What We Do | 56 Properties: Multifamily Apartment Investing

Our Philosophy

Offer a simple and transparent process for investors to conservatively invest in multifamily apartments. We believe in:

Prioritizing cash flow over market appreciation. We are investors, not speculators.
Investing our own money in every acquisition. We are incentivized to maximize returns by investing our own money.
Charging minimal fees to manage assets. If our investors are happy, we are happy.
Using tried and true strategies of successful property investment firms. We don't believe in re-inventing the wheel.
Maintaining a lean operation that allows for minimal fees to maximize investor returns.

Our Vision

Grow to 500 units under management within 4 years and scale to 3,000 units within 8 years. We will reach this vision by:

Treating our investors and residents the way we want to be treated.
Gaining credibility within the industry by proving we are capable of closing deals.
Taking a disciplined approach to property valuation and operation.
Reinvesting cash yields and capital appreciation into additional properties.

What We Buy

We purchase class B and C multifamily apartment buildings built in 1978 or later that have value add opportunities of at least 10% income increase and/or 20% expense reduction. We also look for properties that:

Are garden style buildings.
Have greater than 50 units per complex.
Have rents in the $800-$1,500 range.
Are currently generating positive cash flow.
Require minimal day one capital improvements.

Where We Buy

We typically acquire in secondary and tertiary markets that show stable to increasing population growth. We look for markets with a median income of at least $35,000 per year along with minimal new apartment construction in progress or planned.

Returns We Seek

We seek risk-adjusted returns that are better than stock market returns over the long term.

Who We Partner With

We look for people that align with our conservative investment philosophy. We partner with:

Only accredited investors.
People who are looking to build wealth over an extended period of time.
People who are seeking investment in a stable asset class to diversify their current investment portfolio.

How We Mitigate Risk

To minimize downside risks due to market changes, we take the following actions when acquiring and operating properties:

We prioritize cash flow over market appreciation. Market appreciation is not within our control and is speculation, not investing.
Obtain a fixed rate loan with a term that is as long (or slightly longer) as the expected property holding period. A fixed rate will allow for more stable and predictable cash flow.
Ensure a breakeven vacancy/credit loss of at least 20%. This accounts for an extreme market change in available tenant population/quality.
Prudently take advantage of leverage. This will protect against an extreme market cap rate increase that could lead to a negative equity position (upside down on mortgage).
Ensure adequate day one cash reserves to cover any unexpected operating or capital expenses.