Income Properties Portfolio
Josh Welch, Founder & Managing Principal (Linkedin)
I started Three Pillars Capital Group and have built a multi-million dollar portfolio. You can read all about our projects here- TPCG. The deal will be operated and managed by our experienced team. So as a relatively new key partner, you can take comfort from the fact that the deal is being led by a group that has done it before.
Lucas Fertitta, Director of Acquisitions, (Linkedin)
Lucas Fertitta has worked with prestigious real estate firms including Tarantino Properties, Marcus and Millichap and Houston Income Properties. He sources all of our off-market deals through private negotiations.
Long Term Vision After Being a Key Partner: Two Opportunities to Grow
Invited to General Partner on Future Deals: We pick certain KPs to be part of the general partnership on the next deal. This is of course based on chemistry, likability and getting along as a team. We are already working with KPs from prior deals who participate as a general partner and they get a bigger piece of the pie. Example: Prasad from Seattle was a KP on Rio Roble Apartments and then he was invited to be a General Partner on deals that followed. Chemistry and communication go a long way in strengthening relations.
Or, we give you excess deals to run as your own: Our acquisition process works well and we see a lot of deals, all off-market through private discussions. But we can't possibly close on every deal. In this case we will announce a deal to our key partner and they will have the opportunity to team up with other KPs or do it themselves. We have a strong network from sub contractors to lenders (CBRE, LMI Capital, etc.). We can make those important introductions for you to close. You would run your own deal with no involvement from us. This opportunity is only reserved for key partners, we are not brokering deals.
Key Partner Selection Process:
The selection process is very intensive where we spend a lot of time getting to know you better. We want to understand your goals and vision. Not everyone will be selected. Selection is reserved for select individuals based on our discretion. This is a partnership between you and us. It's extremely important that the existing key partners have similar goals and vision. When motivations align, success happens. Three Pillars has a successful record in execution.
To discuss this privately with our team, fill out this form- Key Partner Form.
Experienced Management- Three Pillars Capital Group:
How it Works: Responsibilities, execution and getting your hands dirty:
Every 5 weeks, you get rotated into a different task. The tasks are designed keeping in mind that KPs might be in different cities and have full time jobs. They will vary each 5 week cycle depending on the need of the property and what we feel will add most value. This way you get exposure to a lot of different aspects of running a property while adding value at the same time. By the time you have rotated through our list and with frequent communication, you will have a solid understanding of running a property.This process is managed and controlled by us to give you maximum exposure to all aspects of running a property without compromising the quality of the operations:
•Communicate privately with management to understand the process and see how it unfolds behind the scenes.
•Sourcing materials for rehab (granite, flooring, appliances, etc.) to find the best products at target prices.
•Reducing utility usage (water, electricity, etc.) to increase NOI.
•Staying on top of competitors to detect changes in market trends. This is very important to understand what competitors are offering at what price point and how we can improve on it.
•Negotiating better rates for operational expenses such as utilities.
•Using existing software and sourcing new resources to streamline the leasing process from prospect tenant to tenant move in to move out.
•Improving the process of completing tenant work orders and reducing the time it takes to complete a work order. This improves tenant satisfaction.
•TPCG guides this process in a way to ensure that the KP is gaining experience and that TPCG is getting maximum benefit from the value the KP is adding.
For private conversation, fill out this form- Key Partner Form.
Three Pillars Net-worth and Liquidity- We have the net-worth and liquidity required to do these deals.
Investor Requirements- When you want to do your own deal, you will inevitably be asked by investors "Have you done this before?". By doing this, you will be able to say that you have been a Key Partner and been part of the operations. That's your track record! If you have been a KP, you will be viewed as someone with success and experience, as simple as that.
We Bring the Deal- The deal is sourced by Three Pillars' acquisition and asset manager,. As you might be aware, sourcing off-market deals and getting first looks on it is very difficult in this competitive market. The deal will be sourced and underwritten by Three Pillars Capital Group. All deals have cash flow going in and a clear opportunity to create value.
