The Four Pillars Of OZ Investing, With USG/OZI

In this webinar, Greg Genovese from the Investors Choice OZ Fund highlights a unique way for investors to deploy capital gains into Opportunity Zone investments.

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Webinar Highlights

  • An overview of USG/OZI, a multi-asset fund that allows investors to pick and choose from an array of OZ projects.
  • The investment thesis of the USG/OZI portfolio, including a focus on resilient proof assets.
  • The “four pillars” of OZ investing, starting with the track record of the sponsor.
  • The unique structure of the USG/OZI model, which includes partnering with local experts and an “investor first” fund structure.
  • How USG developed a multi-project, investor-directed OZ fund that stands apart from other OZ offerings.
  • A review of the current USG portfolio, including five projects open for capital raise in California, Wisconsin, and Connecticut.
  • The avoidance of “equity rush” in USG’s selection of target markets for its OZ projects.
  • A breakdown of total returns and return of capital timelines for each project in the fund portfolio.
  • Reviews of each of the first five projects in the USG portfolio.
  • Q&A with webinar attendees.

Featured On This Webinar

Industry Spotlight: USG/OZI

USG/OZI: The Opportunity Zone Experts

USG/OZI is a joint venture between USG Realty Capital and Opportunity Zone Investors Group. Headquartered in Silverdale, WA, USG/OZI launched earlier this year with the Investors Choice OZ Fund, a first-of-its-kind, investor-directed, multi-asset Opportunity Zone investment platform.

Learn More About USG / OZI

Webinar Transcript

Jimmy: Here comes Greg.

Greg: Here I come.

Jimmy: I hear you. I see you.

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Greg: How are you?

Jimmy: Good. How you doing, Greg?

Greg: I’m doing just fine. Thank you, Jimmy. How are you?

Jimmy: Good. So we’ve got…you’re here a minute early, actually. So you’re gonna be presenting the Investor’s Choice OZ Fund by USG/OZI. You launched this, wait, close to a year ago now I wanna say, is that right?

Greg: Well the fund concept…

Jimmy: The concept was launched.

Greg: Yeah, yeah, but we didn’t actually launch the fund actually till August. So, you know, just a few months ago, but yeah.

Jimmy: But you’re now open and receiving capital. So you’re off to the races now at this point.

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Greg: We’re up and running. Yeah, thank you.

Jimmy: Good. So I do have officially 1:30 p.m. Eastern time. So without further ado, all, I’ll turn it over to you, Greg. I know people are still kinda coming back in from the lunch break, but they’ll keep coming in and they’ll hear what you have to say. So please, go ahead.

Greg: So first of all, thanks, everybody. I know you have a lot of investors on this Zoom call. And I will start off by saying we do have a half hour but it goes by very, very quickly, so I’m cognizant of your time. And all the folks out there that are reviewing different opportunities and opportunities on funds, this is really a concise presentation of who we are, what we do in the projects in our program. And I’ll also be advertising on this webinar that we’ll be doing next week, which is a little bit deeper dive. So we look at this as really sort of a snippet of what we do, and hopefully, we can as I like to say, push the ball forward another 10 yards or so with you so that you can investigate us with proper due diligence.

But my name is Greg Genovese. I’m 32 years in the real estate securities industry. I’m originally from the Bay Area from Walnut Creek, California, if anybody out there knows where that is. Went to a catholic high school out there and then went to Cal Poly in San Luis Obispo, Claremont School of Economics, and then Stanford, and then had been in the real estate securities industry from the very start originally in the REIT industry. And then in the private side since 2000. So we have a long history at USG. This is actually our third Opportunity Zone Fund. Our first fund we’re very happy to report was named the top fund in the country by globestreet.com and Real Asset Adviser. So we’re very proud of that. And then I’ve taken that concept and moved it into a product that allows our investors to actually pick and choose from an array of projects.

