Invest Passively in Large Multifamily CRE
Enjoy the Financial Benefits of Real Estate, and
Focus on Your Career.
Why invest in multifamily CRE?
Perhaps, you’re pondering on why to invest in commercial real estate (CRE), when there is so much uncertainty in today's markets. Hear from the experts why…
Click on the links below.
According to what I have seen and a variety of reputable sources, real estate prices are projected to go up at least 8%-15% in the coming year. There is simply too much demand and not enough supply. Higher rent prices are also expected, which means that both single-family homes and multifamily properties can be great investments. I don’t see this trend stopping any time soon, especially while the pandemic is still going on and while interest rates are still on the lower side.
- Forbes, February 2022
Predictions For Multifamily Investments In 2022
- Wall Street Journal, January 2022
“Covid Fuels Best-Ever Commercial Real-Estate Sales”
- Forbes, December 2020
“Resilient Multifamily Sector Holding Strong During Pandemic”
Stabilize
Your Portfolio
Diversify
Your Investments
Enjoy
Tax benefits
How It Works:
Our Investment Strategy
ACQUIRE
(Year 1)
We identify solid investment opportunities in strong markets – generally a 60 to 100+ unit, Class B or Class C property.. Then, we’ll make the investment opportunitiy available for you to invest as a Limited Partner.
The General Partnership team (us) invests alongside Limited Partners (you and other investors) as we pull funds together to purchase the property.
STABILIZE
(Year 1 - 3)
By streamlining operational expenses, increasing rents, raising occupancy, and making renovation upgrades, we can increase the property’s value.
When the property is stabilized and the property value increases, we refinance and/or sell, and realize the appreciated value. Then, we distribute those funds to our investors (you).
EXIT
(Year 5 or 6)
Depending on market conditions, we will sell the property or refinance again to return all of our investor’s initial capital.
If refinanced, investors maintain initial equity and continue to receive recurring income from the cash flow.
Building Wealth
It’s the reason why we work. Investing prudently allows us to manifest our unique passions and retire with confidence. Whether your passion is financial, legacy-based, or philanthropic, being smart with your earned dollars allows potential to progress to the next level – whether in careers, life, or personal pursuits.
We focus on five steps to build wealth:
Sourcing, Analysis, Due Diligence, Operations, and Returns on Investment.
Sourcing
We primarily identify investment opportunities through commercial brokers and business partners. The markets we invest in consist of cities and metros with populations of 150,000+ in South central and eastern states. We look for strong, market growth indicators, and proven, markets that are business & landlord-friendly. And we typically source B or C Class apartments, with value-add opportunity, that meet or exceed our strict, conservative underwriting (financials evaluation).
Analysis
We thoroughly evaluate an immense amount of opportunities in our targeted markets with only a few qualifying for further scrutiny. This rigorous screening and data-driven approach ensures certain assets meet our conservative underwriting process. While there are over 100+ criteria studied, our concentration is on evaluating the existing cash flow of each property. We focus our evaluation on actual financials and pro formas.
Due Diligence
We pull together a team of real estate professionals to assist us in conducting due diligence. Together, we inspect and evaluate all financials and the physical condition of the property, on-site. We do so, in order to fully understand possible risks and identify potential value-add opportunities for our investors. We only go to the next step to purchase the asset, if it completely passes our scrutinized, evaluation process.
Operations
Our focus is on achieving the financial / business plan for our properties. We accomplish these goals by ensuring tenants have a desirable place to call home. This common-sense approach leads to foreseeable cash flow and appreciation. Our approach and method include key performance indicators (KPIs) which are concentrated on strong financials, occupancy, and quality standards. Through value-add strategies, we can increase the value of our assets by creating a greater net operating income (NOI). This is accomplished with strategies like reducing expenses, raising rents, and creating additional income sources from the property. Because transparency is our top priority, we provide monthly or quarterly reports to investors, to keep them informed on their investments.
