Strategy-Driven Real Estate Investing in Partnership with Experienced Operators
Investment Philosophy
We are strategy-driven real estate investors focused on acquiring a small number of cherry-picked, cash-flowing assets each year.
We partner with experienced real estate operators that have proven track records within their respective asset classes, geographies, and investment strategies. We leverage these partnerships to identify attractive acquisition opportunities, implement operational efficiencies, and drive strategic decisions to improve cash flow and asset value.
As market conditions evolve, we adjust our approach accordingly, with a focus on offering both downside protection and achievable upside, in order to generate strong risk-adjusted returns relative to current market dynamics.
Our Investment Philosophy is predicated on our ability to create value rather than relying on market appreciation.
Value creation may take the form of below market acquisition pricing or niche acquisition opportunities in under the radar markets, applying institutional operations to increase revenue, implementing portfolio roll up strategies, improving operational efficiencies to decrease expenses, or restructuring an asset to create meaningful tax benefits.
Investing with Alpha
On a deal-by-deal basis, we aggregate capital from our investor network into a single investment entity that allows our members to invest alongside institutional-caliber operators.
Our approach allows Alpha Investing to invest as a control equity partner which yields access to higher quality deal flow, better economic terms, and certain approval rights.
Following an acquisition, Alpha investors receive distributions and investment updates on a quarterly basis.
Active Asset Management
We are not just capital allocators. Following an acquisition, our internal asset management team actively participates in the management of our properties, which allows our investors to be passive.
Our asset management team will have real-time access to property financials, participate in property management calls, and make strategic operating decisions in collaboration with our operating partners.
We strongly believe that active asset management is necessary to optimize investment returns.
Best-in-Class Operators
We selectively partner with best-in-class real estate operators.
We establish recurring relationships with a small group of best-in-class operators that have demonstrated both asset class and geographic expertise within their respective investment strategies. We have historically made investments with less than 5% of the potential operating partners that we have evaluated.
We typically spend 6–12 months evaluating potential operating partners by considering:
Management
- Colleagues and references
- Management team experience
- Professional pedigree
- Lender relationships
Past Projects
- Geographic focus
- Asset class focus
- Historical returns vs. pro forma
- Performance through down cycles
Deal Underwriting
Our highly selective underwriting carefully considers many factors before moving ahead with a deal.
Real estate deals are presented with forward-looking projections, which are only as good as their underlying assumptions. When we underwrite a transaction, we test the validity of all underwriting variables and create internally generated scenario and sensitivity analyses with the understanding that not all assumptions will be accurate.
Before any investment opportunity is presented to our network it has gone through our extensive underwriting process. We carefully consider the market, the property’s physical condition, its historical financial performance, opportunities to improve cash flow, and numerous other variables.
Only a small number of transactions are ultimately presented to our investor network, typically 6–8 per year, depending on market conditions.