MNO Partners

If You're Investing in Real Estate, You Should Know About Promote. In a typical Central Texas ground-up #development, investors usually see returns around ~20% IRR with a ~2.0x multiple over 3-5 years. But by investing alongside the developer (GP), those numbers can increase to ~30% IRR and a ~3.0x multiple. How? Promoted Interest (or Promote). What is #Promote? Promote is a performance-based bonus that kicks in once a project hits specific return targets. The developer (or sponsor) earns a larger share of the profits after meeting investor return goals, allowing both the sponsor and sponsor-level investors to benefit from higher returns. Investors at this level receive a portion of the Promote, giving them access to developer-level returns. How Promote Works As shown in the slide, Promote follows a waterfall structure. After investors receive their initial capital and preferred return, any excess profits are shared disproportionately, rewarding the sponsor and sponsor-level investors for strong project performance. *** MNO is offering a central Texas focused development fund that allows investors to participate in above-market returns with sponsor-level benefits. Learn more: https://lnkd.in/ghUEC8wd

?? Think twice before buying a rental or flipping a house. There’s a smarter, more scalable way to invest in real estate. For professionals with $200k-$500k in savings, real estate is appealing. But Airbnb rentals or home flips often come with limited returns and more risk than expected. At #MNO Partners, we offer a better approach—focusing on value creation, economies of scale, and risk management. 1?? Targeting Troubled #Sites Our strategy is to seek out challenging sites with complexities that other developers avoid. These present opportunities for value creation through rezoning, entitlement, and development, unlocking potential that most investors miss and driving higher returns. 2?? Participating in #Promote Structure Unlike most funds, which reserve Promote structures exclusively for developers, we offer our investors the chance to participate in the promote. This means our investors share in the upside and profits that typically only developers enjoy, aligning everyone’s interests for maximum returns. 3?? #Design-Assist Approach for #Risk Mitigation Our design-assist approach involves bringing contractors in early during the design phase, ensuring accurate cost estimates, and minimizing risks during construction. This proactive approach protects investors and maintains flexibility. 4?? Economies of #Scale & Higher Returns MNO’s large-scale developments (200+ units) benefit from economies of scale, driving cost efficiencies and pricing power that smaller projects like flips or Airbnb rentals simply can’t match. This creates greater value and higher returns. Rather than smaller investments, participating in large-scale #developments offers a different return profile, leveraging land appreciation, #construction value-add, and institutional oversight. Visit https://lnkd.in/ghUEC8wd to fill out the form to receive our investment deck and explore how you can join our fund and benefit from these #opportunities.

? No one likes growing older and staring at idle cash. Yup, you thought of real estate. But here are some things to consider. No secret: Direct real estate investments can be risky —putting everything on one property, hoping it works out. But what if you could spread your capital across multiple deals and let experienced pros do the heavy lifting? Here's what you would get with a real estate fund investment vs. a direct deal: #Diversification: Multiple real estate investments, one fund. #DealSourcing: Access bulk deal-sourcing you wouldn’t find on your own. #Speed: Fund discretionary?capital means we can move quickly and lock in better deals. #Timing: We think the market is bouncing back. Fund discretionary?capital allows us to pursue a contrarian strategy and stay ahead of the curve. What's unique about the MNO Corridor Land & Development Fund: #Sponsor Participation: A rare opportunity to participate in the upside from Sponsor-level promoted interest and land-hikes. #i35Corridor: We're laser-focused on the Austin-San Antonio I-35 Corridor. Our local relationships give us the edge to outcompete other developers and secure solid deals. Sign up for our Investor List to get access to our OM, and we'll keep you in the loop. Link below: https://lnkd.in/eqkFRuv4 #RealEstateInvesting #Diversification #MNOFund #StrategicInvestment #SponsorFund

Good article by Danny Khalil. Glad MNO Partners could contribute some insight and great information from Meagan Johnston, CAPS, CPM Candidate Shannon Lee and Robert Arzola. We believe that with recent economic data, rate cuts are on the horizon. We are hoping for policies that create a less volatile and uncertain market and allow for more prudent business decisions to be made. Overall, there is still overwhelming demand for housing in the #SanAntonio-Austin Corridor. The market will essentially average out with 2023 and 2024 seeing very few groundbreakings after the record levels of new construction in 2022 and 2021. We expect 2026 and 2027 to see relatively few new deliveries. Ideally in Q1 2025 we will start to see more capitalization of new construction opportunities, specifically in great locations that tell a story. For new developments, the elusive un-trended 7% yield on cost remains the target in today's market, but we see that dropping to as low as 6.5% in Q2-Q3 2025 for projects with great stories as rates begin to decrease. I'm still curious to see if there will become more of a preference for 2-bedroom units or on average larger units because the millennial cohort is reaching or has reached peak family formation years. Regardless of family formation, demand should still be strong for lifestyle locations that can compete with the for-sale housing market. We'll see what happens, but it feels like we are starting to slowly turn a corner. #sanantonio #austin #multifamily #development #thecorridor

https://lnkd.in/ghUEC8wd

Are you bullish on Central Texas? We Are. At MNO Partners, we are announcing the launch of the MNO Corridor Land & Development Fund. Abrupt 2022-2023 interest rate hikes and an influx of new supply led to a drastic drop in multifamily?construction starts in the Austin and San Antonio metros. The stage has been set for a supply cliff and outsized rent growth from 2026 until at least 2029, which aligns closely with our three-year development timelines. We view the current depressed land valuations as ideal entry points well positioned to capitalize on the anticipated rebound as interest rates ease. The Fund's?strategy aims to turn these temporary adverse conditions?into lucrative?opportunities with above-market returns as the sector?begins to normalize. We are raising strategic?Sponsor-level capital for multiple developments in the high-growth I-35 corridor between Austin and San Antonio. Learn more about how we plan to shape the future of multifamily and mixed-use development in Central Texas. https://lnkd.in/ghUEC8wd

So much happening in the South Austin Entertainment District. A mecca for socializing, recreating, creating, and remote working. We are excited to be involved in two mixed-use developments in this incredible hot spot.

El Arroyo is just another restaurant within walking distance to Gateway to Gruene! Great spot!

Good times ahead - Come out and meet LinkedGlenn, Frank Navarro, Ryan Othman, CFA and David Morin today over at the Moontower. 4:30pm - Enjoy the People at a great place (Moontower Saloon) and this amazing Weather!!