This document summarizes information about investing in multifamily real estate. It defines a multifamily property as having 5 or more housing units, such as apartment complexes. It notes that multifamily real estate provides diversification, stable income, and a hedge against inflation. While stocks are more liquid, multifamily investments provide tangible assets secured by mortgages with known, fixed returns. Overall, the document argues that multifamily real estate can improve risk-adjusted portfolio returns through diversification and lower volatility compared to other asset classes like stocks.

1. Investing in
Multifamily
Camino Verde Group

2. What is a multifamily property?
A multifamily property or commercial
residential property usually has five
units or more for housing. Examples
include apartment complexes and
high-rise apartment buildings.

3. Diversification
Stocks
help grow your portfolio
Bonds
bring in income
Real estate
provides a hedge against
inflation and has a low
"correlation" with stocks
International investments
provide growth and help
maintain buying power in an
increasing globalized world
Cash
gives you and your portfolio
security and stability

4. Stocks vs. Real Estate
Stock Market
• Intangible Asset
• Uninsured
• Invest at market price
• Returns are unknown
• Return subject to market
conditions
• Liquid Asset
Private Lending for Real Estate
• Tangible asset you can visit
• Secured by mortgage deed
• Collateral is insured
• Collateralized below market
value (equity position)
• Returns are known, fixed and
agreed upon
• Illiquid asset

5. 1. As of 6/30/17. Waypoint’s returns are calculated on a levered basis. Past performance is not an indicator of future
outcomes.
2. Includes investments acquired and currently under contract as of 7/31/17.
Favorable Characteristics of Private Real Estate
Improves overall portfolio risk-adjusted returns
Offers superior risk-adjusted returns compared with
publicly traded commodity stocks and REITS
Fixed-income component (current cash flow)
combined with additional return potential (equity
upside)
Does not move in lockstep with traditional assets or
commodities
Not exposed to speculative trading in the public
markets
Generally valued quarterly or annual real estate can
smooth the more volatile returns of a public REIT or
other equity investments
Liquidity through distributions originated through
rents

6. Investment Process
Sourcing
Properties
Evaluating
Deals
Due
Diligence
Renovating Selling Closing
Average Investment Period from Due Diligence to Closing:
7 Months

7. Current Income
Generates attractive and stable levels of current income while
simultaneously providing for potential upside from appreciation
Generates Alpha
Sector specific strategies and market inefficiencies can create opportunities
for identifying mispriced assets, resulting in potentially higher returns
Inflation Hedge
Annual rental increases reflect the impact of inflation, and value of property
is expected to increase over time.
Diversification Low or negative correlation to traditional stocks and bonds
Portfolio Optimization
Potential to improve the risk-adjusted returns of portfolios consisting of
stocks and bonds, and diversify risks associated with publicly traded
commodities and REITs(1)
Lower Volatility
Infrequently traded, valued quarterly or annually, and insulated from
commodity speculation and general stock market volatility
Tax Advantages
Potential deductions for interest and depreciation expense which can defer
taxable income

8. Real Estate Outperforms Other Asset Classes
Source: Thomson Reuters Datastream. Data from 3Q 1993 – 2Q 2013. The indices used for each asset class are: Government bonds, Bank of America
Merrill Lynch Treasury Master; Corporate bonds Baa-rated, Barclays US Aggregate Corporate Intermediate; Core Real Estate, NCREIF Property Index (NPI),
NCREIF Fund Index – Open-End Diversified Core Equity (NFI-ODCE); Large capitalization stocks, Russell 1000 index; Small capitalization stocks, Russell 2000
index; Commodities, S&P GSCI Commodity Index. The risk-free rate is the 10-year US Treasury note yield.
Real Estate

9. 1. TIAA Global Asset Management Private Real Assets Report
2. Bloomberg, NCREIF; Based on annual returns from 1997 – 2016 to: NCREIF Property Index, NCREIF Fund Index;
Russell 2000 Index, Barclays US Aggregate Bond Index, MSCI EAFE Index, NARIET Index.
Real Estate Provides Portfolio Diversification
Private, direct real estate investments exhibit low or negative correlations to the public markets (stocks, REITs
and bonds) which can be significantly impacted by general stock market fluctuations(1)
Adding real estate to an existing portfolio of equities and bonds can reduce the volatility of publicly traded
commodity assets resulting in similar returns with a lower risk or higher returns with the same risk(1)
20 – Year Correlations between Asset Classes(2)
NPI
NFI
ODCE
BarCap
Agg
NAREIT S&P EAFE
Russell
2000
NPI (Private Real Estate) 1
NFI ODCE (Private Real Estate) 0.98 1
Barclays CapAgg -0.08 -0.11 1
NAREIT 0.22 0.18 0.03 1
S&P 500 0.21 0.18 -0.35 0.58 1
MSCI EAFE 0.15 0.11 -0.28 0.54 0.87 1
Russell 2000 0.14 0.12 -0.37 0.68 0.90 0.83 1
REITs are highly
correlated with the
public markets

10. Investment Risks
• Availability of Investment Capital
• Identifying Suitable Investments
• Risks of Real Estate Investments
• Dependence on Key Individuals
• Illiquidity of Investments
• Lack of Diversification
• Use of Leverage

11. Agenda

12. The Camino Verde Process
• Through our strategic relationships and thorough due
diligence, we aim to acquire well located assets in
strategic markets.
• Each investment’s success is measured by location,
tenant profile and growth potential.
• Acquire B and C class assets
• Target acquisitions in the $1,000,000 - $3,000,000
range
• The typical lifecycle of investments in apartment
communities is 3-10 years
OUR GOAL IS TO PROVIDE HEALTHY, RISK AWARE
RETURNS WITH CAPITAL PRESERVATION BEING OUR
NUMBER ONE PRIORITY