Ryan Garland, Founder & Chairman, Paradyme Investments
Key points
- “Joint ventures in land, general partner requests, and larger family offices are starting to pay more attention to us as opposed to institutional equity capital.
- What opportunities do you see in joint ventures and partnerships to continue to bring value to investors and local markets.
- That raises IP concerns, but overall, it reflects a shift toward investors who want to learn from us and go off on their own.
Ryan Garland, founder and chairman of Paradyme Investments, spoke with Invest: about navigating shifts in the market and customer needs. “There’s strong alignment between investors who want control and firms like ours that offer hands-on asset management,” Garland said. “Joint ventures in land, general partner requests, and larger family offices are starting to pay more attention to us as opposed to institutional equity capital.”
What recent changes in the market, or within your company’s operations, have most influenced how you approach real estate investment and lending?
Since the pandemic and election, we’re starting to see Wall Street convert to Main Street. When institutional players liquidate, it signals something coming. Wealth management has slowed, and investors are seeking to control their own money. Boomers are entering retirement in large numbers and with significant wealth. Their risk tolerance is going down and they want conservative, stable investments and prefer assets they can see and feel. Real estate is becoming more attractive as an inflation hedge. Volatility in crypto and the stock market has also reduced risk tolerance. We’re seeing a shift toward income-producing, tangible assets.
After the 2008 market crash, there were so many foreclosures, and a lot of banks lost a lot of money. We’re seeing private investors and firms, like ours, fill that gap, acting more like banks but with more control over the assets. Many investors are focused on wealth preservation, not growth. They’re prioritizing cash flow, especially in retirement. Health and wellness are top priorities. These investors are buying boats, investing in lifestyle. They’re not day-trading. They want stability and quality of life. People are more conservative and want to retain the wealth they’ve created. Real estate markets have calmed since 2021. We’re no longer seeing $100,000 over the asking price. Investors want steady returns with low turnover. Cash-flowing assets are popular, such as equity investments. For example, with a $126,000 entry point, you can earn $600 per month with no maintenance. Investors are choosing fewer, better-performing assets. We also launched a $100 Million Secured Income Fund to lend to developers and refinance completed assets. We’re seeing Wall Street investing in Main Street and seeking lower-risk, high-control opportunities.
How are you leveraging technology today, and how is it changing clients interactions and other operations?
We’re vertically integrated and implementing as much tech as possible, from marketing, AI, and social media algorithms on the exposure side. From a construction perspective, we’re using efficient practices to reduce costs of construction, including streamlining trades, simplifying design and improving budget accuracy. We’re able to build faster and more precisely because we know what each project requires from day one. Technology in manufacturing now allows us to electronically send architectural plans and get real-time production feedback, resulting in better budgeting and faster timelines. Speed is everything, especially when the cost of capital is so high.
Fire prevention is also a big focus. We’re designing smart systems that target fires directly, rather than flooding an entire building. This is especially important for garages housing boats or RVs. These systems are better for insurance and reduce the cost of total loss. Smart developers consider both the end-user and affordability. Insurance and taxes are rising, so we must innovate, not just for aesthetics or luxury but to make projects attainable and attractive for investors. We’ve also developed proprietary methods for manufacturing structural steel. We’re in the process of patenting this and plan to white-label it for use by other developers, another business vertical with strong potential.
What opportunities do you see in joint ventures and partnerships to continue to bring value to investors and local markets?
We’re seeing a growing number of landowners interested in joint ventures. Many have been sitting on land they haven’t been able to move. We’re structuring deals where they retain equity and get paid out over time, which is a great option. In the Ozarks, we’re working on 60 acres. Investors are becoming more sophisticated, and they want general partner positions and deeper involvement. That raises IP concerns, but overall, it reflects a shift toward investors who want to learn from us and go off on their own. Family offices are increasingly interested in joint venture deals. There’s strong alignment between investors who want control and firms like ours that offer hands-on asset management. Joint ventures in land, general partner requests and larger family offices are starting to pay more attention to us as opposed to institutional equity capital.
Where is Paradigm best positioned to push the boundaries in real estate, investing, and development?
Our storage products are performing incredibly well because they’re efficient and cost-effective. We are focused on the affordability side. We can be in more markets, pump out more products, and keep our risk lower through diversification. We currently have 750,000 sq ft under development, including pools, a community center and a gym, with our standout ‘Barn Cave’ product representing 550,000 sq ft of that total. It’s a large garage with residential space above, priced under $1 million and mortgage-eligible. This will likely be the biggest growth sector for us.
Instead of building separate amenities for each HOA, we modeled it after Lifetime Fitness. Larger gyms with shared access reduces costs. We built the gym to be open to the public, which generates revenue, converting it from an amenity to an income-producing asset. This structure lowers HOA dues while providing value. If we run into cost overruns, the gym’s revenue offsets it. It’s a win-win. JPMorgan even gave a nod to our focus on health and wellness. We’re seeing more demand for gym memberships, especially among retirement communities. The goal is to scale this model: build 50 to 100 single-family homes around a gym that serves both residents and the public. It generates revenue, lowers costs and creates a better quality of life for residents. That’s where we’re headed.
