We Are Built On Relationships and Fundamentals
Providing capital to real estate investors for over 10 years has allowed us to build relationships with our network of investors and operators. Therefore, obtaining maximum value for our investments, driven by fundamentals and sound asset management practices.
Who Are We
Axiom Capital Resource is an investment firm specializing in the acquisition and management of real estate opportunities. We primarily invest in assets and mortgages, as well as residential and commercial real estate throughout the United States.
Axiom Capital Resource’s leadership team has completed hundreds of real estate transactions. With decades of combined experience as loan originators, real estate investors, note investors, and syndicators, our team is able to invest through direct and co-investments with trusted joint-venture partners. Utilizing our strategic partnerships comprised of portfolio managers and loan surveillance professionals, we manage the assets throughout the lifecycle of each investment targeting risk-adjusted returns.
Our Experience Dictates our Process
As the loan originators, our strategy and processes are built on fundamentally-driven underwriting and identifying exceptional operators.
We’ve seen over 1000 investment opportunities. We apply both a top-down approach and reverse-engineered strategy to evaluating every potential investment. Utilizing advanced market and economic forecast models are critical in identifying markets in which to invest.
This macro view is then followed by a thorough underwriting approach that researches the Sponsor(s) an evaluates the property itself based on its condition and the local market situation.
Our Strategy and Process
Through our investor network and institutional partners, we invest primarily in mortgage loans, and commercial and residential real estate. We take the following steps:
Investment Criteria
We invest in real estate assets, providing our investors an opportunity to diversify their portfolios in non-correlated assets.
Real estate investments offer the potential for increased risk-adjusted returns and a way to diversify one’s portfolio beyond conventional public equities and fixed-income investments.
Our primary focus is two-fold:
1 – Value-add opportunities and properties in supply-constrained markets with strong, in-place cash flow.
2- Partnering with top-tier real estate operators and fund managers to bring these opportunities to our investor network.
Our primary focus is two-fold:
- Value-add opportunities and properties in supply-constrained markets with strong, in-place cash flow.
- Partnering with top-tier real estate sponsors/operators and fund managers to bring these opportunities to our investor network.
Preferred Property Types
Real estate is an asset class that is often categorized under the larger umbrella known as alternative assets. There are several property types within the real estate asset class. Regardless of the property type, our priority is professionally vetted, highly-proficient and profitable operators.
Multifamily
Value-Add
We invest in under-utilized real estate assets and then maximize their income-generating potential. Our sponsors increase revenue through lease-up strategy, capital improvements or repurposing a building.
Opportunistic
This is a high-risk/high-return strategy. These properties will require a high degree of enhancement. Ground-up developments, vacant buildings, land development and repositioning a building from one use to another are examples of opportunistic investments.
Stabilized, Cash‑Flowing Assets
Also called, Core Plus, these have a low to moderate risk profile. This type of asset typically have the ability to increase cash flows through minor improvements, management efficiencies or by increasing the quality of the tenants.
Residential
Fix and Flip
Fix and Flip is the strategy of purchasing a property, renovating it, then selling it at a profit. All-in cost (purchase, repairs, soft costs) of no more than 70% of the ARV (After Repaired Value), routinely realizing a 30% profit.
Single Family Rentals
A resilient asset type benefitting from strong fundamentals and demand driven by the shift in work from home, changes in homeownership trends and millennial migration.
Sponsor Vetting
We vet our sponsors based on their experience and track record so our investors can get a sense of the firm behind the deal.
We evaluate the Sponsor’s’ background and track record to ensure that the sponsor has a demonstrated capability to execute their agenda and provide investors with a high degree of professionalism. This includes deep background checks on sponsor entities and principals using industry-leading platforms. In the event bankruptcies or lawsuits are identified , satisfactory explanations are required prior to moving forward in the screening process.
In commercial real estate, the sponsor is an individual or company in charge of finding, acquiring, and managing the real estate property on behalf of the partnership.
Expertise is gained through experience, with sponsors transacting on numerous deals across multiple commercial real estate cycles. A more established sponsor’s network of banking relationships and capital sources complement their expertise, providing negotiating benefits and bringing favorable terms to a project.
Asset Review
We assess the sponsor’s proposed asset or fund to ensure that it aligns with the sponsor’s background and with investor preferences. We analyze assumptions pertinent to the feasibility of the business plan and perform sensitivity analysis to understand how the investment performs in both a downside and upside scenario.
Once we get a grasp of the sponsor’s proposal, we perform ensure that the sponsor and/or asset have no legal disputes. Clear titles, verified ownership, unclouded chain of title, and compliance with zoning laws are critical.
Summary
In summary, our 10+ years has taught us that understanding the best practices in underwriting can save you from potential pitfalls. The keys to consider:
- Sponsor Vetting: Lenders and crowdfunding platforms alike should examine the borrower’s financial status. This includes credit history, current debts, and overall financial health.
- Asset Review: scrutiny of the pro forma and other quantitative elements of the business plan, such as market comps, investigation of the property – everything from location, market trends, property condition, to potential rental income should be examined.
Interested in Learning More?
Axiom Capital Resource offers strategically designed and expertly managed solutions for you to invest in a variety of real estate opportunities.