Locating suitable apartment complexes with upside potential is the most important thing we do. We look for situations where the bones are good but certain things can be corrected in order to add income.
The purchase price of an apartment complex is directly related to the income it is producing. If a property is not being managed to its full potential, that allows us to buy it at a competitive price with room for income & value improvement after we own it.
It has been said, "The day you make a profit in real estate is the day you buy the property." In other words, don't overpay!
We use our extensive experience to negotiate and purchase apartment complexes at prices that allow for us to add value once we own it. It's OK with us to pass up on an opportunity that might have a high return if we are not fully satisfied with the risk assessment or price.
We take immediate steps after buying a property to improve occupancy rates and increase rent revenues. We work with our asset managers to eliminate problem areas affecting occupancy or expenses. This increases not only the monthly cash flow, but also the value of the property when we sell, as value is directly tied to net income.
We hire competent in-house maintenance personnel to reduce costs while increasing property values. We make frequent improvements to properties to increase the appeal for potential renters and help increase income.
We like properties that have fixable problems such as low performing staff, ineffective marketing, and poor curb appeal.
We are able to leverage our strengths and produce optimal cash flow on properties with greater than 100 units.
We believe strong cash flow is the best way to provide attractive returns while exposing investors and ourselves to the least amount of risk.
Class B properties are generally 10 to 25 years old with a middle class resident base.
Class C properties were built within the last 30 to 40 years and have low- to moderate-income residents.
We focus on "tertiary markets," small to mid-size town & cities, that have long records of stable occupancy rates with relatively low risk to economic fluctuations.