Private Money Partner Program
In developing markets, we purchase commercial real estate. They have a strong back end and generate good cash flow. We are willing to give you an equity position and are constantly looking for partners. We only invest in areas with a clear path toward development. We have used a wealth of information from the local chamber, the Economic Development Group, and the US Census Bureau to determine where we should be investing. In B and C areas with both a value play and a momentum play, we purchase B and C properties. We have many opportunities in this way to raise the value of our investment. Depending on where we enter the cycle, we typically aim to enter and exit a market within 3 to 5 years.
Types of Private Money Deals
Momentum Play
The properties in a momentum play already have cash flow at the time of
closing. You don’t need to do anything to prepare the properties for tenancy. Month after month, we and our partners benefit from the cash flow we generate after the closing by handing it over to our management company.
Repositioning Play
In a repositioning play, we upgrade both the building and the tenant base. As there will be little to no cash flow during the first year and there will never be a cash on cash return, this is a very risky investment strategy. We want to use any extra money to pay for construction costs, so the cash on cash return is still at zero. We will need to set aside the monthly income for these costs because construction costs can vary. Once the transaction is completed, we can provide the cash flow to the
investors.
We provide the following to our private money partner:
The Process
- We Find Seller
- Attorney Prepares/Reviews Docs
- Lender Provides the money
- We buy the house and rehab it
- We sell the apartments
- Investor receives Principle and Interest
The Program
