Our Focus
At SMK, we place a strong emphasis on risk mitigation with the goal of helping clients earn consistent passive income and creating a truly diversified investment portfolio. With this strategy at the forefront of our investment decisions, we target the specific asset classes noted below that have historically performed well in varying market cycles.
Within these asset classes, our focus is on mismanaged, distressed and under-performing value-add investments where we re position the property by increasing income and reducing expenses, thus increasing the asset value without relying on speculative market appreciation.
We target opportunities that can provide our investors with immediate cash flow of 3-7% in year 1, an average of 7-12%+ cash on cash over the investment term, and an average annual ROI and IRR of 13-20%+.
At SMK, we specialize in working directly with our clients to clearly understand your investment goals and risk tolerance levels. We can then match you with the appropriate investment opportunities ensuring your goals are at the forefront of our investment strategy.
Self-Storage Overview
Demand for self-storage increases during volatile times. It is common during a recession for more people to experience foreclosure, change in employment, downsizing and moving home from college, all of which increase the demand for self-storage facilities. Historically speaking, during the Great Recession in 2008-2009, many self-storage facilities were able to increase rents due to higher demand.
Mobile-Home Park Overview
Mobile home parks are the most affordable housing option and counter-cyclical, with demand increasing during an economic downturn. In addition, supply is constrained and therefore the asset class is likely to continue to perform during a recession. Mobile Home Parks often come with many negative stigmas and the belief that they are undesirable places to live. The reality is many mobile home parks are in great locations and are the home of high quality residents that bring a pride-of-ownership mentality to their community.
Industrial Overview
Investment into the industrial sector including single-tenant, net lease development and sale leaseback transactions provide potential benefits that other assets cannot provide. Many industrial buildings are structured with long term triple net leases (NNN) with built in annual rent escalations and where the tenant is responsible for all expenses. These structures provide consistent revenue growth without fluctuations in expenses, often resulting in consistent income and asset valuation growth.
Multi-Family Overview
The demand for apartments in desirable locations (good schools, amenities, access to transit) often increases during a market downturn as many tenants living in single family homes look to downsize to apartments and reduce their cost of living. Many aspiring home owners are forced to continue their tenancy as the access to financing can often tighten, making sourcing a home loan difficult. The home ownership rate of Millennials (born between 1981-1997) in the U.S. is at a record low. This generation continues to seek tenancy over home ownership causing a recent surge in demand for apartments.