About Investment

Our Investment Strategy

We buy, value, and add multifamily properties ranging from 10-100 units located in Southern California. Built between 1970 and 2000, usually located in underserved and Class B neighborhoods.

MGS1 also looks for assets that are:

  • Mismanaged & Neglected 
  • Below Market Rental Rates
  • Dated Renovations 
  • Motivated Sellers
  • Under Capitalized 
  • Market and Off-Market Deals 
About us
MGS1 Process
Purchase
Rehab
Manage or Hold Reinvest

Market Research –

Our team researches the market to understand rent growth in the communities, demographic trends, job growth, and the proximity to centers of employment and transit systems.

Underwriting –

Our team of underwriters and consultants calculates the projected renovation expenses and the property’s potential performance of the market.
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MGS1 Partners

Investment Communities

Our team digs deep to evaluate and uncover key information regarding the value of the property to reduce and mitigate financial uncertainties. 

Our team submits a fact based package to the Investment Committee for review and approval.

MGS1 will not incur debt financing for any property in excess of 50% Loan to Value ratio. By keeping debt at or below 50% of value, we believe our assets will be better positioned to resist general economic recession. 

MGS1 believes the majority of risk experienced in real estate investing is the result of the overuse of debt financing that can result in foreclosures on otherwise viable assets when the market turns soft.

MSG1 outlook on the economy is bearish. We focus on a relatively low-debt capital structure that we believe limits investor risk. Assets that are not highly leveraged should be able to withstand a loss in value without being lost to the bank. 

California Real Estate History has shown a great ability to recover or improve over time. Our goal is to protect our investor’s capital.

With quality renovations done in-house and our professional in house management, we seek to increase rent to reflect the prevailing market value, increase cash flow, and enhance appreciation of the property.

MSG1 experience in construction allows us to implement time efficient, lost effective renovation to units as residents lease expire, and we are able to rent to the workforce as well as essential works incrementally. Fund investors receive scheduled distributions. 

When market conditions are favorable, MSG1 will list and sell the property or depending on the acquisition strategy, MSG1 will keep the asset. 

Investors may choose to cash out of their investment at that time or reinvest in another multifamily transaction.

The severe shortage of affordable housing is the symptom of the problem. Poverty is the real culprit. The three critical needs of people and families are not only a safe and affordable home, but also the ability to develop their talents, obtain vocational or college education and have a support group that creates stable families. So, affordable housing is one important element, but should be made available with the other core requirements of education and jobs.