Find high revenue growth potential properties in great locations. Key characteristics within target markets include recognizing emerging neighborhoods, future job and population growth, and potential tax-incentive zones.
BRE reviews hundreds of investment opportunities to find the very best deal. Each identified property goes through a rigorous underwriting process including a thorough market, economic, and property analysis.
Once BRE identifies an attractive property, BRE negotiates the purchase and financing, and then acquires the property. The company then raises capital from outside investors and implements its value-add strategy.
Through its value-add strategy, BRE maximizes the NOI through intelligent zoning, development, renovating and leasing of properties. BRE recognizes the property’s untapped potential and best use to increase profits for owners.
After maximizing the properties’ NOI, BRE typically accesses greater returns for owners during the sale or refinancing. Owners are paid back their principal investment and are projected to receive an annualized 12% IRR over the life of the project.
Why Multi Family
Economies of Scale
Multiple units are under one roof, which make property costs more efficiently distributed. This reduces operational costs, which in turn increases NOI and profit for investors.
Apartments are valued based on NOI. The properties’ NOI increases if rents increase or expenses decrease. BRE’s management and value-add strategy provide an improved NOI and forced appreciation.
Diversified Cash Flow
The risk of tenant default decreases by spreading it among multiple tenants. A single tenant represents a small percentage of overall income, and minor changes in occupancy should not significantly affect cash flow.
Government provides tax breaks for multi-family properties. Through the use of depreciation, 1031 exchanges and self-directed IRAs, you can have some of the most favorable income tax treatments of any asset class.
Multi-family real estate investing has proven to be one of the best asset classes for long-term wealth accumulation.
Apartments provide attractive terms with low cost and readily available debt financing from Government Sponsored Enterprises, such as Fannie Mae and Freddie Mac.