The United States is in the midst of a housing affordability crisis. My name is Ted Farry, and I’m the CEO and founder of homestead affordable. Homestead affordable is solving the housing affordability crisis by buying slightly older homes at a discount, rehabbing these homes up to an institutional standard and making them available for lease to Housing Choice Voucher tenants. First, the homestead affordable strategy is grounded in multiple sources of optionality that removes volatility and provides a durable path to returns for investors, I have been working in single family residence. Residential for nearly 25 years. I started in construction. One of the first things I did after completing my undergraduate degree was start a construction management business where I provided services to luxury spec developers. I worked to get my MBA at night during that time and when I completed my MBA program, I moved on to work with a production home builder, Richmond American Homes. When the market started to move away from home building, I had the opportunity to join the CMBS securitization group at countrywide. Yes, countrywide. It turned out to be a little bit different than I expected, as I essentially had front row seats for financial meltdown. It was a great experience. Nonetheless, up to that point in my career, I had been primarily focused on physical real estate operations. Working in CMBS securitization provided me with an opportunity to tap into my math background with exposure to analytics and Wall Street caliber pricing models as the market progressed through the downturn, I moved on to an analytics role with a billion dollar MPL fund, arch Bay capital. I priced out billions of dollars in NPL pools. In this role, when that business transitioned away from new purchases, I moved back into the real estate operations side of the business and asset management. In this role, I spent a year traveling to all the markets where we had major concentrations of reo. This enabled me to develop a nationwide broker network. That network was one of the most valuable things I brought with me into the next phase of my career that I’m still in today and have been for over the last decade as an operations executive and single family rental I have built and managed portfolios for several platforms, I built an 1100 property workforce housing portfolio for a family office, and for the past six years, I’ve held the role as the COO of an institutional acquisitions platform. Fortune acquisitions. During my time with the company, we have purchased over 3000 homes and deployed nearly 700 million in acquisitions capital. One of our core clients in that business is a large private equity fund. As we have bought nearly 2000 homes for this fund, I can’t help but notice all the lost opportunities for discounted purchases by not buying just slightly older homes. This is where the homestead strategy was born. We will now step in to cover a few macroeconomic factors that exist today. One of the core causes of the affordability crisis is that existing inventory on market is limited. There currently exists just over three months of supply on market, where the average is six months. The core reason behind this is that 76% of outstanding mortgages have an interest rate below 5% having the effect to lock in existing homeowners to their home and keeping that home off the market. New construction isn’t fixing the problem. Even though the pace of new SFR supply coming on market has doubled since the downturn, we are just back up to average. This pace is still 400,000 units short of annual new household creation. Both of these factors, limited inventory and elevated interest rates have acted to drastically increase the cost of housing to make things even worse, the lowest value band of housing is appreciating at a faster pace than any other tier set another way. Even the most affordable houses are becoming less affordable. This leaves many households with no other option but to rent. This is highlighted by the fact that it is 57% more expensive to purchase a single family starter home than it is to rent that same value home on a monthly cost basis as for rental options, it is well established that single family is far preferred over multifamily. From a tenants perspective, single family gains preference as the population goes through major life stages. They get older, get married, have kids, the features of a good single family, detached home with a yard in a good neighborhood and with access to a good school district, are far preferred over living in an apartment. Age demographics support this preference, as the two largest generations have been going through these stages for at least a decade and will for decades to come. The. From an investor’s perspective, there is still about a point gap between where current market cap rates need to be for a typical value add multifamily project to work in the existing interest rate environment. The Homestead strategy bridges that gap through the purchase of slightly older homes at a discount further when it comes time for exit, not only does SFR benefit from a potential cap rate driven methodology like multifamily, it also has the optionality to have its value potentially driven up by local market, Owner, occupant activity in its neighborhoods, enabling a one off sale option to add durability to the investors path to returns the homestead affordable strategy targets a gap in institutional market activity. The typical institutional Buy Box is focused on homes with a minimum year built of 1980 where a more yield driven model may not have year built constraints and ends up in potentially lower quality houses. Homestead is positioned just below the traditional institutional model, but still above the yield driven strategy. When it comes time for exit, we expect to have potential suitors for the portfolio from both above and below the quality spectrum of our portfolio, with traditional buyers interested in search of yield and yield driven models, interested in search of quality, both acting to increase demand and support value. But if, for some reason, we don’t like the institutional bids we receive, we have the choice to execute our two one year extension options and break up the portfolio to sell one off, either direct to tenants on the MLS, to one off investors, or even in several smaller, higher margin transactions to various