CONSTRUCTION
It is just construction...
Our experience has shown that an acquisition of a successful real estate investment is, one must identify the “right” investment opportunity, but also understand how to properly enhance that investment through a value-added and/or ground-up construction. It is essential to have a thorough understanding of construction development for any real estate investment opportunity.
Our team is highly experienced in development, providing the project with the right construction and design services needed to increase the value of the investment. As part of our services, we manage the development process to ensure seamless and swift execution of all investment properties. We know and understand that results in a matter. Therefore, our proactive approach to construction management is a key to our success. Investors can rest assured that their investment is our top priority
FLUCTUATING REAL ESTATE MARKET
Thriving Market
A thriving market yields the quickest return on an investment. Our goal in this flourishing market is to place great emphasis on developing our investments swiftly so that our clients can confidentially see results, a model we like to call “set-in, get-out.”
Depressed Market
A depressed market is one filled with big opportunity. In stark contrast to the aggressive “get-in, get-out” model, a depressed market yields an opportunity for our investors to acquire passive investments to their portfolio. We believe that investors’ confidence in us should not waiver in times of a market crisis. It is our experience that a depressed market should be capitalized upon, lending itself to an influx of investment deals. Our main focus is the location of real estate investment property that provide stable passive income, but also have valueadded and/or ground-up opportunities, making the subject investment deal highly lucrative. Our investors receive a fixed return of income for four (4) years, predetermined and agreed upon by contract. As part of the service, our team of professionals will assume all management responsibilities related to the real estate investment, until the market stabilizes, and the investment is sold.
OUR APPROACH
Part of our approach is that we find real estate investment deals within areas that zoned for R1.5 and R3. What does this mean? It means, we identify properties that can be converted from single family residences to multi-unit residences. In real estate, this approach is called the highest and best use. Using this method, in conjunction with our ability to provide the lowest cost for construction, we can maximize the profit for any investment. By adding units, thereby increasing the overall square footage of the investment, we assure that our clients can achieve an above average rate of return on their investment.
To get the most for your investment, we ensure a high capitalization rate (CAP Rate), also known as the yearly income return on your investment. What counts is the dollar amount of the percentage of profit and how quickly the profit from rent will cover the investment and that is the bottom line. We secure higher than average CAP rate by keeping construction cost low, and above average rent thereby making each investment a successful one.
REASONS TO INVEST
Appreciation of Asset Value
Properties increase in value as the net operating income of the property improves through rent increases and effective management.
Physical Asset
Income-producing real estate is one of the few investments that have meaningful value as a hard asset. The property’s land has value, along with the building itself, and the income it produces has value to all future investors.
Dependable Income Stream
Assets are generally secured by leases that provide a regular and dependable income stream that produce positive cash flow.
Debt Reduced by Property Income
The debt on the property will be reduced by the income of the property’s net operating income (NOI). NOI is figured by the gross income less all expenses before debt. The NOI will sufficiently fund the debt payments thereby reducing the debt balance and creating equity.
Tax Benefits
Many tax benefits include no-limit mortgage interest deductions and depreciation accelerations that can shield a portion of the positive cash flow generated and paid out to investors. IRS allows investors a 1031 provision at the time of sale, allowing investors to exchange into a like-kind instrument and defer all taxable gains into the future.
Multiple Asset Value through Leverage
A factor to consider when investing in real estate is the ability to place debt on the asset which is several times the original equity. This allows you to buy more assets with less money and significantly multiply asset value.