Identify locations – cities, MSA’s that are experiencing population growth and a positive job growth well connected geographically
Make sure that local economy is a stable one with sustainable growth rates and is diversified that it is not prone to industry shocks.
Focus on areas that are close to amenities but not overpriced and overhyped that is safe to raise a family or be attractive to singles or young couples.
Not too big or too small. With our experience, we know that 20-100-unit properties are either too big for individual investors or too small for institutional investors. This is our sweet spot.
We always aim for higher returns for our investors through a judicious combination of equity and debt. Cap rates north of 8% and cash-on-cash north of 10%
We look for B or C class properties that have a potential for improvements, value-add opportunities, better operational excellence
We explore all the options before choosing from seller financing, traditional loans, bridge loans etc.
This is the cornerstone of successful execution of investment strategy to bring down operational inefficiencies, reduce costs and raise rents.
After the stabilization of the properties, either refinance the loan and leverage the built-up equity to buy another property or sell at an attractive cap rate and invest in bigger property.