Our assessments start with determining which markets we invest in. Our priority markets are chosen through rigorous research and data on the following metrics over the past 5-10 years: Unemployment Rates, Population Growth, Population Age, Job Diversity, Top Employers, and Supply/Demand of Apartments and Crime Rates.
Our analysis primarily focuses market and off market value add strategy opportunities. We find and analyze opportunities using the best available online research platforms, along with sweat equity in building relationships with local commercial real estate partners, contacting owners, brokers and visiting properties.
Debt Financing and Purchase Offer Presentation
During our property analysis we will shop for non-recourse debt financing through either Fannie Mae, Freddie Mac, or JV Equity firms or Private Equity firms. Once that is secured and contingent on the purchase, we will re-analyze the property to make sure our strategy and minimum investment returns are met with very conservative numbers. If it passes our internal tests, we will submit a Letter of Intent to purchase the property.
Acquisition and Due Diligence
Once our offer is accepted, the real hard work begins to close the deal and manage the deal. Right after acceptance we have to inspect the property through due diligence. We have an experienced team who has gone through multiple property acquisitions. During due diligence we will verify financial reports, tenant occupancy, and conduct our own property inspection through a third-party inspector and with our operational partners and vendors.
Value Add and Asset Repositioning
The hard work now begins in executing our strategic business plan. Our team and partners will work together soon after acquisition to reposition/renovate the property. This cycle can take 12 months to two years to complete depending on the business plan.
This process is critical and the most important aspect of the operation. Our experienced team will work closely with the property management team to maximize occupancy, control expenses, add revenue, and increase resident satisfaction. We will be constantly looking at the data and results to prove and show positive performance of each asset. During this phase investor distributions are paid to maximize returns.
From day one we are focused on our exit strategy to protect our investors capital and maximize returns. We are constantly surveying the market to determine the best time to sell, refinance or recapitalize the property. Typically, we plan on selling the asset in 5 to 6 years after acquisition depending on the value-add strategy of the particular asset.