Ep.45: Accessing the Individual Investor at Scale - Michael Episcope - Co-Founder and Co-CEO at Origin Investments
Sep 3, 2024
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Michael Episcope, Co-Founder and Co-CEO of Origin Investments, discusses his transition from commodities trading to real estate, highlighting his quest for financial independence. He shares insights on building a robust investor base, effective investor relations, and the importance of trust. Michael also examines the current dynamics of the multifamily market and investment strategies in today's unpredictable landscape. He emphasizes the significance of transparency with investors and shares his excitement for future opportunities in the real estate sector.
Michael Episcope stresses the significance of understanding market dynamics like job growth in selecting multifamily investment areas.
Origin Investments employs advanced technology and machine learning to enhance their acquisition strategies and market analysis capabilities.
The firm promotes personalized investor relations and improved communication to maintain trust with a growing base of over 4,000 individual investors.
Deep dives
The Journey of Origin Investments
Origin Investments, founded in 2007, is focused exclusively on multifamily real estate and operates mainly in the growing Sunbelt markets. Co-CEO Michael Episcope emphasizes the importance of assessing market dynamics like job and population growth when selecting investment areas. The company has experienced significant growth, highlighted by the increase from 35 employees to 65 in just two years, alongside a burgeoning investor base of over 4,000 individuals. Episcope reflects on the early, organic evolution of the firm, including capital pooled from personal savings and family investments, as the initial model resembled that of a family office.
Scalability and Investor Management
The firm has successfully navigated the complexities of managing a large investor base through the use of technology and comprehensive investor education. Episcope notes the necessity of a robust investor relations team, currently comprising 8 members, to maintain high communication standards and responsiveness. As Origin grows, ensuring a personalized investor experience becomes increasingly crucial to maintain trust and satisfaction. This strategy has allowed the firm to build a reputation for accessibility and effective communication, appealing to both seasoned and first-time real estate investors.
Embracing Innovative Strategies
Origin Investments has embraced technology not only for investor management but also for enhancing its acquisition strategies through advanced data analytics. By employing machine learning models developed with experts from the University of Chicago, the firm’s predictive capabilities give them a competitive edge in market analysis and investment strategies. These models have successfully forecasted trends such as rent growth and market demand, thus guiding the firm's investment decisions. Episcope emphasizes the significance of harnessing technological innovations to refine investment strategies and improve returns.
Product Development and Market Positioning
The firm’s product offerings have diversified to include an open-ended fund structure, enabling long-term investment opportunities for individual investors. With the addition of income-generating vehicles like the Income Plus Fund, Origin aims to enhance returns while limiting risks for investors. Episcope believes that focusing on product refinement rather than developing new offerings will lead to continued success. This approach promotes providing more stability and attractive returns, distinguishing Origin in a competitive landscape.
Future Growth and Strategic Partnerships
Origin's strategic partnership with Focus Financial Partners has significantly bolstered the company’s growth trajectory. This alliance not only provides access to a broader client base and additional capital resources but also reinforces their operational autonomy. Episcope highlights the importance of maintaining company culture and integrity throughout this partnership, ensuring consistent service and communication for their investors. Looking forward, he envisions ongoing improvements to the firm's operational framework, aiming for sustainable growth and continued excellence in client service.
Michael Episcope co-founded Origin Investments in 2007. Michael is co-CEO, co-chairs the investment committee and oversees investor relations and capital raising.