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Although our form is corporate, our attitude is
partnership. We look after our partners money with the same
care and attention as when we look after our own. Before we invest
any of your money we ensure that proper due diligence and research
has been done so that we feel 100% comfortable that we are making
the right purchasing decisions.
Our Real Estate Investment
Philosophy
Our investment philosophy is to find the best real estate
opportunities in markets with attractive economics. Our philosophy
is distilled from Ben Graham's Intrinsic Value principles first
published in the 1930s in "The Intelligent Investor", and it is our
experience that his classic investment philosophy can be effectively
applied to real estate investment. We look for the following
characteristics in any investment opportunity:
Intrinsic Value: We Make Money On The Purchase - Each
investment has an inherent intrinsic value and we seek to purchase
properties at a discount to intrinsic value. In so doing, we achieve
a Margin of Safety in our purchases which positions us for low risk,
high potential return investing.
Purchase at Discount to Market - Our guiding principles is to
make the money on the purchase, by leveraging the power of our
purchasing capability to get discounts and other incentives.
Positive Cashflow - In the past couple of years, the concept
of negative carrying costs has gained acceptance amongst real estate
buyers. Not so with us. We will ONLY purchase properties where the
present value of future cash flows offers an acceptable return on
investment AND the monthly revenues plus incentives are greater than
monthly expenses creating positive cash flow scenarios. A real
estate investment must be able to generate enough revenue on a
monthly basis to pay off all expenses.
Minimal Downside Risk - First do no harm. Preservation of
capital is priority number one. Most firms pay lip service to this
concept and then go out and buy risky investments for their clients.
We achieve it for our clients by purchasing at significant discount
to market value.
We break down every project into it's component inflows and
outflows. Our analysis is performed using conservative projections
and assumptions. If the analysis suggests an acceptable return, we
then consider the project for additional analysis.
Exit Strategy & What If - When entering an investment, we
define our exit strategy points. But we also have a What if scenario
that ensures that if we can't achieve our defined exit timeline, we
are able to continue to hold the property without suffering negative
cash flow or negative carrying costs.
Avoid The Herd - If there is a bidding war then we will pass
on the investment. We always have a maximum price that we are
willing to pay for a property and we will not deviate from it. There
are many opportunities available to us therefore we will not overpay
for the sake of acquiring a property.
Steady Upside & Positive Leverage - No, we're honestly not
looking to hit the home run. We're happy with hitting solid doubles
and hitting for a very high average. As you'll see, even an
investment property that appreciates at 7% a year translates to a
70% cash on cash return through the use of positive leverage at 10%
down.
We Are Rational Longer Term Investors, Not Emotional Greed
Driven Short Term Flippers
Our philosophy is driven by minimum holding periods of 3 - 5 years
and ideally, 10 years, not 2 to 3 months.
Our expectation is to earn solid consistent appreciation, incentives
and consistent cashflow accumulation.
OPERATING PRINCIPLES
True Partnership -
We are committed to long-term, mutually beneficial relationships
with our partners. We will only ask you to invest in real estate
properties that we are willing to invest in ourselves.
Ethical Dealings, Open Communications -
We
believe in transparency in all aspects of our due diligence
research, partnership development, property management, sales and
marketing, accounting and investment status.
Loyalty is earned -
We strive to earn our partners loyalty by providing good advice and
by being professional, available, discreet, attentive and creatively
responsive to their financial needs.
Trust - is the cornerstone of the relationship with our
partners. This is reflected in our performance, service,
professionalism and our unwavering concern for their well-being. A
relationship of trust is the best basis for financial success
Service - involves timely reporting, accurate accounting and the
use of leading edge technology to ensure that our partners stay up to date.
Saying we don't know when we don't know - There are no such
things as a bad question or a monopoly of wisdom. If an answer is
not immediately at hand we say so and then do our best to get it.
Getting an investment or a financial issue right sometimes requires
further research or obtaining specialized advice in
related fields or both.
We tell it like it is - honest and straight to the point.
If
your passion is real estate investment, we would love to talk with
you!
If you believe that real estate is the best passive wealth creation
vehicle known to man, we would love to get to know how we can help
you build a portfolio that you can retire on.
The next step is Yours! Contact us
to set up a friendly appointment to see if we can assist you in
achieving your financial goals.
Brochure
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