The Beginnings of Excellence
Two brothers from a small town, Ryan Bowers and Todd Bowers stumbled across the transformative power of real estate with a profitable house flip while Todd was operating as a home inspector in Oregon. This first experience quickly became a passion as the two discovered that real estate could be a tremendous vehicle for financial freedom.
Ryan and Todd continued to invest in the Oregon-area real estate market. However, it began to fluctuate wildly, with property values across the board—an early warning signal that fix-and-flip real estate was about to take a dramatic turn.
The two brothers knew that if they wanted to continue to grow, they needed to shift to a stable market. After thorough research and analysis, they determined that the DFW-area provided the best opportunity for continued development, and, at the peak of the housing collapse in 2008, Ryan and his family made their move.
Plans for real estate investing were put on hold until 2012 when the market recovered, and the two brothers could reunite. As the market was making a comeback, they formed their first company—Bowers Homes, LLC—which would later serve as the foundation for what was to come out of the ashes of the Great Recession.
A Vision for a Sustainable Future
Todd's home inspections background ensured that key structural and mechanical systems of each acquisition (foundation, plumbing, electrical, HVAC, and roof) were always brought up to proper working order. From there, touches that appealed to modern homeowners—above-average finishes like granite countertops and durable plank flooring—set Bowers Homes properties above other operators in the market and pushed their sale prices to the peak.
This strategy—coupled with a unique ability to identify and target high-growth-opportunity neighborhoods—spawned several new businesses that could both create benefit for and benefit from the investment properties that Bowers Homes was buying and selling.
After only a few projects, Ryan and Todd were sought out by other investors who asked for help with failed real estate investment attempts. Those experiences unveiled a niche and need in the market: to provide turnkey real estate investments to investors with little experience or no desire to be “hands-on” with a project.
This need to tap into the benefits of real estate without the hands-on work required reimagining real estate from the ground up. The two brothers knew that to meet the demand they saw in the market, they would need to redesign techniques outside of real estate to fit the rental niche.
After some thorough research and the right moves, they began building a vertically-integrated suite of companies that could fulfill real estate investors' needs while feeding each other business, creating various income streams that were flexible enough to withstand any market conditions. This combined vision and experience would eventually give rise to The Peak Group.
The Peak Group Timeline of Development
Bowers Homes, LLC, is founded from the ashes of the Great Recession. With the help of a savvy lender, the company began buying, remodeling, and selling properties.
Peak Holdings Group, LLC, is formed to serve as a holding company for all that was to come. This early formative company served as the foundation for the benefits of vertical integration that would fuel the rise of The Peak Group.
Prime Properties Realty, LLC, is created under the guidance of the Bowers' longtime realtor and partner, DeDe Galindo. DeDe had been working as a realtor for 12 years and brought a high level of experience with contracts, pricing, and negotiation to the company.
Prime Properties Realty begins recruiting local realtors to help source both on and off-market properties that would fit the new "turnkey" model and could be sold with built-in equity. At this time, Levi Mills joined the real estate brokerage and established training programs fundamental to the success of Prime Properties Realty.
Prime Properties Lending, LLC is formed to source and connect private lending sources to investors to purchase real estate investments and make improvements prior to sale. Since its inception, this branch of The Peak Group has facilitated 30 successful lending transactions with excellent results for both lenders and borrowers.
Peak Property Management emerged (originally “Prime Property Management”) to offer turnkey management services. It has since grown to its current portfolio of 400 homes.
Peak Construction Group, LLC, is formed to act as the official contractor for all construction related to Bowers Homes, LLC. Today, Peak Construction Group is capable of building new communities with up to 75 units from the ground up.
Peak Property Maintenance is created as a subsidiary of Peak Construction Group, LLC. It provides professional maintenance and turnover maintenance for properties managed by Peak Property Management. This reduced outsourced labor costs and created a record of accountability linking from the original contractors.
COO Kim Giles joined the team to oversee operations and establish processes to streamline the company and increase efficiency.
Easy Sell DFW is launched with a focus on sourcing off-market real estate opportunities by utilizing targeted marketing strategies that result in below-market acquisition prices. Since its formation, Easy Sell DFW sourced over 70 off-market properties purchased by investors.
The idea of the Peak Housing REIT is conceived by Ryan Bowers and Joe Ollis to address the needs of investors seeking a completely hands-off investing experience.
