INVESTMENT STRATEGY

 

LOVE THE INVESTMENT.

First and foremost we have to love the investment A.K.A. “The Deal”. We have to love the location of the property, love everything about the actual property itself (who are the paying tenants and do they pay on time, bldg. structure, property age, style, etc.), love the feeling we get when entering and walking the property, love the potential value-add in order to raise rents (i.e. replacing carpet with new plank flooring, etc.). We won’t settle for anything less and will look at hundreds of deals in order to find that one GREAT deal. If we’re going to invest hard earned money and time into a property we have to love it all!

LOVE. THE. DEAL.

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DUE DILIGANCE.

Due Diligence is about going over all aspects of the property with a “fine tooth comb” to decide whether or not the property is a good investment. This includes things like walking & assessing the property grounds and the surrounding neighborhood, viewing individual units, looking for value-add, and gathering as much true financial information on the property before deciding whether it is a good deal.

We do the work and ask the hard questions. What does the T12 statement (last 12 months of operations) look like? Occupancy rates? Rent Rolls? Tenant demographic and do they pay on time? Are the rents below or above market price? What’s the exit strategy when we choose to sell the property? What type of buyer will purchase the property upon exit? Asking the hard questions is a part of our due diligence process.

THE RIGHT TYPE OF INVESTMENT

We believe that multi-family property (apartment complexes) and commercial property (office space, warehouse space, etc.) purchased in the right locations are some of the most profitable assets in the real estate market.

Key factors we look at in a deal

  • Effective Gross income

    This is the amount of rental income actually collected.

  • EXPENSES

    Expenses from the normal operation of the property. This includes all the things that are involved in keeping the property running. It does not include debt or major capital improvements.

  • NOI

    VERY IMPORTANT NUMBER. This represents the effective gross income, less operating expenses before Debt payments (EGI-EXP=NOI). Increase your NOI and you increase the price the next investor can pay for the property.

  • CAP RATE

    This number represents the rate of return the property would pay investors if there was no debt on the property. It is calculated by subtracting expenses from effective gross income.

Commercial real estate has never been more profitable in the history of the world than right now. It all begins with finding the right DEAL. You can try it on your own and deal with the headaches that come with managing property, tenants, and termites, or invest with Equity Capital Partners and let us do the work while you get paid. We don’t invest in real estate just to make money, we invest to create freedom for US AND OUR PARTNERS.

— EQUITY CAPITAL PARTNERS