Our investments are typically small, multi-family properties of 2-12 units.
We seek projects in desirable neighborhoods that are seeing price appreciation. We target properties that require significant rehabilitation or complete redevelopment in order to maximize returns. Once the project has been completed and most of the units rented out, a process that usually takes 1-3 years, we will then seek to sell the property and capture the gains to distribute to our investors.
Single family homes present their own set of challenges that are different than multi-family. These can include seasonality swings in marketability, fewer opportunities for redevelopment, and challenges with comparative pricing.
The best opportunities for large scale rental housing projects can be very capital intensive, and require much longer timelines. We work in the smaller multi-family space to avoid these challenges.
Our investment goals require a sale of the property in order to capture the equity gains. The returns from this are typically much higher than a normal buy and hold investment.
Depending on the project, we do use bank financing for a portion of the expense. However, due to the nature of the projects, funding is usually capped at 65-75% of the total project cost.
Factoring in the initial acquisition, plus development costs, our projects usually start at around a million dollars and go up from there.
Many of our investors will contribute $50k $100k or even more. However, if the individua’ls goals align with ours, we will accept additional members with as little as a $20k investment.
Once a closing has occurred and funds deposited, any remaining bills are paid and final statements generated. The net result is then distributed back to the investors in the same percentage as their original contributions.
