Eric Silverman of Eastham Capital explains how he built his real estate investment firm. They started with Fund I and have now grew to Fund VI and work primarily with private investors. From how he finds investors, raises capital, networks & his 5 real estate investing rules for partnerships.
Their trademarked motto “we fix properties, not neighborhoods” is not only a company tagline, it’s also a company core competency.
Eric’s 5 rules and guidelines:
- Manager/Developers must be local to the market – They must have significant knowledge and prior experience operating in their local real estate markets. We also look for a proven track record of delivering superior investment results by acquiring, repositioning, managing and selling apartment properties.
- Manager/Developers must have “skin in the game” – Eastham Capital requires the M/D to make a significant cash investment into each deal; however, we will provide the majority of the equity.
- Manager/Developers must self-manage – Principals must be active in the day-to-day operations and property management (no third party management).
- We fix properties, not neighborhoods® – We target B&C properties in A&B locations.
- Post-Renovation, the project should yield at least 10% cash-on-cash – On a pro-forma basis, after a renovation period of 6 to 24 months (dependent on the scope of the rehab), a project should cash flow 10+% per annum on the equity invested.
“My goal is to speak to as many investors as possible and hope to be a blessing to them through our conversation. How can I best support you?” -John Fortes
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