We are liquidating all our residential assets for commercial multifamily

Below you will understand why we are doing this

 

There are basically two options that are available for you to get into the commercial multifamily game.  Option 1 is you invest in someone else’s deal (limited partner) and Option 2 you invest in your own deal.  Below you will learn a little about each option.

• Option 1:  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 tremendously.  Make sure that you work with an operator whose goal is for you to do your own deal in the future and to partner with you on those deals. Typically, you can get into multi-million-dollar properties with as little as $25,000 dollars. 

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 15% Internal Rate of Return
•  20% Average Annual Rate of Return.

If you don’t know what this means don’t worry, check out my Newsletter or join my Facebook group and you will get all those questions answered. We typically partner with CS3 Investments   on limited partnership deals. We have gotten to know their leadership well and are being mentored by their president Carlos Salguero. We have invested in 2 CS3 deals this year one is a 30 Unit Luxury Town Home Complex in Manchester, Tennessee and the second one is a 216 Unit Brand New Apartment Complex in Elizabethtown, Kentucky.

• Option 2: You are a general partner, and you create your own deals.

The main key here is that you always keep your investors in mind and that you do what Warren Buffet says is the number rule of investing “Never Lose Money”.  Following that concept we don’t take unwarranted risks just to get a deal done.  We stick to the numbers and offer a price that make the numbers work.

We invest in stable or up and coming markets, in landlord friendly states, with a goal of providing our investors

• 5%-7% Cash on Cash
• 15% – 20% Internal Rate of Return
• At least 20% Average Annual Return

We also only invest in Class A or B properties.  We understand that Class C offers a lot of value-add opportunities to make money but the risk to us is just not worth the reward.

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.  Below you will see exactly what our Buying Criteria is.

Buying Criteria

1. Sunbelt States Primarily (Alabama, Arkansas, Florida, Georgia, 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 5% Cash on Cash Return, 15% Internal Rate of Return, 20% Average Annual Return

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: