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Investment Philosophy

We select all the investments we present to our clients with extreme care.

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Acquisition Criteria

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  • Multifamily Residential Apartment Communities

  • Class B and C Properties

  • 20+ units

  • Year built: 1980’s or younger (preferred)

  • Individual H.V.A.C.

  • Pitched roofs (preferred)

  • High Cash on Cash

  • In high employment areas close to hospitals, universities, and major employers.

  • We look for properties in cities with population growth and job growth.

  • Target properties are in the $1-10 million-dollar range.

  • (We may purchase a property with a lower cash on cash return if there is a significant value play such as under market rents)

 

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Conservative Commercial improves the property by:

 

  • Implementing new leadership:

We hire a carefully screened and highly competent manager with many years of experience to improve operations, increase revenue and take care of the property.

 

  • We improve the property by:

Painting exteriors and interiors, upgrading common areas, upgrading bathrooms and kitchens, windows, doors, sidewalks, landscaping etc.

 By improving the property, we are able to raise rents, which increases the properties’ value.

 

  • Adding amenities:

When applicable, we add laundry, play grounds, make the property cable ready and offer Wi-Fi services.

 

  • Increasing revenue:

Once the property is improved we raise the rents to market rate.  Depending on the market and competition can we pass utilities to tenants if the property was paying for it.

 

  • Reducing expenses:

We introduce cost saving strategies such as LED lighting, motion sensors, thermostats, we improve insulation, water saving toilets, facets and showers.

We also clean and optimize the HVAC to improve heating and cooling efficiency, thus reducing heating and cooling costs and improving Net Operating Income.  By lowering expenses we increase the value of the property.

 

  • Re-Tenanting:

We launch an aggressive marketing campaign to re-tenant and improve the tenant base.

 

  • We Sell for top dollar:

At sale, investors receive their capital back and profits from appreciation and cashflow.

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