Investment Page SJI

How we Invest

Investment Strategy

Our area of expertise is Multifamily B/C Properties with cash flow projections within 2% of pro forma caps. We generally seek value-add projects with solid mechanicals that improve regional demographics and cash flow positive projects at purchase. Additionally, we have significant experience with gut rehab projects. Still, the risk must provide substantial upside in these cases; we're not afraid to walk away from any deal that doesn't satisfy our high standards for investor returns.

Our investment goals are a 15% Internal Rate of Return (IRR), 5-15% project capital appreciation, 1-3% debt reduction, 8-12% cash-on-cash, and a 5% annual preferred investor return. Highly scrutinized project selection, hands-on management, and cash flow-centric decision-making keep these goals reasonable and attainable. Our average hold period is 3-5 years, and this may vary based on market conditions. Our goal is to maximize profits for our investors.

Low Stress:

Cash flow neutral or better year one. Underwriting includes a budget for capital expenditures. Clear upward trajectory year 2-5.

Flow:

Each deal should already show signs of momentum when we underwrite. The property should work under the most conservative projections.

How we Identify New Multifamily Investments

Specialized:

Midsized Multi-Family B/C spaces with a minimum of 50+ Units. We like to have at least 100+ units in each market (preferably 300-500 units).

Location:

We focus on secondary or tertiary markets with historical data supporting their consistent economic growth and stability.

Immediate Value Adds:

We find properties that have rent rates below the surrounding market. Analyze income and expenses to forecast

Review Property:

Develop a capital expenditure plan focused on speeding up the appreciation of the property. The project must make sense for the client base and market.

Why Us?

Track Record

We started in real estate as property managers with a small footprint of properties in our respective portfolios. However, hard work and adaptability have allowed us the opportunity to acquire larger-scale projects with great returns. Each property we have developed saw at least a +20% annual return from the initial investment. Our properties have appreciated an average of 32% by the time of resale.

Hands-On

When we acquire a property we are all in. We review and stay active in every aspect of the deal. Active management helps us to maximize the return for our investors. Our general partners temporarily relocate during the transition process, especially in projects requiring more development work. We regularly visit the property throughout the ownership and schedule weekly zoom calls with the property management team. As well as, our ongoing and rigorous analysis of income, expenses, tenant screening, and leasing process.

Accessible

Building a long-term bond with our investors is one of the most critical pieces to our collective success. We are here to meet each investor's specific needs. Whether the investor is more active or passive, our team is adaptable to help keep them confident and informed with our plan for each project.

Informed Analytics

Analyzing numbers goes beyond plugging numbers into a spreadsheet. As successful property managers, we understand what things cost. Knowing where "reality" lies and what things cost is vital to analyzing deals and running a successful investment.

Quality

As a boutique operation, we choose to focus on only a few active projects at one time. We want to ensure we can give each investment our complete attention. The importance of our current assets with our investors takes precedent over any potential new deal.

Tenacity

Our investors have seen the greatest returns when they invested with us in more challenging and transitional areas. We take pride in our ability to navigate tough, and unglamorous environments. We have the experience to find the upside whether it's with a Class A, B, or C property.

Core Values

Beyond each investor's financial success, we will do so with the highest moral standard. We invest our own money into every property we acquire because . This means transparency and honesty throughout each stage of the investment.

Find & Analyze