Return on Investments
We concentrate on profitability for our investors. Therefore, we minimize the risks of diminished returns and focus on opportunities that increase gains. Investors receive distributions from the properties’ cash flow regularly. Typically, these are disseminated on a monthly or quarterly basis. Cash flow also drives revenue, which positions the asset for a profitable exit strategy for investors. We make asset improvements, where necessary. Looking ahead, we allow the next investor/owner ample opportunity to add value to the property, upon disposition (sell).
Identifying Opportunity
KMR Multifamily aims to make investing in multifamily commercial real estate simpler for our investors and partners:
- We select strong markets around the United States.
- We study & engage in those markets to locate value add investment opportunities.
- We develop a boots-on-the-ground team of industry professionals.
- We pull together a team of investors and work with lenders.
- We contract a third party property manager to operate the property.
- And most importantly, we ensure investor income and distributions occur first.
Secure a better future with KMR Multifamily Investments
Investor FAQs
What is a Syndication?
A syndication is a partnership where like-minded investors join together to invest beyond their individual capabilities. The syndication allows them to leverage each other’s resources and strengths (experience and expertise). Click here to learn more.
What Makes Multifamily Unique?
Supply and demand, economies of scale and historical risk aversion, and so much more! Individuals desire quality apartment housing across America, and people will always need affordable, quality housing! Click here to learn more.
Why Invest in a Multifamily Syndication?
Real Estate is an I.D.E.A.L. investment because of income, depreciation, equity build up, appreciation, and leverage benefits. Multifamily real estate is a highly tax-favored asset, offering significant advantages particularly through depreciation. However, we are not licensed to provide specific legal or tax advice. Please contact your tax advisor to learn more. You will receive a K-1 from the partnership every year.
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What is an Accredited Investor?
Some investments opportunities are open to ONLY accredited investors. To be an Accredited Investor, you must earn $200k per year individually, $300k per year jointly with your spouse, or have a net worth of over $1,000,000 (not including your primary residence). Click here for more details.
What is a Sophisticated Investor?
Sophisticated Investors have sufficient investing knowledge and/or experience to understand the risks associated with investing. While they may not be an accredited investor, they can understand an investment opportunity merits and risks of a project. Some investment opportunities are open to sophisticated and/or accredited investors. Click here to learn more details.
Do you invest in the property with your investors?
Yes, absolutely, we invest alongside our investors in our properties.
What is the Minimum investment?
The typical minimum investment varies; yet most often, it is between $25,000 to $100,000.
Do you accept foreign investments?
Yes, it depends, and if US Securities Law is satisifed.
How does investing affect my personal taxes?
Real Estate is a highly tax-favored asset, offering significant advantages particularly through depreciation. However, we are not licensed to provide specific legal or tax advice. Please contact your tax advisor to learn more. You will receive a K-1 IRS tax form from the partnership every year. Click here to learn more.
Can I invest through my entity, (LLC, Corporation, partnership, et cetera)?
Yes, we allow investors to invest through other entities (if the individual investors meet the SEC Requirements).
When do investors get paid?
Most investments pay distributions monthly or quarterly, yet this can vary based on the scope of the project. For example, some extensive renovation projects may delay distributions until the renovation phase is complete. Investors can also get paid after a refinance or disposition (sell) of the investment asset.
Can I use my 401k or IRA?
Yes. Again, check with your tax advisor for specifics. Many investors use Self-Directed IRAs and QRPs to invest. Some investors are able to convert old 401ks to a Self-Directed IRA or QRP and invest in syndications. Click here to learn more.
DISCLAIMER:
This information is being provided for general information purposes ONLY and does not provide legal or financial advice. The materials provided on this website or presentations and any comments or information provided by the individuals or presenters are for educational purposes ONLY and nothing conveyed or provided should be considered legal, accounting, or tax advice. Past performance does not guarantee future results.