Realist Capital
Realist Capital

How it Works

Life Cycle

How it Works

There are five key stages in the lifecycle of an apartment investment. Finding the deal, due diligence, negotiation, management, and sale. In the first stage, investors focus on markets they understand, leverage their expertise, resources, and industry networks, and apply conservative analysis and assumption forecasts to identify potential investment opportunities. Once a potential deal is identified, due diligence follows to review and confirm that the investment aligns with the investors' goals. The negotiation stage involves securing contract terms, loan financing, and investor funds. In the management stage, the investors' team manages the asset and optimizes its performance. Finally, in the disposition stage, investors execute their planned exit strategy and distribute returns to investors and partners while planning for their next opportunity. Let's explore each of these stages in more detail.

1. FIND THE DEAL

• Focus on markets that we fully understand • Leverage our expertise and resources • Analyze with conservative analysis and assumption forecasts • If the deal meets our criteria, we place an offer for acceptance to go under contract

2. DUE DILIGENCE

• We review and confirm that we are getting what we are paying for by performing all the Financials revision, income, rent rolls, expenses, payroll, contracts, risks, value-add opportunities, shop comps, etc • Physically inspect the property, exterior and interior, unit by unit

3. NEGOTIATE

• Contract terms • Secure loan financing • Secure investor funds

4. MANAGEMENT

• Our team manages the asset optimizing the property’s performance and maximizing the value and return on the investment • Our Property Manager, who oversees the everyday leasing and maintenance of the property, reports to asset management • We publish quarterly financial reports • We issue quarterly investor dividends • We visit the subject property periodically • We encourage investors to come along to visit our properties

5. SALE OR REFINANCE

• We execute our planned exit strategy (usually at year 3, 5 or 7, depending on market circumstances) • Return of investor’s capital • Disbursement of equity gains to investors and partners • Plan the 1031 exchange for the next opportunity

Let’s talk! Ask any questions about our services or future opportunities.

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