We focus on buying right by analyzing investment opportunities in very specific markets we target. Within those areas we identify properties with a potential for strong returns. We look for C class apartment complexes ranging from 50 – 300 units with rents below the market average.
Upon purchase, we perform any deferred maintenance, fill vacant units, upgrade units and the exterior of the property in order to increase the net operating income. We may also rebrand the property for better street appeal. We then hire a third party property manager to improve the operations, reduce operating expenses and increase revenue through other vehicles like laundry or storage facilities.
Once the property is stabilized, we can then use the forced appreciation to refinance and return our investors initial capital while still providing cash flow. We also have the option to 1031 exchange or sell the property for capital gains.
Stabilized, cash flowing assets are attractive to institutional buyers such as REIT’s, Hedge funds and other investors looking for real estate investments to diversify their portfolio. We typically hold the asset between 3 to 5 years but may hold some properties for long-term cash flow. We continue to repeat this process as a means of building stable, long-term wealth for both our investors and us. True win-win!
*Accredited investors must have a net worth of at least $1,000,000, excluding the value of one’s primary residence, or have income at least $200,000 each year for the last two years ($300,000 combined income if married) and have the expectation to make the same amount this year.
Sophisticated investors are deemed to have sufficient investing experience and knowledge to weigh the risks and merits of this investment opportunity.