Simple Risk Management Framework

We believe that smart investing isn’t just about returns it’s about protecting your capital first.

Here’s our 4-part framework for managing risk in every deal we offer:

1. Operator Risk → Minimized by Experience

Risk: The team managing the deal lacks track record or discipline.
Our Approach: We only partner with vetted, experienced operators who have a proven history of executing similar business plans.
We look for:

Repeat success through market cycles
Transparency in reporting
Alignment with investor interests

2. Market Risk → Minimized by Demographic Trends

Risk: The property is in a declining or oversaturated market. Our Approach: We invest in strong, growing markets with:

Job growth
Population growth
Housing demand

We also prioritize properties near major employers, transit, and schools locations people want to live in long-term.

3. Property Risk → Minimized by Underwriting Discipline

Risk: The numbers don’t work out due to faulty projections or unexpected expenses.
Our Approach: We use conservative underwriting and stress-test each deal:

Assume higher vacancies
Use realistic rent projections
Build in reserves for repairs and delays We would rather walk away from a flashy deal than force numbers to fit.

4. Financial Risk → Minimized by Structure

Risk: Investors don’t get paid if the deal underperforms.
Our Approach:
We structure deals with:

Preferred returns (you get paid first)
Reserves for unexpected costs
Debt coverage buffers in case of market softening

We also invest alongside our LPs, so our interests are fully aligned.

Our Guiding Principle:

Protect capital first. Grow it second.

That’s the heart of every decision we make.

Disclaimer

This content is for educational and informational purposes only and does not constitute investment, legal, tax, or financial advice. Real estate investing involves risk, including the potential loss of principal. Outcomes are not guaranteed and depend on market conditions, property performance, and economic factors. Past performance is not indicative of future results. Readers should conduct their own due diligence and consult qualified professionals before making investment decisions.