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Client Qualifications




  • We only work with long-term individual investors throughout their full investment life cycle (or with groups of individuals via an LLC or other partnership structure). We don’t service institutional investors. Most of our clients begin their investment program in single family residential properties (1-4 units) and progressively trade up on a tax-deferred basis until they own one or more commercial properties. These properties are typically apartment buildings of less than 100 units, small office buildings and strip shopping centers, which can be financed simply without a lot financial engineering.
  • We don’t work with clients on one-off transactions. If you want to sell your primary residence, call a residential real estate agent with one of the big brokers.
  • We qualify our clients. You don’t have to be a high-net worth individual but you must have sufficient capital for an initial down payment, closing and remodeling costs. You absolutely, positively must have good credit (FICO of 700 or better). In order to earn good returns, you will need to qualify for the best mortgage rates available. If you’re carrying a large balance on your credit cards, you shouldn’t be investing in real estate.
  • You must be committed to a long-term investment program. Our clients don’t flip properties. They build up equity by paying down their mortgage, raising rents as they prudently improve their properties and opportunistically trading up to larger properties. Typical property holding periods are 2-5 years and clients will trade upwards 4-6 times before they reach their optimal property or portfolio. Do the math, you need to be a long-term player.
  • You must have transaction bandwidth and capability:

    • This means you can read an income statement and are somewhat comfortable with Excel.

    • You don’t have to write real estate contracts but you must be comfortable reviewing legal and mortgage documents.

    • You are also willing and able to respond to requests within 24 hours including: review of valuation analyses, purchase offers and mortgage documentation or processing of wire transfers. If you’re so busy that it takes more than a business day to get to something, you should invest passively in real estate. Real estate searches often take months but once you’re in a transaction, hours become important.