Our Acquisition Process

Designed to ensure that every property we invest in meets our buy box criteria. Our approach is methodical and data-driven, allowing us to identify and secure properties that align with our strategic goals while minimizing risk and maximizing returns. Below, we outline the key steps in our acquisition process, from initial identification through to final acquisition.
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Deal Sourcing

Overview

Deal sourcing is a critical piece of the investment process. If you are unable to source quality deals at a reasonable pace, you will likely fall short of your investment goals.

Screening

We review each potential property and screen against our buy box to ensure it aligns with our strategic goals. Properties that meet our criteria move on to the next stage of the process.

Market Analysis

We conduct comprehensive market research to identify properties that fit our criteria. This includes analyzing market trends, neighborhood dynamics, and economic indicators to ensure the property is located in an area poised for growth. Even though our buy box is already in a focused area, it's important to take into account any micro economics that may come into play. Whether a deal is good or bad, can vary even at a street level, so we take our time on each opportunity and ensure we are make the right acquisitions.

Lead Generation

We leverage our extensive network of local brokers, real estate agents, and industry contacts to source off-market deals that meet our buy box requirements. This is one of the biggest benefits to having a clear set of deal requirements. Agents get paid on commision and will do the hunting for you, but they won't be able help if you can't articulate what you are looking for.
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In-Depth Due Diligence

Overview

Due diligence and underwriting are a critical components of our acquisition process. During this phase, we conduct a thorough review of the property to assess its condition, value potential, and risks.

Physical Inspection

We perform a detailed inspection of the property to assess its current condition. This includes evaluating the structural integrity, mechanical systems, and any necessary repairs or upgrades.

Financial Analysis

We analyze the property's financials, including current income, operating expenses, and potential for income growth. This helps us determine the property's current value and forecast its future performance.

Market Comparisons

We compare the property to similar assets in the market to ensure it is priced competitively and offers strong potential for appreciation.

Legal Review

We conduct a comprehensive legal review to identify any potential issues, such as zoning restrictions, title defects, or environmental concerns. This step ensures there are no hidden risks that could impact the investment.

Tenant Analysis

In rare cases where we consider purchasing a property with tenants in place, we conduct an in-depth review of the tenant mix, lease agreements, and occupancy rates to assess income stability and growth potential. We also tour the property to observe how tenants are living or operating, as this often indicates the quality and reliability of the tenant base.
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Risk Mitigation and Strategic Planning

Overview

Once due diligence is complete, we assess the risks and develop a strategic plan for the property.

Comprehensive Risk Assessment

We begin by thoroughly evaluating all potential risks associated with the property, including market conditions, physical condition, legal factors, and financial stability. Our goal is to uncover any factors that could negatively impact the investment and develop strategies to address them proactively.

Value-Add Strategy

With a clear understanding of the risks, we develop a customized value-add strategy tailored to the specific property. This plan may involve targeted renovations to enhance the property's appeal and functionality, rebranding to attract a different tenant demographic, or repositioning the property within the market to boost its income potential. We focus on strategic enhancements that deliver the highest return on investment while minimizing risk. By targeting distressed properties, we can efficiently allocate resources, ensuring that we invest only what is necessary to achieve current market rate rents, maximizing value without overspending.

Exit Strategy

We outline a clear exit strategy for each property, whether through sale, refinancing, or long-term hold, ensuring a well-defined path to realizing returns for our investors. Depending on the property's specific needs and market conditions, we may even opt to sell the property before completing all value-add improvements if it maximizes returns. Our primary focus is on delivering the highest possible returns to our fund investors, and we model various scenarios to determine the most effective exit strategy that will generate the greatest amount of capital.
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Final Decision and Acquisition

Overview

After thorough due diligence and strategic planning, we make a final decision on whether to proceed with the acquisition.

Investment Committee Review

Our investment committee reviews all findings from the due diligence process, as well as the proposed value-add and exit strategies. Only properties that meet our strict criteria and align with our investment goals are approved for acquisition.

Negotiation and Closing

Once approved, we enter into negotiations to finalize the purchase. We work to secure favorable terms that enhance the investment's potential. Upon agreement, we proceed with the closing process, ensuring all legal and financial requirements are met.
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Post-Acquisition Integration

Overview

Our work doesn't stop at acquisition. Once we have secured a property, we immediately begin the process of integrating it into our portfolio.

Renovation and Improvement Coordination

We begin implementing our value-add strategy, starting with any necessary renovations or upgrades. Our goal is to enhance the property's appeal and profitability as quickly as possible.

Property Management

We integrate the property into our management systems, ensuring it is operated efficiently and in line with our standards. This includes leasing, tenant relations, and ongoing maintenance.

Performance Monitoring

We continuously monitor the property's performance against our projections, making adjustments as needed to ensure it meets our financial goals.

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