Let Snowball Equity be your guide on the path to stress-free, passive capital growth through real estate investment.
We apply our process to provide attractive investment opportunities to passive investors.
The Snowball Process
Asset Class Selection
Asset Class Selection
Using macro economic indicators, we identify selective multi-family residential properties as the preferred asset class for recession resistant returns.
Market and Sub-Market Selection
Market and Sub-Market Selection
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.
Property Selection
Property Selection
Our thorough review of property conditions and intimate knowledge of market tastes allow us to identify the best value-add opportunities.
Asset Selection Criteria
Properly selected multi-family is recession resistant.
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
We leverage a data-driven process to identify markets, sub-markets, and specific neighborhoods that are in the path of progress.
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.
Primary Indicators
Employment Growth
Employment Growth
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.
Population Growth
Population Growth
We look for metros that have an uptrend in population growth over the last 5-10 years, suggesting a growing local economy.
Rent Growth & Vacancy
Rent Growth & Vacancy
We look at the 5-year rent growth forecast, including the overall market vacancy across the multifamily properties in the MSA.
Secondary Indicators
Job Diversity
Job Diversity
We look for diversity in employment and sectors serviced, to avoid overreliance on any one type of industry.
Sales Trend
Sales Trend
We monitor local sales trends to update our cap rates and fine-tune our projections.
Affordability
Affordability
We assess the affordability parameters of the metro compared to the national averages.
Property Selection Criteria
Under Performance
Under Performance
We identify problematic issues, such as under-performing staff, ineffective marketing, and poor curb appeal, which can be addressed through our customized business plans.
Local Growth Drivers
Local Growth Drivers
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.
Upside Potential
Upside Potential
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.
At Snowball Equity, we are committed to enhancing and improving the lives of our tenants by delivering quality and affordable rental housing.
"Most people overestimate what they can achieve in a year and underestimate what they can achieve in a decade"
Bill Gates
Co-founder of Microsoft
Our 5 Step Process
Every asset acquired by Snowball Equity goes through five steps, from identification and acquisition to the eventual disposition / refinance of the asset.
Identify
Identify
Identify high-quality assets with significant upside and a favorable risk to reward ratio that meets our very strict criteria.
Acquire
Acquire
Our team negotiates the purchase agreement, structures the deal, arranges optimal financing and handles closing.
Value-Add
Value-Add
We harness unrealized value in the property through our value-add strategy, which leads to premium valuation and increased cash-flow for our investors.
Optimize
Optimize
We apply effective management to improve occupancy and retain the best tenants, driving up our Net Operating Income (NOI).
Exit
Exit
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.
Why passive real estate is the IDEAL investment?
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:
Income
Income
Positive cash flow from operations is distributed to investors in accordance with the business plan, typically on a quarterly basis.
Depreciation
Depreciation
Investors enjoy the tax benefits of ordinary depreciation and accelerated depreciation through cost segregation.
Equity Growth
Equity Growth
Operating income is used to pay down debt (amortization), leading to substantial growth in investors' equity in the property over time.
Appreciation
Appreciation
Multi-family benefits from forced appreciation through the increase of Net Operating Income (NOI), as well as from natural, market-wide appreciation.
Leverage
Leverage
Responsible leverage is a tool that increases buying power and maximizes the return on investment for investors.
Ready to learn more ?
Interested in learning more about Snowball Equity and how the process works in order for you to partner with us on future investment opportunities?