The Process
Identification
First, Wingate Capital identifies target markets that offer the most growth and resilience. Thanks to our data-driven approach, we have a consistent pipeline of institutional-quality real estate investments to help investors build equity and generate passive income.
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Acquisition
Next we vet and select properties that offer the highest risk adjusted returns that would be strategic additions to our portfolio. We leverage our expertise and relationships to capitalize on exclusive real estate opportunities unavailable to the broader market.
Management
Next, we work closely with asset management and property management teams to execute our value-add business plans, operating investments to their fullest potential.
We work diligently to unlock more value by increasing net operating income, decreasing expenses, and making capital improvements where needed.
Execution
Once our value-add strategy has been executed, our investors can sit back and enjoy quarterly passive income.
We constantly monitor market conditions for potential exits that benefit our investors and consider other profitable exit strategies such as cash out refinances.
How Investors Make Money
Cash Flow From Operations
Positive cash flow from rental income is typically distributed to investors quarterly and in lump sum payouts at disposition and/or refinancing.
Appreciation From Capital & Operational Improvements
Unlike single family homes, a multifamily apartment syndication is a business valued primarily by its Net Operating Income (NOI), not property comps. Through physical and operational improvements, you can increase the value of the property by increasing NOI.
Amortization to Build Equity
Revenue from regular operations & rental income pays down the debt on the property, which in turn builds equity for investors.
Depreciation & Other Tax Benefits
Investors benefit from tax benefits such as accelerated depreciation and cost segregation, possible 1031 exchanges into new projects and tax free return of initial equity.
Why Invest With Chris?
Get access to a world-class network of top-tier real estate operators with proven track records.- Leverage our network to get access to unique commercial real estate opportunities that would otherwise be unavailable to you.
- Enjoy complete transparency and fully aligned incentives with partners who will work tirelessly to maximize investment returns.
- Invest in alternative assets that will generate attractive returns and offer significant tax advantages, uncorrelated to the market cycle.
- Generate truly passive income through cashflow along with forced appreciation that builds long-term wealth.
Assets We Invest In
Our mission is to help our partners build the future they’ve envisioned by investing in undervalued properties that generate consistent passive income for our investors. With all my experience in the business, I believe that the highest risk-adjusted returns are found with value-add business plans for recession-resistant product types that are located in business friendly, tax friendly, and landlord friendly markets.
Here are the 4 “All Weather” real estate assets we primarily invest in:
Multifamily Apartments
With apartments, it’s the most popular niche for folks needing a roof over their head outside of the single-family home. The affordability issue of saving for a down payment and paying the mortgage with the rise of younger folks and retirees wanting more freedom to live, work and travel anywhere without the cost and burdens of taking care of a home makes this asset class a steady performer in all cycles.
Value-add investing in older apartments (1980 – 2005 vintage) with owners who are looking to improve the look (renovations) and operational performance of these assets help protect you somewhat from a downturn. Since its peak in the mid-2000s, home ownership has been significantly dropping and it will continue to drop as millennials and the aging baby boomers want to stay mobile in the 21st century.
At the same time, the population is continuing to increase which drives the demand for apartment living higher and higher. Lastly, there is a massive shortage of homes and rental units being built across the US, which helps to drive rent growth in high-demand markets were we invest.
Self-Storage
Why was self-storage able to outperform almost every REIT sector during the most recent recession? When the economy is good and disposable income is on the rise people buy more “stuff” and need a place to store it, which makes sense. Self-storage data has proven, not once, but twice, that it is resilient through recessions.
Rental rates have continued their upward trajectory that began last year and show little signs of declining to pre-pandemic levels. Life changes drive storage demand, creating customers that typically absorb rent increases, allowing owners to hedge against inflation.
Fragmentation among owners provides an opportunity for the ones who can execute a viable acquisitions plan and exit properly to institutional investors with a lower cost of capital.
Manufactured Homes
The increasing affordability crisis continues to make buying a home for many a challenge. Over 10,000 baby boomers retire every day with little savings and living primarily off social security. Couple that with little or no supply of new MHPs nationwide being built and you have a very favorable scenario of strong demand and lack of supply.
Supply is constrained since towns and municipalities receive little tax revenue from building new parks and many have historical stigmas attached to them. Additionally, since it's costly to relocate manufactured homes (for the individual owner) and the lot rent is more affordable, you have a more reliable income stream.
Lastly, lot rents are at a relatively low base. Nationwide average is $275 / month. A 5% increase in lot rent annually is typically not going to make a meaningful impact on your unit owner's ability to pay.
Many investors turn to mobile homes and manufactured housing communities because they’re more recession-resistant and in higher demand than other real estate classes. It’s no surprise that MHP/RVP focused Equity LifeStyle Properties (started by the infamous self-made billionaire, Sam Zell) is the highest performing REIT in history.
RV Parks
Some major benefits to investing in RV parks include higher average cap rates and the ability to take advantage of a growing market and cross-market to a built-in customer base.
Along with Baby Boomers seeking affordability through retirement, Millennial and Gen-Z demand for RV park travel is at all time highs and post-Covid, RV Shipments are at all time highs.
Partially due to the heavy operational nature of RV parks and lack of 3rd party management at scale, there is a high percentage of mom & pop owners who are increasingly selling these assets and big private equity firms are increasingly buying them up.
This increased demand will put downward pressure on cap rates over time so now is the time to get it with a sophisticated operator.
Want to Learn More and Gain Access to Our Exclusive Investment Opportunities?
Invest With Chris Ford
My vision goes beyond just building and protecting wealth. My goal is to empower you to gain financial freedom through institutional-quality investment opportunities so you can have the time and flexibility
to live life on your own terms!
Wingate Capital manages a growing portfolio of real estate assets thanks to our network of top tier operators who understand the importance of due diligence, managing risk, and capitalizing on undervalued opportunities.
Join the Wingate Capital Investor Club today to get started making your money work for you through passive commercial real estate investing.
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