Fundamental Long-Term Investments
“Fundamental” investments serve as the cornerstone of the company’s strategy. Purchasing properties with the ability to generate consistently strong cash flow over the long-term allows the company to withstand large market fluctuations and will continue to receive passive income into perpetuity. Properties considered as fundamental investment are located in areas where long-term growth (population, job, income, etc) is expected to thrive.
Value Play Short-Term Investments
When available, the company makes “value play” investments to generate short-term (1-5 years) capital gains. The key to the value play is to purchase mismanaged properties in temporarily depressed areas at well below current market rates; the goal is to add short-term value and resell or refinance for large capital gains. These types of transactions provide the working capital needed to acquire additional longer-term “fundamental” investments.