Green Bison Capital considers the critical components to a solid multifamily investment being a good team, a good market, a good property, and a good business plan. You must be able to check off each of these boxes. A good team should include sponsors who have a strong track record and who are investing their own funds in the acquisition. The sponsor team (management) should maintain open communication with their investors and be transparent and responsive. A critical team member is the property manager. Ideally the property manager currently manages assets in the vicinity of the subject property and has successfully worked with the sponsorship team on prior investments. A good market (and submarket) typically has low unemployment, population growth, and a diverse economy. No single industry should employ more than 25% of the population. A good market also has a healthy median household income. A good property is one that is located close to many employers and places of interest. Green Bison looks for Class B or C income-producing properties. These properties are stabilized (at least 85% occupancy) and not distressed. A good business plan must have three attributes: 1) Cash Flow, 2) Long-term debt financing, and 3) Adequate cash reserves. Cash flow producing assets tend to have a lower risk profile than assets that are new construction or are distressed. Long-term debt financing mitigates the risk of interest rates rising. Adequate cash reserves ensure that required maintenance of the property is executed. This is in addition to having an adequate budget for capital expenditures. Lastly, the business plan should have a value-add component that includes capital improvements to increase the net operating income and force appreciation. With an execution of this strategy, multifamily assets can weather the storm if the economy takes a downturn.