A Smarter Path to Multifamily Investing

• Income: $200k+ (individual) or $300k+ (joint) in each of the last two years, with a reasonable expectation of the same this year; or
• Net worth: Over $1M (individually or jointly), excluding your primary residence; or
• Professional: Hold Series 7, 65, or 82; are a director/executive officer/GP of the issuer; or a “knowledgeable employee” of a private fund; or
• Entities: Trusts or entities with $5M+ in assets (not formed solely for this investment), family offices with $5M+ AUM (and their family clients), or entities where all owners are accredited.

Targets are specific to each offering and are not guarantees. Many offerings pursue a mix of current income and capital appreciation, with distributions typically paid quarterly after debt service and reserves. We publish the full waterfall, preferred return, and hurdle structure for each investment.

We plan for what we can control and build cushions for what we can’t. 

Here’s what that looks like:

• Underwrite for the downside. We cap rent-growth assumptions and run “what-ifs” on vacancy, expenses, and exit values. Plans must work without heroic assumptions and lean towards conservatism.
  
  
• Debt for stability. We primarily use fixed-rate agency loans at moderate leverage (about 60–70% LTV), sized to ≥1.25× DSCR from day one—i.e., income can comfortably cover the debt service. That keeps payments predictable and avoids the need for a refinance to make the plan work. If a different structure better suits a specific deal, we clearly outline it in the offering.
  
  
• Reserves and scoped capex. We fund operating and replacement reserves up front and fully scope capital work. We pilot renovations to confirm costs and rent increases before scaling.
  
  
• Insurance discipline. We competitively bid coverage, right-size deductibles, and invest in risk-reduction (roof, systems, safety). We avoid markets where insurance volatility overwhelms NOI.
  
  
• Taxes and policy tools. We model assessments conservatively and pursue appeals where appropriate. In many markets, attainable-housing communities can qualify for local programs (e.g., abatements/exemptions) that lower expenses in exchange for income/rent commitments.
  
  
  • Example: In Texas, some assets can be structured with a Public Facility Corporation (PFC) partnership that provides up to a 100% property-tax exemption during the compliance term. Our Boerne asset uses a PFC structure; terms and covenants are detailed in the offering documents. Note: Such programs are case-by-case and not universal.
    
    
• Operating control. As an owner-operator, our in-house teams manage the levers that move NOI: rent pricing and renewals, fewer vacant days between residents, expense control, and targeted, cost-controlled upgrades.
  
  
• Flexibility if conditions change. We keep multiple paths to value, which can include => operating for income, renovating where payback is clear, and selling or refinancing when warranted. If needed, we can adjust distributions to protect the asset and communicate with our investors why and what’s next.

Bottom Line: To mitigate today’s market volatility, we are leaning towards more conservative underwriting assumptions, primarily fixed-rate debt sized to coverage, ample reserves, policy tools where sensible, and day-to-day operating control.