The Blessing of our Residents!

Hi?

I hope your week is going well and we are truly excited that you are here with us.?

Please know what a blessing you are and how awesome you are!

In commercial real estate it's very common that market fluctuations occur over time. It's natural occurrence that often invoke anxiety, hesitation, and clouded judgement within our minds.?

We see interest rates increasing, but prices staying high.?

We see negative news around supply chain shortages and immediately start going down the negative spiral in our mind around investment opportunities.?

But the?truth?is that it is in times of uncertainty that real opportunity exist.?

Are rates where we want them?

No. Infact there will likely be another 50bps hike in September.

Are prices coming back us??

Potentially, but the only way that happens is for investors to buy right and stick to sound judgement.?

With where the real estate market is going and how the future is looking regarding rates, prices, inventory, and demand we have a real opportunity.

We are still very bullish on multifamily and we are continuing our business as usual. Looking for deals, being agile to the environment while still providing amazing opportunities for investors to build a fantastic portfolio for their families.

As we are moving forward with this, we are also bullish on an asset class that provides amazing opportunity to build sustainable communities as the rental market will be in higher demand.

Build To Rent has been a focus now for well over a year.

Build a sustainable, high quality, subdivision type asset to provide fantastic housing for our residents. One thing you will rarely hear me say is the word "tenant". I hate the word.

Why? Because our residence work very hard and they are of high value as people. They are trying to provide for their families and work towards a better life.

They are not a line item or a funding source.

They are our residents and we care about them and appreciate them.

We get an amazing opportunity to build communities for our residents that their families can create memories. Kids learn to ride a bike or they have sleepovers with their friends.

We have a heart for people and above all a heart for missions. This starts by being on mission for our residents and our investors.

Education:

Reversion Cap Rate

When we are analyzing a property. One of the biggest points we look at is the "Reversion Cap Rate" or "Terminal Cap Rate"

This is the cap rate that we project the asset will sell at when it's time for disposition.

We always want to make sure that we are conservative in our approach. We want that figure to be between 75bps and 100bps higher than the in-place cap rate.?

For example: If the in-place cap rate at underwriting is 4.50%. We want to make sure that the reversion cap rate is at least 5.25%.?

This shows conservative as we are assuming the asset will not increase in value during the life of hold period.?

If we were to go the other direction say from 4.50% to 3.75% we are assuming an increase in the market.

This is highly risky and not fiducilly responsible for our investors and our mission

Encouragement:?

Every morning when you look in the mirror, you are look at greatness! You are awesome. You are an ELITE investor and you truly a blessing.?

Scripture:

Psalm 139:14 says

"I praise you, for I am fearfully and wonderfully made. Wonderful are your works; my soul knows it very well."

Prayer:?

I pray that today, you see the value that you are. God sees it. He sees it so much that he sent Jesus to die for us and he NEVER leaves us alone but is always right next to us and leading us. All we have to do is follow.?

We would love to connect with you and help you and your family grow!

Let's connect

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