So the name of the fund is the Investor’s Choice OZ Fund, pretty self-explanatory. We believe it’s a better way to invest in Opportunities Zone Funds by giving you as much concentration in projects as you want. You can pick one project, you can pick five projects, you can pick seven projects, and you can mix and match as you want. And we focus on national demographics better than average income growth, better than average corporate structure around each one of our demographics. Then we focus on recession-resilient asset classes and co-partner with local experts. So that’s, you know, the quick, as they say, the elevator pitch on our program. And then I’m gonna dive in and get a little bit deeper into the product. But I do wanna make everybody understand that we are a real estate securities company and development partner, and I’m a licensed representative with FINRA. And so everything that we show you, everything we do has to go through compliance filters and part of that is this presentation as well.

What this presentation is not, is what I like to call a what do you got presentation? I know that most of you here are looking at, you know, what projects are out there? What funds are out there? I may have some gains. And so it becomes just a big, you know, shopping center of, you know, what projects are out there. Of course, we have projects, but this really isn’t a, what do you got presentation? What this presentation really is, is to discern and to show you that not all Opportunity Zone Funds are the same. And what I mean by that is we always focus on who you’re investing with before we get to the part of what you’re investing in.

And so understanding who the sponsor is, their track record, the structure of the programs, and the partners that they’re doing these developments with is of tantamount importance and paramount to your returns overall because again, these are tenure holds. So our pillars and everything that we quantitatively display in our memorandums, in our execution, and our third-party oversight starts with our belief again, and who you’re investing with is as important as what you’re investing in. And again, we hope you put us to the test on that. Number two is investor first fund structure. We believe in our structure actually being to the benefit of our investors and accretive to you first, and an investor-focused asset manager, which is what we are. Whoops. And then three is the projects and partnering with local and regional developer experts. So we actually co-partner with each one of our developers.

This is an asset management fund where we’re tasked with protecting your asset, protecting your investment, maximizing your returns by co-partnering with our developer partners. And number four is our quantitative execution of our pro forma. What we believe the return can be in our business plan again with third-party oversight, not just on us, but on our developer partners as well. So you may hear from time to time that folks are vertically integrated. That’s a big term in our industry now. And vertical integration is a great thing because we love to say we’ve got it all in-house and therefore costs, you know, go down, etc. However, when it comes to asset management, we’re not a fan of vertical integration. We believe in corporate structures being vertically integrated, but when we’re managing your asset, we wanna be the advocate for the investor.

So we wanna eliminate those conflicts of interest. And again, this is a tenure hold. There’s a good article on us that came out in the earlier part of the year called “Why USG is Taking a New Approach to Opportunity Zone Investing.” And this is after we’ve already been named the top fund in the country a couple of years ago. So we knew that we needed to make a bit of a pivot to protect our investors and to be your advocate. So if you should want that article, we’re happy to send that to you. The first step in why we’re different and why this is a little bit of a different approach is if you look at the three types of opportunities on funds in the marketplace, there’s the blind pools. As you all know, you put your money in and it’s up to the sponsor to direct where that money is gonna go. There’s also the specified multi-project programs. You put your money in, it goes equally across all the different projects.

Then you have the single project programs, which technically are actually, I believe in that’s the side that we came from because you can focus in on your due diligence, you know what you’re investing in, and you’ve got what I like to call a rifle approach. However, because of COVID, and that’s a story for another day, investors really wanted more diversification. So we came up with what we call a multi-project investor directed fund, and it’s the only one in the country that does it this way, where we have an array of projects that we co-partner with developers, and then give you complete flexibility and choice as to where your money goes and how much goes into any one particular project. We have a number of projects around the country right now.

