How a River Runs Through Real Estate Investing

How a River Runs Through Real Estate Investing

December 17, 2020

If you find me thinking about something other than real estate, chances are that I’m daydreaming about one of my favorite pastimes — fly-fishing.

A great day on the river requires one to be patient, with clear-eyed, focused attention, observing all the factors at play. I start by considering which river or stream presents the best conditions for catching fish. Next, I scout locations on the river to determine the best location based on stream flow and crowded competition with other anglers. From there, I look for things like pockets of calm water where fish are likely to be scouting their own dinner, continuing to refine my plan on how I want to cast, which fly to use, etc. If I am on a new river, I’ll call a local guide for expert advice because I trust them and know that they can help me avoid wasting time in the wrong position. Through the diligence of observation, analysis, strategy and process, I’m able to have a great day on the river.

My passion for fly-fishing also happens to provide an excellent analogy for our principled approach to real estate investments, portfolio management, risk assessment, and wealth stewardship at Humphreys Capital.

We start by researching which markets have the best potential for growth at a macro level. We enter these markets and analyze which submarkets are outperforming other parts of the city. We then identify property sectors which show growth potential or economic resilience. Every market is unique, so we rely heavily on the expertise of local developers and real estate professionals who have deep roots in the local market, allowing us to better understand the environment and to discover opportunities that other investors will hear about only when it’s already in the headlines.

In trying to mitigate risk, we carefully apply our diversification strategy by geography, by property sector, and by the type of real estate strategy each deal utilizes. We work with established entities, limiting our exposure with any single development partner, market, or product type. We are intentional about seeing our role as one of careful stewardship.

Above all, when we consider investment opportunities, we do so with humility and patience — two qualities which make both a good angler and a proven real estate investor.

These principles take time to learn, with discipline and accountability in place to give our execution the best chance for success. At Humphreys Capital, you can trust we are dedicated to execute in the right way. For many years, our patience, humility, and careful execution have produced a strong risk-adjusted yield for our investors. Our strategy and our team have been tested and have produced a worthy track record. And we believe there are still many good fishing days ahead!

This article was written by  Grant Humphreys, President of Humphreys Capital.