In a world where the real estate industry is constantly evolving, it’s essential to have innovative minds that can disrupt the status quo. Marc Cox and Robert Costomiris, two dynamic partners, have done just that with their firm, MIOYM Group. The duo has established themselves as leaders in the distressed asset private equity space with a unique approach that sets them apart from the competition. In a marketplace where businesses are often solely focused on maximizing profits, MIOYM stands out as a beacon of hope, setting a new standard for socially conscious capitalism. They have taken a novel approach to the real estate market and are making a significant impact on both the financial industry and the communities they serve.
To learn more about their altruistic beliefs & their impact on the residential real estate market, we sat down with founders of MIOYM Group, Robert Costomiris & Marc Cox.
Unlocking the Power of Proprietary Technology
The group’s proprietary technology, designed by their very own Marc Cox, is the driving force behind their success. This technology has the ability to uncover single-family residential properties in distress throughout the entire continental United States. By doing so, the organization can purchase these assets at a 60% discount, which is a significant reduction. This is where their role as a fix & flip company comes in. The firm takes on the challenge of renovating these properties, adding significant equity to their value, and bringing them closer to the value of similar homes in the area. This innovative approach to real estate investment has allowed them to establish themselves as a leader in the industry and set a new standard for socially conscious capitalism.The financing for these renovations is provided by debt institutions, who offer up to 90% of the capital required, with accredited investors partnering to cover the remaining 10%, often to cover closing fees not covered by the debt institution. These investors typically invest between $50,000 and $80,000 to earn a 17.5% return on investment (ROI) in a 12-month term, double what the S&P 500 typically yields in that same time frame.
Providing Homeownership Opportunities for Underserved Communities
Once the properties have been rehabilitated, Robert & Marc work to sell them to first-time homebuyers who might not meet the requirements for financing from larger banks. Their affiliated 3rd party credit repair team works with clients to improve their credit and they have the capability to refer out to an FHA lender who underwrites deals in favorable terms, allowing individuals and families to get into homes they never thought they could afford.
This innovative approach to business was inspired by Marc Cox’s desire to make a positive impact on communities. He saw the positive impact of renovating homes, but the benefit wasn’t extending to the residents. MIOYM solves this issue by getting residents into their homes, rather than gentrifying the community and selling to large portfolio companies. This socially conscious approach sets them apart from their competitors and gives them a unique edge in the marketplace.
Differentiating from Competitors with a Socially Conscious Approach
As one of the larger iBuyers in the industry, MIOYM Group competes with the likes of Zillow and Redfin, but what sets them apart is their conservative underwriting, leaving less downside risk. The intensive rehabs are far superior to the typical superficial renovations of other iBuyers, making MIOYM’s deep discounts and conservative approach all the more effective.
Costomiris attributes their success to their conservative underwriting, their margins due to their ability to buy homes at a 60% discount, and their clientele. He explains that because they buy homes at such a discount, they have enough margins so that rising interest rates don’t affect their profitability as much. They utilize far less debt than their competitors, allowing them to weather tough economic circumstances and come out ahead.
Well-Positioned for Future Growth in a Changing Market
Cox concurs, adding that MIOYM Group is well positioned in the market, waiting for inventory to ultimately come to market. He notes that the current economic climate, with the impact of the COVID-19 pandemic and the resulting payment defaults and foreclosures, has resulted in an abundance of inventory at a distressed price.
The MIOYM Group is a shining example of sustainable, socially conscious capitalism and is proof that a business can not only make a profit but also make a positive impact on society. With their proprietary technology, conservative underwriting, and socially conscious approach, MIOYM Group is poised for continued success in the future, and their commitment to creating a better world for everyone.
