Our investment strategy
Balance Between Cash Flow and Appreciation
Ranch at Sienna · Houston, Texas
We have a set of very strict criteria when it comes to market selection. It covers various aspects from fundamental economics to local real estate market, which will be discussed in later sections. All the criteria ensure ongoing positive cash flow and possible future appreciation.
We spend a significant amount of time searching and analyzing great deals. Our actuarial background has helped us in financial modeling and analyzing deals. All assumptions that go into financial projections are conservative, and stress testing are performed on key assumptions.
We work with professional property management company and construction company to increase value of the property. As an asset manager, we closely monitor their performance, and make sure everything is carried out according to business plan.
Once we have successfully execute the business plan, we will sell the asset to realize profit for our investors. We work with top level professional real estate brokers in order to achieve best price.
Market selection
We only choose markets with high potential
We check historical population growth, and only pick cities with the top influx of people. This is demand side of rental market and is also the fundamental driver of rent and price growth.
To ensure the market has solid employment, we look at a few metrics including unemployment rate, job growth, industry diversification. We are particularly interested in markets that are consistently adding high-paying jobs in various industries.
We perform extensive research and analysis on the local economy. We look for markets with more than four supporting industries. We avoid the markets with single supporting industry because its cycle will negatively impact rents and house price.
We only invest in markets that are landlord friendly. Eviction process, landlord & tenant rights, rent control rules and property tax are all critical factors for successful real estate investment.
Our commitment
Treat clients the way we want to be treated
Regular cash distribution will be made to our passive investors once the multifamily asset is stabilized.
Through professional property management and strategical rehab, we force property value to increase and therefore bring excellent returns when we sell.
Our target is to execute business plan, improve and sell the property in 3-5 years. This means that our investors will have initial capital and profit back in 3-5 years.
Warren Buffett said he treats his investors the way he wants to be treated. We strive to do the same. Therefore, we will always put our investors interest first and always be there when you need any help.
Get in touch
Learn more about Oak Real Estate Investment.
