Our Investment Strategy

Our strategy revolves around acquiring distressed commercial multifamily properties at a discount, focusing on assets that others overlook. By targeting vacant or underperforming buildings, we unlock value through strategic renovations and effective management. Our approach minimizes risk while maximizing returns, leveraging cost segregation and tax benefits to enhance investor outcomes.
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Defining Our Buy Box

Overview

Having a well defined buy box allows us to identify and complete projects with greater speed and precision. A well defined buy box is essentially a template that all deal pass through first to ensure a tight alignment for our goals, with each aspect designed to minimize risk and maximize return potential.

Primary Asset Type

We specialize in acquiring commercial multifamily buildings because these investments are driven by data, not emotion, making transactions more predictable and forecastable. These properties are valued based on the income they generate and the expenses required to earn it, which keeps negotiations straightforward and focused on financial performance. We are dealing with business operators rather than individuals searching for their next home.

Location

Our geographic focus is on Hampden County, with a particular emphasis on Holyoke, Massachusetts. Holyoke offers a unique combination of distressed properties and a supportive local government eager for revitalization. By concentrating on this area, we can leverage our deep market knowledge and strong local connections to identify underpriced assets with significant growth potential.

Deal Size

We target buildings with 10-30 units, a size that perfectly fits our investment strategy. This segment of the market is often overlooked by larger institutional investors, who prefer larger assets, and by individual investors, who focus on smaller properties. The relative lack of competition in this niche allows us to acquire properties at a discount, particularly those that are distressed or vacant.

Risk Profile

Our risk profile is centered on distressed and vacant properties, which can be perceived as a higher in risk, however this focus removes common obstacles and offer substantial rewards when managed effectively. We excel in turning around these challenging assets by addressing their issues head-on—whether through extensive renovations, rebranding, or improved management.

Return Expectations

We target a return of 2-3x on each investment within our portfolio. If the deal we are underwriting can't achieve this goal, it's disqualified. This expectation is based on our ability to acquire properties below market value, execute comprehensive value-add strategies, and efficiently manage project timelines.

Time Horizon

While our fund operates on a 4-6 year timeline, each project within our portfolio typically has a 24-36 month cycle. This project timeline allows us to fully realize the value-add potential of each investment, ensuring thorough renovations, rebranding, and repositioning efforts. We also look for instant equity deals, where we can purchase and sell a property that allow us to double deployed investor capital in as little as a few months.
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By Right Projects

Overview

By focusing on projects that require little to no permitting challenges, you can benefit from reduced risk, faster timelines, lower costs, and more predictable outcomes. This approach allows you to capitalize on opportunities that offer both efficiency and profitability, making it a smart strategy for real estate development and investment.

Reduced Development Risk

By-right projects significantly reduce development risk since they comply with all local zoning and land-use regulations from the start. This compliance eliminates the uncertainty associated with seeking variances or special permits, ensuring that the project can move forward without facing legal challenges or delays.

Faster Project Timelines

Because by-right projects do not require additional approvals or public hearings, they can proceed more quickly through the development process. This accelerated timeline allows you to begin construction, leasing, or sales sooner, which in turn leads to faster redeployment for further gains.

Lower Costs

Avoiding the need for variances, special permits, or extensive legal consultations means lower upfront costs for by-right projects. This cost efficiency allows you to allocate more resources toward construction, enhancements, or other value-add strategies, ultimately increasing the profitability of the project.

Predictable Outcomes

With by-right projects, the development process is more predictable since it follows a clear, established path without the need for discretionary approvals. This predictability reduces the risk of unforeseen obstacles and helps ensure that the project stays on schedule and within budget, providing greater confidence in the investment's success.
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Vacant

Overview

Vacant properties play a pivotal role in our real estate investment strategy. These properties are often seen as challenges by others, but are opportunities for us to unlock significant value. By focusing on vacant buildings, we are able to operate with a high degree of flexibility and efficiency, transforming neglected spaces into thriving, income-generating assets. This approach not only aligns with our goal of revitalizing communities but also ensures that each investment stands strong on its own, regardless of broader market conditions.

Lower Acquisition Costs

Vacant properties typically come with lower purchase prices compared to occupied buildings. The absence of tenants reduces the complexity and cost of acquiring these assets, allowing us to negotiate better deals and keep our initial investment low. This cost efficiency is a key factor in maximizing our return on investment.

Streamlined Renovation Process

With no existing tenants to consider, we can move quickly and efficiently through the renovation process. This allows us to implement our value-add strategies without the delays often associated with tenant relocations or lease negotiations. The result is a faster turnaround time, enabling us to bring the property to market sooner and start generating income.

Flexibility in Redevelopment

Vacant properties offer a blank slate, giving us the flexibility to reimagine and repurpose the space according to market demand and our strategic vision. Whether converting a building into residential units, commercial spaces, or mixed-use developments, we have the freedom to create high-value assets that align with community needs and investment goals.

Enhanced Market Appeal

By transforming vacant, often neglected properties into attractive, functional spaces, we significantly enhance the appeal of the property and the surrounding area. This not only increases the market value of the property but also contributes to the overall revitalization of the neighborhood, making it more desirable for future residents and businesses.

