One of the tenets of our mission statement is exceeding our clients’ expectations. We do this by a continuously scouring our target markets and being finely attuned to changing trends in customer behavior, needs, and demographics.
When we find a promising opportunity, we invest significant time and resources on screening, vetting, and thoroughly analyzing every deal before making our first call to investors. This means getting out of the office and assessing everything that is available to us prior to signing a contract and entering due diligence.
Additionally, we leverage our experience in all aspects of asset management and our network of preferred lenders, contractors, and service providers, to quickly act on promising deals. By strictly adhering to our budget and efficiently executing on our project plan, we deliver superior returns to our investors.
In an ongoing, iterative process, we scour our target submarkets in California and Arizona in search of attractive opportunities within our investment strategy and criteria. This process also involves being finely attuned to changing trends in the overall market and in customer behavior, needs, and demographics. The combined process allows us to identify “diamond in the rough” opportunities, while adhering to our strict investment criteria. Never leaving any stone unturned, we conduct site visits to examine each property’s true potential and investment viability. To us, this means getting out of the office, leaving the excel spreadsheets behind, in order to experience and evaluate a property first hand.
We invest significant time and resources in screening, vetting, and thoroughly analyzing every deal before making our first call to investors. This means that for every deal we share with you there were numerous others we have fully analyzed but ultimately decided not to pursue.
As part of this process we conduct comprehensive market research on the area surrounding the target property. We drive by the property during various hours of the day to get a sense of the target clientele and area safety. We tour similar units available for rent in the submarket to better understand the current rental rates, as well as level of interior finishes, upgrades, and common-area amenities offered. We analyze dozens of recently acquired properties in close proximity to the target, from fully stabilized to extreme value-add deals, to determine the realistic upside potential. We meet with vendors to estimate cost of repairs, improvements, and total physical condition, by inspecting as much as we can non-invasively prior to the complete inspection of all units, interiors and systems that will be conducted during due diligence. Generally speaking, we assess whatever can be assessed from the outside to help us establish our benchmarks and verify our initial assumptions for the project’s value plan.
Following a successful negotiation, and once under contract, we start a formal due diligence process. Our team of experts physically inspects all property systems and unit interiors. We analyze all leases and interview staff and cooperative tenants.
At this point we also get access to historical financial statements. Leveraging our extensive knowledge and internal database of property Key Performance Indicators (KPIs), we carefully audit the property’s income and expenses for any traces of material physical issues or inefficiencies.
When needed, we will renegotiate items relating to material issues that were found during the physical inspection, the financial audit, or municipal/zoning check.
Following the completion of the due diligence process, and once we decide to move forward and close on a property, we finalize the underwriting process based on our findings. We pick our preferred offer from the competing lenders and finalize the loan terms. Once we are satisfied with the chosen lender we give them the go-ahead to continue with their process - ordering an appraisal and surveys, completing their underwriting and approvals, and providing us with a final commitment letter.
We update our rental submarket research with newly available units and adjust our rental upside potential assumptions accordingly. We complete our business plan and bring our investors up to speed.
We handle all aspects of the acquisition process, from forming a new legal entity for the property, through escrow management, to taking over the property after closing. Our years of experience help us move through this process quickly and efficiently, avoiding common pitfalls.
At this point, once obtaining all renovation bids, we can finalize our project budget. Leveraging our buying power helps us ensure we stick to our budget.
This is the core of our project’s appreciation and the heart of our business. Our years of experience working on numerous projects have taught us how to identify and implement improvements, and importantly how to avoid over-improvements. This knowledge helps us get to the finish line without hiccups.
This means planning our project wisely and sticking to the budget. It means keeping enough working capital reserves to complete this phase without unexpected cash flow crunches that might create delays. It also means smart investments in improvements based on identifying market trends and future tenants’ amenity wish list, but resisting over-improvements. Ultimately, it means sticking to the plan, being efficient with resources yet fast on execution, and continuously delivering progress.
Having managed hundreds of real estate properties and thousands of units, we clearly understand the property manager’s point of view; we’ve been in their shoes. This gives us the unique ability to effectively select and work with 3rd-party property managers to optimize our portfolio performance.
We aim to maximize cash flows to our investment partners, while taking into account the capital needs of the property. Applying this approach, we create a higher quality property that in turn attracts higher quality renters, and appreciate our investment asset.
By properly maintaining the property, providing a high level of service, and catering to the needs of our residents, we get happy tenants, lower vacancy rate, faster appreciating asset value, quicker return for our investors, and lenders who are happy to work with us on future opportunities.
While sticking to our planned holding period, we continuously monitor market conditions to identify the right moment to unload a property.
We believe that a successful real estate investment should provide a certain level of cash flow throughout the life of the investment and appreciation at the time of sale. As such, our ultimate goal is to maximize returns for our investment partners, through focusing on optimal property performance and value appreciation.