Our portfolio is of 5, it’s actually a $50 million offering. We currently have five projects that we are raising capital for right now. And another three that are in final stage of due diligence that we expect to hit our portfolio sheet, probably in the next two to three weeks, maybe, you know, towards the end of the month. But we have a senior care assisted care facility out of Bristol, Connecticut. Wonderful multi-family project in Milwaukee with the largest developer in the state of Wisconsin named Ogden & Company. We’re doing a multifamily project in Sacramento, California with Lotus Equity development right next to the State Capitol. We’re doing a project in Oakland, which is why my face is not shaven. I just came in from Oakland meeting with our development partner in Oakland, which is a tower multifamily project, right in Lake Merritt.

And then in Los Angeles with the Ranta Group, we’re doing a multifamily project right next to USC Stadium and SoFI Stadium, and we expect to have our South San Francisco if you all know where Candlestick Park was, that is now being developed by Lennar development and housing. And we’re partnering with Lennar, I should say, with Lennar. We’re partnering with Lennar on a project in the old Candlestick Park area. What I wanna keep up on the map is a lot of people will look at our map and go, “Hey, how come you don’t have Florida? Why not Arizona? Why not Texas?” The one thing I wanted to show you that different, a few things, but one thing I wanna differentiate us from many others, we’re not against those areas. I’m very bullish on a lot of areas that we don’t have on our map. However, we have to look at this as a tenure hold.

And so we’ve purposely stayed away from what I call areas with equity rush. So what I mean by that is if you look at certain areas around the country, we love Oakland, but, you know, I like San Jose, but we’re staying away from those areas that there’s a big equity rush, just like people were rushing to the areas in 2005 and 2006, the areas that tend to have the largest amount of equity rush tend to have more risk when it comes to overbuilding. So not that they’re bad areas, but we try to mitigate that risk with our investors, which is why we’re not in Dallas, which is why we’re not in Austin right now, which is why we’re not in Phoenix as well. So we’re, again, I don’t wanna say that we’re against them, but for this long-term of a hold and for your tax benefits and to maximize your return for that period of time, we wanted to focus on more brick and mortar areas that have better than average income growth, corporate structure, and population growth.

And those are the areas that we’re focused on. So just a quick overview of what our portfolio looks like, in Oakland, California, Lake House, which is 270 units, right in Lake Merrit. And we’re partnering with UrbanCore Development, which is a minority-owned company in the area with a gentleman by the name of Michael Johnson, wonderful gentleman. Who’s built up a great reputation, and this has the backing of the City of Oakland, 270 units. And we have a pro forma on this of over 15% and a pref return of 11% to our investors. Elevation 1659 in Milwaukee, 76 units with Ogden & Company, the largest real estate firm in the state of Wisconsin with a pref return of 12% and its pro formad over 13%. KindCare in Bristol, Connecticut, which is assisted living. As you may know, Bristol Connecticut is the headquarters of ESPN and also Xerox and 12 other Fortune 500 companies.

It’s an aging population and underserved in the senior living community with a pref return of 11%, pro forma over 13%. And then in Sacramento, California right next to the State Capitol is 60 units that we’re building with Lotus Equity Partners at a pref return of 12%, and then MLK revival in Los Angeles, California, 65 units, 12% pref return with the Ranta Group. And I’ll make a point about our size of our projects in just one moment. And then in our final stage of due diligence to give you a neat little map here, if you’ll see on the bottom left is an arrow showing where old Candlestick Park used to be in San Francisco. And then to the right, you’ll see a yellow circle where our project site is where we’re partnering with Lennar Homes to build 105 units of multi-family in this area.

We have this pro forma right now, little over 13%, but again, we’re still baking this one up as we speak. Just to give you a kind of a overview of the projects and how they all look, not all these projects are the same. However, we’ve scored them equally when it comes to risk. KindCare and Bristol, if you go to the right, you’ll see we have a pro forma of 13.3%, and going a little bit to the left we expect distributions to our investors with the perm financing in place of over 86% back to our investors before 2027 with an average cash flow of 6.5%. Lake House has our largest return and this is in Oakland, of 15%. You’ll see though, it has the lowest amount of distribution coming out before 2027. So this is more of an overall average annualized return project.

