2-4 weeks

Market Research  |  Shop Rental Comps  |  Start Underwriting  |  Assess Value-Added Potential

The analysis stage of the lifecycle is where we begin our evaluation of determining the best use and highest potential of each property. We do this by reviewing detailed market research and shopping rental comps in the area of the subject property. At this point, we begin the underwriting process and the development of our “Dashboard” underwriting analysis. All of this is geared towards helping us assess the value-added potential of a given property.

2-6 weeks

Physical Inspections  |  Unit Walks & Lease Audit  |  Financial Inspections  |  Staff Interviews  |  200+ point Due Diligence Checklist  |  Shop Debt Term Sheets  |  Deal Committee Review  |  2-Year Budget

Our goal at this stage is to have a good handle on all material risks that could significantly impact the returns over our ownership timeframe. Once under contract, we dive deep, digging up all pertinent information. To get the best results, we conduct a thorough physical inspection of the property, walk each unit, and audit all leases. We scrutinize historical financial statements and interview the in-place property staff.

In all, we have a 200+ point checklist, which our dedicated team reviews, again and again, to ensure we have all our checks and balances in place. If a “go” decision is made and our terms are met, we proceed to the next phase: Acquisition – less than 4% of the properties we see make it through this stage.

30-45 days

Business Plan/PPM  |  Debt Terms Finalized  |  Entity Formation  |  Finalize Dashboard  |  Equity Funding  |  Develop Value Add Scope  |  Rehab Kick-off & Planning  |  Staffing & Take-over Prep

Once the decision is made to acquire a property, there are critical steps to close on it. We prepare and deliver a business plan, finalize debt terms, form an entity, and finalize our underwriting. We meet with our investor partners to help them understand the project. We have a series of meetings to develop our value-add scope for the property, which includes meetings with our vendor partners to obtain bids to assemble our renovation budget and re-shopping the rental sub-market to verify and update assumptions. Before the acquisition, we’re making staffing decisions for the property and preparing for the takeover of the property.

1-2 Years

Takeover & Transition  |  Renovate & Reposition Asset  |  Frequent Renovation Meetings  |  Property Management  |  Ongoing Site Visits

This is where the rubber meets the road and where the bulk of the value-add happens. Our dedicated team is focused on value creation, which to us means spending dollars wisely, ensuring we don’t over-improve, but being aware of market trends so that we are positioning ourselves for where it will be. This phase includes all of the activities included in the Asset Management phase.

We believe a successful real estate investment should provide some level of cash flow throughout the life of the investment. By maximizing a property’s potential, we can accomplish this goal, in addition to capital preservation and appreciation at the time of sale.

2-5 Years

Property Management  |  Review Performance Reports  |  Monthly Financial Reviews  |  Monthly Investor Updates  |  Conduct Site Visits  |  Quarterly Investor Statements  |  Annual K-1s/1099s  |  Generate Cash Flow

Our Asset & Property Management team takes a kaizen approach, where we focus on continuously optimizing the performance of the property and our portfolio. Our goal is to maximize cash flow to investors while balancing the needs of the property and the community. We initiate asset improvements through comprehensive strategies that enhance the resident experience through renovations, rebranding, and resident service.

3-6 Months

Prep Property  |  Select Broker  |  Market Property  |  Close Sale  |  Make Final Distribution

Our disposition strategy is to sell when market conditions warrant balanced with a predetermined holding period. We believe a successful real estate investment should provide some level of cash flow throughout the life of the investment in addition to capital preservation and appreciation at the time of sale. Where it makes sense, we love aligning ourselves with long-term investors who are comfortable with holding time frames of 5 to 10 years or more – and are interested in growing passive income. Our goal is to maximize investment returns for the owner by ensuring an appropriate capitalization structure while focusing on optimal property performance.