INVESTMENT STRATEGY
The primary goal of AI is to preserve the initial investments of its investors while providing larger than normal cash on cash returns. We do this through investing in value add, B & C level multi family apartment buildings that are in emerging markets and position to appreciate in 3-7 years. We buy with the an exit strategy already in place. Historically, multi family apartment buildings have been the strongest and most reliable investment due to their ability to remain strong during economic uncertainty. When real estate markets crash, often multi family investments become more lucrative due to people’s desire to rent.
The trend speaks for itself. Millennials want to rent rather than own. Due to the lack of supply of multi family properties the future holds a rental market shortage which makes these properties more valuable and a more powerful investment vehicle.
Successful Investing comes down to 4 vital criteria: We need the right investor, the rightproperty, in the right area at the right time.
THE RIGHT INVESTOR
- Accredited Investors that earn $200,000/yr, a household income of $300,000 or have a $1,000,000 net worth.
- Investors that want to be part of a experienced real estate investment team
- Investors that that want to create financial freedom through real estate.
- Investors that understand the power of passive income
THE RIGHT PROPERTY
- Multi family properties that are 12+ units
- Mult family properties that range from $1MM – $10MM
- Multi family properties that have “Value Add” components leaving signification cash flow opportunity
- Multi family properties that are in emerging markets (great job and population growth)
- Multi family properties that have 80%+ occupancy rate unless properties need renovation and improved management structures
- Multi family properties that provided a 7-10% cash on cash return and a minimum DSCR (DebService Coverage Ratio) of 1.25
- Multi family properties that are in B+ down to C or sometime C- neighborhoods and condition.
THE RIGHT AREA
There are really 4 things we look for when going into an area:
- Job Growth: Is the local government committed to attracting jobs and making it easier for companies to grow
- Population growth: Are there attractive reasons why people would want to uproot their lives and families and move there.
- Rents are continually raising: Are rents continue to go up as more jobs are created and more people move into the area
- Property values are consistently going op: Property values are consistently going op: Have property values shown a consistent trend of increasing over time and with the other 3 above it is projected to continue.
THE RIGHT TIME
- Right before explosive growth is about to happen
- The area is in the middle of a steady climb
- Right before a large company is going to open up operations in that city creating more opportunities and more jobs
- When a property has deferred maintenance and poor management making the price lower and the opportunity greater
- Before a property hits the market
PATH OF PROGRESS STRATEGY
Acquisition:
We pride ourselves on the relationships we have built with brokers in strong and vetted real estate markets to get their “pocket listings” as well as partnering with banks to get access to banked owned properties (REO) that are far under market value. Each asset undergoes AI’s thorough and strong due diligence process to make sure it is the right property in the right area sat the right time.
How we work:
Selecting an asset is at the heart of AI’s success. As we say at AI “finding a property for sale is not our goal finding the right property in the right market is our goal.” After locating the right property we talk to investors, just like you, to see if the particular investment is right for and fits your investment goals. Identifying investors for us is not about looking for people that simply have the funds to invest, but rather share our philosophy and are the right fit for multi family investments.
Multi family investments is not a short term investment. It is a 3-7 year commitment that have payoffs north of 20% annual returns. This is a game of patient, methodical and meticulous investing. In the acquisition phase AI is looking for properties that can be sold in 3-7 years for an annual return of 15% or more.
MULTI-FAMILY REAL ESTATE INVESTMENTS
Enjoy passive real estate income without the hassle of management.
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No Offer of Securities—Disclosure of Interests
Under no circumstances should any material at this site be used or considered as an offer to sell or a solicitation of any offer to buy an interest in any investment. Any such offer or solicitation will be made only by means of the Confidential Private Offering Memorandum relating to the particular investment. Access to information about the investments are limited to investors who either qualify as accredited investors within the meaning of the Securities Act of 1933, as amended, or those investors who generally are sophisticated in financial matters, such that they are capable of evaluating the merits and risks of prospective investments.