow on day 1 of acquisition, though we are expanding our portfolio to include redevelopments and ground-up construction where the underwriting makes sense. We take into account investor risk/return, purchase/sale price and economic conditions. Exit strategy will be to sell in 3-6 years upon achieving financial goals.
We survey the areas around the property to make sure the rent increases and business plan are supported in reality. This process not only includes touring the apartments in the vicinity of subject address (gathering rent & upgrade info), but also looking at local retail and food places. As in construction, we like to be in the path of progress, near medical facilities, higher end retail, and major freeways. As in residential houses, we want to see good schools and low crime stats.
The Property must have a Great Property Management team.
Besides our ACTUALLY conservative Underwriting, We are very hands-on. We check the properties on a consistent basis (not just relying on KPIs) and talk with all the personnel. If there is an issue, we get it fixed either through the property management or us personally ASAP.
We surround ourselves with experienced advisors, consultants, and future partners to become better at what we do Our team consists of brokers, lawyers, lenders, property management company, contractors, title company, insurance provider, and investors like you. We also have a large network of other syndication partners with which to forge the necessary alliances to execute our plans.
Good Communication with everyone (Partners, Investors, and all others involved).
Our objective is to create value for our partners through profit sharing and keeping them informed every step of the way. We welcome everyone interested in working with us though our focus currently is Arizona, Texas and California where we can have frequent in-person interactions with investors and investment partners.
Get more information on our current project.