Our interests are aligned with yours. As the Sponsor we co-invest our own equity alongside yours. We only participate in the promote structure after returns have been met. REM Finance implements low Sponsor and asset management fees making returns to the partner easier.
REM Finance’s disciplined study of U.S. real estate markets combined with over 50 years of combined institutional real estate investment experience provides our investors a superior investment experience. At REM Finance, we are intentional in our approach to researching the best economic conditions to acquire properties and execute our plan for acquisitions. We actively track and monitor several key indicators, including: population growth, especially net in-migration; job growth, primarily in healthcare, energy and education.
REM co-invests together with our equity partners. Unlike many sponsors that put only “other people’s money” at risk, REM shares the risk by investing our own capital alongside our equity partners. REM also keeps acquisition and asset management costs low, enabling the investments to provide better returns to the investors.
At REM, we focus on the three fundamental principles: Location, Location, and Timing. The primary driver in real estate economics is net in-migration. We focus on markets with a long history of population growth. A growing, diverse employment base is the second determination of location and market. We track submarkets and employers undergoing expansion in five key industries: Healthcare, Technology, Education, Government, and Energy. These five have above market employee compensation, and three of the five tend to hold steady when the economy slows. Timing of the real estate market is the most challenging, but equally important, aspect of the principles. Supply and Demand is the most widely, and easily tracked market index. The investment cycle requires a deeper understanding of capital availability including both equity and debt, interest rate trends for both the index and the spread, and cap rates. We watch all of these factors to provide the best rick adjusted return to our investors.
REM maintains separate operating accounts for each property. Every investment stands on its own – there is no co-mingling of funds. In addition to providing detailed monthly operating reports direct from property management, REM prepares and distributes quarterly financial reports comparing actual performance with original projections.