Deal Sourcing
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Source deals through reputed brokers
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Mid-Market Sector (B & C Class)
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1960 to 1990 Vintage
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Work force Housing with Value Add
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Analytics driven Acquisition Criteria
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Adherence to Established Criteria
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Quality Assets in Decent neighborhoods
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Underwriting based on historic averages
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Consult Industry experts in Target market
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Emphasis on Location & Environmental Issues
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12% to 20% Investor IRR & 1.5X to 2.0X Equity Multiple
Acquire
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Checklist driven Detailed Property Tour
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Checklist driven Detailed Manger Interview
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Market Survey before LOI
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Budget & Proforma Rents before LOI
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Negotiate Early Access to mitigate Risk
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Aggressive terms versus Price
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Thorough Due Diligence with 2 vendors
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10/12 Year Long-term Agency Debt – 5 yr. Hold
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Up to 75% LTC Non-Recourse Loans
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Non-Recourse Bank loan – Deep Value add Deals
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Vendors from Exterior Upgrades
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In-house for Interior Upgrades
Stabilize & Add Value
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Stabilize with operational efficiency
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Address Safety & Deferred Maintenance Items
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Upgrade to Increase Rental Income
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$1K to $10K/Unit Rehab Budget
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Optimize Expenses & Push other Income
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Aggressive Conservation (Water/Electric)
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Traffic Monitoring & Improve Marketing
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Performance based Incentive for On-site Staff
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Extend Quality Customer Care to tenants
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Distribute Cash Flow Quarterly
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Sell / Refinance in 3-5 years
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Primary & Secondary MSA’s in Landlord Friendly Growth Markets
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Markets which display consistent above average Jobs & Population Growth
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Markets which consistently display strong rent growth
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Markets with very diversified demographics and employment opportunities
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Markets which are business & landlord friendly
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Mid Market Segment
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Work force Housing
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B & C Class Assets
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1960 – 1990 Vintage with Minimum 100 Units
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Value –Add & Core Plus Assets
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Proven/Verifiable Value- Add potential
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Underwrites to Stabilized Cash flow of 8% (in 6 to 24 months)
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Location of the Asset with
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Min. $36K HH Median Income in 1-mile radius (Gross Annual Income = 3X Rent * 12 months @ $1000/Unit Ave. Rent)
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Proximity to major economic drivers & employment opportunities
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Access to major highways with at least 5k vpd street traffic
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At least 20% Hispanic Demographic in 1 Mile Radius (Fastest Growing Demographic in US)
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No Concentration above 20% of Housing tenants, Same Employer
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No Crime issues (Aggravated Assaults and Shooting etc..)
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No Rent restrictions