Simplified Title Company is formed under the direction of Derek Hausheer with a focus on closing investment real estate transactions. Not all title companies have a great understanding of the nuances of investment property deals. We knew that successful vertical integration required escrow officers and attorneys that specialize in real estate investing.
Hal Mayo joined The Peak Group as CFO for all of The Peak Group entities.
Joe Ollis join forces with The Peak Group team to lay the groundwork for a fully-operational Peak Housing REIT by 2020.
The Peak Housing REIT is created and utilizes each of the companies strategically grown by The Peak Group over the past 7+ years to benefit investors. Operating each of these companies under one roof provides efficiency, transparency, and significant cost savings for the Peak Housing REIT.
Continuous Adaptability Fuels Our Growth
The ongoing challenge for The Peak Group is the constantly changing real estate market and bankers' appetites for lending in our unique niche. Ryan's ability to analyze real estate deals and piece together financing resources has bridged the gap in seemingly impossible situations.
The rapid growth of each of these once small companies would have had far different results if not for this unique ability at the helm. Each new branch represents a shift and evolution in the strategy employed by The Peak Group to remain a leader in the rental real estate market.
From 2013 to 2017, The Peak Group utilized lending sources to buy existing single-family homes, remodel them, and resell to investors as "turnkey" real estate investments. This approach would begin laying the groundwork for the integration that was to follow.
Many investors interested in the turnkey model were successful tech-industry professionals from the West Coast. They liked the one-stop-shop that The Peak Group offered, and would serve to introduce key players in the growth of The Peak Group and the formation of the Peak Housing REIT.
As the DFW market became heavily saturated with other investors purchasing on-market, MLS listed properties, The Peak Group established Easy Sell DFW in late 2017 and invested heavily in marketing to source off-market properties. Easy Sell sourced 50 off-market real estate deals in 2018 alone.
The turnkey properties bought and sold are referred to as "build-to-sell properties,” and to date total 259.
An unexpected opportunity was uncovered through the efforts of Easy Sell: vast numbers of available infill lots in Tarrant County, Texas. After some analysis on cost and with Todd's construction background, The Peak Group leaped into new construction.
One of the earliest turnkey investors, Debbie Guy, was eager to participate in the new construction venture and provided financing for the first of these fledgling construction projects. After completion of these trial projects, it was clear that new construction provided better margins—and, most importantly, predictable costs—when compared to remodeling existing homes.
For this reason, The Peak Group refocused its aim on acquiring lots to build investment properties from the ground up. Since 2018, The Peak Group has successfully completed 54 new-construction building projects with another 31 currently in progress, consisting of 16 single-family homes, 39 duplexes, and 13 quad-plexes.
As The Peak Group marketed new construction rental properties to investors, the demand was higher than what financing resources could accommodate. To address this need, Ryan approached the company's primary lender and developed a program called Summit Direct.
- A Summit Direct investor utilizes the lender to obtain financing based on a construction plan that The Peak Group has in its pipeline.
- The Peak Group then facilitates the entire transaction from lot purchase to build out, marketing for lease, and management of the property once a resident has moved in.
- The first Summit Direct investor to sign on was Joe Ollis, who had previously purchased build-to-sell investments in 2018.
In total, The Peak Group has closed and managed over $85,000,000 in real estate transactions since 2013.
The Birth of the Peak Housing REIT
As The Peak Group acquired a growing pool of investors and managed their portfolios, it became clear that some investors may not be suited to own properties individually.
Although the process is fully turnkey, owning real estate still requires investors to make stressful decisions about their investment. Investors needed a way to participate in real estate investing—without the burden of owning a property individually.
A unique and highly-underutilized tax shelter, the 721 exchange (or UPREIT structure) primed the Peak Housing REIT for high dividend yields early on. The benefits of the 721 exchange helped the Peak Housing REIT fill its pipeline with acquisitions, and the first round of UPREIT exchanges took place in June 2020.
The results were astounding: over $65,000,000 in UPREIT and other acquisitions by the end of 2020!
Driven by Vision
The Peak Housing REIT has a powerful leadership team with diverse experience, a collaborative mindset, and a commitment to efficiency, transparency, and managing costs responsibly. We are driven to continue growing and evolving as the market changes to provide consistent returns for those who place our trust in us.