And then you have Elevation 1659 in Milwaukee, 13.8% pro forma return and this is a 12% pref and we expect over 30% delivered back to our investors before 2027. Oasis, 12%, 68.9% back to our investors, MLK revival, 12%, and 91% back before 2027. The point I’ll make while you’re studying this is you’ll also see that our construction times and our completion times are very short. Part of our focus is to go to infill areas, in these areas with the local developer experts, co-partner with them. And these are shorter bills, these are developers that know how to get the permitting quickly, can get the shovel in the ground. They are a smaller equity raises per each one of these deals anywhere from $5 million to $8 million to $10 million, not the larger programs needing, you know, $20 million or $30 million. And that’s really the sandbox that we play in.

And this also, we believe mitigates risk if we should ever have another COVID situation or any type of situation that could shut a project down. The cost of carrying the project is much, much shorter when you’re dealing in smaller projects with local experts with quicker bills. So those are things that we can talk about later if hopefully we get you to go to our webinar next week. Our offering size is 50 million and our minimum is very low. It’s only $50,000 per investment. And our pref returns are anywhere from 11% to 15%. And you’ll see that we have a very investor-centric waterfall or distribution waterfall. It’s 100% to our investors, nothing to us until you get all of your capital back, then it’s 90% to our investors and 10% to us until we hit your pref mark, which we’re one of the highest in the industries of 11%, 12%, 13%, 14%, 15%.

Once we hit that pref mark, it’s 80% to our investors, 20% to us, and there’s no makeup. It’s just the next bucket. So there’s no catch-up for us at all. Again, very investor-centric. And I will advertise our webinar because, again, our time is short here today. Next week on Thursday, we’ll be holding our own webinar 11:00 a.m. Pacific, 8:00 a.m. Eastern. We urge you to go to our website, investorschoiceoz.com. Call us at this number (877) 938-0888, or you can email us. We’d love to have you. We’re going to have our developers on for our first 3 projects in the ground, which is Elevation 1659 in Milwaukee, KindCare in Bristol, Connecticut, and, excuse me, Lake House in Oakland, California. So we’d be very happy to have you here. I’m getting a text right now. I just wanna make sure it’s not somebody telling me that my voice can’t be heard. So it isn’t.

Jimmy: No, you sound good. We can hear you.

Greg: Okay. Thank you so much. So I wanna go through this as quick as I can and do a little bit of a dive in on our projects. What makes us really unique is we hold to these specific criteria. We allow our investors to select their projects. Number two, we focus on the smaller infill projects with local and regional developers. We co-partner with those developers. Again, we don’t wanna pretend that we’re the developer. We know a lot about it, we’re good at asset management, we’ve done a lot of development on our own, but we wanna co-partner so that we can be your advocate and protect your money and also maximize your returns by co-partnering at the developer level. We focus strictly on recession-resilient asset classes, locations, and demographics.

And to that end, each one of our projects, we believe in honoring the spirit and intent of the initiative. So we do a social impact study third-party with DRC IMPACT reporting out of Washington, D.C. They’ve just finished their first social impact report. And then this is ongoing throughout each year on our projects so that our investors can see in a quantitative fashion exactly how accretive their investment is to the local community. And then this is a big one for me, our pro formas, are we throwing spaghetti at the wall or are we making rational, conservative assumptions? Each one of our pro formas, we assume that we’re at the real estate cycle where we believe we are right now, which is the top of the market. So what we do is we actually decompress our cap rates, meaning we’re not counting on the cap rate compression to bring our values up.

We actually decompressed the cap rates in each one of our programs. So we’re at the top of the market we believe, we decompress the cap rates, and we let the net operating income and the sales price dictate our return. So anything above that is gravy. And then third, we’re not counting on financing somewhere down the line. Each project has the construction loans in place with the permanent financing already in place. So we can have surety of knowing what that takeout’s going to be on the refi in two or three years. We’re not just going out and looking for the financing in two or three years. That’s all part of the program, pre-negotiated and in place before you get into the project or into the program. We target two to three distributions in our program throughout the life of the program. And then of course those projects that cash flow, you will get quarterly distributions higher than average pref returns to our investors anywhere from 11% to 15%.

