focus is key

Simply put, we have to love everything about the property, location, and the “deal” in order to feel good about the investment. We never would invest time and money into something that we don’t love and actually want to own because that’s just plain stupid.

Leveraging creates wealth. We borrow funds from lenders to purchase investment properties with the banks money without using any of our own cash. This helps create a snowball effect by acquiring more properties and their net worth increasing, we then are able to qualify for and invest in more multifamily properties.

We look at how much cash, past and present, a property is bringing in every month after expenses and the potential profit gain of raising rents by updating the property. We make sure this cash will cover our loan payment to the bank while also paying out a monthly check to you the investor. Positive cash flow keeps the property running i.e. paying for new carpets and appliance upgrades, paying for repairs and maintenance, marketing, and protects the investment by creating a safety net of cash during economic down turns.

What does every single multifamily property have? Tenants, Termites, and problems. Problems on a property are inevitable. Some rents will be paid late, some tenants will break property rules, on top of maintenance and repair being an every day operation. That is why we put in place the best and most experienced property managers and companies to oversee our investments. We are okay with the problems because we have the right people working with us and know that the 1 a.m. leaky plumbing call from a tenant means that unit is occupied, paying down our debt ever month, and making us cash on cash return.

We have a minimum 100% target return for the sale of all our investments. On average it takes about 5-10yrs for a property to gain significant return from the initial purchase price. Unless the opportunity of selling at a certain point meets or exceeds our target return, we’re in this for the long haul because the long haul grows our ROI and gets our investors paid.

Before we purchase a property we figure out the type of end buyer for that property for when we exit (sell) the deal, what’s the upside for the buyer to pay us what we want for that property, and if the numbers make sense. Once we buy a property we don’t sell the deal until we know our partners will make a significant ROI usually within 5-10yrs.