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50 Leading Companies of the Year 2017

“To us, property management is more than just managing a property. We are creating and influencing communities, the environments that shape how individuals go about their daily lives”: Nelson Brothers

thesiliconreview-patrick-nelson-ceo-nelson-brothers-17“Adding Value to Real Estate”

Real estate is one of the tangible industries consisting of land and the buildings on it. The Real estate industry is evolving eventually and the changes are massive. The industry is not leaving any stone unturned as it continues to seek to conquer every possible vertical of the industry.

To be a critical part of this ever-changing real estate industry, two brothers, Patrick and Brian Nelson founded Nelson Brothers in 2007. Patrick and Brian, the principals of the firm, have been involved in the underwriting, syndication, and acquisition of student housing properties.

Today, Nelson Brothers is one of the fastest growing commercial real companies. Also, it is quickly gaining a reputation as one of the prominent and fastest growing investment companies in the country as its properties can be found among some of the nation’s major universities. With a specialized focus on the student and previously elderly communities, Nelson Brothers have acquired and managed over $750 million in assets through the acquisition of 36 student housing properties and 3 assisted living properties across 14 states. Nelson Brothers focus on targeted growth opportunities and value-added investments for its clients through capital improvements, cost efficiency, and revenue maximization. Its entities include Nelson Brothers Professional Real Estate LLC, and Nelson Brothers Property Management Inc.

The Kick-Start

The duo started their venture with a student housing investment that was launched in 2010 and located near the University of Oregon in Eugene. Patrick and Brian felt that the property had a phenomenal location in a market where almost every student housing property was full and in the best location. But the school enrollment and the student housing market had shown no correlation to the economy or any impact from the recent crash.

The story of the Nelson Brothers sounds amazing but the market was tough for them. Back then, people had no idea where to invest. Investors were scared to do anything and didn’t trust anybody. They seemed leery of anything that sounded like an investment, especially a new concept like student housing. It took almost eight months for Nelson Brothers to roll their project out. But, in spite of all the hurdles, Nelson Brothers’ first step towards becoming the industry leader was a sheer success.

Overcoming Every Hurdle

It’s really very easy to have a good idea. But when it comes to implementing, making it happen, making it profitable in a short time is very difficult. It genuinely takes hard work, focus and a dedicated team.

Just like any other new-born company, cash flow was a huge challenge for Nelson Brothers. A perfect model that can consistently bring in enough money to pay the expenses, invest in the growth and support the people was the major requirement for the startup. 

The risk of losing a deal and the earnest money has played the role of a nightmare for Nelson Brothers. That part is tough and stressful for the company as the first 5-6 property closings came down to the wire. Now of course, after overcoming so many hurdles and proving their ability to close, it’s much easier to close on projects. Sellers push deals Nelson Brothers’ way, even at a lower price than other bidders.

Today, Nelson Brothers manage about $750M in real estate. The firm is divided into three distinct companies and has three separate offices.

  • Nelson Brothers Professional Real Estate – This is the “sponsor”, the investment firm that puts together investment opportunities, ensures they’re compliant with investments regulations and syndicates the properties through a Broker-Dealer network. We have raised about $300M dollars of investor equity.
  • Nelson Brothers Property Management – This is the management side that operates the property. The property managers also put together budgets and help execute the investment strategy on-site at the property.
  • Nelson Brothers Construction Management – Leveraging the experience and know-how in student housing, it also looks for opportunities to build, develop, design and create value. The firm has done exceptionally well with this model.

Crafting the Future Road Map

Nelson Brothers are looking at introducing two exciting new products very soon. The first is a development fund whereby investors can invest in exciting new ground-up developments but have the ability to spread the risk amongst 8-9 projects. The firm is also looking to launch IRA qualified loans that are accessible with Charles Schwab and Fidelity.

With the historical success of Nelson Brothers, the company’s vision is to acquire $2 billion in properties under management having gone full cycle on at least 15 properties. It is also planning on building an investor base of more than 3000 people while having developed 10 all-new student housing properties complete with new innovations, modern technology and a memorable living experience for the students.

Meet the Nelson Brothers

Patrick Nelson is the President and CEO of Nelson Brothers. Patrickis responsible for the acquisition, financing and asset management for NBPM and directs more than $700 million in the company’s student housing portfolio of properties. Prior to forming Nelson Brothers, Patrick with his brother raised nearly $100 million in equity for the acquisition of 17 student housing complexes, totaling over $300 million across the southeastern United States. He earned a B.S. degree in finance from Brigham Young University and an MBA from Utah State University. 

Brian Nelson is the Principal and Chief Marketing Officer at Nelson Brothers. Brian has extensive real estate experience and been directly involved in acquiring real estate projects valued at over $300 million. Prior to forming Nelson Brothers, Brian worked as a product marketing manager for VERITAS and Symantec Software. He has a B.A. from the University of Utah and an MBA from BYU and holds series 7 and 63 registrations. 

“We’d rather have a poor strategy with great execution than a great strategy with poor execution. But if there is a fantastic strategy that you can execute on – you’re golden.”

Disclosure: The contents of this communication: (i) do not constitute an offer of securities or a solicitation of an offer to buy securities, and (ii) may not be relied upon in making an investment decision related to any investment offering by the issuing company, or any affiliate, or partner thereof (“Nelson Brothers”). With respect to the “targeted” goals and performance levels outlined herein, these do not constitute a promise of performance, nor is there any assure that the investment objectives of any program will be attained. These “targeted” factors are based upon reasonable assumptions more fully outlined in the Offering Documents/Private Placement Memorandum (“PPM”). Consult the PPM for investment conditions, risk factors, minimum requirements, fees and expenses and other pertinent information with respect to any investment. These investment opportunities have not been registered under the Securities Act of 1933 and are being offered pursuant to an exemption therefrom and from applicable state securities laws. Past performance and statements regarding current occupancy and earnings are no guarantee of future results. All information is subject to change. You should always consult a tax professional prior to investing. Investment offerings and investment decisions may only be made on the basis of a confidential private placement memorandum issued by Nelson Brothers, or one of its partner/issuers. Nelson Brothers does not warrant the accuracy or completeness of the information contained herein. Thank you for your cooperation.