Strategy

Deal Sourcing
  • Source deals through reputed brokers
  • Mid-Market Sector (B & C Class)
  • 1960 to 1990 Vintage
  • Work force Housing with Value Add
  • Analytics driven Acquisition Criteria
  • Adherence to Established Criteria
  • Quality Assets in Decent neighborhoods
  • Underwriting based on historic averages
  • Consult Industry experts in Target market
  • Emphasis on Location & Environmental Issues
  • 12% to 20% Investor IRR & 1.5X to 2.0X Equity Multiple
 

Acquire
  • Checklist driven Detailed Property Tour
  • Checklist driven Detailed Manger Interview
  • Market Survey before LOI
  • Budget & Proforma Rents before LOI
  • Negotiate Early Access to mitigate Risk
  • Aggressive terms versus Price
  • Thorough Due Diligence with 2 vendors
  • 10/12 Year Long-term Agency Debt – 5 yr. Hold
  • Up to 75% LTC Non-Recourse Loans
  • Non-Recourse Bank loan – Deep Value add Deals
  • Vendors from Exterior Upgrades
  • In-house for Interior Upgrades
 

 

Stabilize & Add Value
  • Stabilize with operational efficiency
  • Address Safety & Deferred Maintenance Items
  • Upgrade to Increase Rental Income
  • $1K to $10K/Unit Rehab Budget
  • Optimize Expenses & Push other Income
  • Aggressive Conservation (Water/Electric)
  • Traffic Monitoring & Improve Marketing
  • Performance based Incentive for On-site Staff
  • Extend Quality Customer Care to tenants
  • Distribute Cash Flow Quarterly
  • Sell / Refinance in 3-5 years
mark
  1. Primary & Secondary MSA’s in Landlord Friendly Growth Markets
      1. Markets which display consistent above average Jobs & Population Growth
      2. Markets which consistently display strong rent growth
      3. Markets with very diversified demographics and employment opportunities
      4. Markets which are business & landlord friendly
  2. Mid Market Segment
      1. Work force Housing
      2. B & C Class Assets
      3. 1960 – 1990 Vintage with Minimum 100 Units
  3. Value –Add & Core Plus Assets
      1. Proven/Verifiable Value- Add potential
      2. Underwrites to Stabilized Cash flow of 8% (in 6 to 24 months)
  4. Location of the Asset with
      1. Min. $36K HH Median Income in 1-mile radius (Gross Annual Income = 3X Rent * 12 months @ $1000/Unit Ave. Rent)
      2. Proximity to major economic drivers & employment opportunities
      3. Access to major highways with at least 5k vpd street traffic
      4. At least 20% Hispanic Demographic in 1 Mile Radius (Fastest Growing Demographic in US)
      5. No Concentration above 20% of Housing tenants, Same Employer
      6. No Crime issues (Aggravated Assaults and Shooting etc..)
      7. No Rent restrictions
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