Syndication
“I believe investing in cash flowing positive real estate may prove to be the best financial decision of your lifetime; I know it has been for me.”
-Grant Cardone (Net Worth 4.6 Billion)
Enhanced Wealth Educates, Partners, & Invests Alongside Our Investors, Ensuring All Decisions Are Made With Their Best Interest First.
HOW IT WORKS
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We Find Quality Multifamily Deals
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You Partner With Us
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We Implement Value-Add Strategies
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We Collect Rents
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You Collect Mailbox Money
CURRENT ASSETS UNDER MANAGEMENT
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VALUE
$259,300,000+
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UNITS
2,043
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STATES
Michigan, Texas, Arizona
Villas Del Zocalo Dallas, TX | 206 Units
Culebra Commons San Antonio, TX | 327 Units
Coventry Park Houston, TX | 128 Units
Dover Pointe Houston, TX | 168 Units
The Aspen Fort Worth, TX | 224 Units
The Oasis Apartments Houston, TX | 144 Units
McCallum Communities Dallas, TX | 419 Units
Glenwood Apartments Houston, TX | 60 Units
Polanco Apartments Scottsdale, AZ | 131 Units
Village West Apartments Niles, MI | 54 Units
Royal Wayside Houston, TX | 102 Units
Windsor Park Apartments Dallas, TX | 80 Units
WHY APARTMENT COMPLEXES?
CASH FLOW
After all expenses are paid, quarterly distributions go out to investors.
STABILITY
Multifamily is less volatile and continues to outperform traditional stock based investments.
TAX BENEFITS
Depreciation is a tax write-off that enables you to keep more of your profits.
LEVERAGE
You can leverage real estate, this allows you to buy a $10M property with only $2.5M.
AMORTIZATION
Residents pay down debt which creates equity, this leads to long-term wealth.
APPRECIATION
Forced appreciation through strategic value plays increase the overall value of the property.
Acquisition Criteria
The following criteria is used to identify undervalued multifamily properties for acquisition, value optimizations, management and disposition.
MARKET SEGMENTS
Age: The 18-35 year old market segment is 22% of the U.S. population
Income: Renters who earn $40,000 or more annually
Price: Where rent is 30% or less of the median income
Retiring Baby Boomers are scaling down and enjoying maintenance free multifamily living
PROPERTY CRITERIA
Multifamily residential apartments
Pitched roof construction preferred
Occupancy above 80% with the exception of properties that require renovation, providing properties are well located and present value-add opportunities
TARGET VALUES
Size and Price: 50+ units in the $4MM – $50MM range
Returns: 7-10% Cash on Cash, Minimum Debt Service Coverage ratio of 1.25
Type: C- to B+ properties located in C- to A areas
Property Vintage: 1975 or newer
Location: Emerging market areas with indicators for strong near and long-term economic growth
Emerging Markets
Choosing the “right” multi-family apartment complex to acquire is a critical aspect of Rush Capital Partners, LLC’s investment strategy. We are diligent in our exploration and focus on opportunities in emerging markets, where jobs and local economies are expanding.
EMERGING MARKETS ARE CHARACTERIZED BY
People moving in, rather than leaving the area
Jobs being created and moving in rather than lost
Rents and property values rising
Local government dedicated to attracting jobs
Markets starting to absorb oversupply
There are many indicators and a lot of research that goes into identifying an emerging market in the US. We start out by performing thorough market research that includes the following areas:
Job Growth Report
Population Growth
Path of Progress Reports
Local Economic Reports & Trends
Chamber of Commerce Reports
Acquisition Practices
Rush Capital Partner’s, LLC takes pride in building relationships with local listing brokers to get their “pocket listings” and access to other Bank Owned Properties (REO). Our searches include soliciting owners directly instead of waiting for properties to come to market.
Each asset undergoes a thorough due diligence process to confirm the physical and legal status of the property and to confirm valuations to ensure achievable investment strategies.
Early in the asset evaluation phase, the debt and equity financing strategy is developed based on a number of factors such as property type, magnitude of renovations, expected hold period and investor objectives. Each asset is typically held 5-10 years depending on its exact business plan.
INVESTMENT DISCIPLINE
Asset selection involves a systematic, routine evaluation to identify favorable demand characteristics, i.e., job and population growth, demographic shifts, supply absorption rates and positive local legislation.
Markets with supply constraints receive most favorable underwriting. Markets with signs of oversupply such as surplus land, changes in zoning and increases in building permits are avoided.
Value-Add Strategy
Think of it as a business rather than a building. The more income it generates, the more it is worth. When we purchase an apartment complex, we are looking for specific opportunities to increase the cashflow in different areas. These are called “Value Plays” or “Value Adding Components”.
VALUE PLAYS WE CAPITALIZE ON
Mismanagement cause by owner self-managing
Poor supervision of management companies
Deferred maintenance
High vacancies
Below market rents
Some examples of value-add plays we implement at Rush Capital Partners, LLC:
Improve curb appeal by improving landscaping, adding dog parks, carports, etc. Residents will pay more when a property is in better condition and has amenities.
Purchasing a property that is 10% or more under current market rents. This gives us the opportunity to increase rents and immediately increase the value of the property.
Implement a water and sewage bill-back system to charge the residents for actual usage. Most apartment owners pay for all the water. When we bill back the residents it helps offset expenses and increase the cash flow. Through this system residents tend to become more frugal and will decrease overall operating expenses.
Improve unit interiors with new paint, appliances, countertops, and floors
Adding a coin laundry facility to the complex
Below market rents
Path of Progress Strategy
A Path of Progress is where the greatest amount of building and development is currently happening, or soon to be.
A PATH OF PROGRESS IS WHERE:
Properties rapidly shoot up in appreciation
Majority of new construction is going on
Families and individuals are moving into the area
Investing in the Path of Progress yields the greatest returns in a short period of time.