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How we invest

Strategies

Real deals rarely follow a single playbook. We think in three chronological phases — how we acquire, how we generate income, and how we exit. Every deal is a deliberate combination of choices across all three.

Phase 01
Acquisition
Strategies

How we get into a deal determines our basis, our flexibility, and our options on the back end. We use different financing structures depending on the property type, hold timeline, and current market conditions. The right acquisition structure can be the difference between a deal that works and one that doesn't pencil out at all.

Conventional
Traditional Financing
Standard mortgage financing through a bank or lender — conventional, FHA, or DSCR loans. Best for stabilized properties with clean title. DSCR loans qualify based on the property's rental income rather than personal income, making them particularly well-suited for investment portfolios.
Cost of capitalLow
Speed to closeModerate
FlexibilityLow
Used — Azure Estates & Seminole Heights
Equity Partner
Capital Partner
Partnering with an equity capital partner to fund the full acquisition in cash — no mortgage, no financing contingency. The partner provides acquisition and renovation capital; Magna Domos sources the deal, manages the renovation, places the tenant, and executes the refinance. Capital is returned to the partner at the DSCR refinance event, along with a negotiated preferred return. Best used for distressed acquisitions where an all-cash offer is a meaningful competitive advantage.
Cost of capitalNegotiated
Speed to closeVery fast
Best forBRRRR / distressed
Seeking — Next Acquisition →
Creative
Seller Financing
The seller acts as the lender — we make payments directly to them at a negotiated rate and term rather than through a bank. Particularly effective when sellers own free and clear and prefer steady income over a lump sum. Terms are fully negotiable, which can make deals work that wouldn't qualify for traditional financing.
Cost of capitalNegotiable
Speed to closeFast
FlexibilityHigh
Bridge
Hard Money
Short-term, asset-based lending from private lenders — used for distressed acquisitions and renovations where conventional financing won't qualify. Higher rates and fees, but fast closing and minimal qualification requirements. The goal is to stabilize the asset and refinance into long-term financing within 6–12 months, paying off the hard money loan.
Cost of capitalHigh
Speed to closeVery fast
Best forBRRRR / distressed
Used — Sulfur Springs
Creative
Subject-To
Acquiring a property subject to the existing mortgage — we take title and make the payments, but the loan stays in the seller's name. This allows us to step into a low-rate loan without qualifying for a new one. Best used with motivated sellers who need immediate payment relief and are comfortable with the existing loan remaining open.
Cost of capitalVery low
Speed to closeFast
ComplexityHigh
Phase 02
Income
Strategies

Once a property is stabilized, we choose how to generate income based on the asset's characteristics, the local market, and our portfolio goals. These aren't mutually exclusive — the same property can transition between strategies as conditions change, and some assets support multiple simultaneously, such as a primary unit alongside an ADU.

Rental
Long-Term Rental
Traditional 12-month leases to long-term tenants. The most passive income strategy — predictable rent, minimal turnover, and stable occupancy. Best suited for properties in strong rental markets with reliable demand. Lower gross income than STR, but significantly lower management burden and operating cost.
Income potentialModerate
Management burdenLow
Vacancy riskLow
Rental
Mid-Term Rental
Furnished rentals targeting stays of 30–90 days for traveling professionals, healthcare workers, remote workers, and corporate clients. Higher nightly rates than long-term rentals without the daily turnover of Airbnb. Often insulated from local STR regulations. A growing and underserved segment of the rental market with favorable risk-to-return dynamics.
Income potentialModerate–High
Management burdenModerate
Regulation riskLow
Rental
Short-Term Rental
Vacation and short-stay rentals via Airbnb and similar platforms. The highest gross income potential in the right market, but the highest operational demands. Requires active pricing management, guest communication, and cleaning coordination. Works best in high-demand tourist, business, or event-driven markets with favorable local regulations.
Income potentialHigh
Management burdenHigh
Regulation riskMarket-dependent
Active — Seminole Heights
Government-Backed
Section 8 / Affordable Housing
HUD Housing Choice Voucher tenants whose rent is partially or fully subsidized by the federal government and paid directly to the landlord by the housing authority. Eliminates non-payment risk and dramatically reduces vacancy. Properties must meet HUD Housing Quality Standards. Best deployed in B and C class neighborhoods where rents align with published fair market rates.
Income reliabilityVery high
Vacancy riskVery low
Management burdenLow
Active — Sulfur Springs
Value-Add
ADU / Value-Add
Adding an accessory dwelling unit — a garage conversion, basement apartment, or detached structure — to generate a second income stream from a single-family property. ADUs can dramatically improve cash-on-cash returns without a new acquisition. Increasingly permitted across markets relaxing zoning laws to address housing supply constraints. Capital-intensive but powerful for both income and valuation.
Income upliftHigh
Capital requiredModerate–High
ComplexityModerate
Phase 03
Exit
Strategies

The exit is where value is realized — or preserved for the next deal. Not every exit means selling. A cash-out refinance pulls equity while keeping the asset. A 1031 exchange defers capital gains while upgrading into a larger position. The right exit depends on market conditions, portfolio objectives, and what the numbers dictate at the time.

Tax-Advantaged
1031 Exchange
A tax-deferred exchange under IRS Section 1031 allowing us to sell an investment property and reinvest proceeds into a like-kind property without paying capital gains at the time of sale. Used to upgrade into larger or higher-performing assets while preserving the full equity stack. Strict timelines apply — 45 days to identify a replacement, 180 days to close.
Tax impactDeferred
ComplexityHigh
Best forPortfolio scaling
Refinance
Cash-Out Refinance
Refinancing into a new loan at a higher balance to pull out built-up equity — tax-free — while retaining ownership of the asset. The cornerstone of the BRRRR method. Realizes the value created through renovation or appreciation without triggering a taxable event. Pulled capital is redeployed into the next acquisition, perpetuating the cycle.
Tax impactNone
Asset retentionYes
Capital recoveryPartial to full
Used — Sulfur Springs (~$75k)
Sale
Standard Market Sale
A traditional open-market sale via MLS. Used when the asset has reached peak value relative to our basis, when market conditions favor sellers, or when the original strategy no longer fits — as with Titus Ct, where HOA mismanagement changed the risk profile and made a sale the disciplined choice. Clean, straightforward, and accessible to the widest buyer pool.
Tax impactCapital gains
LiquidityFull
ComplexityLow
Used — Azure Estates
Creative
Seller Financing (As the Seller)
Acting as the lender for our buyer — accepting monthly payments at a negotiated rate rather than a lump sum at closing. Spreads capital gains over time via installment sale treatment, generates ongoing passive income, and expands the buyer pool to those who may not qualify for conventional financing. Effective for high-equity properties where immediate full liquidity isn't required.
Tax impactSpread over time
Passive incomeYes
ComplexityModerate