Market selection: We focus on stable or growing markets. We evaluate population levels, job growth, household income levels, crime, and rent growth. The availability of investment opportunities and competition play significant roles in targeting markets. Finally, we work with key vendors, such as insurance providers, property managers, and lenders, in each area we invest. These key providers play significant roles in researching markets to set us up for future success.

Underwriting (aka “analyzing”): 100/10/1 – that’s our deal ratio. We analyze one hundred properties and submit ten letters-of-intent (LOI) to present investors with one opportunity. Underwriting is the key point that makes or breaks the profitability of a deal. We carefully review existing performance, conservatively project a vision, and use cautious exit strategy metrics. We also don’t overleverage the assets by bringing on debt where we don’t need it, keeping our incentives where they should be – with the investor.

Operations: We’ve done everything perfect, on paper – now what? We strive to improve residents’ experience in our assets. When achieved, rent growth and occupancy projections are more likely to be achieved, which in turn makes distributions and returns more likely. We closely monitor key performance indicators (KPI’s), such as repair and maintenance performance, upcoming lease renewal and expiration plans, loss to lease, and a number of other metrics with carefully selected property managers. These metrics and continuous input give us the data to make decisions that improve operations, therefore protects investor capital.

Disposition (aka “sale”): Going all the way back to underwriting, we model the resale cap rate to increase each year of ownership. Higher cap rates bring lower valuation. But this conservative approach projects a lower sale than what should be achieved. This strategy ensures we are presenting great deals to investors and works towards an “under promise and over deliver” philosophy.