Our Strategy – Eagle Mountain Capital

South Central Opportunity

South Central US is experiencing a manufacturing and logistics boom, driving demand for large-scale single family facilities.

Local population growth is driving demand for housing.
Larger regional and national employers are expanding operations into the region, attracted by the lower cost of operations, business-friendly climates, and growing populations.
This presents an opportunity for investors to capitalize on the demand for industrial and commercial real estate in South Central US.

Investing In The Next Generation
of Demand

We acquire, develop, and operate single family homes in South Central US.
We target markets with strong population growth and job growth.
We use a hands-on approach to manage our properties and provide a high level of service to our tenants.
We also use conservative leverage and tech-forward operations to maximize our returns.

Providing Investors Access to
Economies of Scale

We provide investors access to economies of scale in single family real estate rental investments. We do this by:

Targeting quality tenants in high employment growth markets, which allows us to maximize economies of scale in leasing, reduce deal risk, and lower operating costs.
Acquiring assets with identical characteristics in bulk to optimize operations at scale.
As our portfolio scale increases, demand increasingly directs itself to us directly and via broker partners. This demand visibility reduces our operating costs and lowers our risk of acquisition and development.
Raising capital as funds allows us to aggregate portfolio benefits across all of our investments, which benefits our investor network.

Target Investment Profiles

Our internal operating advantages allows us to maximize the universe of suitable tenants at higher rents with operate more efficiently to smaller scale operators.

We orient our decisions around a quasi-permanent hold strategy focused on maximizing after-tax returns. Our foundational investment principles:

Don’t Blow Up. We structure investments to minimize existential risk. When we acquire assets to reposition or develop new ones, we structure pre-lease and other risk coverage deals to minimize the chances of not covering carrying costs including debt service.
Use leverage intelligently. We use low-to-moderate leverage to minimize economic volatility risk. We are conservative underwriters to ensure that in-place cash flows are sufficient to cover debt service through a variety of economic conditions.
Fund Investments. We raise capital primarily as a fund to quickly move to opportunistic acquisitions. We pounce when the opportunity is right and don’t when it is not.
Long-Term Oriented. We believe the growth trajectory of our focus markets will continue over time so we aim to hold assets for 5+ years. When we opportunistically sell assets, we structure reinvestment opportunities so we and our investors can remain invested in the market’s growth.
Tax-Advantaged. We operate assets to provide tax efficiencies to our LPs, delivering accelerated losses, tax-efficient return-of-capital events, and 1031 exchanges whenever possible.
Cash Flow First. We focus on cash flows and avoid assets that are dependent on a buy-out or repositioning to meet our return targets.
Acquire new homes. By acquiring opportunistically from the builder in new growth geographies, we lower our operational cost and gain consistency in properties, with long term value appreciation trajectory.

Growth (Value-Add)

New single family assets in newly targetted growth geographies early in the development cycle provides value appraisal growth. Quicker leasing and our operational leverage and leasing edge can increase performance.

Our value-add assets use moderate to conservative leverage (60%-75%) with target annual returns between 10% and 18% and strong unlevered interim yields.

Asymmetric (Opportunistic)

We develop new single family portfolios in supply-constrained markets and acquire new properties in lower market spectrum near targetted employement zones. Our preference (and current standard) is to partner with builders to develop neighborhoods with restricted rental properties.

This approach allows us to minimize risk, provides better growth, and provide increased growth opportunities.

Core & Core Plus

Class A & B single family assets with in-place rents and high-quality tenants. We opportunistically invest in light improvements to increase rent performance mainly when assets lack specific features next-gen tenants require.

Our core and core-plus assets use conservative leverage (45%-60%) with target annual returns of 8%-12% and strong unlevered yields. Core and core-plus assets derive a greater share of returns from cash flows than market appreciation.