institutions. Again, this optionality supports durability in the path to returns for investors. Our leasing strategy also has optionality. The primary focus of the Homestead leasing strategy is to make our homes available for lease to Housing Choice Voucher tenants first, as can be seen here, the HUD budget for rental assistance that supports these Housing Choice Voucher tenants is robust, with over 32 billion allocated just for rental assistance payments. But if for any reason, we’re not able to lease to Housing Choice Voucher tenants at the pace that we would like. We have the option to make these homes available for lease to market rate tenants in a conservative approach in support of durability of returns. Our financial performers are entirely driven by the downside scenario of leasing at market rental rates, leaving our base case with substantial potential for upside at the end of the second quarter last year, when I first started to work on the homestead affordable strategy, I executed a substantial research project. I downloaded all of the over 760,000 active listings in the country at the time for review. I enriched these records with enough data to perform a cursory level underwriting. The goal of this project was to one, validate the homestead affordable strategy. Next, I wanted to optimize the market selection of our strategy to identify where we could achieve the best mix of superior risk adjusted returns and a volume of purchases. Finally, I wanted to size the opportunity the market selection conclusion is that 80% of our portfolio will be built in our primary markets of Atlanta, Houston and Dallas. A smaller concentration of secondary markets will target Phoenix and San Antonio. We call optional markets, places where we can start buying at the end of our acquisition period on a path to fund two these markets are Jacksonville, Fort Myers, Inland Empire, California, and El Paso Texas. The final conclusion of this analysis was that there is an $800 million acquisition opportunity in our strategy over a two year acquisition period. Our performance financials were modeled based on a conservative set of assumptions. The conclusion is that homestead affordable investors can expect a 14% IRR. While the homestead affordable strategy is grounded in optionality, we expect that this will limit volatility and result in a higher probability of outcomes to the upside. Our debt strategy supports this goal. We originate regular, smaller loans on a quarterly basis of recently acquired properties. The max loan to cost of these loans will be 70% and drop down to 60% loan to value after factoring in the embedded equity we create from initial rehab. The strategy of more smaller loans provides optionality at the time of exit. The operational strategy of homestead affordable revolves around the leverage of institutionally scaled third party service providers. Back in 2013 when I built the work. Force housing portfolio for the family office, it was completely different. We basically had to build everything ourselves. The common phrase utilized by us and others in the industry at the time was that we were riding the bike as we were building it today. It’s a different environment. There’s now an entire industry full of institutionally scaled third party service providers, Fortune acquisitions has been engaged to drive acquisitions. Homestead affordable is focused on expertise in asset management with specific value add in initial rehab and initial lease up through direct relationships with local market housing authorities. Once the homes have been leased up, they are onboarded with home river group, the largest third party single family rental property manager in the country. As we move toward the end of this presentation, I would like to summarize the depth of optionality immersed in the homestead affordable strategy, and highlight how this reduces the risk of the investment. We are financing the debt with multiple low balance loans with modest leverage. This supports the current cash flow of the investment and provides optionality at the time of exit, as we aren’t beholden to a single maturity date of a single large loan. Our primary focus is to make homes available for lease to Housing Choice Voucher tenants, if for any reason, we aren’t able to lease homes at the desired pace in this channel, we have the option to open up the homes for lease to market rate tenants. The acquisition strategy targets a gap investment below the traditional institutional Buy Box, but above the yield driven model. This will bolster buyer demand at the time of exit, if for some reason we don’t like the portfolio bids we receive the HPA home price appreciation driven valuation model unique to SFR will enable us to break up the portfolio and sell one off. All of these things have been strategically implemented in a way that bolsters the durability of the path to returns for our investors, we are limited. Limiting this opportunity to $50 million of equity investment so that we can focus on only the best opportunities in the market. The fund structure is a regulation D, 506, C, the minimum investment is $50,000 we are limited to investments from accredited investors. Only 80% of the portfolio will be targeted in the primary markets of Atlanta, Dallas and Houston. We expect a two year acquisition period. The fund life is five years, with the exception of two one year extension options. The expected range of returns is 11% to 17% IRR to the investor with conservatively modeled expectations pointing to 14% or higher. The debt amount is capped at 70% loan to cost. That drops to 60% loan to value once embedded equity created from initial rehab is included. We have a modest fee structure. There’s a 2% acquisitions fee that covers the purchase, initial rehab and initial lease up of the properties. There is a 1% annual asset management fee and a 1% dispositions fee. The returns waterfall is straightforward. After all, capital is returned to the investor, as well as an 8% preferred return. Remaining distributable cash will be split 70/30 between the investor and the manager. Thank you for providing this opportunity to share more about homestead affordable. If you would like to learn more, please scan this QR code to register for our investor portal. Please also feel free to reach out to me directly to schedule a one on one call. I look forward to talking with you soon.