Our strategy is to invest in moderately sized properties located in emerging markets that currently have a ratings ranging from C+ to B-.

Our strategy is to invest in moderately sized properties located in emerging markets that currently have a ratings ranging from C+ to B-. Additionally, we aim to acquire large multifamily properties in stable areas near major industry and academic institutions with ratings ranging from B- to A- within a five-year timeframe. The management of the moderate sized properties will be entrusted to either our in-house property management group or an external property management company specially contracted for that particular property.

Criteria – I will evaluate properties that can be purchased with a Loan-to-Value ratio of 65%, and have a capitalization rate between 5.6% to 10% (depending on the size of the acquisition and existing financing), with sufficient cash flow to generate a minimum cash-on-cash return of 11%. The maximum purchase amount will be determined by the specific details of each deal and market conditions at the time of evaluation. It is my objective to buy properties at least 15% below their appraised value. I will aim to retain these properties as long as their investment value and annual capitalization rate align with our models.

Exit strategies, Backup Plans – I plan to maintain control of all properties acquired until the opportunity to sell becomes a better proposition than holding long term. I plan to return the bulk of investor principal via cash out refinance after a 3 year period, paid out in order of agreement based upon the specific deal structure. For student housing, I plan to execute a master lease with option to purchase in order to remove investor capital but maintain control of the property. I will also evaluate seller financing options as applicable.

Financing: We are planning to implement the BRRR (Buy, Rehab, Rent, Refinance) method as a strategic approach to financing our property acquisitions in an efficient and profitable manner. The BRRR method involves acquiring properties that are in need of renovation, improving their value through rehabilitation, offering them for lease to generate rental income, and then refinancing the property to access the equity for future investments.