Our Strategy

To invest, either directly or alongside, with best-in-class operators in opportunities with project sizes ranging from $2.0 million to $30.0 million while achieving above-average returns with a keen focus on capital protection.

Our competitive advantage comes from investing with operators that have an average of 30 years of experience in residential investments. These operating relationships have been cultivated by management over two decades and provide investors with the opportunity to participate in projects with top rated developers, which are typically not available to individuals.

NRS residential-related investments include, but are not limited to, garden-style multifamily, single-family attached, single-family detached, modular housing, manufactured housing, self-storage, residential service operating companies, and land. These investments are generally concentrated in the Southwestern United States, with a focus on high-growth regions such as Texas and Colorado.

We don’t operate as a fund, which saves investors the hassle of paying fund management fees. Instead, each investment opportunity is executed separately. Once an investment has been thoroughly vetted and meets the rigorous underwriting requirements set forth, clients have the option to contribute to that proposed project. NRS compensation occurs upon a liquidity event associated with such a project after achieving target returns.

Transactions are sourced via direct relationships with investment sale brokers, financial institutions, family offices, and other real estate professionals known to management.

Project-level investment returns for construction deals are 13%-15% IRR and multiples equal to or greater than 1.50x, with an average hold period of three to five years. Project-level cash-on-cash yields for cash-flowing assets are targeted at 7% – 9% with a similar IRR and multiple hurdles as listed above. Target returns for opportunistic debt investments are IRR of 9% – 11% and interest multiples equal to or greater than 1.18x.

Each proposed investment is vetted through a rigorous underwriting process that focuses on: i) desirable locations; ii) established developers and operators; iii) an attractive basis with strong upside potential when compared to similar competing assets; iv) niche project sizes of $2.0 million to $30.0 million, falling under the radar of institutional investors; v) strong demand drivers focusing on markets with strong demographic and population growth projections.

We’re compensated primarily on success fees by taking a portion of the profits through market-standard promotion structures (i.e., success fees). NRS achieves its success fees only upon surpassing the Preferred Return hurdles for a specific project, ensuring investors are profiting from their investment and meeting investment objectives. Each individual project is assessed an administrative fee to cover administrative costs for paying attorneys, pre-closing due diligence costs, tax consultants, and insurance consultants (if applicable).