investment strategy

At Strand Capital, we believe that durable alpha and strong absolute returns can be achieved in real estate, but only with discipline, deep research, and a willingness to think independently.

Our backgrounds as institutional investors, capital allocators, and business owners inform our approach.

Following Warren Buffett’s golden rule — “Rule #1: Never lose money. Rule #2: Don’t forget Rule #1” — we focus on risk-adjusted returns and capital preservation.

We achieve this through bottom-up research, intensive financial modeling, and a national network of industry experts to identify unique investment opportunities.

A Cutting-Edge Approach to
Intelligent Investing

our Core Investment Principles

Deep, Data-Driven Research

We go beyond surface trends, conducting granular, bottom-up analysis to model supply and demand dynamics and uncover proprietary insights.

Targeting Undersupplied Assets in Growing Markets

We invest in secular growth markets where demand far outpaces supply, such as the post-GFC single-family housing shortage.

Independent, Not Contrarian

We avoid overhyped markets, instead focusing on fundamentally strong, overlooked opportunities with superior risk-adjusted returns.

Creating Upside Via Value Enhancement

Our investments offer predictable base returns, with highly visible value-add strategies to unlock additional upside.

Where Others Overlook,
Opportunity Thrives

Why Choose Single-Family over Multi-Family?

1

Institutional Demand is Growing

The SFR sector is consolidating, creating opportunities to build a portfolio attractive to institutional buyers.

2

Superior Liquidity & Exit Flexibility

Unlike traditional CRE, SFR assets can be sold to both institutional investors and individual homebuyers, ensuring superior liquidity.

3

Lower Tenant Turnover & Stability

SFR tenants stay an average of three years, reducing vacancy risk and turnover costs compared to other residential asset classes.

4

Strong Demographic Tailwinds

Aging Millennials are driving housing demand as homeownership rates rise from 39% at age 35 to 62% at age 40, while shrinking household sizes (2.6 in 2000 → 2.5 today) have created demand for 6 million additional homes.

5

Supply Constraints Create Favorable Risk-Reward

The U.S. housing market remains undersupplied—post-GFC supply has consistently failed to meet demand, driving continued asset price appreciation.

Using The & Avoiding Hot Market Traps

StrandScore Identifies the Best Markets

Our proprietary StrandScore algorithm pinpoints high-growth interior markets with strong appreciation potential and superior rental yields.

Coastal Markets Rely on Speculative Growth

Coastal real estate depends on appreciation, making it volatile and cash flow-poor.

Non-Coastal Markets Deliver Superior Risk-Adjusted Returns

By focusing on balanced appreciation and rental income, we achieve higher total returns with lower risk.

Avoiding Overhyped Markets

We don’t chase fads—our data-driven approach helps us find undervalued markets with sustainable fundamentals.

investment process

Finding High-Quality Deals

Identifying Market Inefficiencies

We invest in cities with strong fundamentals but low institutional competition, uncovering undervalued opportunities.

Targeting Stable, High-Yield Properties

We focus on cash-flowing properties in A/B neighborhoods that offer strong demand and predictable returns. undervalued opportunities.

Our Buy Box

Targeting desirable A/B neighborhoods with affordable entry points, our focus is on 3–4 bedroom homes tailored for families and stable, long-term renters. Investment selections consistently reflect entry cap rates exceeding total costs, ensuring attractive risk-adjusted returns.

What We Avoid

We steer clear of speculative “hot markets” characterized by volatile pricing and unsustainable appreciation. Additionally, we avoid distressed neighborhoods lacking strong economic fundamentals.

Data Analytics & Institutional Expertise

Leveraging the
to Time the Market

Data-Driven Investment Screening

We use gross and net cap rate filtering to ensure properties meet our strict investment criteria.

Cutting-Edge Technology & Analytics

Our tech suite enhances underwriting, web scraping, wholesaling, and property management.

Exclusive Deal Flow & Insights

Our real estate network grants access to off-market opportunities and proprietary market intelligence.

Capital Preservation

Risk-Optimized Investing

Diversified Market Exposure

We spread investments across multiple high-potential cities to ensure strong baseline returns and upside potential.

Balancing Yield & Appreciation

Yield: Provides immediate cash flow and downside protection Appreciation: Creates upside potential in high-growth markets No speculative bets: Every deal must work on our fundamentals

Avoiding Institutional Crowding

Large investors overpay for scale and rely on oversimplified models. We outperform through disciplined due diligence and local market expertise.

A Disciplined Approach to Durable Real Estate Investing

strand capital

Strategic Investments, Accelerated Returns®

Strand Capital applies institutional-grade research, insights, risk management, and proprietary analytics to construct a portfolio that aims to maximize risk-adjusted returns. We focus on steady growth markets, avoid speculative investments, and leverage optionality to drive superior long-term performance.

By maintaining discipline, prioritizing capital preservation, and capitalizing on underappreciated opportunities, we build portfolios that generate durable, compounding returns for our investors.