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Asset Class

Real estate is often credited with creating more wealth than any other asset class in history. This is partly due to its unique ability to generate multifaceted returns. These returns come in the form of not only cashflow, but asset appreciation and the tax benefits from depreciation.

Rowland Capital Partners leverages a trademarked asset management strategy, DAAM TM, to carefully acquire and actively manage single-family homes. Each funds portfolio initially focuses on Core Plus and Move-In-Ready assets, ensuring timely revenue generation. As the portfolio expands, we strategically incorporate Value-Add properties to increase future appreciation potential. Transforming assets from Value-Add to Core Plus, and ultimately to Core Class, increases NAV growth and maximizes ROI.

"Real Estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid in full, and managed with reasonable care, it is about the safest investment in the world" - Franklin Roosevelt

Value-Add Classification

Value-Add single-family rental home investments are properties that have significant potential for improvement and increased income but require active management, renovations, or repositioning.

Characteristics

  1. Stability: May have higher vacancy rates or shorter lease terms initially.
  2. Condition: Properties may need significant renovations, updates, or better management.
  3. Location: Can be in good or emerging neighborhoods where there is potential for increased demand and appreciation.
  4. Income: Offers the potential for substantial income growth through property improvements and active management.
  5. Risk/Return: Higher risk due to the need for capital expenditures and active management, but with the potential for higher returns, typically around 10-15% or more annually.

Investor Profile

Suitable for investors with a higher risk tolerance looking for significant upside potential. Often targeted by experienced real estate investors, private equity firms, and those comfortable with hands-on management and renovation projects.

Core-Plus-Move-In-Ready Classification

Core-Move-In-Ready single-family rental home investments are high-quality properties in excellent condition, located in highly desirable neighborhoods with strong market fundamentals. These properties are prepared for immediate occupancy but have not yet secured tenants, meaning stabilized cashflow is not yet established.

Characteristics

  1. Stability: Currently vacant awaiting tenancy to achieve high occupancy rates.
  2. Condition: Properties are well-maintained, move-in-ready, and do not require significant capital expenditures.
  3. Location: Prime, highly desirable areas with low vacancy rates and high demand.
  4. Income: Potential to provide steady, predictable rental income once tenants are secured.
  5. Risk/Return: Slightly higher risk due to the lease-up period, but with the potential for stable returns once occupied, typically around 8-12% annually.

Investor Profile

Suitable for investors with a higher risk tolerance looking for significant upside potential. Often targeted by experienced real estate investors, private equity firms, and those comfortable with hands-on management and renovation projects.

Core Plus Classification

Core Plus single-family rental home investments are properties that are in good condition and located in desirable areas but may require some improvements or more active management to maximize their potential.

Characteristics

  1. Stability: Generally high occupancy rates but may have slightly shorter lease terms or some vacancy.
  2. Condition: Good condition but might need minor renovations or improvements.
  3. Location: Good neighborhoods, possibly not as prime as Core locations.
  4. Income: Provides stable income with some potential for increased cash flow through active management.
  5. Risk/Return: Slightly higher risk than Core, with higher returns, typically around 7-10% annually.

Investor Profile

Suitable for investors willing to take on a bit more risk for the potential of higher returns. Includes institutional investors and high-net-worth individuals looking for a mix of income stability and growth.

Core Classification

Core single-family rental home investments are properties that are fully stabilized, in excellent condition, and located in highly desirable neighborhoods with strong market fundamentals.

Characteristics

  1. Stability: High occupancy rates and long-term tenants.
  2. Condition: Properties are well-maintained and do not require significant capital expenditures.
  3. Location: Prime, highly desirable areas with low vacancy rates and high demand.
  4. Income: Provides steady, predictable rental income.
  5. Risk/Return: Low risk with lower returns, typically around 5-8% annually.

Investor Profile

Ideal for risk-averse investors seeking stable, long-term income streams. Often institutional investors, such as pension funds and insurance companies.

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