Underperforming Real Estate
Buying underperforming real estate and improving the management is a common goal of all investors, and it is ours as well. However, every investor should keep in mind there are a limited number of properly priced underperforming assets; there are many well- managed successful projects that have a very good future. Therefore, we will be looking for good quality properties, both underperforming and well-managed.
Maximizing Market Potential
Markets are constantly changing. Our goal is to rapidly adjust to the marketplace to maximize the potential revenue. This is where the unique characteristics of storage and manufactured housing are so valuable. Every tenant is subject to a month to month lease, so rents can be adjusted monthly. Changes of just a few dollars are insignificant to most customers, but can have a huge impact on occupancy and revenue when thousands of tenants are involved.
Yields can be increased if the properties are refinanced quickly and a portion of the equity is returned to the investor. Our goal is to return a substantial portion of the equity investment within a 3-5 year period from the initial investment into a specific asset. Unlike most forms of real estate which have long term leases and relatively slow turnover, self storage leases are short term and allow for rapid turnover. During periods of strong demand, it is possible to implement increases in rental rates which can lead to higher property value. This, in turn, makes the recapture of the equity investment possible.
We believe our long time experience in the industry and a thorough understanding of how to add value will serve our investors well.