Philosophy & Methods

 

Investment Philosophy 

All real estate investments involve risk. But TMR's specialty, Value-Add Multifamily Investing, has consistently earned substantial profits for our investors while moderating many of the risks involved with other traditional multifamily investment methods.

We believe in preservation of capital first and foremost. TMR's realistic, time-proven investment parameters, supported by our aggressive, hands-on asset management style, have generated outstanding partnership returns without a single capital loss in the company's 35+ year history.

Please see: Track Record.

Consider the Following Risk vs. Reward Comparison of Investment Methods:

Multifamily Development vs. TMR's Value-add Investments


 

Multifamily Development


TIME RISK
Requires years of planning, permits and construction. The economy may change materially before completion.

CAPITAL RISK
The cost of new construction is generally 80% to 100% or more expensive than older, existing properties.

INTEREST RATE RISK
After 2-3 years of construction, permanent financing must be placed. Interest rate change is a serious risk.
 

TMR's Value-Add Investments


TIME RISK
Analyze and acquire the properties in present time based on current market rents and economic conditions.

CAPITAL RISK
Renovated properties typically run 50% of the cost of new construction but generate 65% to 70% of the same rents!

INTEREST RATE RISK
TMR places permanent, fixed rate financing at the time the property is acquired. There is no interest rate risk involved.
 


Acquiring Existing Properties vs. TMR's Value-add Investments


 

Acquiring Existing Properties - No Value-add Component


SOURCE PROFIT
Economic growth positively affects rental demand, which in turn, increases rents and property values.

Owner's contribution to added value = None.

TMR's Value-Add Investments


SOURCE PROFIT
Economic growth positively affects rental demand which in turn, increases rents and property values.

TMR's Signature renovations consistently create 40% to 50% of all capital gain and cash flow profits over the investment's life.