Investment Property

We partner with investors to build and renovate investment properties. A number of factors have combined to create perfect conditions for acquiring an investment real estate portfolio. Because of today's economy, investing in real estate is a smart hedge against inflation. Build to rent investors can build properties that generate immediate income and long term appreciation.

Building new or completely renovating avoids the headaches of maintenance surprises on older homes.

The costs to build include: management & design fees, land costs, actual sticks and bricks construction cost, and the regulations. With those costs established, we determine factors including: appraised values and future appreciation as well as rental rates and cash flow for units that will be rented. 

We also provide property maintenance services for owners who do not wish to handle the day to day tenant interaction and customer service.

Contact us today to discuss your plans and goals for building your real estate portfolio. 

What Does Capitalization Rate Mean?

A rate of return on a real estate investment property based on the expected income that the property will generate. Capitalization rate used to estimate the investor's potential return on his or her investment, This is done by dividing the income the property will generate (after fixed costs and variable costs) by the total value of the property. 

Capitalization Rate = Yearly Income/Total Value

Also known as "cap rate"

Investopedia explains Capitalization Rate

Capitalization rates a good jumping-off point to quickly compare many investment opportunities, but it should not be the sole factor in any real estate investment decision. Many more factors need to be looked at such as the growth or decline of the potential income, the increase in value of the property, and any alternative investments available.

For example, if Stephanie buys a property that will generate $125,000 per year and she pays $900,000 for it, the cap rate is: 125,000/900,000 = 13.89%

But it gets a little more complicated. What if the property's value rises to $2 million two years later? Now the cap rate is less favorable 125,000/2 million = 6.25%. This is because Stephanie could potentially sell the property for $2 million and use that money for an alternative investment.