Sticking to our criteria ensures the numbers always add up
There’s a lot of emotions involved with investing so we mitigate this with a sound process for evaluating potential investment properties. We could write quite a bit about the nuances of a deal but will instead provide a short list highlighting our current standards for a multifamily investment.
Potential apartment deals should…
- Provide an opportunity to add value through rent increases, unit renovations, common space remodels
- Have at least 80 units with a mix of 1 and 2 bedrooms units to allow for a diverse tenant population
- Be located in a neighborhood that’s on a path of progress for the market
- Deliver a projected rate of return that’s significantly more competitive to other passive options for our investors
- Be operated by a team who prioritizes investors and tenant experience
- Have a flexible and predictable loan structure to ensure multiple exit options during the 3-10 year investment period
This criteria ensures the type of deals we’re evaluating meet our baseline requirements. Some of our investors may ask, “Aren’t you missing out on properties that fall slightly outside your framework?”. To that end we’d explain we’d rather evaluate and present a handful of quality deals within our criteria than to potentially expose our team, including the investors, to properties that lay outside of our target composition.
Once our operations team has sourced the property and put it under contract, we comb through the details of the underwriting with our team before reaching out to our list of investors to discuss the deal with them.
Speak with us directly about our criteria and previous deals by contacting us.