Market Inefficiencies Lead to Massive Wins

Don't focus on slow growth.

Focus on exponential creation of value!

How We Exploit
Inefficiencies

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WE UPGRADE THE ASSET CLASS

In the world of income-producing investments, the value is a function of income. In simple terms, the more income the asset generates, the more an investor is willing to pay for it.

Most people have heard of the "value-add" business model, which is where an asset is purchased with the idea of improving the income in order to create more value. And most of the time this is accomplished through renovations.

However, the truth is that most renovations are akin to lipstick on a pig, making the property appear prettier but not fundamentally changing the quality or positioning of the asset in the marketplace.

This doesn't work well because the resulting asset, while a bit nicer, is incapable of attracting a significantly better-qualified tenant profile. The resulting economics stretch a less-qualified tenant profile to spend more than they should or can afford to, which is not sustainable.

WE UPGRADE THE TENANT PROFILE

By performing much more extensive renovations, WhiteHaven is able to upgrade our communities in such a way that they become attractive to better-qualified tenants. This is important not only because these folks can pay significantly more rent, which helps improve the value of the asset, but they can do so on a sustainable basis. 

Some examples of the kind of renovations we complete in order to attract better tenants are:

  • Installing new cabinets in units
  • Granite countertops
  • Stainless steel appliances
  • In-unit Washer & Dryer
  • We build offices
  • We build gyms
  • And much more...
WE USE PLIABLE FINANCING

There are many types of financing available for apartments, however, some are quite restrictive relative to when or how a refinance or a sale can take place. 

Since markets are always changing and evolving, and we must be able to respond and pivot, one of the biggest advantages can be a financing package that allows for quick execution. There is nothing worse than needing to refinance in order to recapitalize or receiving a fabulous offer to sell but being unable to execute due to a huge prepayment penalty or a complete lock-out.

One of the keys to WhiteHaven's success is our use of extremely pliable financing structures that enable us to move quickly in order to exploit any given market-driven circomstance.

Keys to Success

“Don't learn the tricks of the trade. Learn the trade.” ~ Sherry Argov

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Philosophy

While we understand that traditionally investors perceive the value of multifamily assets as a function of capitalized NOI, and we cater to that, ultimately we allocate value a bit differently:

Value = (Repositioned Valuation - Cost)

Where Repositioned Valuation is the mark-to-market capitalized valuation of the future NOI, while cost is our all-in cost basis.

Essentially, our objective is equity, and all of the transactional mechanisms are geared to engineering this equity. Cash flow is simply a side effect of the successful execution of the model.

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Mandate of Flexibility

Our mandate:

Delivering the highest possible returns on a risk-adjusted basis.

Our approach, by definition, is the opposite of static. Our business model envisions a potential exit at any time between 18 months and 10 years. The exact timing aims to coordinate the risk/reward inflection point with asset desirability to a specific buyer profile.

Every facet of the deal structure is aimed at allowing us as many executional pivot opportunities as possible, and our job is to continuously monitor.

The markets are forever evolving and so must our modeling.

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WhiteHaven Construction

WhiteHaven Construction, our in-house construction arm, is tasked with the management and execution of capital projects in all of our assets.

Since its formation in 2019, WhiteHaven Construction has completed 30o+ unit interiors at an average cost of $15,000/unit, and oversaw $2M+ of community improvements.

The ability to control timing, quality, and cost, as well as the streamlined communication with the on-site personnel, represents a formidable advantage WhiteHaven enjoys in a competitive environment.

Any attempt to cut operating costs below the known regional averages for a prolonged period of time inhibits the operations and negatively impacts valuations.

The real opportunity is income.

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What Investors Are Saying

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Ben and his team at WhiteHaven are true professionals who have not only delivered above-projected returns but been fantastic with their communication throughout.

Jim Wang

Founder, WalletHacks.com

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I’ve invested again and again with WhiteHaven Capital. Why? Because they are conservative in their math, patient with their growth, and open with their communication.

Brandon Turner

Host of the BIggerPockets Podcast

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In the last few years I deplyed capital into 5 of the WhiteHaven's acquisitions, several of which have now gone full-cycle with much higer than anticipated returns.

As it relates to investing in apartment syndications, there are many sponsors out there. For me, there one clear choice, ...

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Logan Hasinger

The Real Estate Guru

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I’ve been investing for a long time and I normally don’t invest my private capital with just anyone.

But when Ben and Sam have an opportunity it's hard to say no since I know that they both bring unique skillsets and passion to their work.

WhiteHaven Capital and the team make it ...

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Dave Van Horn

President & CEO, PPR Note Company

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When working with the WhiteHaven Team, I know I’m in competent and experienced hands. I trust the management team to make the best decisions and that allows me to rest easy as an investor.

Multiple projects I invested in exited sooner than projected and with great returns. I look forward ...

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Gennia Cui

Co-founder and Chief Creative Director

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Ben, Sam, and the WhiteHaven team have a very clear strategy and operational philosophy. They invest strictly in Phoenix, which they believe to be the best high growth market in the country, and look for value-add opportunities. They execute against this strategy with what I see as a high degree ...

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Scott Trench

CEO & President, BiggerPockets

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As a healthcare professional, by investing with White Haven Capital I have been able to earn passive income, but much more importantly strong profit sharing of appreciation.

Danny Nguyen

PharmD, FMVA

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I really enjoy the transparency White Haven provides throughout the investing process. Before investing in the Haven at South Mountain project, which has since sold with great profit, I had multiple conversations with Jeff and had all of my questions answered, and more. I can appreciate the care ...

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Tsz Chan

Restaurateur

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I've completed two investments with Whitehaven Capital, each returning higher than expected returns in half the estimated hold period.  My third investment with them is in great shape as well. 
 
Ben and Sam are bright and disciplined, excellent ...

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Dave Adams

Tech Entrepreneur, Apartment Developer

Invest with Confidence.