How we locate high-value investments that are performing under the current market value, in order to increase overall property appraisal value.
Markets
We primarily invest in markets with low unemployment, growing population, strong job growth, year-over-year rent growth, and low vacancy rates. We don’t just go based on recent trends but analyze the drivers of the growth to assess the permanence of the trends (e.g., is job growth driven by a temporary surge that reset in 3 years).
Property Type
We invest only in value-add real-estate. This means, we only invest in opportunities, where we see a clear strategy to improve the net operating income, and hence the sale price. In other words, we can “force” appreciation on the property vs. simply speculating an appreciation. We invest primarily in Class B and C properties. These tend to be value rentals for the working class families. We find that these properties are much more resilient to economic cycles, and also command favorable tax treatments. We also only invest in stabilized properties. This means, at purchase, the property is already more than 90% occupied, and is generating steady cashflow. This again allows us to minimize the risk profile of the investment.
Targeted Returns
We only invest in opportunities where we can generate quarterly residual income and double digit total annual return (inclusive of equity and value appreciation) over 3-10 year hold period. More than half of the total returns are from steady quarterly cashflow disbursements vs. equity appreciation realized at sale. We are uncompromising with our performance criteria in our deals and we do rigorous analytical and strategic evaluation of every deal to find the “right one”. We underwrite and evaluate scores of deals before we decide to bring it to our investors. In our focus markets, we have strong broker relationships who often offer off-market deals to us. We place a much bigger premium on finding the right deal vs. simply closing deals and moving to the next one.
GETTING STARTED
WITH
CORDELL
CAPITAL IS EASY
Invest along side other Accredited Investors and the Principals of Cordell Capital for passive income and long-term wealth.
Discuss your goals and understand how we do business
In any sort of financial investment, it's important to understand who you are doing business with. The start of this is self-education - ie read our educational content, check out our report, listen to our podcasts. You should also schedule a call with our Principal so he can give you a more in-depth idea of the business
REVIEW
We send out notifications about investment opportunities that we carefully did our due diligence so that you have priority access before it is opened to the public. We open these for review internally first because we want to make sure our investors get a first shot at the investments we bring in. Part of what you need to do is then check the material we send out and review the details.
Talk it through
We want to make sure you have every available resource that we can provide and that includes being able to talk your investment through with a member of our team. The advantage of this conversation is to understand how aligned we are when it comes to this investment. We choose selective private investments based on our investment strategy. As an investor, you also need to choose your investments based on your own criteria too.
Invest & Profit
We keep our investors through multiple communication channels about deadlines for our capital raising. The very first step when the investment is open is to fill out our "soft commit" and which acts as an application for the investment. Once that's done, we wait for the transfer of funds and advise you of the next steps.
