Investment Strategy
Disciplined Approach and Conservative Investment
Real estate markets are cyclical, requiring disciplined, data-driven investment selection that yields long-term returns. At EKHO Capital, we find overlooked opportunities and balance conservative risk-adjusted returns and capital preservation over growth at any cost.
Disciplined Approach for
Long-Term Success
EKHO Capital's differentiated investment strategy targets a sweet spot in the $10-50 million acquisition range - properties that are often overlooked by larger institutional players, yet hold significant value-add
A Conservative Investment
Approach — with Returns
Unlike firms using 70%+ loan-to-cost ratios (putting your money in a riskier situation), EKHO Capital maintains conservative 50-65% leverage, reducing risk while delivering comparable returns of 15%+. During the 2022-2023 interest rate spike, our approach protected investor capital while highly-leveraged competitors required additional capital calls. Our technology-enhanced approach optimizes operations through systematic testing and market feedback.
Multifamily Resiliency
Class B properties in secondary markets show lower vacancies and more stable renters during downturns, supported by diverse tenants and growing demand.
Market Analysis
In our holistic research, we evaluate markets of 500,000-4,000,000 population with job growth exceeding national averages and median home prices creating a rent-vs-buy gap of $1,500+ monthly
- Supply/demand dynamics
- Demographics
- Economic factors
- Regulatory environment
Market Evaluation Example: Courtyard Apartments
A 138-unit Sacramento property with rents $400 below market, positioned to benefit from healthcare, tech, government, and education growth.
Western US Focus
We target secondary markets in CA, AZ, NV, and WA with solid economic indicators, positive migration, and sustainable growth.
EKHO Capital conducts property assessments well beyond the industry standard, utilizing both in-house expertise and third-party specialists to ensure that nothing is missed. Our team personally walks every property, analyzing unit-by-unit renovation potential through systemic evaluation methodologies to identify opportunities others miss. This thorough approach enables precise renovation budgeting and more accurate financial projections. Most importantly, we confidently walk away from deals when our analysis reveals concerns that standard assessments would overlook.
EKHO Capital targets 50-120+ unit complexes in strong neighborhoods within the $10-50M sweet spot. Our focus is 1970s+ construction with at least 50% NOI growth potential through strategic improvements. Each acquisition passes our proprietary screening evaluating demographic stability, operational efficiency, and multiple exit scenarios. Our hold periods (3-7 years) are determined by market cycle analysis rather than arbitrary timelines.
We maintain conservative 50-65% LTV debt structures with fixed-rate, long-term financing, pre-funded renovation costs, and higher-than-standard reserves to mitigate potential risks. Every investment undergoes multiple recession scenario stress-testing with higher than industry standard reserves. Our strategic workforce housing focus targets tenants in stable employment sectors with proactive lease management. We identify multiple viable exit strategies before acquisition, and use established market indicators to optimize timing.