ABOUT US

Our Investment Criteria

1. CASH FLOW: Whilst many Investors focus on capital gain, we prefer to focus on cash flow because we have some control over cash flow/income whereas capital gain is something we hope for.
But let us qualify that statement a bit more by saying we want ‘sustainable’ cash flow, meaning new properties in good neighborhoods rather than older properties in the hood that can show great cash flow on day one – (keywords being ‘day one’)

2. LOCATION: Although the cliche ‘location, location, location’ is still 100% true, the more important question is ‘what are some of the variables that make a good investment location?’

Our list includes:

• A good supply of Fortune 500 companies and big businesses that are spending money on infrastructure and maintaining steady/growing employment.
• Upper percentile rents. For example: if rents in a particular suburb range from $800-$1500 for  say 1200 sq ft, we’ll build in an area that pulls $1300-$1500 in rents. This helps ensure a better quality tenant, better schools better prospect of capital growth.
• Right climate. Not too hot, not too cold, not too may tornadoes/ hurricanes

3. MULTIPLE DOORS: Having multiple doors (tenants) makes your income much more stable. We, therefore, tend to stay away from cities like New York or Los Angeles because the high prices push yields down also make it harder for the average investor to own several doors.

What is Estero’s background/experience?

Estero is owned by Lindsay Jarvis, who has had more than 20 years’ experience in and around properties and buildings and in particular cost and feasibility. Lindsay owned a construction company for several years and completed more than $40M worth of building work over several years and employed over 100 people.

Lindsay has been able to use this experience to negotiate/employ well-known local GCs to produce quality properties for Estero investors. In the case of Memphis TN, Estero’s builder has more than 30 years experience having constructed more than 4000 properties and as of August 16, Estero reached an agreement with a Charlotte based GC currently producing 650 doors a year in the Charlotte/Columbia markets.

Choosing cities/locations for our investment properties

We followed this logic. Go too far west and you end up in California where prices are so high that yields are pushed down. Same going east to New York. Go too far north and you’re into potentially horrific winters that can beat up your returns through vacancies and repairs related to the cold. Too far South and you can catch some very bad hurricanes from time to time. And voila we’re now left with a bunch of cities in the mid-south US where we selected Memphis TN, Charlotte NC, Columbia SC

PS: 08/30/16, we will soon bring on a bunch of cities that meet the above criteria.