Invest With Three Pillers Capital Group
STRATEGY
Factors Contributing to Demand
- Reduced Pace of New Development:
Due to tighter lending policies for new construction, new multifamily project developments are at multi-decade lows. Moreover, new development tends to be Class A that many find unaffordable. This creates more demand for well run assets. - Home Ownership Trending Downwards:
Demand for rental properties has steadily risen because home ownership has gotten expensive. - Millennials Prefer Renting:
The Millenial generation is more likely to rent than buy. - Class B & C Recession Resilience:
During good economies and bad, B & C class multifamily properties maintain higher levels of occupancy.
Management Play
- Property Management Management Intensive:
Class B & C properties require a strong management team that can manage all aspects of property management from renovations to customer service. 3rd party property management companies do not have the same economic incentives and are not inline with investor expectations. - Attention to Detail:
Most management firms have average to poor checks and balances & procedure and policy in place. It takes a team with ownership mentality to ensure that all aspects of the property are running smoothly.
Selection Criteria Highlights
- Supreme, densely populated location in desirable areas of Houston
- Strong fundamentals in property’s submarket
- Close proximity to major employment centers
- Favorable demographic trends
- Potential for RUBS / utility bill back
