OUR APPROACH
We have a six step hands-on approach that begins with the acquisition of properties that meet our rigorous purchase criteria and ends with the disposition of the properties.
Identify a Value Add Multifamily Real Estate Property
- Identifying the right markets – we look for emerging secondary and tertiary markets in the U.S. the following characteristics:
- Population growth
- Low unemployment/expansion in skilled jobs
- Increasing rent trends
- Attractive lifestyle features
- Business friendly climate
- Analysis – we thoroughly analyze all potential deals, ensuring that the assets meet our conservative underwriting. Our analysis is based on actual financials, rather than pro formas. Only 1 – 3% of the potential deals qualify for further review.
- Due Diligence – we undertake extensive due diligence, with the assistance of industry professionals to fully understand the potential risks and uncover opportunities for investors. If the property passes our evaluation, we then move forward to purchase. The due diligence includes:
- On-site inspection
- Detailed rental market assessment
- Analysis of all financials and physical condition of the property
Adding Value to the Property
This is a critical step in the process and where we add value to the property. Based on the market, our analysis and budget parameters, we look to add optimal value in a number of ways such as:
- Upgrading the property’s exterior
- Strategically enhancing apartment interiors
- Adding washer and dryers to the units
- Improving security of the property
- Adding amenities – such as a dog park
Asset Management
- We are focused on achieving the financial plan for our properties. This is accomplished by providing a quality product for our tenants to enjoy, which leads to predictable cash flow and appreciation. Our process and system incudes key performance indicators which are focused on strong financial, occupancy and quality standards.
Refinance the Property
- At the appropriate time, we have the property reappraised which capitalizes on the newly created value. Refinancing often comes in the form of a supplemental loan which goes on top of the original loan. Any monetary proceeds from that additional loan go directly to the investors as a form of early disbursement.
The Holding Period
- A key part of the process is to have a high performing management team to continue the daily operations, while investors enjoy a high yielding tax- efficient asset. During the hold time, investors will still be receiving cash-on-cash return and an economic appreciation of the property.
Time to Sell
- We hold our properties for an average of three to seven years, maximizing the timing of selling property at an increased price, with investors enjoying the profits achieved through forced appreciation of the value-add enhancements.