Investment Strategy | TetraHomes
Discipline at entry. Fundamentals through the hold. Stewardship at exit.
TetraHomes underwrites the same three variables in every community: the durability of in-place cash flow, the cost to bring the assets to standard, and the community’s trajectory over a ten-year hold.
Three pillars that govern every decision
Buy right
Off-market and lightly-marketed communities from families and small operators. We underwrite for in-place cash flow and a defined three-year improvement plan, not for cap-rate compression alone.
Operate right
Roads, water, lots, management. Four fundamentals. Get all four right and rents stick. Our Operations Fund pays for the crews before the Reserve Fund pays for the assets.
Steward right
Transparent rules, published rent escalators, on-site management within 10 miles, capex reinvestment every year. The exit price is a function of the community, not the model.
Our nine-step investment process
Sourcing
Regional broker relationships, direct-mail campaigns, and estate/legacy sales.
Screening
Roads, water, lot count, occupancy, county, and demographic overlay.
Site visit
Every community walked before an LOI is issued.
Underwriting
Ten-year hold model, three-year capex plan, base and downside scenarios.
Investment Committee
Unanimous IC approval required. Alexandra chairs.
Diligence
Environmental, utilities, title, rent roll, and rule compliance review.
Closing
Delaware LP acquires the community through a single-asset SPE.
100-Day Plan
On-site management placed, resident welcome, capex plan initiated.
Operate & report
Quarterly reporting to LPs. Semi-annual resident town halls.
Target ranges by fund strategy
| Fund | Strategy | Target Net IRR | Target Multiple |
|---|---|---|---|
| Investment Fund I | MHC Land-Lease Communities | 13–18% | 2.0–2.6x |
| Investment Fund II | RV Resort & Seasonal Destination | 13–17% | 1.9–2.5x |
| Investment Fund III | Factory-Built Housing Manufacturing | 15–20% | 2.2–2.8x |
| Investment Fund IV | Alternative Housing Communities | 14–18% | 2.0–2.6x |
| Investment Fund V | MHC Community Retail & Commercial RE | 12–16% | 1.8–2.3x |
| Investment Fund VI | Manufactured Home Chattel Lending | 12–15% | 1.7–2.1x |
| Investment Fund VII | Ground Lease & Land-Lease REIT | 11–14% | 1.7–2.0x |
Target returns are net of management-adjacent expenses, carry, and fund-level costs. Targets are objectives, not guarantees. Actual results may differ materially.