Investments
Principal Investments
Guardrail Finance oversees the acquisition of multifamily and commercial real estate assets. The Company sponsors equity syndication opportunities for friends, family and accredited investors. The Company directly and indirectly invests in and sponsors real estate investments. The Company focuses on core-, core-plus, and value-add transactions that generate current positive after debt cash flow with upside potential. Guardrail Finance acts as a Sponsor of real estate investment opportunities.
Guardrail Finance prudently invests in properties for clients and for its own account. Our goal as a principal investor is to find opportunities with in-place cash flow and a clear opportunity for upside. We focus on buying physical assets that provide geographic and product type diversification for our investors. We invest in markets that we understand that have barriers to entry and strong demographic trends. We seek properties that are positively leveraged and provide excellent cash-on-cash returns. We also seek properties that we believe to be undervalued where we can enhance value and realize capital appreciation over a 5- to 7-year time period.
Guardrail Finance finances the acquisition and value enhancement strategy of its properties with favorable debt financing and equity from private investors. Each investment is held in a single purpose entity that is controlled by Guardrail Finance or an affiliate of Guardrail Finance. The controlling entity acts as the Managing Member or General Partner of the entity with all other investors acting as limited partners. Guardrail Finance principals and family members also invest as limited partners in each prospective deal. The firm's success is based on its disciplined application of the following acquisition criteria:
Property Types: Multifamily and Commercial Properties
Geographic Focus: Northwest, Midwest, Southwest, and Southeast U.S.
Target Cash-on-Cash Return: 6% and up
Target Overall Return (including refinance and/or sale proceeds): 13% IRR and up
Guardrail Finance is fairly compensated through acquisition, disposition, financing, and management fees. We actively manage our assets to create value through revenue growth, expense reduction, asset rehabilitation, re-tenanting, and/or refinancing. We align our interests with those of our co-investors. Profit sharing arrangements vary depending on the risk profile of each investment.
Our investors are typically friends and family that may not have the inclination to invest in real estate on their own. Our niche enables our clients to invest in multifamily and commercial properties without having to oversee the value creation strategy, day-to-day management, and the financial analysis involved in being successful with income producing properties. We are of the belief that asset diversification in both multifamily and commercial properties combined with geographic diversification in markets that have embedded growth due to favorable demographic changes will enable our clients and us to benefit financially over the long-run.