Funding Commercial and Real Estate Arbitrage

We plainly define the real estate arbitrage side of J:CO's business strategy as our proven ability to simultaneously purchase and sell real estate in different industry sectors in order to profit from unequal pricing. By executing a timely capitalization rate arbitrage, we are able to trade future upside for the current yield.

In real estate, our pricing of assets essentially boils down to employing extensive resources and seasoned expertise to evaluate one key variable: risk. Risk, whether real or perceived, comes in many forms that are unique to real estate investments, such as business risk, financial risk, liquidity risk, purchasing power risk, management risk, interest rate risk, and legislative risk. These additional risks associated with real estate investment have historically translated to above-average returns relative to most alternative investments. As a general rule, the higher the risk, the higher the anticipated return.

At Johnson & Company, we engage in matching deals that capitalize upon imbalance, the profit being the difference between the market prices. In essence, we take advantage of a price contrast between two or more markets by striking a combination. Ideally, we are able to orchestrate transactions that involve no negative cash flow at any probabilistic or temporal state and secure a positive cash flow in at least one state; in simple terms, we promote the possibility of a risk-free profit at zero cost.

Being true real estate arbitrageurs, J:CO also originates and promotes contracts for the purchase of distressed or foreclosed commercial properties then simultaneously re-assigns and transfers the purchase contracts before takedown. In certain cases, we advise and assist our clients in proceeding through close after locking in the fixed cost of borrowing and awaiting a drop in interest rates while generating cash flow to cover other costs.

We are always looking for significant opportunities to directly benefit, counsel, and enable promotion of leveraged appreciation via market growth and inflation. Our usual objective is to successfully wholesale or retail the properties in a timely fashion following any required rehab and improvement of cash flows.