Real Estate — Experience*

Los Angeles Area Economic Summary  

The Asset must be in Good Condition with an appealing look (or could be easily made appealing).

Currently, we focus on class 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 choose. We had success with Class C assets in Class B Areas in the past, but are currently focusing on 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).

We underwrite conservatively — no aggressive rent-growth assumptions, no speculative exit cap rates, no reliance on refinance or unproven other income, and no high-risk loans. We prioritize assets that can support income and withstand a range of economic conditions. We do not publish target returns on this website. 

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/adaptive reuse and ground-up construction when it makes sense.  We take into account risk/return profile, 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 shops and restaurants. For construction projects, we like to be in the path of progress, near medical facilities, higher end retail, and major freeways. For residential houses, we want to see good schools and low crime stats.

The Property must have a Great Property Management team. 

Besides our 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 colleagues to become better at what we do.  Our team consists of brokers, lawyers, lenders, property management company, contractors, title company, insurance provider, and other partners. We also have a large network of other operator partners with which to forge the necessary alliances to execute our plans.

Our objective is to create value for our partners and to foster good communication by keeping everyone involved informed every step of the way. The principals are personally invested in our real estate holdings.  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.