Why Invest?

“Talent wins games, but teamwork and
intelligence win championships”
– Michael Jordan

Real estate syndication provides purchasing power for a group of investors. It is an effective way to purchase bigger, higher-quality properties than each person could afford alone. Commercial properties like multifamily apartment complexes and self-storage provide investors with smart options to earn passive income and build wealth while leaving the heavy lifting to a team of professionals.

Our Process

Target Market
A very crucial aspect when investing in real estate is to understand the market where you are going to invest. The markets that are going to perform best have strong economic fundamentals. Things to consider are the number of people moving into the area, job growth, household formation numbers, in addition to, diversity in industry sectors, among other factors. Our team focuses on primary and secondary markets within the Sunbelt, as well as, Phoenix, AZ.

Sourcing and Finding Assets
Our team at passiveinvestorpro.com works endlessly during the acquisition process to source and find assets through strong broker relationships in our selected markets. We also gain access to off-market deals through ongoing communication with our brokers and partners.

Underwriting
Our team analyzes current financials and uses conservative risk drivers to forecast asset performance through our financial underwriting model. This process allows us to:

• thoroughly scrutinize the asset’s current performance and develop business plans to improve net operating income
• understand risk factors associated with the asset and formulate plans to mitigate those risks
• stress testing to understand the break-even point in terms of how low occupancy level can go before the asset breaks even in generating net operating income to cover debt service (principal and/or interest)
• project conservative exit returns
• model conservative occupancy rate and rental rates relative to market comps
• model significant operating reserves to cover at least 6-8 months of no income in the event of catastrophic event and/or economic downturn
• model capex and repairs reserves to validate professional and property management estimates plus significantly more cushion
• engage with our lending partners for debt financing
• engage with our commercial insurance partners for pricing indications

Touring Assets
Prior to submitting a Letter of Intent (LOI), our team tours all properties to vet the asset, tweak our underwriting assumptions, and then to make adjustments to our financial model as needed.

Touring assets provides us an opportunity to speak with the broker, as well as the property manager, and sometimes even the residents to get an overall feel of the asset. Touring assets also allows us to capture any red flags and observe, in detail, any deferred maintenance. A picture is worth a thousand words. But when investing in real estate, seeing the asset in person is critical!

Behind the scenes, our team finds, underwrites, and pursues many deals prior to submitting an LOI. We may look at 1,000 deals, only to submit 10 LOIs, and perhaps only 1 LOI is accepted. Our rigorous and conservative underwriting guidelines ensure we are only pursuing a high-quality asset at the right price.

Advisory Board

Advisory Board

Portfolio