Investment Strategy & Execution

Once acquired and funded, Opal Capital focuses on renovating and stabilizing investment properties. Our investments require significant repairs post-close. By drilling down on these often-distressed properties, we’re able to acquire high-value, high-demand properties in prime locations which, post-rehab, command significant rental income month after month, year after year.

Target Properties

“Distressed” properties or properties requiring cosmetic and/or substantial rehab work; from these updates, Opal Capital can create appreciation by putting in the sweat equity, instead of speculating and hoping for appreciation.
Under-performing properties with market- and/or management-related challenges
Off-market opportunities and direct-to-seller opportunities that can be negotiated directly with owner(s)

To that end, our strategy typically centers on secondary & tertiary markets with sizeable populations, and steady economic growth. We anticipate these areas to increase in growth, opportunities and rental needs over time, making them ideal markets for pursuing multifamily investments. As interest rates and housing prices continue to climb, this will enable our investments to remain competitive with high-return potential.

Project/Transactional Life Cycle

With every investment deal, Opal Capital leans on our comprehensive five-stage process, ensuring consistent returns and overarching risk mitigation from day one.

Step 1: Property Discovery & Acquisition

Once we’ve identified potential opportunities, our expert team filters based on key factors— including price, location and asset quality. This process ensures we only acquire investment properties that meet our goals and expectations, and that will pass the stringent underwriting process that follows.

Step 3: Renovations, Property Development & Ongoing Value Add

Opal Capital focuses on renovating each investment property. To build value, our team is able to refresh or overhaul underperforming assets, which would drive up rents and increase interest. This immediately improve cash flow and long-term capital appreciation, while limiting ongoing maintenance expenses. This creates a more valuable asset for all parties.

Our partners and investors receive quarterly updates during the renovation process. Between these check-ins, our team is available via phone or email as needed.

Step 5: Managing & Operating Structured Assets

Step 2: Underwriting & Funding

The initial underwriting process kicks off a comprehensive due diligence schedule that taps into our extensive structuring expertise. From onsite inspections to a financial deep-dive to mitigating potential risks while maximizing rewards, we dig deep on each potential deal, with only the most qualified moving forward to be approved for funding and purchase.

Step 4: Stabilizing & Refinancing Assets

Once property is stabilized for 90 days, we refinance property with long-term financing at a fixed interest rate. At that time, we pay back the acquisition loan and equity investors in full. With long-term debt in place, investors maintain equity in perpetuity and receive quarterly cash flow distributions and property financial statements.

While choosing high-potential investment properties is essential, at the end of the day any asset can only perform as well as its managed. At Opal Capital, we’re invested in not just our properties but also in the systems, processes, and tools needed to manage a portfolio of income-producing assets across multiple markets.