Here at SIG, our strategy is simple, yet effective. We specialize in partnering with investors for multifamily properties in strong, promising markets and work to become experts in those areas. We then concentrate on identifying under-performing or under-capitalized investment properties with strong value add potential. We determine the potential value add of the asset through a combination of in-depth underwriting, sound financing strategies, calculated renovations, aggressive leasing and management, and a strong focus on measurable sustainability. This gives us the opportunity to force appreciation, thus increasing cash flow to our investors while maintaining a greater margin of safety. Prior to entering into any transaction we stress test potential investments to ensure that they can withstand changing market conditions while strictly avoiding over-leveraging our assets.
Our exit plan varies from property to property but in general we prefer to hold our properties long term. This enables us to maximize our value-add potential and ensure each property is fully stabilized before divestiture.
Multifamily properties are an excellent investment vehicle for investors of all types. Investing in multifamily can provide all of the advantages of a real estate investment (such as cash flow, appreciation, and tax sheltering) while allowing investors to be completely passive. The multifamily sector is growing, recession-resistant and should continue to be highly profitable.