Real Estate Opportunity Funds
(“REOF”)

Seizing Opportunities in the Real Estate Markets

Marmot creates and manages Real Estate Opportunity Funds to acquire blocks of income producing, cash flow-positive residential properties with value-add and redevelopment upside potential. Marmot focuses its
efforts in under-valued markets with strong geographic, economic, and demographic fundamentals, and with healthy "permanent economies" – government, college/university, health care, and energy.  Our development and acquisition expertise allows us to see and unlock opportunities that others cannot in neighborhoods overlooked by larger, institutional investors.  Our Funds acquire properties in highly desirable urban infill neighborhoods.  We only acquire properties where we have the ability to enhance entitlements (i.e. the right to develop land with government approvals for zoning density, utility installations, occupancy permits, use permits, and streets).  We typically utilize a “buy-and-hold” for redevelopment strategy, unless the property is so undervalued that a “short term repositioning ” strategy enhances Investor returns.

The primary goal of the Funds is to achieve robust IRR and ROI via rental income, active hands-on management, smart leverage, and redevelopment.  As market conditions dictate, Marmot will also take advantage of shorter-term opportunities to buy real estate at advantageous prices, enhance value and re-market at profitable pricing.  Shorter-term opportunities will be located in the same markets and fit within Marmot’s overall acquisition strategy.  The Funds are designed to allow the Investor, who sees the historic opportunities presented by the real estate collapse but lacks the expertise and/or the time to act, to invest in real, undervalued, income producing assets in a fast, efficient, and professional manner.

We only invest in what we know, understand, and control.  If we cannot see it, feel it, and walk it, all within a reasonable drive from our headquarters at Lake Tahoe, we will not buy it, and neither should our clients. We have strict value investment criteria, and we have the discipline and patience to adhere to these criteria for all transactions. We practice full accountability and take personal responsibility to safeguard our investments.

Investment Rules

  1. Never invest in something we do not fully understand. 
  2. When it comes to buying real estate, the simpler, the better – no exotic structures, no financial engineering.
  3. Fundamentals rule our decisions, and our development and acquisition expertise allows us to see and unlock opportunities that others cannot.
  4. Do not trust the herd.  We believe that there is a tendency in the markets to support the consensus.  Wherever practical, we invest counter-cyclically, but always analyze markets according to data and intuition, not necessarily only where “hot.”
  5. Geography is destiny.  Proximity to a diverse permanent economy that offers its residents a high quality of life places a floor under our investment risks without selling off the upside, unless such sale enhances or secures our target returns.

Pricing for real estate investing / asset management services is outlined in the discrete Offering Memorandums for each block of properties offered. In general, Marmot's management fee for such offerings is 2% per annum of the gross investment plus 20% profit participation.