Arx Capital Group was founded on the philosophy that whether we are investing or consulting, no investment decision can be made without incorporating the principles of “3P Investing”: Precaution, Preparation, & Prosecution. It is these very principles that have led us to prosperity and success when executing on all investment and consulting strategies.
- PRECAUTION
- In an ideal world, everything is as it seems. However, in the reality of the real estate investment world, nothing is ever as it seems. The importance of being careful and thorough when conducting diligence on an investment cannot be overstated. From the smallest to largest of deals, there are always moving parts which don’t appear on the surface, but when delved into with further depth, can prove to be a main component of the decision process. When analyzing an investment asset, every Precaution must be taken to ensure that you are assessing its current state of being “as-is”. Beyond knowing what “is” today, one must understand what “can be” tomorrow. The potential in an investment is crucial to the decision making process, because if the prognosis is limited or weak, that investment will cease to merit any further consideration or effort. The true potential and feasibility of an investment asset cannot be established without thoroughly understanding what lies before you. And without the application of this principle, the second two principles of Preparation and Prosecution are moot. Whether it’s something as active as an existing structural defect from a prior earthquake, or as passive as a proposed zoning ordinance which if enacted could have detrimental consequences, prudence demands that no minute detail can be left uncovered. Arx knows that before crossing the street, you not only have to look both ways, but you have to look behind you and in front of you as well.
- PREPARATION
- If we just walk through life without planning our next step, there is a 50% chance we will end up on the high road and a 50% chance we will end up on the low road. When it comes to real estate investment, if we lack preparation, we will almost surely end up on the low road. It’s not enough to see the light at the end of the tunnel; we need to develop a way in which to reach the end of that tunnel. Establishing this principle requires strategy, savvy and creativity to know how to achieve prospect in an opportunity that others cannot, or are not, willing to endeavor upon. It’s not enough to incorporate Precaution and Prosecution when determining the upside potential in an investment asset, you need to analyze exactly how you are going to carry-out and capitalize on the potential of your investment asset. Developing a strategy and roadmap for obtaining your operational and financial goals are essential to achieving end results. At the end of the day, Arx knows that by failing to prepare, you are inadvertently preparing to fail.
- PROSECUTION
- While Prosecution in a court of law usually never yields positive outcomes, in the realm of real estate investment, it’s the only way to yield positive outcomes. Precaution and Preparation will tell you where you are today and how to get to where you should be tomorrow, but the only way to bring them together is through Prosecution. Strategies and schematics are always essential to develop, but they only hold their worth to the extent that they are executed properly. This can encompass constant involvement from people at the highest level of decision making all the way down to the sole leasing agent trying to rent one unit at a time. Success is not only about having a great plan; its knowing how to put that plan into effect. Especially when things don’t flow as expected, exercising proper Prosecution is essential to adapting to changes that will undoubtedly occur along the way. With real estate investment, the acquisition is just the first step in the prosecution process; the long road ahead requires action that entails hard work and effort to bring your goals to fruition. Arx knows that nothing in life is worth doing unless you follow it through from start to finish.
While there are no guarantees that every investment will be a success, following the principles of “3P Investing” can definitely improve the chances of your investment resulting in proceeds, payoff and profit.