Why invest in real estate?
- Builds equity as the tenant pays down your mortgage
- Gives you direct control over your investment
- Has unique tax benefits like depreciation
- Increases in value over time
- Permits the use of leverage which is the use of borrowed capital to purchase and/or increase the potential return on investment
- Provides regular cash flow in the form of rental income
- Serves as a hedge against inflation as property values increase as other prices increase as do rents
Why invest in multi-family real estate?
- Do one transaction that pays over and over again
- Financing is often easier to get for a 5+ unit buildings as it’s considered commercial real estate
- Greater cash flow – additional income for very little extra work
- Increases opportunity for acquiring numerous properties
- Opportunity to “force” appreciation by upgrading multiple units to support increases in rent or reducing expenses across multiple units
- Reduced vacancy costs – 10-unit building with one unit vacant earns 90% of the regular income; single family home with one unit vacant earns 0%.
How are we different?
It starts with our business and professional accounting background which means that we know numbers and know how to ensure that our investors’ money is treated with the utmost care.
We invest in multi-family cash-flowing properties located in landlord-friendly jurisdictions. We believe in treating our tenants well, but if they don’t treat us well, we have to be able to take immediate corrective action.
- We start by analyzing potential multi-family acquisitions using our unique process The Multi-Family Real Estate Evaluation SystemTM; most deals do not pass this stage. We target C properties in B areas.
- If the property surpasses our return target for investors, it is subjected to our rigorous due diligence process.
- Once a deal passes our vetting process, our investors are invited to participate in it and financing is secured
- Investors are a key part of our business as we see our role as locating, vetting andstructuring deals so that investors can earn a superior return on their capital while at the same time minimizing the risks which all investments can experience.
- We send investors monthly reports and meet with them on a quarterly basis to update them on their investment and answer their questions using video conferencing tools.
- We negotiate contracts and close the deal which typically take 45-60 days for smaller deals and 60-90 for larger ones.
- Once the deal closes, the property manager we screened in our due diligence process takes over active management of the property and we manage the manager.
- Exit is planned for 3-5 years later when all the investors are repaid and receive their share of the profits.
- The process is repeated