We apply our process to provide attractive investment opportunities to passive investors. Using macro economic indicators, we identify selective multi-family residential properties as the preferred asset class for recession resistant returns. Emphasizing the pivotal market and sub-market drivers of migration patterns, population growth and job growth, we concentrate efforts in markets with the right ingredients for success. Our thorough review of property conditions and intimate knowledge of market tastes allow us to identify the best value-add opportunities. Asset Selection Criteria Better performance during economic downturns while maximizing opportunity in times of plenty – this is how the Snowball process optimizes investments. Our team reviews hundreds of deals to locate the best opportunities in the market. Our superior understanding of the asset class, stringent underwriting process, and proven method for identifying low-risk investments with value-add potential, ensures that we preserve your capital while maximizing returns. Market and Sub-Market Selection Criteria Beginning with our key indicators, we perform comprehensive analyses to identify the ideal locales for multi-family investments. Based on fundamental data, our selection criteria hedges against market volatility and produces stable returns. Markets and submarkets that have an increasing number of high-paying jobs indicate stability in the tenant base through corollary growth that comes with those jobs. We look for metros that have an uptrend in population growth over the last 5-10 years, suggesting a growing local economy. We look at the 5-year rent growth forecast, including the overall market vacancy across the multifamily properties in the MSA. We look for diversity in employment and sectors serviced, to avoid overreliance on any one type of industry. We monitor local sales trends to update our cap rates and fine-tune our projections. We assess the affordability parameters of the metro compared to the national averages. Property Selection Criteria We identify problematic issues, such as under-performing staff, ineffective marketing, and poor curb appeal, which can be addressed through our customized business plans. We invest in properties located in the path of progress and in areas poised to benefit from surrounding sub-market indicators, such as strong job growth and an influx of new enterprises. Only a small percentage of properties we underwrite meet our strict buying criteria. Unrealized value and local drivers must combine with additional factors to maximize upside potential. Co-founder of Microsoft Every asset acquired by Snowball Equity goes through five steps, from identification and acquisition to the eventual disposition / refinance of the asset. Identify high-quality assets with significant upside and a favorable risk to reward ratio that meets our very strict criteria. Our team negotiates the purchase agreement, structures the deal, arranges optimal financing and handles closing. We harness unrealized value in the property through our value-add strategy, which leads to premium valuation and increased cash-flow for our investors. We apply effective management to improve occupancy and retain the best tenants, driving up our Net Operating Income (NOI). We constantly monitor the property and market for the best exit – either a timely sale or strategic refinance – to return our investors’ capital and more. At Snowball Equity, we truly believe that real estate offers superior risk-adjusted returns over other asset classes due to 5 key aspects of wealth creation: Positive cash flow from operations is distributed to investors in accordance with the business plan, typically on a quarterly basis. Investors enjoy the tax benefits of ordinary depreciation and accelerated depreciation through cost segregation. Operating income is used to pay down debt (amortization), leading to substantial growth in investors’ equity in the property over time. Multi-family benefits from forced appreciation through the increase of Net Operating Income (NOI), as well as from natural, market-wide appreciation. Responsible leverage is a tool that increases buying power and maximizes the return on investment for investors. Interested in learning more about Snowball Equity and how the process works in order for you to partner with us on future investment opportunities?
Asset Class Selection
Asset Class Selection
Learn more about how we select asset classes
Market and Sub-Market Selection
Market and Sub-Market Selection
Learn more about how we select markets
Property Selection
Property Selection
Learn more about how we select specific properties
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Scroll down for the market macro indicators
Primary Indicators
Employment Growth
Employment Growth
Population Growth
Population Growth
Rent Growth & Vacancy
Rent Growth & Vacancy
Secondary Indicators
Job Diversity
Job Diversity
Sales Trend
Sales Trend
Affordability
Affordability
Under Performance
Under Performance
Local Growth Drivers
Local Growth Drivers
Upside Potential
Upside Potential
At Snowball Equity, we are committed to enhancing and improving the lives of our tenants by delivering quality and affordable rental housing.
Identify
Identify
Acquire
Acquire
Value-Add
Value-Add
Optimize
Optimize
Exit
Exit
Income
Income
Depreciation
Depreciation
Equity Growth
Equity Growth
Appreciation
Appreciation
Leverage
Leverage
How it works
