The process is simple, but it’s not easy. We leverage our strong relationships to find the proverbial “needle in the haystack”, and only the best opportunities are presented to our investors. This is the process of how we work to create wealth for our investors.
When evaluating an asset, we are conservative with our underwriting, ensuring a comfortable margin for any unknown issues that may arise. We invest in strong developing markets that provide consistent population growth as well as diverse employment, low crime, and a stable tenant base. We select stabilized, value-add assets in A, B, or C class areas that provide strong returns.
The asset will be repositioned by adding value through reducing expenses and driving up the operating income by completing any necessary renovations, adding enhancements, correcting previous managerial and operational issues, and getting at market rent. Our asset managers will keep the property running efficiently and in its greatest state.
If the property can be refinanced, we aim to return up to 60% of investors’ equity within the first 2-3 years, reducing risk and getting a return back tax free.
During this period, we will get the property operating under stable conditions, allowing our investors to receive steady cashflow over the course of the hold as well as long-term appreciation. Investors can also expect transparency with quarterly performance reports on distributions and can take advantage of bonus depreciation and other tax benefits.
With evaluating the market and where it is in its cycle, we will have a plan that allows us to exit at a sale price that generates maximum profits for our investors as well as return the rest of their invested capital.