Over 25 Years Experience In The Industry.
Since the late 1990’s the HGM management team has been actively investing in notes, flips and rentals.
We look for opportunities in the real estate housing market focusing mainly on single family homes but will buy small multi-family properties if the numbers make sense. Our primary objective is building cash flow through rentals and notes from these properties but also mix in fix and flips if the margins and market are there.
Our primary markets are in the mid-west and south where we’ve developed teams of agents, contractors and property managers with years of experience fixing, renting and selling these types of properties. We currently operate in Alabama, Indiana, Michigan, Mississippi, Ohio and South Carolina. For now, our acquisition focus for rental properties is in these states because of the excellent cost vs. rental income plus low unemployment rates and higher numbers of renters as a percentage in the targeted areas but we are constantly evaluating new markets that fit these criteria.
We make regular visits to meet with our teams, review our current properties and scout for new areas with potential for real estate investment.
Our Business Model
Our Financial Model
Our model is simple, buy properties or notes at deeply discounted prices so after rehab there is at least 40% equity and 20% cash on cash return from cash flow. This puts us in a low leverage position with many exit strategy options while protecting us from potential market corrections. It also gives us the ability to leverage borrowed capital while still providing healthy positive cash flows to the company.
We typically use private lending to fund the initial acquisition and rehab of the properties. After rehab and rent stabilization, about twelve months, we then replace the private loaned funds with long term institutional capital at lower rates boosting cash flow even higher.
WIN, WIN, WIN
HGM has created the infrastructure, developed key relationships and put a veteran management team in place to take advantage of abundant opportunities in the residential home market. It’s a Win, Win, Win…Win for the communities we work in, Win for Investors who work with us, and Win for HGM.