And then the waterfall that I stated to everybody anywhere from 100% to you, to 80%, to you and only 20% to us. But that’s the maximum that we can make on the deal. To give you a little bit of a deeper dive into our projects, and then I’ll open it up for Q&A. This is Elevation 1659 in Milwaukee, 76 units. Developers are Ogden & Company. It’s 1 mile from the downtown, $5.6 million equity raised here. The project is $26.7 million, and we have a $21.1 million loan that’s been committed by HUD, a 221(d)(4) HUD loan in a pref return of 12%. As you can see, the site is right next to the river. It’s actually next door to Ogden’s headquarters, and it’s right near the central business district or close to the central business district.

And I will mention that this is in Tract 113, which may not mean anything to anybody online. However, this is one of the top 40 opportunity zones in the country by income growth. The average income growth here has been 13% for the last 10 years. Then we’ve got KindCare, which is in Bristol, Connecticut, 117 units of assisted care. Our developer partner is KindCare and our operator is Charter Senior Living, a top 10 senior living operator. And this is the home of ESPN, Xerox, and 12 other Fortune 500 companies. This is a $5.9 million equity raise and the spa, it’s a total raise of $10.4 million. So between us and the developer, we’re putting in money as well, $26.4 million in project costs, $15 million loan with an 11% preferred return. There is the site, as you can see, and it’s right next to the town hall, Bristol Hospital, and ESPN headquarters.

Then we have MLK, which stands for Martin Luther King revival in Los Angeles, 58 market-rate units with 7 affordable housing units with the Ranta Group in Los Angeles. And this is adjacent to both the USC campus and SoFi Stadium or the LA Rams. Sorry, if there’s any San Diego Charger fans, I forgot to put San Diego Chargers as well there. And this is a $7 million equity raise, $22 million in project costs, $15 million loan, 12% preferred returns. And you can see the site to the bottom right, right next to University of Southern California. And you can’t see it in this picture, but SoFi stadium is just a little bit south of this. Oasis on 14th. I’ll move fast. 39 market units multi-family with Lotus as our partner. And we’re also going to do 21 extended stay units in this as well, which is why we have a good return on this. Less than 1 mile from the State Capitol and right in the Sacramento central business district, $7 million equity raise, $21 million project cost.

So you can see, we keep the project costs as low as possible, $14 million in loan, and a 12% pref. And you can see where it is. Oasis on 14th, where the top arrow is, is right in the CBD, right next to the Sheraton, right next to the convention center and the State Capitol. It’s in the heart of the fastest-growing area in the city of Sacramento. And then last but not least is the one institutional project that we’re very proud to be a part of as we’re the minority in this particular project. We’re the majority or 100% and all the other ones. This is 252 market-rate units, 18 workforce housing units with UrbanCore out of Oakland and their partner, National Real Estate Advisors who’s putting in equity as well. And this is right in Lake Merrit, which is the fastest growing and most desirable area to live in downtown Oakland, $10 million in equity, total of $36 million in equity for the raise, $251 million in project costs, $250 million in loan proceeds, including $31 million in PACE financing and also $184 million in traditional financing.

So preferred return on this is 11%, but our pro forma is over 15%. So again, very conservative on the prefs. And the one picture I can show you is this is Lake Merritt, and this will be one of only three-tower apartment buildings in Oakland. The top side of the picture there you see one tower. The second one will be right across the street from our project here and it’s right next to the courthouse in downtown. And so again, we give our investors the choice. So a sample portfolio could look like this. Here are the Smith’s with $1 million they decided to put half of the money into Milwaukee, and then 25% into Bristol, 25% percent into Oakland. Here’s a sample of the Jones, half a million, and they went 20% in each project. You’ve got the Hansons here with $100,000 and went in $50,000, $50,000 into Los Angeles and Sacramento.

