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Value Investing in Real Estate

RESULTS

We compare our results to the S&P 500 to measure against what would have happened if we had just passively put all the money in an index fund.

 

Year S&P 500 Return (with Dividends Included)
2016 6% 12.2%
2017 78% 21.8%
2018 38% -4.4%
2019 4% 31.5%
Average Annual Return 31.5% 15.28%

OUR VALUES

Do any of these resonate with you?

  • We think of all our investors as long term equal partners and want our investors to think of themselves as equal partners as well.
  • We’re all in this together! – our money is always invested alongside with our investors.
  • The ideal holding time for an investment is forever… as long as the economics of the asset continue to make sense.
  • Buy only with a Margin of Safety.
  • Circle of Competence – we invest in what we know, if we don’t understand it, we don’t invest.
  • Warren Buffett and Charlie Munger
  • All intelligent investing is value investing.
  • We try to make rational decisions about the desirability of a property in 10 to 20 years.
  • It’s better to pay a slightly higher price for an investment in a great neighborhood rather than a cheap price in a bad one.
  • We focus on things that are important and within our control. Questions like, “What interest rates will be?’ or “Will there be a recession in 2 years?” are out of our control.  We focus on questions like, “Does this property cash flow?” and “Will this property’s great location still be great in 10 years?”

If so then you may be our kind of investor, Get in Touch.

PORTFOLIO

2020 In Progress…  6 unit Multifamily in Aurora, Colorado.  Full renovation of building.

2018-2020.

New ground up multi-family construction project in midtown Sacramento.
Turned a 4-plex into a 6-plex by building 2 new Townhouses.

See the video for a full time lapse of the project. 


Increased the value of the parcel from $1,000,000 to $1,900,000 in one year by transforming a 4 unit into a 6 unit.

This is one year of effort collapsed down into one minute.

Turn the volume up for the full experience. (but be careful if you’re in a quiet room, it could be loud)

2019-2020

6 three bedroom apartments. Value add deal, full renovation of all 6 units.
Cash our Refinance in 2020.

Increased value from $950,000 to $1,350,000.

2018

Mixed use multi-family in Sacramento.  Full remodel and renovation with a cash out refinance.

2016 – 2017

Multi-family renovation in Sacramento. Full remodel and renovation with a cash out refinance.

2016 – 2017

Multi-family renovation in Sacramento. Full remodel and renovation with a cash out refinance.

CONTACT US