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Strategy

With passive investing in multi-family and residential assisted living, you can build permanent wealth and generate consistent cash flow. Here is how we do it.

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The Beilke Investments’ Way

B-C

Asset Class

Units

$2M+

Transaction Size

%

Minimum Occupancy

We seek to reposition properties through tightening operational inefficiencies, moderate to extensive renovations, and complete rebranding.

Established as a premier multifamily boutique with nimble investment sourcing, structuring, execution, and asset management capabilities, Beilke Investments is a highly skilled and deeply focused real estate investment firm with the flexibility to scale and cater to investor preferences.

Our company assume a fiduciary approach to acquisitions and management of U.S. multi-family real estate investment opportunities. Our process is structured by a sound foundation of investment principles, comprehensive approach to every facet of the investment lifecycle, and the extensive “hands-on” expertise of our cycle-tested investment professionals.

From broad market research to investment sourcing to execution and eventual harvest, each Beilke Investments’ professional champions the values and rigors of the group’s investment process. We take an assertive approach to asset management in collaboration with our investment partners, which demands value creation and rapid de-risking of investments at the asset level and within the capital structure. The investment team leverages its rich experience to govern each investment with an owner, and fiduciary perspective to maximize proceeds through unyielding execution and tactical, timely disposition

Our Process

1. Assesment

1 Day – 2+ Years

Prescreen  |  Assess Opportunity  |  Drive-By  |  Track Potential Acquisitions.

 

During the assessment stage, we identify potentially viable properties and measure them against our strict acquisition criteria. We prescreen the property to ensure it meets certain basic requirements. Once assured of this we assess opportunities presented by the property that would make it appealing to renters. This is followed by a “drive-by” which lets us see firsthand the quality and potential of each property – it also supports our ‘gut check’ of the viability of a given potential opportunity. The last step in the assessment phase is tracking potential acquisition. In many cases, deals that may not work initially, return to us under different terms.

2. Analysis

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.

3. Due Diligence & Negotiation

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.

4. Acquisition

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.

5. Value-Added Rehab & Reposition

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.

6. Asset Management

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.

7. Disposition

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.

Infrastructure

Strategy

Reporting

Acquisition

Disposition

Client Relations

Financial Controls

Asset Management

Investor Communications

Business Development & Capital Appreciation