What we can offer:
We present written offers within 3 business days. Upon acceptance our professional staff
handles all of the details associated with Due Diligence. We close promptly, using private
funding or commercial / development financing. All brokers get paid a full-commission, and in
most cases they are retained as area experts in the purchase or sale of additional property.
What is our capability and scope:
Our corporation and partners now currently control and have closed on numerous properties
throughout the United States (over $40 million). The minimum property investment that we will look at is usually $1 million, with no cap on the maximum value.
Can you close quickly on distressed properties:
Foreclosure, Default, Distress, Deferred Maintenance, Clouded Title, Mechanics Liens, Tax Liens, Probate, Short Sale, Bankruptcy, Fire Damage, and Bad Tenants are not a problem.
If a project has good “bones” and is free from environmental issues, it can potentially be repositioned. We can fund and close a transaction as soon as we receive a satisfactory Appraisal, Environmental and Title Report – typically less than 15 days.
What type of investors do you work with:
Our network of investors are from around the world, and we do set up private syndications for larger projects with previous returns as high as 1,100%.
Green4Rent Holdings, LLC, founded in 2007, is a privately held real estate investment company that specializes in multi-family investments in growing real estate markets. Focusing on cities on the upward trend of growth and development, Green4Rent seeks out opportunities for maximizing yield and minimizing capital risk in upward trend markets.
Careful analysis of demand growth as well as economic indicators coupled with employment statistical data are some of the primary basis in initiating targets for multi-family investments though out any growing city within the US. The analysis and application of the standard industrial classification (SIC) codes, the North American Industry Classification Systems (NAICS), new permits for multi-family, key studies conducted by the Census Bureau and familiarity of the metropolitan growth/local trends has been the key variables in identifying target cities and submarkets.
Green4Rent Holdings, LLC is committed to the application of accurate data analysis for the purpose of minimizing capital risk for its investment partners.
Operating Strategy
Our operating strategy is designed around one unifying concept – a commitment to our investors. We strive to achieve operational growth through integrity and fairness. With our investors in mind, we work to protect and preserve capital, co-invest in assets and business, and implement creative operations solutions.
Green4Rent Holdings understand the necessity of controlling expenses to increase operating cash flow. Over the years, our growing portfolio has enabled us to create working relationships with vendors that help us achieve cost efficiencies in operating apartment buildings.
Our Management team will stay alert to quickly identify building repairs that will help improve the property without overspending. On the other hand, we realize that not spending enough on building repairs will compromise the long-term integrity (and value) of the building. Our staff understands the fine line between saving money and properly maintaining the property so that it remains a viable cashflow machine over time.
Under our management, a long-term holding strategy will be employed to operate the property. Therefore, all major repairs will consist of higher quality materials and workmanship. For example, any plumbing repairs will consist of copper and at the time of replacing the roof, we will install a four-ply, 25- year roof with a full warranty. Although these items may cost more initially, they will extend the useful life of the repairs and thus reduce overall operating cost per-unit per-year in the long run.
Since it is inherent in real estate for buildings to physically and functionally depreciate over time, a plan must be implemented to mitigate these inevitable decreases in building value. In order for us to maintain the building effectively, we will establish a capital reserve account, with calculated deposits coming from operating cash flows to cover anticipated future repairs. The reserve account should eliminate the need to re-solicit investment
funds from investors or borrow any additional money from banks as capital expenditures arise.
An important operating objective is to ensure a friendly atmosphere between tenants and management. The most important goal is to create a sense of community for the residents, amongst themselves and with management. This strategy will make it difficult for tenants
to leave friends behind, even though it may mean paying a little more to stay. Experience has taught us that the longer tenants reside in the same unit, the less price-sensitive they are to gradual rent increases over time. Creating a positive environment where residents feel a sense of pride in taking good care of their “home” will be a win-win situation for residents and investors alike.
Acquisition Strategy
Our primary goal is to acquire properties that meet certain basic criteria, as follow:
Property Type:
*Multi-Family Residential (apartment buildings)
*B or C Class properties (less subject to rent fluctuations, etc.)
Property Size:
*Too large for “mom & pop” investors (who tend to overpay)
*Too small for institutional investors (who require lower returns)
*Ideal range is approximately 75 to 200 units
Location:
*Mature cities with stable economies
*Supply-constrained rental property availability
*Minimal new apartment construction activity
*Improving geographic & demographic areas
*Higher-than-national-average population growth rates
Performance:
*Properties that have below-market rents (with room for increases)
*No ownership restrictions (eg: rent caps/rent control)
*Minimum 10% stabilized cash-on-cash returns (grows over time)
Properties meeting the above criteria are located by searching the market as follows:
1) Fostering a strong working relationship with select real estate brokers who specialize in multi-family rental property transactions
2) Searching databases that list properties for sale, including Multiple Listing Service, Loopnet, and PropertyFirst.com on a daily basis for new listings
3) Farming large databases of desirable properties, contacting existing owners directly on a regular basis, and presenting unsolicited purchase offers to those who show an interest in selling
For every property we submit a Purchase Offer on, you can rest assured that we have crunched the numbers on several hundred others and physically inspected all of the pre-qualified properties in person. Making successful real estate purchases requires a tremendous amount of legwork and is a highly competitive process.
After locating a particular project to buy, we thoroughly evaluate its income potential, overall physical condition, and positioning relative to the market. Once a property meets all of the above criteria, then we proceed with an offer to purchase.
Holding Strategy
Our goal for this project is to own the property for an indefinite holding period and realize the benefits of increasing cash flows over time by raising rents and controlling expenses, while maintaining the depreciable value of the building itself. As rental revenues grow and the land value appreciates, investors will also enjoy gains from the increase in market resale value when the time is right to sell.
Equity investors will enjoy returns from the property as follows:
1. Cash flows from operation of the rental property on a regular basis
2. Disbursements from future refinancing activities (if & when deemed appropriate)
3. Gains on the future sale of the property at a future peak in the market cycle
The first and foremost goal of every acquisition is to pay back the investors’ initial capital contributions in a timely manner. Green4Rent Holdings has designed an investment program that places investor interest first, with only a small portion of project cash flow being disbursed to Green4Rent Holdings until investors have recovered their capital contributions in full along with preferred annual rate of return. Thereafter, once the capital account is effectively $0, the general managing partner (Green4Rent Holdings) and the limited partner investors share in the long-term cash flow and ultimate gains from selling the property.
To setup a private investment meeting,
please contact
Marc Gold or Mark Milius
email us.