Contribution to Community Revitalization

Focusing on vacant properties allows us to play a direct role in the revitalization of distressed areas. Each property we renovate and repurpose adds to the vibrancy and economic stability of the community, turning what were once liabilities into valuable assets that generate tax revenue and improve the quality of life for local residents.

By targeting vacant properties, we are able to leverage their inherent advantages, turning potential challenges into profitable opportunities while making a positive impact on the communities in which we invest.
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Distressed

Overview

Distressed properties are central to our investment strategy, offering a unique opportunity to acquire assets at a discount and significantly increase their value through strategic improvements. These properties, often overlooked due to their condition or financial challenges, are ripe for transformation. By focusing on distressed assets, we not only achieve substantial returns but also contribute to the revitalization of the communities in which we invest.

Discounted Acquisition Prices

Distressed properties are typically available at prices well below market value due to their condition or financial difficulties faced by the current owners. This allows us to purchase these assets at a significant discount, providing immediate equity and reducing the initial investment required. This cost advantage is crucial in maximizing the potential return on our investments.

High Potential for Value-Add

Distressed properties offer substantial opportunities for value creation. Through targeted renovations, repairs, and improvements, we can dramatically increase the property's market value. Whether it's updating outdated infrastructure, enhancing the property's aesthetic appeal, or optimizing the layout for modern use, these improvements unlock significant appreciation and rental income potential.

Market Resilience

Investing in distressed properties offers resilience against market fluctuations. Because these properties are purchased at a lower cost, there is a built-in cushion that protects against downturns in the broader market. Even in less favorable market conditions, the value we add through strategic improvements ensures that the property remains a viable and profitable asset.

Revitalization of Communities

Distressed properties are often located in areas that have suffered from neglect or economic decline. By targeting these assets, we play a crucial role in revitalizing these communities. Our investments not only restore individual properties but also contribute to the broader economic and social regeneration of the area, making it more attractive for future residents, businesses, and investors.

Strong Demand for Improved Properties

There is a strong market demand for well-renovated properties, especially in areas where distressed assets are prevalent. Once our renovations are complete, these properties often become highly sought after, whether for rental or sale, allowing us to achieve strong occupancy rates or quick sales at higher prices. This demand ensures a steady and reliable return on our investment.

Strategic Alignment with Economic Initiatives

Many distressed properties are located in areas that are the focus of local or state economic revitalization efforts. By aligning our investments with these initiatives, we can benefit from government incentives, grants, or favorable zoning changes that further enhance the profitability and success of our projects.

By concentrating on distressed properties, we not only capitalize on their inherent potential for value-add but also contribute meaningfully to the renewal and growth of the communities in which we operate. This approach ensures that our investments are both financially rewarding and socially impactful.
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Under Market Value

Overview

By focusing on acquiring properties under market value, you position yourself for success in real estate investing. This strategy not only provides immediate financial benefits but also sets the foundation for long-term growth, risk management, and enhanced returns.

Immediate Equity Advantage

Acquiring properties at a price below market value instantly provides you with an equity cushion. This means that from the moment you close the deal, the property is worth more than what you paid for it. This immediate equity not only reduces the overall investment risk but also enhances the potential for future returns as the property's value appreciates over time. The advantage also provides the opportunity on some occasions to quickly flip the property for a 2x return inside of a very short window, if we are able to source the right buyer.

Enhanced Return on Investment

Purchasing under market value sets the stage for higher returns on investment (ROI). The lower acquisition cost allows for more substantial profit margins when the property is sold or refinanced. Additionally, the savings on the purchase price can be reinvested into the property through renovations and improvements, further increasing its market value and rental income potential.

Flexibility in Value-Add Strategies

When you acquire a property below its market value, you have greater flexibility in executing value-add strategies. The initial savings can be used to fund renovations, upgrades, or rebranding efforts, allowing you to enhance the property's appeal and increase its income-generating potential. This flexibility also enables you to explore creative financing options and further reduce costs.

Risk Mitigation

Acquiring properties under market value serves as a buffer against market fluctuations and economic downturns. The built-in equity provides a safety net, ensuring that even if the market softens, the property remains a solid investment. This approach helps to protect your capital and maintain the property's profitability, regardless of market conditions.
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Bought and Built for
50-70% of Future Value

Overview

Our strategy is centered around acquiring and developing properties for 50-70% of their anticipated future value. This approach creates a strong foundation for value growth while minimizing investment risk. By focusing on undervalued assets, we can maximize returns through strategic improvements and repositioning.

Strategic Acquisition

We target properties that can be purchased well below their future market value, typically between 50-70%. This acquisition strategy ensures that we enter each investment with a built-in margin, allowing for significant value appreciation as we execute our development plans.

Value-Add Potential

By acquiring properties at a discount, we have more opportunities to enhance their value through renovations, rebranding, and operational improvements. Our focus on value-add strategies ensures that we can unlock the full potential of each asset, driving its market value closer to or beyond our initial projections.

Risk Mitigation

Completing projects for 50-70% of the properties future value inherently reduces investment risk. The lower purchase price provides a cushion against market fluctuations, protecting our investments from potential downturns and ensuring that we maintain a strong equity position throughout the holding period.

Maximizing Returns

This approach not only secures the property at a favorable price but also positions it for substantial returns upon completion of our value-add initiatives. As the property's value increases, our investors benefit from the significant equity gains created through strategic acquisition and development.

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