Learn how to invest in Class A Multifamily Properties like the ones above. 

Become a limited partner in someone else’s deal.

Here you put in your money with a proven operator, and you will get a return.  You don’t have to deal with the 3Ts “Tenants, Termites, or Toilets”. The operator manages all that. This is the best way to start the journey as you will learn a tremendous amount. You will understand the different asset classes, you will understand what a good market looks like, you will understand what the typical expense ratios are for each of the asset classes, you will learn things outside the box like what is the operator doing to add additional incomes, what is the business plan, how much can rents be increased. I highly recommend doing this before you go into step 2. 

Make sure that you work with an operator whose goals align with your and is managing the type of assets you are looking to buy. If you are looking to buy Class A assets don’t get with an operator who is doing Class C.  Also, if your goal is to run your own operation and do your own deal then look for an operator who is a mentor and is willing to teach you the game. 

• How can you invest and how much money do you need
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• Typically, you can get into a multi-million-dollar property with as little as $25,000 dollars.  Typically, the bigger Class A properties require $100,000 minimum investment.  You can invest in what is called a syndication where you own a percentage of the investors LLC that owns the property. The easiest way and how I got started was by using my retirement account and rolling it over to a self-directed IRA or 401k.  Once you have the account rolled over to a self-directed retirement account you can then use this to invest in these assets. The best thing is that there is zero tax penalty for rolling this over to a self-directed account. The returns from the investments grow tax free. 

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• What to watch out for

It is important that you have a very good understanding and knowledge of who the operator is, if they are investing in the deal themselves, and what have they done in the past.  We aim to get to know our operator on a personal level, know what their track record is, what they are trying to accomplish, understand the market the deal is in, the opportunity, the risk, make sure to have multiple conversation with the operator to understand how they are underwriting the deal, and make sure the opportunity matches your goals of investing in quality asset.

We at Del Val Investment Group are only interested in investing in the following type of multi-family properties:

• – Class A or B+ properties only 

• – At least 30 units or more
• – At least 5% Cash-On-Cash Return
• – At least a 2x Equity Multiplier

• What type of returns

• For Class A Properties with lower risk, you are looking for at least a 5% Cash on Cash return paid quarterly and at least a 2x multiplier of your money with a 10-year hold. That is to say that you should expect at least 5% year over year return on average and expect at least double your money invested in a 10-year period.

Before you try to manage your own assets. you should invest as an LP in at least 2 properties to learn what a successful operator is looking for and understand how they communicate with investors to ensure the provide fiduciary guidance to the investors’ money.

Here is our Buying Criteria for our own deal

1. Sunbelt and Midwest States Primarily (Alabama, Arkansas, Florida, Georgia, Indiana, Kentucky, North Carolina, South Carolina, Tennessee, and Texas) 
2. Landlord Friendly States 
3. Class A or Class B+ Properties Only
4. No Major Renovation Work Needed
5. 16 – 250 Units
6. Build After 2005
7. Solid Market or Market with Tremendous Potential 
8. Low Crime
9. Consistent Job Growth over the last 5 years with projected growth of at least 2% year over year for the next 5 years.
10. Projected Population growth of at least 2% year over year for the next 10 years
11. The numbers must work at least 5% Cash on Cash Return, and a 2x Multiplier

 If you have a deal you like for us to look over or if you like to start conversations on how we can work together. 

Please fil the form below:

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• We look for properties that are miss-managed or the current operator has not thought of additional streams of income that can be used to force the appreciation by increasing revenue at the same time we look through the expenses to see what the costs are and how we can reduce expenses.

We bring our own property management team to every deal we do this because we do not believe in 3rd Party Property Managers.  We feel there is a lot of cost with 3rd Party Property Managers and their goals typically don’t align well with ours.  Here at Del Val Investment Group, we aim at fostering a lifetime partnership with our investors.