Elevate SFI Fund

Elevate SFI Fund

by Tim Herriage

Elevate SFI Fund

Elevate Private Capital is currently operating the Elevate SFI Fund, which will acquire opportunistic single-family residential properties, through both traditional and off-market sources, in strategic Dallas / Fort Worth locations. The fund’s assets, comprised of single-family homes and townhouses, are renovated, leased, managed and sold in accordance with the fund’s overall strategy and market conditions.

The fund is focused on the Dallas / Fort Worth Metroplex, a major growing market with long-term demand drivers, nation-leading rates of economic growth and persistent insufficient housing supply.



Dual-Strategy Approach:

  • The fund’s portfolio will be comprised of approximately 60% fix and flip and 40% buy and hold assets over the first 18 months
  • This ratio will then inverse to a majority buy and hold approach as the economy is predicted to soften

Designed for Both Flexibility and a Long-term Hold Strategy:

  • Flexibility: Acquired assets are carefully selected to ensure a fit with both the fund’s fix and flip and buy and hold requirements in order to maintain the ability to adjust our strategy as markets shift, enhancing investment resilience and optionality
  • Long-term: the DFW Metroplex rental market continues to show signs of strong growth, as does home price appreciation and housing demand, underpinned by consistent increases in population and employment rates

Acquisitions Strategy

Local Market Expertise, Industry Reputation and Extensive Network Provides Unique Acquisition Sources

  • The Elevate Private Capital team has already bought over 10,000 residential investment properties
  • Our fund managers and supporting team are known throughout the DFW market for buying houses, unlike detached institutions located elsewhere

We Know What Makes a Good Investment:

  • Asset type and age
  • Projected home price appreciation
  • Proximity to job centers and educational institutions
  • Crime rates
  • School districts
  • Population growth
  • Affordability
  • Neighborhood-level rental growth & demand

Set Guidelines Determine Price Thresholds, Minimum Purchase Discounts, and Flip and Rental Suitability

  • Single-family: minimum of 3 bedrooms, 1.5 baths and 1 car garage in a subdivision of more than 100 homes
  • Townhome: minimum of 3 bedrooms, 1.5 baths and 1 car garage in a subdivision of more than 50 units
  • Our General Contractor conducts an initial evaluation of the property to determine a required renovation cost estimate, which includes a review of the asset’s existing foundation, flooring, HVAC system, appliances, surface finishes, landscaping and paint
  • This initial quick estimate is then reviewed in detail by the Acquisitions team to determine if the renovation investment amount requires adjustment
  • The Elevate Private Capital team then determines during this 7 day contingency inspection period if an offer should be made to acquire the property, and if so, at what price

Acquisition Sources and Model Criteria

Elevate Private Capital’s acquisition model is based on buying properties from three types of leads:
Multiple Listing Service (MLS): On Market

  • Every day, our acquisition portal finds all active properties in the MLS database that meet our buying criteria
  • Our system determines the best opportunities on our in-house “valuation” model
  • Prior to any offer being sent, each property deemed a “potential deal” will be walked through and videoed so that our Senior Acquisition Manager can determine the scope of work, fair market values and the highest price we would offer

Off Market: Wholesalers, Landlords, Bird-dogs and REO managers and Online Auctions

  • Elevate Private Capital’s Managing Partners and team members have a long history of acquiring properties in the DFW market and are frequently approached to make offers on residential property deals not publicly listed
  • Our online portal enables outside consumers (wholesalers) to submit deals to the Elevate team for evaluation

Auction: Super Tuesday

  • We research approximately 300 properties in the DFW area each month prior to attending the non-judicial auction that occurs on the first Tuesday of every month
  • We order and review title reports to ensure that there are not any privileged liens that would prohibit the rehabilitation and disposition of the property in less than 30 days
  • Each prospective property will be visited (and in many cases, only an exterior evaluation will be possible, due to the property being occupied) to determine general property condition and scope of renovation required
  • The Fair Market Value (FMV) and Fair Market Rent (FMR) pricing is then determined using subdivision-specific sold, pending and active property comparisons
  • The maximum offer price is then determined with an understanding that this lead source should produce the highest yielding purchases