Investing

When it comes to investing in real properties, it is important to have and appreciate the market and value discussion but more importantly, the numbers. At the end of the day, any property must be in a place where people want to be, with acquisition costs that allow for a cash return, and have a predictable overall return on the investment over time.

We start with a Fully Qualified Investor Property Profile which we offer as a service to placed investors. Included in this Qualified Investors Property Profile is 99% of everything you need to know before making a tentative decision on a property. Why 99%? Because there’s always something that could be behind the walls (physical or legal) that you can’t see or know about and every property has something in their history. Once it is decided that a property is a good candidate we perform the due diligence including any necessary inspections and document searches to get to 100%. Here’s some of the information we include beyond what you might get in an MLS listing or property disclosure:

• Purchase Criteria Analysis
• Asking Price
• Best Price
• Buy & Hold Projections
• Actual Cap Rate
• Real Purchase Costs & Total Cash Needed
• Price Per Unit (if Multi)
• Returns & Ratios including: Cash-on-Cash, ROI, ROE, IRR, RTV, GRM, DCR
• Financial Projections (Year-1 and 5-Year increments to Loan Term)
• Assumptions including: Vacancy, Rent Collection Frequency, Appreciation, Income Increase, Expense Increase, Selling Costs
• Financing Based on Loan Type (Monthly & Annually)
• Itemized Rehab Costs
• Itemized Expenses including: Property Taxes, Insurance, Maintenance, Management, etc.
• Professional Commentary on Moving Elements of the Investment
• Pictures

Commercial properties are completely different than residential in terms of analysis. However, the numbers still have to work. Liquidity of commercial property is usually much lower than residential because of their inherent specialized purpose. Commercial properties should be considered long-term investments for this reason. Commercial lending is generally easier to get than residential because there are no standards for how a lender can evaluate towards underwriting and the value is in its ability to generate a return. In our case, we make recommendations for specific types of commercial properties based on long-term stability and rate of return.

As a primary investor, our holdings are specially picked for either their cash flow, equity or market potential (upside/growth). Of course we have many other factors that we consider but it all starts with the financials and stability in the return. In every property we’ve invested, we make every effort to improve that property to raise the standards within that community or area in smart ways, that is, the lowest cost but with the highest perception in value-add. Likewise with the increase in standards and features, we inherently increase the overall value of the property for either rental purposes or sale to owner-occupants. When we’re done, every property is “ready to go” with no need for any major fixes. It’s then all about personalization by the tenant.

All of our residential properties have certain features which we include in most renovations depending on whether or not it would significantly increase its value such as:

• Updated Kitchen (including appliances, lighting, cabinetry & trim)
• Updated Baths
• Internet-Ready
• WiFi Zoning
• CO2 & Smoke Detectors (some with WiFi capability)
• HVAC Updates
• Security Cameras (Video Doorbell/Perimeter Coverage)
• Central Air (where appropriate to retrofit)
• Natural Gas Conversion from Oil Heat
• and Much, Much More…

We include some aspect of technology in all of our properties and are partnered with many leaders in the industry.

We make improvements in the right places of a property to maximize livability, appraisal value and appreciation.