A SIMPLE STRATEGY

TYPE OF REAL ESTATE

There are various segments of real estate including: office buildings, medical buildings, warehouses, retail centers, regional malls, apartments, hotels and many others. Each type has a unique set of active variables that influence the level of risk and therefore the investors return on investment. Currently our focus is distressed multifamily apartments.

PROPERTY

Our investment strategy is mid to long-term.  We expect competitive advantages to be built right into our real estate. Our focus is on “distressed” real estate that usually has upside rental growth and compressed pricing due to deferred maintenance, or high vacancy rates.  These properties typically have been over leveraged and poorly managed.

VACANCY MINIMALIZATION

All of the above items as well as the rental price and the marketing and proper positioning of the project will greatly affect the market's view of our properties within the marketplace. The successful combination of all of the above items will have a significant positive effect on the occupancy levels of the project.

FINACIAL LEVERAGE

Financial leverage is an obvious tool for the enhancement of cash returns. However, there is a balance between returns obtained through leverage and the safety provided by sufficient liquidity to survive the inevitable slow periods within our economy. If we are successful in achieving the first five points above, it becomes prudent to reduce the leverage levels to create a safety cushion within the operating cash flow.