Three Pillars Bring Capital- This is a no-brainer. We bring most of the capital from our private network of high net-worth investors. Fundraising is quite difficult. Three Pillars will be the first to put capital in and fund-raise from it's existing network of high net-worth individuals.
Access to Our Investor Network- As a key partner, you gain access to our investor network and get to position yourself as an expert. As you build relationships, you will have opportunities to do your own deals.
Have a Team to Fall Back on- We are sure not many want to take this journey alone. This is why having a team of experienced Key Partner with the same goal is critical. You gain a ton of confidence and you can get things done faster.
Getting Sense of Ownership & Building Your Own Portfolio: You will be the owner of the property and it will be part of your portfolio. As you build your sense of ownership, you will gain confidence in your ability to lead a deal yourself. The best way to learn is by getting your hands dirty and executing. No amount of books, podcasts and videos can replace that. You can add this property to your portfolio so that when you are leading your deals, people will know that you are experienced and have done it before.
Building Instant Credibility with Brokers and Sellers- You will get to add this to your real estate resume. When you do your own deals, brokers will want to know whether you have any experience. When you let them know that you are experienced, they will view you as someone who can close a deal. Remember, brokers don't get paid until you close, so they are very picky about who they work with. They just want to know that you have the ability to close. As a partner on this deal, you will gain that credibility.
Learning the Rehab Process- Sourcing of renovation material and labor is a complicated process and one has to monitor every dollar. You will learn this process as you observe others leading the way. The order of the work has to be flawless otherwise it can lead to price overruns and long delays.
Learning Operations of Owning and Running a Property- The goal is to improve the Net Operating Income of the property. For this, you need to know how to manage the revenue and expenses and what strategies to execute to optimize each item. You will want to minimize expenses such as insurance, you can challenge the appraisal value of the property to reduce taxes, have better maintenance to reduce repairs and maintenance expense (one of the biggest expense items), having lower maintenance landscaping so that you don't need to get regular maintenance, etc. There are a lot of things one can do to minimize expenses. You will get to see what goes on behind the curtains to maximize NOI so that when you do your own deal, you will know what to do. There are many other smaller things that take place that can have an impact on the property performance. The only way to learn is by doing it and getting your hands dirty. Once you go through the process, you will be able to to say that you have done a deal and have the experience.
Transition from Key Partner to General Partner- As we work together, we will develop a stronger relationship and we will invite you to be part of the general partnership on the next deal. We are already doing this with key partner from prior deals since they wanted to continue scaling what they already started.
We can give you deals to run as your own: Our deal sourcing works extremely well and efficiently to the point where we see more deals than we can close. In this case, we give our excess deals to our KPs to run as their own. When you are leading your own deal, you can work with some of these same partners so that you are not leading it alone (unless you want to). So as you work with others involved in this deal, you will have opportunities to further that relationship by leading your own deals. But before you lead your own deal, you need to be 100% confident and know what you are doing. This platform presents that opportunity to you.
Why this is a rare and unique opportunity if you get selected:
See what existing Key Partners have to say:
Overview of being a Key Partner:
Sourcing deals that make sense and sourcing equity is hard work, especially if you have never done it before. Getting started alone is difficult. Buying multifamily properties requires experience, credibility, capital, a good net-worth and a lender. If you don't have these, it's very hard to get started.
If selected, you can partner with an experienced team as a key partner to own and operate an apartment complex. This opportunity is the path to getting to the point where you can say "I've done X number of deals as a Key Partner". You will be the co-owner of the property.
The biggest thing to remember about partnering up with others is finding people who have the same sense of urgency to execute. Our focus is on taking action and we have a high sense of urgency.
Invited to be part of General Partnership on future deals.
See examples of KPs who became GPs on home page.
Get Selected as a Key Partner
We give KPs their own deal.