How We Invest
We invest in income-producing real estate in two ways: alongside experienced operators, and, over time, as a direct buyer of net-lease properties. In both cases we start by asking what could go wrong.
Investing Alongside Experienced Operators
Some of the best-run apartment communities are owned by specialist operators who have bought, renovated, and sold properties for years. Rather than overstate our own operating history, we select operators with a track record and invest in their offerings through an Omega vehicle. Our investors invest in the Omega vehicle; the Omega vehicle invests in the operator's offering; the operator owns and runs the property.
Investors
Omega vehicle
Operator's offering
Property
Investors invest in an Omega vehicle, which invests in the operator's offering that owns the property.
What you get
Access to operator deals through one point of contact who has reviewed the operator, the property, the debt, and the documents, and who reports back to you.
What it costs
A fund-of-funds structure has fees at two levels: Omega's and the operator's. We disclose both in the offering documents, and you should weigh them against investing directly.
Example
Our current offering, Devonshire Lake Dallas, uses this structure with operator Momentum Multifamily.
How We Vet an Operator and a Deal
- Track record: full-cycle deals (bought and sold), not just current projects, verified where possible.
- Market: employment, population, supply, and rent trends where the property sits.
- Basis: purchase price per unit and per square foot compared with recent sales.
- Debt: rate, term, fixed or floating, prepayment terms, and what happens at refinance or sale.
- Business plan: what is being improved, what it costs, and what happens if rents don't rise as planned.
- Alignment: whether the operator invests its own money and how it's paid.
- Documents: the operator's materials are checked against the offering documents; inconsistencies are resolved before we present a deal.
Net-Lease Medical and Commercial Properties
In a net lease, the tenant pays most property costs, such as taxes, insurance, and maintenance, in addition to rent. Charles spent his career in emergency and trauma medicine, which gives him a practical view of what makes a clinic location work. We've underwritten a number of medical clinics leased on long-term absolute-net leases. Net-lease properties have their own risks: a single tenant means the property's income depends on one business, and specialized buildings can be costly to re-lease.
This is a long-term strategy; there is no net-lease offering open today.
Land
Through Omega Land Corp, we buy land with residential or multifamily potential, primarily in North Carolina, and place it with builders. We buy directly; we are not wholesalers. Landowners and brokers: contact us at (252) 461-1652.
Asset Types We Consider
Listed for education. Whether we pursue any particular property depends on the deal.
Start with a conversation
A short introductory call with Charles White. We'll learn what you're looking for, explain how our offerings work, and tell you honestly whether they fit. No pressure, and no offering documents until you're ready and verified.
Key risks
Every private real estate investment carries risk. Among them:
- Loss of capital: you could lose some or all of your investment.
- Illiquidity: there is no public market for these interests, and you should expect to hold for the full term.
- Market and operating risk: rents, occupancy, expenses, and property values can move against the plan.
- Leverage and interest-rate risk: debt magnifies losses as well as gains; refinancing and sale conditions can change.
- Sponsor and operator risk: results depend on the people executing the business plan.
- Fees: fees at each layer reduce what investors receive (in a fund-of-funds structure, there are fees at both the Omega level and the underlying sponsor level).
- Tax risk: tax outcomes depend on your situation and on law that can change. Retirement-account investors may owe tax on certain income (UBTI).
Read the risk factors in the offering documents before investing.