We spend considerable time understanding the macro landscape including GDP growth, employment-population ratio, population growth (Echo and Baby Boom), income growth, occupancy, inventory under construction, relative pricing by market and in relation to replacement costs, etc. We use the data in our algorithm to inform what markets we should target for investment. We are experienced and nimble as investors and invest in our targeted markets and property types, using capital structures to better position our
We are disciplined lower middle market real estate investors that focus on deals that we believe are too small for institutions and too large for individuals. This greatly increases deal flow and decreases competition. The lower middle market represents 80% of the market and only 20% of the capital. In contrast, the market above the lower middle market (where most real estate investors compete) encompasses 20% of transactions and 80% of the capital.
Margin of safety has long been ingrained in our culture. Our Founder Carl Chang was entrusted by his family and given the responsibility of managing the family’s wealth, with the goal of replicating a cash flow stream in perpetuity. His father told him “don’t lose your brother’s money” when they began to invest in real estate, and to this day capital preservation remains deeply ingrained in our Firm philosophy and investment process. We underwrite properties to deliver investors’ preferred rate of return un