Creating a Sustainable Future with Real Estate

Explore what guides us

We aren’t in the business of flipping. We are in the business of investing in sustainable real estate that has positive impacts on all involved. HD Enterprises has a set of guiding principles for how the business is run day-to-day and over the long-term, including:

• Seek special situation real estate that has been mistakenly overlooked or erroneously undervalued with significant risk-adjusted long-term upside.
• Diversify the company’s real estate portfolio across multiple geographic locations and property types. Focus on regions the company knows extremely well and are positioned for enduring growth in all economic cycles.
• Place an emphasis on smaller, easily rentable multi-unit vs single tenant properties.
• Target real estate that needs rejuvenation but has “good bones,” where these improvements exceed a hurdle rate and bring a positive addition to the local community.
• Let sustainability be a driving factor in determining the modifications we make to an asset, to include the choice of materials used, LED lighting, energy efficient windows, modern roofing options, and newer heating/cooling systems.
• Acquire properties with a 10+% capitalization rate on an as-is, not pro forma, basis and cash flow using conservative income, expense, and vacancy assumptions.
• Utilize debt, but only when a positive leverage exists and accounting for all known risks.
• Maintain a sizeable cash balance in the business to capitalize on new opportunities.
• Buy-and-hold versus flipping or selling quickly. Think about the long game.
• Treat tenants, customers, vendors, and employees with respect and dignity; focus on creating win-win situations for all parties.