Frequently Asked Questions
General questions about our company, investment opportunities, and properties we offer on this website:
- How do the proposed assets yield such strong Internal Rates of Return (IRR)?
- And why don’t you keep these opportunities for yourself?
- How do you typically finance a deal?
- How do you make offers on a property?
- How often do you add new investment properties in Southeastern U.S. to the site and Accredited Investors List?
Q: How do the proposed assets yield such strong Internal Rates of Return (IRR)? And why wouldn’t you just keep the best deals for yourself?
A: We cultivate relationships with the top Brokers and lenders in the Southeast to identify unique value propositions tied to underperforming assets. After we vet these opportunities to ensure they meet our buying criteria, we find ways to improve the operations to yield better and more sustainable NOI. We make our investments work because we negotiate with the sellers to create a good purchase point to ensure we provide excellent yields (IRR) within the exit strategy of the acquisition. All while maintaining a conservative growth strategy that is backed up with market data, demographics, crime stats, employment statistics and other underwriting factors.
Q: And why don’t you keep these opportunities for yourself?
A: Real Estate is a team sport. In order to succeed, we need to always be learning and networking. We do not have any competition. That may seem arrogant but it is not. There is simply too much opportunity out there for any one investment group to handle, so we must leverage our capital appropriately and partner with others. By doing so, we all win. Our investors obtain the passive income they want in a sequre investment and we create an exit strategy that aligns with their strategies. In the end all parties cash flow and we can participate in more opportunities. We can scale accordingly.
Q: How do you typically finance a deal?
A: After we ID an opportunity/Asset, we call our our Financial Banking partners to underwrite the bulk of the financing. Typically anywhere from 70% – 80% of the acquisition price. At the same time, we solicit our investor base to invest the difference along with any additional capital we may need to improve the property in the short term immediately after acquisition. By doing this, we can provide our Limited Partners (LP’s) with a considerable amount of the equity as they also represent a good portion of the funding and to some degree the risk. To learn more about the specifics please reach out to us on our site, contact us today and we can elaborate further to provide insight and understanding of the basic waterfall financial components.
Q: How do I make offers on a property?
A: Simple, once we have finished our underwriting and the property meets our criteria we submit an LOI (Letter of Intent) to the seller or sellers agent and submit that to them for review. Sometimes we negotiate back and forth for a while but ultimately we either contract together or walk away as we are too far apart on price. Once we are under contract we typically need EM$ (Ernest Money) of about 1-10% to be sent over to the sellers closing attorney and then we have about 30+/- days of DD (Due Diligence) to asses the mechanical integrity of the asset. If all goes well with the inspections and appraisals we head to closing. So, from contract to close it takes about 45 – 60 days depending on how quickly the banks move.
Q: How often do you add new investment properties in Southeastern U.S. to the site and Accredited Investors List?
A: We’re always sourcing new investment properties… and add new properties to this site on a continual basis as well as continual networking to add investors to our database. So, check back often as our properties tend to sell very very quickly.