We go through an extensive underwriting process which incorporates rent growth projections, expense projections, vacancy, capex needs, financings, market projections, and other variables to determine if the deal is worth pursuing

We then review deals that meet our “buy box criteria”, which include location, property vintage, number of units, purchase price, business plan, exit strategy, and investor return targets, and make a determination on if we want to make an offer to purchase and at what price

For deals that we feel would be great investments and addition to our portfolio, we submit an LOI – typically through a broker or in some cases directly to the seller.

When an LOI is accepted by the seller, we “go under contract” and start negotiations on the Purchase and Sale Agreement (PSA).  The PSA establishes the terms of the purchase such as length of time to close, due diligence, financing terms, etc.

Our property acquisition process includes extensive due diligence.  Not only do we do extensive inspections of all unit interiors, electrical systems, plumbing, roof, HVAC, appliances, and exterior condition, we also inspect bank statements, financials, contracts with Landscapers, trash companies, etc.  It is extremely important to verify that not only is the property in good physical shape and that our CAPEX budget is on target, but also to verify that the rent collections and expenses that the seller has provided us are accurate.

Once due diligence is underway and if things are looking good, we will start the fund raising process, and open the investment up to select investors, friends and colleagues.

We typically will do one or more webinars to present the investment to interested individuals

Interested investors will sign a Subscription Agreement along with a few other important documents and then send funds which will be held for closing.  If for some reason the deal falls through, these funds are returned to our investors.

Once the transaction has closed, our Property Manager officially takes over.  All tenants are notified by this time.

We work closely with our PM to execute our business plan.  This may include one or more CAPEX projects, rent increases, dealing with non-paying tenants, and optimizing expenses.