Growing Wealth Through Passive Investing
Our Strategy
We acquire value-add as well as stabilized multi-family assets in target markets through a simple, effective and repeatable framework. While each individual asset is unique, these are the broad stroke phases that most deals will go through.
Acquisition
Any deal must meet a strict set of criteria before we will even consider it. If a deal passes baseline criteria, we will then underwrite, tour, perform initial due diligence, and conduct extensive data analysis and market research before ultimately getting a deal under contract. We then put together a comprehensive business plan detailing how we will improve the property and increase income. Only after we have completed this process will we offer a deal to you as a potential investor. Once a deal is fully funded and we complete the financing process, we will close and hit the ground running from Day 1.
Operation
As soon as a deal closes, our team will be on site to begin implementing the business plan by commencing any deferred maintenance or repair work. New amenities like dog parks, playgrounds, or pool / fitness center enhancements may be installed. Existing vacant units will be improved immediately and as leases expire, additional units are renovated. Renovated units and new amenities will command higher rents which increases the income of the property. During the projected “hold” period, the asset continues to appreciate based on forced appreciation through improving the property and the increased rental income from renovating units. The cash after expenses is distributed to investors and represents their “cash-on-cash” return.
Disposition
By the end of the projected hold period, we will have completed our business plan. Once this process is complete, we will look to sell the asset in its improved condition. In some cases we may look to sell an asset before the end of the hold period depending on market conditions and/or if the property has met or exceeded our projections in a shorter time frame. In those instances we may also look at a refinancing of the asset rather than a sale if we feel there is additional value to extract from the property or that market conditions may be more favorable at the end of the hold period. In any event, once an asset is sold our investors will be paid the remainder of their initial investment + any return from the sale proceeds.
...everyone needs a place to live...
Why invest in multi-family
The old adage of “everyone needs a place to live” separates multi-family from other investment assets because it is the only guarantee in real estate.
Historically Stable Investment
Multi-family has produced higher returns than any other real estate class over the past 25+ years.
Severe Ongoing Housing Shortage
Multi-family continues to surge in demand, particularly in desirable markets where we target population increases spurred on by job growth and the “path of progress”.
Nimble & Adaptable
Multi-family constantly accounts for changing market conditions as new leases “reset” market rates on a continuous basis.
Benefits of passive investment
Investing in multi-family as a passive investor provides the stability and security of large, professionally run investments without the hands-on oversight required for any single asset one might invest in alone.
Cash Flow
Stabilized assets provide investors with quarterly cash distributions from the excess income the property generates throughout the life of the investment.
Tax Benefits
There are a variety of potential tax benefits to an investor including: depreciation, bonus depreciation via cost segregation, and 1031 exchange protection which are not available to investors in more traditional investment vehicles such as stocks. Each individual investor must consult with their own tax consultant to assess their particular circumstances.
Equity / Appreciation
Through the process of forced appreciation and renovating units, the asset increases in value as a result of increased income which investors realize on sale or refinance.
Improving Lives
By renovating units, repairing / improving exteriors and adding new amenities, even as a passive investor you can materially improve the lives of the residents at each community you invest in with us.
Come Grow With Us
Financial freedom starts with taking the first step. If you are ready to begin the journey towards creating long-term financial stability and generational wealth, we are here to help!
Get started by joining the Smart Seed Investor Network today.