Real Estate Lifecycle
Our opportunities follow a consistent, proven lifecycle to minimize investor risk and improve opportunities for value-add.
Market Identification
We focus on finding emerging markets where employment, income, and population are increasing. We also look for migration patterns, rental growth trends, and a welcoming business environment prior to investing in the market.
Due Diligence
This is the critical step to evaluate the detailed aspects of the community and market to uncover potential risks or identify valid reasons to request seller concessions or a reduction in purchase price. Analysis at this stage includes quantitative and qualitative methods such as income & population analysis, rent trends analysis, vacancy trends analysis, feasibility analysis, zoning, and more. It is in this phase that we finalize our business plan and obtain contractor bids for rehab needs.
Execute Business Plan
As soon as we close, our team works with experienced operations partners to begin execution of the business plan. This could include understanding resident sentiments, prioritizing the scope of work for renovation or repositioning, renovating units as they turn over, adding amenities, rebidding contracts for services, and optimizing expenses.
Property Analysis
We leverage our network of operators and partners to find on and off-market properties that meet our acquisition criteria. If a property matches our return requirements, we submit a Letter of Intent (LOI) or Purchase Sale Agreement (PSA). This phase begins the negotiation process with the seller.
Acquisition
During acquisition, we finalize the capital stack which refers to the financing sources to purchase the property, execute our business plan, and maintain operations. We finalize our financing and close on the transaction.
Operations Management
During this phase, we focus on lease up, expense management, and stabilization. We may also bring in an engineering firm to run cost segregation studies so we can take advantage of accelerated and bonus depreciation. Our goal is to maximize cash flow, minimize tax liabilities, and restructure the capital stack once sufficient equity has been created.
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Exit Strategy
In the final phase, we assess the market to determine whether refinancing or selling the property will generate the greatest return. While we aim to hold assets for 5 years, we rely on the market condition to determine the timing of our exit strategy. This could mean we may hold the asset for a shorter or longer period of time, if it serves in the interest of our investors.