Fausto Capital is a private equity real estate investment group and ground-up development affiliate of Fausto Commercial.
Its investment activities parallel the markets it brokers in. By this strategy of extreme market focus, the synergy with its brokerage operations allows it to take advantage of opportunities that other investors cannot. Mainly this implies the ability to collect market data on which to base decisions, the capabilities to act on those decisions, and the means to aggressively source superior off-market deals.
Fausto Capital has a few central premises that guide its investment strategy:
1. Strict focus on undervalued transitional markets, where underwriting on solid cash flows are supplemented by strong appreciation as areas improve
2. Understanding the market is a perception of the fundamentals, not the fundamentals itself. Markets often misprices assets, and a keen eye that is not slave to the market, can profit from it
3. Rigorous underwriting, discipline to buying principals, maintaining safety margins, and value-adding management
4. Market specialization and dominance
5. The classic real estate dictum is location, location, location, but for us the correct dictum is: location, timing, and price
As of 2020, the group was working on 5 ground-up development projects, as well as overseeing a portfolio of multi-family, retail, and industrial properties.