We execute a rigorous and thoughtful investment process from identifying the target investment area and property, to managing the asset for optimum ROI. Every investment is different and requires a unique business plan which may include full renovations, or simple upgrades. By adding value we force appreciation.
We may hold a property for an extended period of time or sell it at the appropriate moment on its yield curve, depending on the assets expected performance. We remain informed about the economic development and demographics of our investment markets for an appropriate opportunity to sell.
STEP 1: TARGET MARKETS & IDENTIFY OPPORTUNITIES
Finding a worthwhile investment requires significant time and effort and starts by identifying a target market. We establish relationships with local area brokers, lenders and property managers that we can leverage.
Our goal is to find emerging markets that are driven by outstanding governing and economic development policies designed to attract a diversified portfolio of businesses and industries to the area.
STEP 2: INITIAL ASSESSMENT
Through interviews with local property managers and brokers we target specific properties and begin preliminary due diligence. Our initial assessment determines whether or not we make an offer on a particular property.
STEP 3: DEAL DUE DILIGENCE & NEGOTIATION
Once the contract is signed we confirm the results of our initial assessment during the due diligence period. This includes but is not limited to verifying rent rates, visiting several competitive properties in the local market [if we haven’t already], acquiring the right property managers and validating the anticipated business plan. We perform a thorough physical inspection on every property. At the end of our due diligence we know what our business plan is and what it will take to execute.
STEP 4: VALUE-ADD IMPROVEMENT
Every investment has a value add component. It can be as simple as adding a professional management strategy and raising rents, to doing a gut renovation on every unit and completely rebranding the asset.
Before closing we will have the right team in place ready to hit the ground running. Property Managers are a critical member of that team as they assist in identifying the local resources needed to execute the rehab and manage the expectations for our tenants.
STEP 5: ASSET MANAGEMENT
The first year or so, as renovations and improvements unfold, we are visiting the property every 2 to 3 months. Daily communication with contractors and property managers is essential part of our asset management phase. As the property stabilizes we remain actively involved with day to day management and keep our investors up to date through regular webinar meetings and email.