What we do
The Firm
LittleBig Capital is an investment group specializing in funding the acquisition and development of real estate, Quick Serve drive-thru restaurants, and single family rentals. We are a relentless small team of professionals dedicated to delivering best-of-breed projects that exceed expectations.
Our team values teamwork over showmanship. We are skittish about the first person singular, and while we’re sometimes called developers, real estate investors, that is not our frame of mind. We consider ourselves partners for the long term. LittleBig’s relationships with commercial real estate developers and Investors are most valued, and have been developed over the last 25 years.
The Term
Our goals can range from developing and selling the asset within 24 months, or hold the investment for five years or more. Our strategy however, is to return our partner’s original capital as quickly as possible. When holding an asset for a longer period of time, this goal may be accomplished either through a refinancing of the asset, or by the sale of the asset. Once all of the original capital has been returned, our investors can enjoy a preferred return or a stable cash flow while capital is no longer at risk. Avalon will sell the asset when we determine that its value has been maximized for the foreseeable future.
The Approach
LittleBig’s approach to raising and deploying capital is to secure the capital necessary for our pipeline and deploy on a deal by deal basis, each in a single entity LLC. This allows us to be very selective in the investments. We feel this gives us an appropriate ratio of risk/reward with intrinsic value. And avoid the pressure of deploying capital in a market downturn - think 2008.
Some of our partners seek stable returns over the long-term while others are looking for more aggressive returns with a relatively short time horizon. Our approach allows us the flexibility to invest with the right partner, or combination of partners, for any particular investment. It also allows our investment partners to choose the right investment for them on a deal by deal basis..
Senior debt: Senior debt is the most secure and protected layer of the capital stack. Investors in this layer receive payments before any other capital contributors. In commercial real estate, senior debt is collateralized by the property and is often the largest layer of the stack. If a borrower defaults, the lender can take title to the property through a foreclosure and sell it to recover their investment, so there is reduced risk to investors’ principal. As such, expected returns are typically lower than for other layers of the cap stack.