From dinner table chit-chat to media coverage, British Columbia’s exploding real estate market has been on the tip of everyone’s tongue for some time. But, what about the booming real investment opportunities south of the border?
With a burgeoning tech sector, Phoenix, Arizona, is on the verge of massive growth. The local government has committed to investing millions into office space and amenities for its growing population. People go where the jobs grow, and with every booming job market, comes an increased demand for housing.
In Phoenix, our partners at Western Wealth Capital are the community’s second largest multi-family owner. Investing in multi-family properties (apartment buildings) is often a very lucrative real estate investment strategy as this sector of the real estate market tends to be in highest demand.
By developing a repeatable, scalable and profitable system that has the potential to deliver double-digit investment returns for our clients. Here’s how it works:
Finding Underperforming Assets In High Growth Markets
We apply a proven business model to our real estate investments. Instead of simply relying on real estate prices going up to generate a profit, WWC strategy focuses on acquiring underperforming properties in markets it knows are booming due to job growth. WWC identifies properties that have under market rents, don’t show well and are located in high traffic areas close to emerging business centres. It increases their value by increasing the income through its value-add program and ultimately, generates a positive return on investment. Multi-family properties provide the scale needed to create exponential growth.
How We Transform Properties
Generally, our investment projects have a three- to five-year window. During this time, WWC does cosmetic “Goldstar” updates to the apartment units, raises rents to market rate, and installs washers and dryers. The WWC team oversees the project and tracks progress every step of the way to ensure it is on time and budget.
All the while, investors needn’t worry about managing tenants, vacancy or repairs on the building. This is all handled by WWC team.
In doing so, WWC increases the profits for our investors. It’s called the multiplier effect. For example, for every unit that is upgraded, residents can pay another $150 per month. For every washer/dryer installed, another $50 month. This would achieve approximately $270,000 in rent revenue per year for a 150-unit building. Based on a 6% cap rate using the income approach to appraisal that equals $4,500,000 increase in value.
No Mortgage Necessary
In partnership with WWC, we raise funds for investment properties through a Limited Partnership structure. Our investors contribute to the LP without having to acquire a mortgage or dealing with the headache of pre-approvals and rigid mortgage stress tests. WWC teams manage the financing and execute a proven process.
Maintaining A Human Connection
We love WWC approach to business. Janet Lepage, CEO of Western Wealth Capital, the mantra is, “We do business on human terms”. WWC focus is to create a nice place to work and live, so nurturing caring relationships with property managers and tenants is a major priority. We support those that care.
You get what you give. Every year WWC gives to its communities, “We Got Your Back”, a back to school program that provides 1,500 backpacks with school supplies for children in our buildings. Rent Free Christmas for one family in each community that needs a helping hand. This year WWC raised its own bar giving 3 families Christmas in a Box – rent free December PLUS gifts for the family.
After all, a healthy and happy community is great for residents, and, in turn, investors.
Interested in learning more about investing in multi-family properties? Call 604-764-5647 or book a webinar!