More info here on our upcoming opportunity:
Memphis Apartment Fund – Overview
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Additional Details
History
Both operators of this fund have extensive experience as detailed here in our investor presentation, in Canada and the US, including numerous buildings in Memphis, TN. See more details here Memphis Apartment Fund – Overview
Ethics
Above Board Philosophy With No Inflated Going-In-Prices
We take great pride in our corporate philosophy of sharing a wealth of information with our investors and being very up front about investment prospects and performance. For instance, unlike many other LP offerings we do not inflate going-in-prices of properties we purchase and as such, the general partners do not make a return on investment until the limited partners do.
Investment Strategy
How We Historically Have Invested
- Focus on apartment buildings or mobile home parks (MHPs) because this real estate class is less volatile than the stock market or other real estate sectors, while having good upside plus built-in inflation protection. Keep door open to invest up to 25% elsewhere, such as in residential land development, when the price is right.
- Here’s more on why we choose apartment buildings.
- Look for buildings or MHPs in regional economies that are strong or expected to be strong in coming years, such as Alberta or select US states such as TS.
- Evaluate buildings or MHPs or apartment buildings for sale, sifting through the list over many months to find the best values.
- Purchase selected buildings or parks as good deals are found, typically with 25-30% cash down.
- Increase value of assets through prudent renovations, which support higher rents and resale values.
- Increase value of assets through expert property management, further supporting rents and resale values.
- Use cash flow from renters to maintain the asset and flow excess into the LP as available.
- Allow time for cash flow from rents paid to lower the mortgage debt on each building so that the LP owns more of each, and thereby increasing the value of its original investments outside of the increases in market value of the assets themselves.
- Allow time for local economic growth/in-migration/tightening vacancy rate to increase market value of assets.
- Periodically sell or refinance buildings or MHPs to produce investor profits, and at some point liquidate the LP and its assets for the same reason.
What is an accredited investor ?
What is an accredited investor ?
Security legislation in Canada allows multiple exemptions to invest into securities such as those offered by our firm. There are mainly five:
- Friend and family of the directors
- Close business associates of the directors
- $10,000 or under investments
- Offering Memorandum (OM) [this is currently unavailable in this PrestProp offering but maybe through Addyinvest.com which bought a ~18.5% slice of our last building purchase in Kimberley, BC]
- Accredited Investors
An accredited investor is someone that
a) has an income (for the last two years) of at least $200,000 or $300,000 with a spouse, or
b) has “financial assets” ie liquid securities or cash of at least $1M [ Please note: this excludes your personal residence and your business, say a dental practice], or
c) has a net worth of at least $5M
Liquidity & More information such as videos
Liquidity is usually limited and only available upon sale or refi of asset.
Liquidity comes at a premium, namely the securitization of a firm or real estate, through the stock market or a syndication. Liquidity also causes volatility and pricing frequently removed from real world value if publicly traded. This upcoming Memphis investment not designed to be a liquid investment. If you envision that you need the money before the 2.5 year exit target, this investment may not be for you. The underlying real estate usually carries a mortgage, with early discharge penalties and is an asset that needs upgrading and stabilization. The investment is designed as an alternative to the often very volatile stock market, specifically REITs, with a targeted higher return but it is far less liquid. It is based on REAL assets, where REAL people pay REAL money to us every month to live in REAL apartments with REAL appliances, called income producing real estate, usually apartment buildings.
Again this is a plan, and like any real estate offering this is subject to change and a plan, not a guarantee.
Some Short Videos
Please note that these videos do not provide investment, tax or financial advice ! These are only opinions. No return is guaranteed. Not every interested party is able to invest. Please contact an Exempt Market Dealer licensed to sell our products for financial advice.
Video 1: Why do we buy residential multi-family rental properties
Video 2: Profit Centers in Real Estate
Video 3: Alternative Investing 101
Video 4: Explanation of Target Return
Video 5: Explanation of Cash-Flow
Video 6: Risk of Mortgage Investments