LANDCO has been very successful at identifying geographic regions with suitable demographics and available product that can be purchased at or below pre-designated thresholds.
Since 1998 LANDCO has repeatedly identified such regions in Hawaii, Arizona, Texas and Florida. While our business has been focused on the acquisition of multi family housing and the entitlement of single family projects, we have also successfully invested in self storage, office, and retail properties as well as operating property management companies.
Looking to the future, LANDCO will continue to employ a disciplined and methodical approach to finding opportunities in specific sectors – multi-family rentals, condo conversions and land/carrier situations.
We are seeking opportunities in specific markets – gateway communities in the southwest, growing through immigration, transfers away from congested, high-cost markets on the west coast, and general population shifts to the sunbelt (Phoenix, Tucson, Albuquerque, El Paso, Austin, San Antonio, Dallas, Houston).
We expect to find our next investment opportunities in one of the profit profiles shown below:
| COST | CONCENTRATION | ABSORPTION | ||
|---|---|---|---|---|
| 1. A recent vintage property with favorable replacement cost ratio due to recent sharp increases in construction cost, relatively high rent and low operating expenses. | 2. An established LANDCO operation in a particular market may lead to network-building, a higher profile among property sellers, and the consequent ability to find investment opportunities that might be obscure to others. | 3. A location may have relatively high barriers to entry, meaning that fewer new competing residential units will enter the market during any period. | ||
| 4. A rehab opportunity resulting in little or no obsolescence, increased rents for like-new condition, economies realized by renovations, and favorable replacement cost ratio as above. | 5. Larger-scale operations in a particular market may lead to economies of scale, increased purchasing power, joint marketing, the ability to attract the best personnel and the efficiency to assign them to any task at hand with maximum flexibility. | 6. Communities where the ratio of rent to home-ownership is relatively low, meaning that fewer tenants will wish to leave the rental market and also that rents will tend to experience upward pressure. | ||
| 7. A management opportunity to increase property earnings through better marketing or more efficient operations. | 8. Our well-tuned market knowledge will help us secure the best prices for investment property, the most competitive rents, and enable us to make the savviest anticipation of future market movements. | 9. Communities and regions where population and employment growth are above-average or above that area’s historical trend. Substantial job growth concentrated in the service and public sectors will be particularly attractive. |