Cross Mountain Capital: A Multifamily Investor Finds Gold in the Mountain West

Posted by Travis Farese on Sep 8, 2021
In this blog series, we’re looking at how the process for third party multifamily acquisitions really works. We appreciate that change isn’t easy: many investors still conduct all acquisitions in-house, because that’s the way it’s always been done. That’s why we developed an ebook that offers a handy overview—it’s a quick and easy read—but it definitely helps to hear about real world examples too. What’s the thinking at investment entities that outsource the acquisitions process? How does the engagement begin, and how does the relationship move forward? What are the parameters involved, and how are metrics developed for success? To be clear, there’s isn’t only one way to do this. Tech-enabled acquisitions around the country to find the right asset for the right investor at the right time and the right price requires a dynamic approach, which means that just about every aspect is quite flexible. There are best practices, to be sure, but each investor has unique needs and objectives, and the goal is always to do whatever it takes to achieve those, and even exceed them. Here’s one example: Cross Mountain Capital, which specializes in acquiring multifamily assets that are mismanaged, underperforming, undervalued, and off-market. The company develops specific strategies to reposition these properties through operational efficiencies and renovations, as needed, to optimize the financial performance of each asset. This creates a passive income stream that builds long-term wealth, while also providing the ideal tax shelter. A marketing campaign led the company to Offerd in May 2020, and even in that inhospitable business environment, it took only three days to reach an agreement to partner on acquisitions. At the time, CMC had around $50 million in assets under management, mostly focused on smaller properties in the upper Northeast. It wanted to go bigger and broader, growing exponentially in the next 36 months with a portfolio that stretched into the Mountain West. Like most multifamily investors, CMC had always conducted acquisitions in-house. The company specifically brought in Offerd to supplement and enlarge the acquisitions team—it wanted to identify prime assets it could never find on its own. In such initiatives elsewhere, almost every search has to start from scratch; by partnering with Offerd, CMC gained access to a huge asset base that allowed it to refine its own search parameters. That’s because Offerd tracks 90,000 ‘off-market’ assets around the country, with algorithms that encompass occupancy rates, demographic shifts, neighborhood incomes, population forecasts, educational levels and more, some 10,000 different categories in all. That’s how we find the best multifamily properties to match buyer and seller, and it all happens fast. Our skilled and experienced acquisitions team—including VPs, a managing director and a president of acquisitions—leverages this deep well of data and technology, as well an eight-prong approach to prospecting, to source a targeted and qualified deal flow for our partners. In CMC’s case, the work has already paid off: Less than 60 days after launching the Offerd Proactive Sourcing Campaign, a target asset was not only identified and evaluated, it was under contract; the deal closed in another 90 days. For the record, Offerd has itself invested in that asset, and so far it’s performing even better than expected. CMC has renewed its agreement with Offerd, and is looking forward to achieving more acquisitions goals in the months and years ahead. We’ve got more real world examples coming—stay tuned.
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In House and On Target: Deals in the Works at Offerd

Posted by Greg Cooper J.D. on Jul 12, 2021
Late last month, Offerd sourced over $698 million worth of off-market multifamily acquisition opportunities. These were not assets randomly found through searches of online listings—they were meticulously selected to meet specific target parameters set by our partners. That’s one week during a scorching summer when many investors are on vacation.
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Got A Multifamily Asset? The Time to Sell May Be Now

Posted by David Luebke on Jun 22, 2021
So with a global pandemic mercifully receding, and the multifamily market showing great resilience in a tough environment, are there only good times ahead for investors? Or do other factors need consideration?
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Why the Hell Would Anyone Sell Off-Market?

Posted by Travis Farese on May 26, 2021
Every year, approximately half of all multifamily property transactions nationwide are considered ‘off market.’ The term is broadly applied, but it typically means the property will undergo a transfer of ownership without an exclusive listing agreement in place or without a full marketing campaign.
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Principal to Principal (P2P): Optimizing Off-Market Transactions

Posted by Greg Cooper J.D. on May 11, 2021
It’s generally accepted that every year, approximately half of all multifamily property transactions nationwide are considered ‘off market.’ The term is broadly applied, but it typically means the property will undergo a transfer of ownership without an exclusive listing agreement in place.
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The Wheel Has Been Invented: Why Third Party Acquisitions Makes for Better Business in CRE

Posted by Travis Farese on Apr 15, 2021
Even in this era of technology-driven transformation, a new service that disrupts long-held operating practices is still viewed with skepticism.
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Third Party Acquisitions Means More Parties

Posted by David Luebke on Mar 12, 2021
In this series, we’re looking at Third Party Acquisitions (TPA) as a standout discipline within the real estate market. We recently covered why this field is so important; from new technologies and data analysis to outsourcing specific tasks, some changes were clearly long overdue. This time, let’s step back and look at the big picture. The concept of TPA is already giving rise to new business models and a new breed of real estate company and professional.
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Third Party Acquisitions: A Short Primer

Posted by Travis Farese on Feb 24, 2021
Third Party Acquisitions (TPA) as a distinctive discipline within the real estate market has a long reach but a short history. In fact, it’s only been around for as long as Offerd has; this is the company that started it. That’s why, despite huge gains already accrued by the parties actively involved, this activity still feels like an outlier to some. It’s time to fix that.
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Multifamily Broker Benefits: Moving to the Principal Side

Posted by Travis Farese on Jan 20, 2021
The world of the multifamily real estate broker can be exhilarating and unforgiving. Even in thriving environments it’s a roller coaster; in a down market, it’s brutal. The year just past was undeniably down. Although the multifamily market has weathered the storm better than most comparable sectors, the challenges are real and ongoing. That’s particularly true for the brokerage community, which thrives on transaction volume. And in 2021, according to CBRE, that volume won’t come close to pre-Covid highs. However, the primary beneficiaries of brokers’ services—multifamily property sellers—continue to fare well. In other words, limited inventory ensures that competition for listings will continue to be fierce. Meanwhile, demand is stronger than ever, yet there’s a clear shortage of service providers on the buyside, in part because operators have traditionally kept the acquisition function in house. But now, with the emergence of Multifamily Acquisitions Services (MAS), there’s a new path for professionals to stretch their boundaries. Many brokers want to grow their base of activities—more listings, more services, more deals. This may be the time to make that happen. So, here’s an option: Consider joining a Multifamily Acquisitions Services provider. In fact, consider joining Offerd. It’s the perfect opportunity to build on core elements of the multifamily investment business. Go deep into investor priorities and mechanics, play a key role in closing deals, remain involved post-closing and drive value throughout. Become actual partners with the best owners in the business—investors growing multifamily portfolios throughout the country. You join a growing team of skilled professionals who blend market research, domain expertise, sophisticated data analysis, negotiating prowess and far-flung connections on a unique acquisitions platform. You tap into Offerd’s technology and 10,000-plus data points at the national, market, sub-market, and property levels. You cast a wide but targeted net for the best assets—the nation is your neighborhood—and have the credibility to convince investors to consider regions and properties rich with opportunity. The Offerd platform allows every Acquisitions Executive to manage multiple clients and deliver more with each. There’s less competition and more collaboration—a clear break from the constant chase for listings, and the feast-or-famine conditions so fundamental to the industry. You develop a consistent source of income through retainers and uncapped earning potential through a stream of fees for sourcing and closing deals—success fees greater than on the sell side, and potentially more rewarding.
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For Multifamily Acquisitions, A Big Year Ahead

Posted by David Luebke on Dec 16, 2020
Heads up: In 2021, the Multifamily Acquisition market will be surging.
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