Not surprisingly, we can make a strong case for real estate. It is the foundation of many of the world’s great fortunes. Real estate can provide steady income while acting as a hedge against inflation. And because of real estate’s proven ability to increase wealth, many rely on its presence in their portfolios to help offset setbacks in the stock market.
Historically, real estate has shown a negative correlation with stocks, bonds, and other assets. And the correlation between property prices in the various markets has been, traditionally, low.
Which would suggest that adding real estate to a stock or bond portfolio – especially if afforded the opportunity to diversify across markets – provides much-needed diversification to almost every investor.
At Praxis Capital, we are devoted to making such an addition simple, straightforward, and rewarding.
How do we do this?
We purchase well-located, multifamily properties in growing markets throughout the United States, however, our focus is on those that aren’t on the radars of the industry giants and are beyond the reach of the average individual investor.
We combine advanced modeling techniques with our years of experience to determine the underlying value of each property. This often enables us to see opportunities where others don’t.
We apply both a top-down and bottom-up approach to evaluating every potential acquisition. The research-driven top-down approach utilizes advanced market and economic forecast models to identify markets in which to invest.
This macro view is then followed by a thorough bottom-up approach that evaluates the property itself based on its condition and the local market situation. It relies heavily on local market expertise, broad-based contacts, and extensive “bricks and mortar experience.”
Our exceptionally exacting due diligence process is designed to wring as much risk as possible out of every potential opportunity before we offer it as an investment to our clients.
And while we only acquire properties the value of which we’re confident we can increase, neither are we content with only increasing it.
We believe in creating value.
We do that quite well because we are, at heart, true value investors.
One of the ways we create value is by making sure that every improvement to our properties increases its worth by significantly more than the cost of the improvement.
We wouldn’t be able to do that if we didn’t have a complete infrastructure and long-standing ties in all of our markets. Being up-close means we can monitor our properties first-hand to make sure that all are being managed properly and that improvements get done efficiently and cost effectively.
Which means that, at Praxis, prudence never means paralysis.