Investment life cycle
Analyze
- Research targeted markets / neighborhoods
- Evaluate key demographics (population, crime, employment, median income, average rentals, vacancy rates, schools, retail, etc.)
- Analyze / underwrite potential preferred returns
- Develop investor and property profiles
- Engage Brokers and launch lead generation campaigns
- Align potential properties with prospective investors
Source
- Select property
- Estimate improvement costs; CAPEX, deferred maintenance operational improvements and revenue expansion potential
- Develop 3-5 year strategy, operational plan and pro-forma financials
- Establish property specific LLC and Operating Agreement
- Attract and acquire committed investors (limited partners)
- Secure bank financing
Acquire
- Submit offer price and key terms
- Conduct due diligence and evaluate operational plan viability
- Finalize negotiations and execute property specific LLC agreement
- Close
Manage
- Monthly: Execute operational plan (operational efficiencies and revenue expansion)
- Quarterly: Distribute partnership earnings
- Annually: Refine strategy and operational plan (evaluate hold vs. sell)