Business Fortune
An independent real estate investment company, Archer Realty Investments is involved in rental property purchase, flipping, property management, and both residential and commercial property acquisition. The business always conducts itself in accordance with its code of conduct and does it ethically; it also expects its partners to do the same.
The chairman and chief executive officer of Archer Realty Investments, Sunil Tanuku, privately discussed with Business Fortune how his organization stays ahead of trends and assists clients in achieving higher rates of return.
Interview Highlights
What inspired the founding of Archer Realty Investments?
Looking back, my parents are very self-made; they did not receive any assistance from their parents to accomplish what they did back in India. They worked hard at their own jobs, invested in real estate for the long term, planned things together, discussed their combined finances, and set many carefully planned short-term goals that helped them succeed by ensuring they were met on a regular basis.
When I moved to America for college—the "land of opportunities," as they say—I never understood this and had no interest in learning about real estate. However, I always felt that what they had done, particularly with real estate, had somehow touched a chord with me when I wanted to invest my first paycheck. Thanks to my wife, who shares my interest in real estate, starting Archer Realty Investments was an even easier option.
Could you briefly describe your services?
Archer Realty Investments is an independent investment firm that has broad interests in investing in residential and commercial properties across the world. The company offers a variety of services related to real estate, such as fix and flip, commercial property purchase and management, rental housing, and property management.
Our investment philosophy is based on the idea that we should be able to obtain larger rates of return with the least amount of risk. To this end, we work hard every day to stay ahead of the curve and carry out our own market research.
Occasionally, in an effort to collaborate with competent investors and get greater profits, we also look for their assistance. Crucially, in those situations, we choose individuals or organizations that share our values above all else.
Describe your system for managing investments. How do you continue to increase value?
Our investment management system takes into account our strategies, in-house research analysis, basic planning and execution skills, as well as methods for evaluation and improvement that support the business's own investment management system.
We maintain value growth through the following:
Diversified Tenant Base: To ensure that a single tenant or a group of tenants with similar needs don't negatively impact the company's earnings, we cultivate a diverse tenant base from a range of backgrounds.
Positive Cash Flow: Through custom leasing agreements that adjust to each tenant's unique needs in order to have a consistent and sustainable cash flow, we work to maintain a positive cash flow in any market condition.
Build to Scale: Continue to assess the company and identify the appropriate levers for scaling up while keeping a "decent" profit margin.
Market Advantage: Our strategies are different, customized to fit the particular requirements of tenants, and most importantly, "not rigid," which allows us the flexibility to keep a competitive edge over our rivals in the market.
Execution Oversight & Control Points Our unwavering focus on managing operations and promptly attending to our tenants' needs has enabled us to reap valuable benefits.
Can smaller investors use the services you provide? To what extent are your services customizable?
Yes, without a doubt. Any investor can use our services, no matter how much money they have to invest. We can collaborate with them to achieve the value and return on investment they seek by creating unique syndicate models. As previously said, we offer highly adaptable services that enable us to assess a problem more thoroughly and maybe come up with solutions that benefit all parties.
How can investors' interests be safeguarded? How can one choose the ideal home to invest in?
The fundamental principle that serves as our cornerstone for safeguarding investor interests is to be as transparent as possible. This is achieved through conducting sufficient market research, creating the forecast model, and holding numerous rounds of discussions to guarantee mutual understanding and alignment. We also agree to talk about exit strategies.
It all begins with selecting the appropriate partners. We use caution when selecting the ideal investor, prioritizing ideological alignment over financial prowess. By itself, this resolves the majority of the problems that arise later.
Our investment management lifecycle commences with the "Analyze" phase, wherein we scrutinize market conditions and trends, demographics, and other related aspects. However, the primary financial safeguard is computing "Net Operating Income (NOI)" following all expenses. The ideal property for investment is one that has a "Cap Rate" of between 9 and 13%, given that other requirements, such as a favorable neighborhood rating, are met. This can be calculated using NOI.
About | Sunil Tanuku
Sunil Tanuku, Chairman, serves as the Chief Executive Officer of Archer Realty Investments.
