Why don’t you invest in single family homes?
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.
Why don’t you invest in large apartment complexes?
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.
Why don’t you hold the properties once the projects are completed?
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.
Do you use any leverage for your projects, or are they strictly all cash deals?
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.
What’s the typical size for one of your projects?
Factoring in the initial acquisition, plus development costs, our projects usually start at around a million dollars and go up from there.
How much do I need to contribute in order to join one of your projects?
Many of our investors will contribute $50k - $100k or even more. However, if the individual’s goals align with ours, we will accept additional members with as little as a $20k investment.
How are the profits distributed after a project sells?
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.
