Our Strategy

Simple & Proven

Analyze

  • Develop Investment Criteria
  • Identify the target Markets
  • Identify partners and Build team
  • Leverage the Broker Network and Source deals
  • Underwrite conservatively and pursue deals that make sense.

Acquire

  • Validate the proforma and business plan feasibility with the property management.
  • Negotiate and Execute the Purchase & Sale Agreement (PSA)
  • Work with our teams to complete a thorough due diligence
    • Inspection by Engineers
    • Lease Audits by PM
  • Negotiate financing terms and work with the lender to secure most favorable terms.
    • Non-Recourse Loan
    • Interest Only Period
    • Interest Rate and Leverage
  • Present the deal and raise equity from the investors
  • Close on the deal, Celebrate and Commence the hard work.

Execute

  • Address safety-related and lender-mandated repairs.
  • Execute on the CapEx items in collaboration with the property management.
  • Implement the plans to increase income and reduce expenses. For instance..
    • Covered/Reserved Parking
    • Utility Conservation
    • Smart home upgrades
  • Manage the 3rd party property management.
    • Performance related bonuses to reward +ve outcomes
  • Review and Manage the financial performance of the property.
  • Communicate the progress on business plan and financial performance to investors.
  • Evaluate cash flow and Make distributions (quarterly)

Realize & Repeat

  • Evaluate the performance to business plan continuously.
  • Monitor the market conditions and prepare for the sale of the property if favorable.
    • Refinance and drawing our initial investment if conditions makes sense & property is well capitalized.
  • ‘Realize’ the profits by closing on the sale.
  • Distribute the proceeds per plan, Thank investors and Celebrate the success.
  • Time to find another deal…

Investment Criteria

Market Criteria

We focus on markets with long term growth and favorable demographics and economic characteristics such as:

  • Landlord & Business friendly markets
  • Markets with robust Population and Job growth
  • Diversified economy and employer base.

Asset Criteria

We scout for B and C+ multifamily assets that fit the below criteria.

  • Properties with 80 units or higher.
  • Stabilized – Occupancy greater than 90%
  • Properties in neighborhoods (1-Mile) with Median House Hold income > 40K/year
  • Hold period of 4-6 years
  • Target equity multiple – 1.7-2.0 x
  • Target IRR (5year) – 14%