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What is our investment strategy?
Multifamily real estate is an excellent addition to investment portfolios due to its low correlation with the stock market and its historically long-term out-performance of all other passive investments. For multifamily real estate to be a great investment though, the operators (GP's) need to have a stronger investment strategy.
The Fortius Way
Analysis
We rigorously analyze the market down to the block a potential deal is on. This ensures we are only investing in deals that are in areas with strong job growth and industry diversification, low crime, low unemployment, low vacancy, and solid rent growth.
Acquisition
We find underperforming apartment communities with a value add play that provide strong opportunities for forced appreciation. Our criteria:
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Must cash flow day 1
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Not in a flood zone
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Class B and C garden style buildings
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1978 and newer builds
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30-100 units
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Deferred maintenance
Reposition
Upon acquiring the property we add value by optimizing professional management, addressing deferred maintenance, renovating with the outside-in approach, and modernizing the homes and grounds. This allows us to:
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Fill vacancies
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Raise rents to market value
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Reduce expenses
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Stabilize the property
Cash Flow
Since we bought with cash flow day 1, after repositioning we now have stronger cash flow allowing us to distribute more into our exclusive investors' bank accounts. Additionally, with a stabilized property, we are able to refinance into long-term debt allowing us to return some of our investors capital early in a non-taxable event.
Exit Stronger
We typically hold for 5-7 years allowing our investors to enjoy the cash flow. Our team monitors the market to determine the most opportune time to sell, maximizing profits for our investors.