Strategy

Foundational Principles of Strategy

We “make our return” at the time of acquisition, not when we sell.

  • We are not “market appreciation” driven buyers.
  • We buy undervalued, mismanaged or undermanaged, and ‘capital starved’ property.

Long-term minded.

  • We will buy property that “does not work” on day 1 or day 365. (The first year or two we may not expect to cash flow, as we improve the asset by injecting appropriate management and financial capital.)
  • We invest with the long-term in mind, but keep an open-mind to the quick turn opportunity.

Live by 4 of the 5 ways to make money in real estate investing:

  • Cash Flow – Capital is king, Cash Flow is master of the universe.
  • Amortization – Tenant pays the loan.
  • Positive Leverage – Responsible use of debt financing to leverage returns.
  • Tax Benefit – Use IRS rules to maximize tax deferral or avoidance. (Depreciation, 1031, Capital Gains Rate, Interest Expense, etc.)
  • A    Appreciation –  Market Driven

Investment Strategy – Actionable Principles

Phase I – Turn Around Period: (Year 1-2)

  • Focused on actions to create long-term value.
  • Improve the asset through injecting appropriate monetary capital and management expertise.

Phase II – Harvest Return: (Year 3 or before)

  • Hold for ongoing income generation, or
  • Explore short-term velocity opportunity
    • Monetize value increase through sale
    • Monetize value increase through leveraging property’s new value

Investment Opportunity Types

Geographical Focus

  • Upper Midwest.
  • Concentrated inside 250 mile radius of Omaha, NE.
  • Expanding to 500 mile radius of Omaha, NE.

Property Type

  • Size: 100 units or larger.
  • Specialty:
    • Manufactured (Mobile) Home Communities
    • Apartment Buildings
    • Ag Land
  • Experience in Storage Facilities, Car Washes, RV Parks, Parking Garages, Strip Centers, and Residential.