Simple, Proven Strategy
First, we buy real estate at a discount to replacement cost, or build it at attractive prices using our construction and development expertise, with the right long-term fundamentals in place.
We improve the asset or fix what is broken. We make the right physical improvements, bring in the right long-term tenants, and establish working relationships with them to grow business.
Finally, we sell the asset to the right long-term buyer, or we hold the asset in our portfolio and collect consistent cash flows. In both cases, we maximize the value for our investors.
One thing that sets us apart is our diversified strategy. We achieve consistent returns with lower risk by owning a diverse set of assets. We invest in: commercial real estate, residential real estate and loans secured by real estate.
We invest in commercial real estate. These are value-add investments, meaning that we create value through our efforts to reposition, improve and stabilize the properties. We achieve higher risk adjusted returns because of our expertise in bringing value to our real estate holdings.
In addition to commercial real estate, we also invest in residential real estate. Since 2009, we have made over 100 residential value-add investments. However, we don’t find the same deal flow in this space as in the past. Instead, most of our residential investments today come primarily through our company, Alturas Homes.
We also make loans secured by real estate. These are first position loans on residential and commercial properties. We underwrite loans as if we were purchasing the property ourselves and loan only on properties we understand. This lowers our risk because we know how to get top dollar for these assets if we were ever to get them back.
Our diversified strategy gives us a competitive advantage. It allows to know our true opportunity cost, so we can make the best decisions with our investment dollars and generate the highest possible risk-adjusted returns for our investors.
Another key to our success is a geographic focus on the Intermountain West, which is one of the premier growth markets in the country. We know our market, which helps us reduce risk for our investors.
Our two primary markets are Boise, Idaho and Salt Lake City, Utah. These markets have high job growth and low unemployment. Population growth is expected to be more than 2 times the national average over the next 20 years. This means opportunity for us and for our investors.
We also invest in the Pacific Northwest, including Seattle, Portland, Spokane, the Tri-Cities.