And then you have the big spenders. The Desmonds here at $3.5 million decided to go $750,000, $750,000 and you can see the $500,000s there as well. So we give you complete flexibility in your portfolio. We have great partners with us. We’ve got, of course USG Realty Capital which I’m partial to because I own it. And then we also partner with Opportunity Zone Investments in Olympia Washington, who’s a opportunity zone developer expert. DLA Piper does all of our legal, one of the top three opportunity zone legal firms in the country. UMB Bank is our banking and omnibus account for our fund, UMB fund services for the fund operation, statements, and servicing. First federal as our project bank, sorry, I was tongue-tied there. We do fully-audited financials every year and k1s with Mosaic Financial Group, which we get out to our investors no later than February 28th. That’s a promise. We’ve never not made it. We’re very big on getting k1s out on time.

And then oversight by Pinnacle Capital Group, which is our managing broker-dealer, and then impact reporting by DRC IMPACT Reporting. And so before I open it up for Q&A, I’m not even sure if I have enough time, Jimmy, but again, I wanted to advertise our online webinar next week, November 11th at 11:00 a.m. Pacific and 8:00 a.m. Eastern. And we could do a little bit deeper dive on our projects and our different programs. And please contact us, we’d love to have you. Thank you so much. And I’m gonna open it up for…and we do have a breakout session coming up, I believe right about now, too. So I hope that was good for you, Jimmy. I really enjoyed it. Thank you.

Jimmy: That was tremendous Greg, thank you again for partnering with OpportunityDb on OZ Pitch Day. We’re happy to have you back once again, this must be working for you, I guess, so glad to have you here. We do have, let’s see what the clock says. I’ve got 1:57 p.m. Eastern time. We wanted to get that breakout session starting in just a few more minutes. So we do have a lot of questions that have come in, and I do wanna get to a few of those. I’m gonna post the link for your breakout session in the chat in just a minute. It’s gonna be the same link that we’ve used for all of the breakout sessions. And we’ll also get the same link we use for the happy hour later today. Greg will be in there in a few minutes to interact one-on-one with a group of you in a few minutes here. So, first question here, let’s see, we’ve got a lot of them. I don’t think we’re gonna get to all of them, but that’s what the breakout session is for. An anonymous attendee he or she asks, what if I don’t want to pick individual projects? Can I invest in a portion of your total fund?

Greg: Yeah, that’s a great question. You know, we really wanted to give people flexibility, you know, the idea I had in my head was because people want more diversification, especially after COVID was kind of like, you know, we have a 401(k) and you checkmark, you know, how much you want. That was kind of like what started this whole thing. But the fact of the matter is that most of our investors want our advice. So, you know, so even though we give them flexibility, you know, between the investor and us and their financial planner in most cases, we look at each project then we come up with it. So the answer is, you know, eventually, you have to make the choice, but we do work with people and we go over all the pro formas. We go over the social impact studies the demographics, and try to help them make that choice.

Part of that decision is also, which projects are gonna start earlier than others? So, you know, that’s why we’re focused on those first three, because they’re gonna be in the ground first, the return is gonna get turned on quicker, the cash flow is gonna be quicker, refi is quicker. So that’s part of it as well. The other part of the question might be, do we have an aggregator fund? And the answer is yes. We do have a lot of people who have put money into our fund at the omnibus side at the top end, and they will put the whole thing into two or three projects. They may put half of it and the other half stays in the omnibus account. Once you’re there, you’re fine. You’re in the fund. And then they can proactively put the money where they want at some other point. I could go deeper, but I know you have a lot of questions. I hope I answered it, if not, whoever that was can contact me.

