Strategy Values
» Residential Real Estate Is a Hard Asset and a Basic Human Need.
» Use Research & Data to Understand Supply and Demand.
» Create Value and Increase NOI Using Proven Strategies.
» Successful Partnerships Come from Building Credibility and Trust.
» Create and Share, Fun and Adventure with Partners, Investors, Employees, and Customers.
» Residental Real Estate Is a Hard Asset and a Basic Human Need.
Housing is by far the largest component of US GDP.
Shelter is a must for human survival and the average consumer’s largest personal expenditure.
Housing can’t be out-sourced and no technology will make it obsolete.
Both rental and for-sale housing are ubiquitous providing a multitude of comparable examples to use as a benchmark and accurate predictor of achievable NOI. Operating variables are far less complex than most other business types and data is published in many forms and therefore easier to access. Prices for all commercial and residential sales are recorded on title and accessible. Online listings provide a volume of rental rate data along with the related property characteristics such as size, location, and quality.
» Use Research & Data to Understand Supply and Demand.
Supply and Demand is the most fundamental economic equation. It predicts the equilibrium between suppliers and consumers or in other words the efficient price between buyers and sellers. The existing supply and demand of housing as well as the factors that influence future supply and demand are well known and measurable. We use a formal but simple process that is part of every investment we evaluate.
On the supply side, we identify locations with barriers or limits to future supply such as a lack of undeveloped land, geographic limitations such as mountains, roads, and oceans; zoning limitations, and opposition to new development from local residents and municipal leaders. The existing housing supply for a particular market and type is counted on a per unit basis and evaluated in relation to demand. That market’s supply/demand balance or health is determined based on occupancy and future potential is measured using demographic trends such as population, age, race, income, and wealth. Qualitative factors including location accessibility, weather, aesthetics, local amenities, values, and interests are also studied to refine demand expectations among the possible competition.
Decades of practice using a template of data collection and modeling allows us to analyze information and uncover patterns and trends not always visible on the surface. This effort is the difference between a hunch and an accurate understanding of the true profitability of a market opportunity. This eliminates guesswork as well as trial and error from the process of finding profitable investments.
» Create Value and Increase NOI Using Proven Strategies.
We know from experience that we can improve quality and design for measurable revenue enhancement. Adding building area to an existing property is another reliable profit strategy that can be estimated with accuracy.
» Successful Partnerships Come from Building Credibility and Trust.
We only work with a handful of repeat investors. This is our philosophy with vendors, service providers, and resident customers. We want to be efficient and minimize headaches.
» Create and Share, Fun and Adventure with Partners, Investors, Employees, and Customers.
Shelter was created to be more than a profitable investment vehicle. We want to:
Be inspiring, purposeful, and have fun along the way.
Invest with people we like and want to spend time with.
Be creative and innovative. A thoughtful approach is more fun and more profitable.
As luck would have it, caring for seniors has vast opportunities to create and share such adventures.