Philosophy

Strategy


  • Disciplined and granular underwriting on each investment – buy right
  • Alignment with investors – cash flow oriented, not fee focused
  • Investors paid first
  • Optimization of property operations – increased property cash flow
  • Long term investor relationship – accessible management team
  • Transparency on all investments – Property visits and market tours available
  • Leverage management’s experience to create opportunities
  • Value-add and opportunistic investments
  • Below intrinsic value and market rent

Approach

  • Demographic data and demand dynamics
  • Land use planning and legislation (urban growth boundaries)
  • Zip code specific market tracking
  • Neighborhood gentrification
 
  • Comparable cap rates
  • Comparable rental rates
  • Rental costs per square foot
  • Price per square foot compared to sales and replacement costs

Target Areas

LMDG targets key submarkets in the Los Angeles and Orange County areas

  • High effective rents and consistent rent growth
  • Occupancy rates greater than 90%
  • Limited new supply

Pipeline


Criteria

Property Type:Multiamily, single family, or under utilized commercial properties
Acquisition Size: $1,000,000 – $5,000,000
Target Leverage:50% LTV post renovation
Target Returns:20% – 25% stabilized cash yield
Targeted Stabilized Cap Rate:8%+ on total capitalization
Locations:Southern Caliornia. Los Angeles & Orange Counties

Value-Add Opportunities

  • Maximize cash flow with increased rents and operational efficiencies
  • Upgrade unit interiors and modernize building exterior and common areas
  • Complete extensive deferred maintenance or major repairs
  • Leverage zoning and redevelopment potential

Typical Residential Renovations

Interior Upgrades may include:

  • New flooring, including wood, tile or carpet
  • Plumbing system replacement or repair
  • Electrical system replacement or repair
  • Upgraded kitchen cabinets and countertops
  • New kitchen appliance package
  • Upgraded bathrooms
  • Painting, including two-tones or accent walls

Exterior upgrades may include:

  • Full exterior repaint or touch-ups
  • Upgrade landscape and hardscape
  • Upgrade or build common area washer/dryer facilities
  • New monument and building signage