How We Consistently Deliver Positive Cash Flow Properties
The two founders of the company are engineers who approached real estate investing as an engineering problem to be solved. Since 2006 we've delivered positive cash flow properties that have appreciated on average 11%/Yr. 90% of our clients have purchased more than one property from us. Almost all of our clients live in other states or countries. How do we consistently deliver positive cash flow properties with little time or effort from our clients?
We Know the Right Tenant Pool
The property defines the tenant pool and not all tenant pools are desirable. The wrong tenant pool can result in frequent turnover, damage, evictions, high maintenance costs, high vacancy rate and more. Knowing the right tenant pool is critical. And, it starts with the right employment segments. Below is an image depicting the relationship between employers and the properties you want to buy.
Not just any pool of employees will work. There is always a range of employees and some will be transient, some will be long term renters and others will only stay for relatively short periods of time before they buy a home. Below is an illustration showing relationship between rent (and income) and tenant pool characteristics.
Our property profile is selected by tenants that on average stay over 4 years. We have had only 3 evictions since 2006. Even during the 2008 crash, our clients had zero decrease in rent and zero increase in time-to-rent. (2 min read) The market value of the properties plunged like every other property but the income did not change.
We Developed Proprietary Investment Software
Consistently finding properties that meet the dual standards of sustained profitability and probable appreciation cannot be achieved through traditional methods. On any given day there are 10,000+ properties available but only 20 to 30 are likely to be good investments. On top of that, good properties do not stay on the market long. The entire selection, evaluation and offer process must be completed in 2 to 3 days or the property may be gone. Only our proprietary software can find the few good properties fast enough to allow time for evaluation and making an offer.
Our Proven Processes
Consistently doing any complex task correctly is not possible if you depend on gurus, luck or hope. We believe in well defined and proven processes. These processes have been developed over 10+ years and they continue to evolve. Below is a summary of the process that we follow for every property.
Our Expert Investment Team
Every member of our investment team (4 min read) is the best in class, and have proven their abilities and integrity over time. Should any fail to continuously provide exceptional results in the future, they will be replaced. The only way team members get the next job is by doing the current job exceptionally well, since we do not accept any kickbacks from them.