Most Critical Factors to Consider in a Syndicated Apartment Building Investment
The most critical factors to the success of a syndicated real estate deal are the market, the team, and the deal, respectively.
A good market is the single most important factor in a real estate investment. You can have a good deal in a bad market and there’s nothing you can do to make that property generate better returns. But, with a good market, you can have an average property and you can still perform. So, we stick to markets that we know are thriving and growing as this is the basis of the success of our investment.
We are firm believers that you must know the market where you invest in. For this reason, we only seek investments in areas that we fully understand. It is important to carefully analyze the economic trends as well as the supply and demand balance within each market. We currently focus on investing in apartment buildings located in Columbus, Ohio as well as Cincinnati and Indianapolis. From time to time we may partner with experienced operators that we trust to provide market insight on other states like Georgia, South Carolina, and Alabama.
The next most important factor is the team. We, as your deal Sponsor, dedicate all our resources to the optimal management of the asset and the successful execution of the business plan assessed during the acquisition phase.
Finally, the deal, we spend countless hours looking for deals, we then underwrite and analyze each one of them with conservative criteria and assumption forecasts. We tend to under-promise and over-deliver to be able to preserve capital to allow us to navigate through any black swan events.