Slide Invest with Us

Y Lifestyle Design & Management

We invest in multifamily real estate apartments to provide affordable, modern-day, comfortable living for our tenants and generate long term wealth with cash flow for our investors. We build an effective team of partners grounded in personal relationships and trust to solve problems, add value, and create mutually beneficial and profitable situations for all partners and investors involved. 

0
Lorum Ipsum
0
Lorum Ipsum
0
Lorum Ipsum
0
Lorum Ipsum

Adding Value to

Tenants

  • Provides safe, clean, and efficient living conditions for our tenants.
  • Renovates any deferred maintenance and create desirable living conditions.
  • Builds long term residents that result in higher occupancy rates.
  • Implements a professional management team with a focus on customer service.

Investors

  • Strive for cash-on-cash returns of 6%-10% and stabilized
    operating cap rates of 7% - 9% depend on location over the life time of investment.
  • Tax advantages through depreciation. Alternate ways to accelerate depreciation to a five to seven-year target. Lower tax rate for cash flowing passive income.
  • Equity through leverage – Control 100% of the asset with 25-35% capital down & tenants steadily pay down the mortgage. Forced appreciation by Increase of Net Operating Income (NOI) through property renovations, rent increases, and reduction of operating expenses.
  • Hedge against inflation: National Average Inflation Rate is comparable with National Average Rent Growth Rate.

Our Approach & Keys to

Success

General Acquisition Criteria

Size

30 - 120 units.

Class

B - and C Class properties (typically built between 1970 – 2000) located in B and/or nice C areas, preferably mom and pop motivated seller owned.
✔ Preferably brick property.
✔ Locations with large population of our niche tenant base (blue collar and retail workers).

Unit Preference

Mix of 1 or 2 bed room units. Preferably 2 bed room in majority.

Condition

Some deferred maintenance and light renovations.

Value-add

Must have upside potential from: under-market rents, opportunities to reduce expenses, and capturing additional income.

Cash flow

Must cash flow at acquisition using actual reported financials.

Investment

Life Cycle

STEP
STEP

Acquisition of Property

  • We find properties that owners are motivated to sell
  • We look at approximately 50-75 deals to find one property that meets our strict buying criteria.
STEP
STEP

Reposition of Property – Increase Attractiveness

  • By performing necessary cosmetic and physical upgrade, and providing affordable modern-day amenities. Capital expenditures as well as all improvements are factored into the acquisition price.
STEP
STEP

Increase Occupancy at Market Rate – Increase NOI

  • Vacant apartments will be rented at current market rates ensuring that the property is maximizing its cash flow potential.
STEP
STEP

Implement RUBS - Decrease Operating Expense

  • Ratio Utility Billing System fractionalizes the utility payments so that tenants are responsible for paying portions of the utility usage, this also increases cash flow.
STEP
STEP

Re-negotiating Service Terms – Decrease Operating Expense

  • Re-negotiating better terms on contracts with all service providers (i.e. landscaping, lawn care, waste management, pest control, etc.).
STEP
STEP

Raise Remaining Rent – Increase NOI

  • Property Improvement justifies rent increase, especially for below market rents.
STEP
STEP

Refinance Property based on increased Value

  • Commercial property value is determined by the cash flow it produces, we are able to control (increase) the property value by raising gross income (rents) and lowering operating expenses.
  • We will refinance to pull out equity in the property. The equity is distributed to investors to return their capital invested and may be used to reinvest into another property where the same cycle starts over. After investors receive their partial or full capital investment back, the ROI is much higher or even infinity.
STEP
STEP

Repeat the Process for next deals