Anthem Capital

STRATEGY

Our Strategy

It is our 2030 goal to be in 25,000 units, donated $3M dollars to charity through our Anthem Impact Fund, and helped over 3,000 people retire on their own terms. Our focus is about providing stable, yield-producing investments in growing geographic markets across the United States for our large pool of investors. We will continue to deliver to our investors high expectations because we analyze every investment opportunity throughout the full life cycle.

In the early stages, we use the below criteria as guidelines to help us identify the right opportunities for our investors. Although the guidelines may change, (e.g $200k/door in Atlanta might be a steal vs $200k/door in Dallas could be viewed as overpriced) we want to ensure that our investment has the right foundational elements before moving forward.

  • Above average cap rate ~5.5%
  • Below average price per unit ~$200k
  • Above average employment growth 1%+
  • Above average rent growth ~2.5%
  • Above average affordability gap between monthly cost of mortgage and monthly cost to rent. ~$240/month
  • Above average population growth +1%
  • Landlord friendly states
  • Value add potential to generate the projected returns

Assuming a property matches our criteria, we proceed with our boots on the ground research to get into the weeds of the opportunity. Some questions we might ask ourselves are:

  • What type of activity goes on at the property at night? 
  • What are the comps in the area for a similar type asset? 
  • How friendly is the staff at the property? 
  • Is there other, non competitive investment going on in the area that would make it more desirable to live, like a new grocery store, new school, new business, etc?
  • How does the property look in real life and what types of maintenance or improvements have been ignored by the current seller?

Our stringent underwriting protocol is why on average only 1% of all potential investments are actually pursued and acquired by Anthem Capital.

Once the property is acquired Anthem gets to work on executing the business plan because operational excellence is vital in accomplishing our projected returns. There are 2 major numbers that impact the backend sale of a property. The first number is the cap rate. The cap rate is a number that is driven by more macro demands within the market and is not something we can control. The second number is our net operating income or NOI. NOI is all about maximizing revenue while minimizing expenses. This is our sweet spot. We first establish a “boots on the ground” presence, to ensure our business plan is being executed properly by our thoroughly vetted, third-party property management companies. On the tech side we put in place SAAS (software as a service) tools that allow for us to streamline operations via automation and productivity enhancements. On the physical asset side we go to work on the business plan making the structural renovations and unit upgrades like:

  • High efficiency lighting
  • High efficiency toilets
  • In unit washer and dryers
  • Amenity upgrades like a dog park or secure package drop off
  • Bringing old units that had been converted to offices or storage closets back on line as rentable apartments.

As the investment nears the end of its lifecycle we list with the brokers we know and trust to be the most reputable in that area and align with our lenders on suggested timing of the sale to ensure we are not up against a hard deadline. In parallel we are lining up the next investment opportunity so that our large pool of repeat investors are able to reinvest their earnings into another deal to minimize taxes and maximize the return on their investment.

Then the process starts all over again.