About
Mission
We increase our wealth and our partners wealth by finding ways to create and provide cash flow and value throughout different real estate asset classes.
Vision
Madewell RE Mgmt, LLC will strive to produce successful real estate investments for our partners while sharing experience and knowledge of multi-family real estate and other asset classes.
Our Investment Strategy
My investment criteria with my own money and when I raise money from investors (this is the original filter I will use when looking at deals or projects):
- Preservation for Capital - I want to always be able to return the original principal to investors or myself. I.e. Don’t lose money (even if takes longer than expected)
- Will it provide a sufficient return for the risk, time horizon and size of the deal? In other words, I want to produce a monthly or quarterly return for our investors on every deal. a. We typically look at a 5-25%/year return on investment depending on the asset class and risk involved (this is usually an average taken over 5 years) b. We typically look at a 5-15 year time horizon c. Total Return - Cash Flow (Return on Investment), Equity Capture (Buying something under market value), Principal Paid Down on Deals with Debt, Appreciation (gradually or through value-add), and tax benefits (depreciation) and returning capital to investors early (thus, increasing the return on investment) we attempt double our investors money every 5 years (though, this may not be realized until an asset is refinanced or a disposition happens)
Madewell Investments invests in cash-flowing real estate with a specific focus on multi-family properties. We focus on multi-family because it is a great source of passive income; it allows for economies of scale that other real estate investments do not; and it is an investment that offers relative control. We are expanding into other asset classes because depending on the cycles of the market, they now are meeting our investment criteria. This is because some are distressed, some cap rates are changing, and we have found some niches in different locations and investment types. While Madewell Investments actively manages our property managers and the various projects, we want to create a passive opportunity for our investors to enjoy “mailbox money” while they pursue things they want.
Multi Family
Economies of scale plays a big role in multi-family real estate. We are able to keep costs to a minimum and perform maintenance more affordably due to the size of our properties. On the flip side, we also improve our properties upon takeover, which leads to improved revenues.
Multi-family real estate is akin to buying an operating business. Value is derived from the asset’s net income rather than neighborhood comparatives as in single-family real estate, so we have more control over the success of our venture.
Commercial
We are expanding into strip centers, free-standing real estate with high credit corporate tenants, and eventually into other businesses.
Single Family
Because of Jordan’s background and experience, we will always have opportunities in residential through single family rentals, duplexes, house flipping and smaller investment types that generate cash flow or capital gains.
New Construction / Development
Because of our knowledge of the construction business, in 2017 we are moving into creating investments by building/developing. We are beginning the construction of 3 duplexes in the fall of 2017, and will branch into self storage and small multi-family new construction by 2018 or sooner. This provides value for obvious reasons:
- We have lower leverage debt because we have equity in the development and the build
- We have investments with little to no repairs or maintenance because they’re brand new
- We have Class A investments which will appreciate better
- We have investments that will get the highest rents in the market
A Proven Track Record
Currently, we are principals in 23 units in the Canyon, TX and 4 Single Family units in Lubbock, Texas.
Each of the properties managed by Madewell Investments, LLC are producing double-digit returns for our investment partners. Our conservative approach to acquisition leads to solid assets for our partnerships.
Investment Structures
Our partnerships are formed with private individuals looking to grow their net worth through real estate. Our partners have a long-term investment outlook - typically 5 to 15 years. We structure our partnerships into single asset LLCs. Madewell Investment Management’s compensation is performance based, so what’s good for the partnership is good for Madewell Investments!
Integrity
At Madewell Investments, we believe communication, transparency, and solid leadership are mandatory and crucial for the success of the partnership. Our principals invest alongside our partners in each of the properties acquired which keeps interests soundly aligned.
About Jordan Madewell
Jordan and his family live in Lubbock Texas. Jordan and his wife, Leigh have 4 children and are active in their local church and community. Jordan is a third generation general contractor and real estate investor and continues to build a real estate portfolio through buy and hold single family rentals, flipping/wholesaling houses, duplexes, multifamily apartments and commercial net lease real estate. He and his partners continue to add to their real estate portfolio through syndicating and structuring partnerships.
Currently, Jordan owns/controls 5 single family rentals, a duplex, 3 commercial net lease assets, 23 unit apartment complex, and is about to build a 6 unit multifamily townhome project, 2 more duplexes, and actively pursuing 100+ unit apartment communities.