Webinar: Unlocking Yield in Alternative Markets: A Panel Discussion
In a market where many investor portfolios remain heavily concentrated in multifamily real estate, a growing number of operators are exploring opportunities in alternative private markets.
In the webinar “Unlocking Yield in Alternative Markets,” three experienced operators—Chihiro Kurokawa of ZT Corporate, Garland Benton of Direct Equity Source, and Will Crozier of CapX Ventures—shared how they are generating returns across three very different sectors:
Auto dealerships
Self storage and small-bay industrial
Oil & gas, including Bitcoin mining powered by stranded energy
Hosted by Dustin and Hayden of Momentum Multifamily, the conversation explored how these investment models work, where opportunities exist today, and what investors should evaluate beyond the pro forma.
From Multifamily to Specialized Alternatives
Although their strategies differ, all three panelists share a similar starting point: experience in multifamily real estate before moving into more specialized operating businesses.
Chihiro Kurokawa — ZT Corporate
Chihiro leads investment operations at ZT Corporate, a firm that both owns and operates its portfolio companies. After starting in multifamily investing—where he first connected with Dustin—he moved into a more focused strategy.
Today, ZT Corporate operates in two primary verticals:
Auto dealerships
Healthcare businesses
Unlike many private equity firms, ZT doesn’t simply acquire companies—it actively operates them, allowing the firm to influence performance directly.
Garland Benton — Direct Equity Source
Garland brings over 25 years of private equity experience spanning oil & gas, single-family housing, and multifamily real estate.
Today, Direct Equity Source focuses primarily on:
Self storage development
Small-bay industrial warehouses
Their model centers on ground-up development, with projects across Texas and parts of the Southeast. At the time of the webinar, the firm had eight storage facilities under construction simultaneously.
Will Crozier — CapX Ventures
Will spent roughly 15 years investing in North Texas multifamily, completing multiple value-add projects before stepping away from the business in 2018.
He later returned with a new thesis focused on:
Oil & gas exploration
Bitcoin mining powered by stranded or flared gas
Select infill multifamily development in DFW
His strategy centers on asymmetric investments—deals with large potential upside but controlled downside risk.
Why These Asset Classes Now?
Each panelist explained why their sector is particularly attractive in today’s environment.
Auto Dealerships: Multiple Profit Centers Under One Roof
Most investors view auto dealerships simply as retail businesses that sell cars. But Chihiro explained that a dealership actually functions as five separate businesses:
New car sales
Used car sales
Parts
Service and repairs
Finance and insurance (F&I)
While new car sales generate the majority of revenue, the highest margins typically come from:
Parts and service operations
Financing products and warranties
Even relatively small dealerships can generate over $100 million in annual revenue, but the long-term profitability often depends on operational efficiency behind the scenes.
Operational Discipline Matters
Following the unusually strong margins dealerships experienced during the COVID-era supply shortages, the industry is now returning closer to historical norms.
As margins compress, the difference between strong and weak operators is becoming more visible. Successful operators focus heavily on details such as:
Technician compensation and retention
Service throughput
First-time repair accuracy
Inventory management in parts departments
As Chihiro described it, operational performance often comes down to “death by a thousand paper cuts”—many small decisions that compound over time.
Where Dealership Opportunities Come From
Deal flow in auto dealerships resembles multifamily investing in several ways:
Most opportunities come through specialized broker networks
Relationship-driven off-market deals still exist
Succession-driven sales are common
Many long-time family owners are nearing retirement with no next generation interested in operating the business, creating acquisition opportunities for experienced operators.
Self Storage: Predictable Performance in a Supply-Constrained Market
Garland described self storage as “not a sexy investment—just predictable and boring.” For many investors, particularly those nearing retirement, that reliability is precisely the appeal.
Supply Is Tightening
Several factors are currently supporting storage investments:
New construction has slowed significantly
Higher interest rates have made many projects difficult to finance
Demand continues to grow alongside population migration trends
Direct Equity Source continued building throughout the rising rate environment and is now delivering properties during a period when new supply has dropped significantly.
The Merchant Builder Strategy
Unlike many operators who plan to hold assets indefinitely, Garland’s firm operates as a merchant builder.
Their strategy:
Develop storage facilities
Stabilize or partially lease up
Sell within three to five years
Recently, large private equity firms have entered the sector aggressively, sometimes purchasing newly completed facilities even before they reach full occupancy in order to secure market share.
Oil, Gas, and Bitcoin Mining: High-Upside Energy Plays
Will’s investment philosophy comes from his personal background growing up in rural Idaho and Kansas.
Early in his career, he realized that earning typical market returns on a small capital base would not significantly change his financial trajectory. His solution was to pursue investments with asymmetric return profiles.
The Strategy
CapX Ventures operates between two extremes in the energy sector:
Small, unstructured local operators
Massive institutional energy companies
Instead of competing directly with either group, they partner with experienced regional operators who understand local geology and drilling opportunities but may lack sophisticated capital structuring.
Monetizing Stranded Energy
One of their differentiators is combining traditional oil and gas operations with Bitcoin mining powered by flared or stranded gas.
This approach creates three potential revenue streams:
Oil production
Natural gas
Bitcoin mining
Energy that would otherwise be wasted becomes an additional monetization opportunity.
Return Targets
CapX Ventures typically looks for deals where there is a clear path to doubling investor capital within roughly three years. At the same time, they build multiple exit strategies into each deal to limit downside risk.
The Common Thread: Operator Quality Matters Most
Despite investing in very different industries, all three panelists emphasized the same principle:
The biggest risk in alternative investments is not the asset class—it’s the operator.
A strong operator can often navigate challenging market conditions, while poor management can destroy value even in attractive sectors.
Garland shared examples of poorly structured deals where sponsors collected significant fees upfront regardless of project performance. His advice to investors:
Ask how the sponsor gets paid
Request detailed construction or acquisition cost breakdowns
Look for meaningful sponsor capital invested alongside LPs
Direct Equity Source, for example, typically contributes 20–25% of the equity in each project, aligning incentives with investors.
How These Investments Fit Into a Portfolio
Each asset class discussed during the panel serves a different role within a diversified portfolio.
Auto Dealerships and Healthcare
ZT Corporate offers both growth-oriented and income-focused structures. Some deals resemble typical multifamily syndications with preferred returns and upside participation, while others prioritize steady cash flow.
Self Storage
Direct Equity Source currently offers an evergreen-style fund that includes multiple facilities, targeting:
A fixed annual dividend
Additional upside when properties are sold
Self storage has historically been one of the most recession-resistant real estate sectors, making it attractive for portfolio diversification.
Oil & Gas with Bitcoin Mining
CapX Ventures focuses on higher-upside opportunities that can act as a return accelerator within a broader investment portfolio.
Final Takeaways: Building a Resilient Investment Strategy
Several themes emerged throughout the discussion.
First, diversification across real assets can strengthen a portfolio. Multifamily remains a powerful core investment, but sectors like auto dealerships, storage, and energy offer different return profiles and cash flow dynamics.
Second, operator quality matters more than projections. Investors should focus heavily on track record, alignment of incentives, and transparency.
Finally, boring businesses can produce strong returns. Storage units in growing suburbs, well-run dealership service departments, and efficiently operated energy fields may not be glamorous, but they can generate durable income and long-term value.
As Chihiro noted during the discussion:
“You can’t make money without risking money.”
The key is choosing the right risks, the right partners, and the right structures—and allowing thoughtful diversification to do its work over time.