Jimmy: Yeah, yeah. We’re hopping the breakout session in a few minutes, and you can ask him again. You can pin him down in there. It’s hard for Greg to escape once he’s in that breakout session. We hold them in there for 30 minutes. So both Gary and Matthew asked similar questions. The $50,000 minimum, is that per project or is it total? Well, how does that work?

Greg: Good question. Real quick. It’s for the fund. It’s the fund minimum. Our minimum per project is actually $10,000. Now by perspectives we can take lower than $50,000. I mean, we don’t want to, but I will tell you that if an investor comes with less than $50,000, we’ll do it on a case-by-case basis.

Jimmy: Okay. Good answer there. So theoretically you could bring in $50,000 and spread it $10,000, $10,000, $10,000, $10,000, $10,000 across 5 different projects?

Greg: Correct.

Jimmy: Okay. What are your developer promotes? Matthew asks.

Greg: The developer promotes. So I’m assuming what Matthew is asking is what does the developer get out of the deal? I think that’s what he’s asking. So the way we work, now, every developer we have to negotiate. So they’re all a little bit different, but I always say, it looks like you go to a staged house and then, you know, you pick the house, but you can change certain things. That’s kind of how our, they’re not totally different. Our base model is, we normally will bring in 100% of the capital to the developer. So the deal is we bring 100% of the capital, we co-partner with the developer. They have to get the financing in place and give their guarantees on that. Our investors get 100% of all the returns until it hits a certain mark. Sometimes it’s 10%, sometimes it’s 11%, 12%, whatever it is that we negotiate. Once we hit that the developer will get, let’s say 10%. Then it goes up to another mark. Once it hits that it goes to 20%, then it can go as high as 30%. But it’s an earn-in percentage unless they bring their own money to the game. If they don’t, it’s an earn-in. But each one’s a little bit different so I just kinda gave you a base model.

Jimmy: Gotcha. Okay. Let’s do one or two more questions here. Somebody just asked where’s the link for the breakout session? I just answered it in the Q&A section, but in the chat, if you click the chat icon in your Zoom toolbar, the most recently sent message includes that breakout session link. So just click that in a couple of minutes when we wrap up here. Let’s see. Oh, could you elaborate on recession-resilient asset classes? What did you mean by that?

Greg: Yeah, no, that’s great because it’s such an overused word. You know, like 10 years ago, people were saying recession-proof and then it sort of turned. So what does that mean to us? What if there’s recession-resilient asset classes and recession-resilient demographics? I happen to be a big believer in demographics. Not that asset classes don’t matter, but back in 2007, 2008, 2009, 2010, there were a lot of recession-resilient asset classes that got into bad demographics and people lost a lot of money. So I always look at demographics first. So let’s start there. We want, from a demographic standpoint, we consider recession-resilient areas that have had better than average population growth, number one, then the U.S average over the last 10 years. Number two, a corporate structure that surrounds the particular project or area for stability of the project over a 10 year plus time period.

Number three, an income growth that is better than the average in the U.S. during the last 10 years. It goes on. There’s about six or seven, but generally speaking, that’s what we’re looking for. On the asset side, we try to stick to, our food groups are infill multi-family with barriers to entry. Two would-be assistant care, but it’s gotta be a top-quality operator for cash flow. We will look at storage if we can find a good deal. And we’ll also look at industrial if we can get into a deal with a long-term tenant that’s a Fortune 500 like an Amazon. However, what has popped onto the radar screen mostly has been multifamily with assisted care. So right now that is what our portfolio is. But those are the food groups we stick to.

Jimmy: Okay. Fantastic. Well, I’m gonna close this down right now and get your breakout session open, Greg. So, Greg, can you confirm for me that you’ve got the link, it’s in the chat there?

Greg: I don’t know. Let me go to chat. Sorry, everybody, let’s see. Oh, presentation, if you have questions, you’d like to learn more hit this link, is that it? I’ve got it.

Jimmy: Yes. That’s it right there. So just click that link and, we’ll see you in there, Greg. Thank you so much for joining us today.

Greg: All right. Thank you, sir.