BENEFITS OF MULTIFAMILY INVESTMENT
Pasive Income
We seek to earn an average of 10% a year on our invested cash, over the life of the investment.
Recession Resistance
There is a lack of housing, and regardless of how the economy is doing, multifamily properties that are considered to be in the lower classes tend to have a higher occupancy rate.
Tax Benefits
There are many tax advantages to investing in multifamily properties. Consult with your CPA to learn how this can benefit your particular situation.
Principal Paydown
The money that is paid back to investors is taken from the cash flow of operations and is divided among the investors until they're no longer part of the company.
Appreciation
Value-added assets provide an opportunity to improve Net Operating Income by making capital improvements which will increase the value of the asset, often referred to as "forced appreciation."
Liability Protection
Many investments are made with loans that do not require repayment if the investment fails, and are set up as partnerships between limited liability companies (LLC). This protects from the legal and financial expense of active ownership.
WHAT WE LOOK FOR
Value add opportunities
Markets with population and job growth
Job diversity
Large apartments communities
Class C+ & higher
Markets with 100k+ population
Our Process
1
EVALUATE
We investigate a large number of properties before making an offer on one. Our underwriting is very strict and makes sure that each possible deal meets conservative guides for CAP rate, expenses, capital expenditures, financing, and investor returns.
2
ACQUIRE
Once a contract is signed, our team does a lot of research to make sure that the financial model meets the investors' expectations for returns.
3
REPOSITION
Make improvements to the property and check to spend. If possible, try to renegotiate for a better deal on the service contract.
4
STABILIZE
Monitor the asset by staying in touch with property management weekly, and checking rent and collection reports quarterly. Keep investors up to date with regular updates, and distribute profits accordingly.
5
EXIT
Sell or refinance the property, return the original investment and profits back to the investors.