THE STRATEGY
The Strategy will focus on residential properties where values have dropped by 50% to 70% over the past two years. The objective of these acquisitions is to lease them into the local rental market to generate strong cash flow. By utilizing strong local property managers and our approach to actively manage and set benchmarks/parameters that ensure the highest performance, we will give our Fund a significant advantage over competing investments as we develop the ability to truly penetrate this market.
Another element of our strategy is to significantly upgrade all suite interiors, regardless of condition, to position our units as more desirable and thus rentable within a given development. This approach will not only improve income yield but improve vacancy levels.
The following steps are taken to identify, structure and execute the Strategy:
1) Strict criteria are utilized for identifying the most desirable properties that fit our financial model:
• Population and demographic trends.
• Price per unit vs. rental rate and net operating income.
• Employment/shopping corridors/transit accessibility.
• Proximity to schools/health care/employment centers.
• Target investor owned rental conversion condominiums.
2) The fund is structured as a mutual fund trust and a limited partnership to ensure transparency.
3) Utilize highly experienced management and ground team to execute the fund’s objectives. An extensive network of experienced professionals form an important part of our team.
EXIT STRATEGY
• The fund’s investment term is anticipated to be 6 years (please refer to Offering Memorandum “Item 1″).
• The primary exit strategy to maximize the return will be the sale of the individual units utilizing multiple sales channels.
• An alternative exit strategy would be to dispose of the complete portfolio or portions of the portfolio to an investment group.
• To support these exit strategies management would consider the placement of non-recourse financing on the portfolio to a maximum loan to value ratio of 60%. This option would be available to management once we have achieved a stabilized income stream and would return a significant portion of the initial capital investment.