Venterra has a deep senior management team that draws not only on its real estate experience but also on diverse experience from other industries. The management team believes strongly in bringing best practices from the manufacturing, distribution and technology industries to create a world-class real estate management operation that benefits our residents, employees and investors.
We believe that operating control is essential to the effective management of multi-family assets. For this reason Venterra is completely self-managed. This means that we manage and control 100% of all direct and indirect property management responsibilities. On-site property staff are Venterra employees, all back office centralized activities such as accounting, finance and administration are managed by Venterra. We have invested millions of dollars in systems and processes to enable us to assert this control. A superior living experience is the result for our residents. Superior financial results are what our investors receive.
Venterra has differentiated itself by deploying industry-leading technology to the benefit of both residents and investors. This technology includes a comprehensive suite of entirely web-enabled applications covering rent management, pricing optimization, purchase order management, utility billing, work order and capital expenditure management, an entire suite of back-end financial applications and customized workflows and reporting. This technology has allowed Venterra to realize operating efficiencies and effectiveness that are at the forefront of the multi-family industry. Venterra's highly automated operations have not only lowered costs, but importantly have freed up significant amounts of time for on-site personnel to focus on satisfying existing residents and attracting new residents. The results show: Venterra-run properties have a 1-2% higher occupancy level than their local competitors while realizing higher effective pricing. In essence, we are creating a resident driven culture at each of the Venterra properties that ultimately benefits our investors.
Where, when and what you choose to buy is of course very important to the success of any real estate investment. Venterra's acquisition process is a major contributing factor to our history of successful investments. The following are some of the key contributing factors to our successful acquisitions:
- The principals of Venterra invest in every transaction that Venterra completes.
- We process a high volume of prospective acquisitions, in a well-established, and rigidly followed acquisition process. Yet due to our very stringent criteria we complete only 1-2% of the opportunities we review.
- Approximately 80% of our completed transactions are "off-market" deals accessed through a proprietary network that we have built up in over a decade of experience, which results in Venterra often being able to acquire properties below the prevailing market prices.
- We are a well-established real estate operating company. We do not need to complete acquisitions to be profitable so we only buy when the right opportunity arises.
- Capital is only raised on a transaction specific basis. We are not an investment fund. Each investment is held by a limited partnership wherein Venterra acts as the General Partner. We only ask for money when we can present a specific opportunity that will form the substance of the partnership's assets. Our Investment partners know specifically the asset in which they are investing before they commit capital. This transparency is not available in any kind of investment funds. Our approach gives clarity and discretion to each and every investment opportunity.
- Venterra has a solid grasp of the macro economic and demographic trends that drive our economy and business. And at a more detailed level, we have spent the last decade understanding our chosen markets down to the neighborhood level. Venterra is able to find the "gems" that can only be found with a detailed neighborhood understanding.
- Venterra only completes acquisitions that don't require capital gains to deliver attractive returns to investors. While capital gains will obviously improve the financial performance of our transactions, our deals are characterized by strong, regular cash flow, distributed quarterly.
- We have designed our overall acquisition strategy (asset class, geographic focus on the Southern U.S., stringent performance and neighborhood criteria) to be less sensitive to overall U.S. economic performance than most investments. We don't need robust U.S. growth for our investments to do well.
- Once an acquisition is completed, it is aggressively managed by our operating team that has developed an industry-leading operating capability. This group takes a well purchased asset and turns it into a well operated asset.