MULTIFAMILY INVESTING EDUCATION
STEPS IN A MULTIFAMILY INVESTMENT
We focus our purchases in the SOUTHEAST which has strong middle-class employment and a growing population.
Complexes ranging from 50 - 250+ Units
Class B and C
Rents below market average
ACQUISITION
ACQUISTION
Upon purchase, we perform any deferred maintenance, upgrade units and exterior in order to increase rents. A skilled third party property manager to improve operations and reduce operating expenses.
VALUE - ADD
VALUE - ADD
Once the property is stabilized and generating greater income, it appraises at a higher value allowing us to refinance it, returning our investors initial capital, while still providing a steady cash flow, or 1031 exchange it for a bigger property.
STABILIZE
STABILIZE
Stabilized, cash flowing property is attractive to institutional buyers including REIT’s, institutionalized investment firms, or investors looking for real estate investments to diversify their investments. We typically plan on a 3-5 year exit strategy but may hold some properties for long-term cash flow.
DISPOSITION
DISPOSITION
HOW INVESTORS MAKE MONEY
Income from the properties is distributed quarterly
CASH FLOW
CASH FLOW
APPRECIATION
APPRECIATION
Unlike single family homes, a multifamily apartment syndication is a business valued primarily by its Net Operating Income (NOI), not property comps. Through physical and operational improvements, you can increase the value of the property by increasing NOI.
AMORITIZATION
AMORITIZATION
Revenue from operations & rental income pays down the debt on the property, which in turns builds equity for investors
DEPRECIATION
DEPRECIATION
Revenue from operations & rental income pays down the debt on the property, which in turns builds equity for investors
DISPOSITION
DISPOSITION
Lump sum payouts at time of sale or refinance
Why Invest with Four Oaks?
Passive
Income
As a passive equity investor you'll receive consistent income distributions directly to you bank account
Lucrative ROI's
Targeted Returns:
14%+ IRR
8%+ COC
2x+ ROI
Recession Resilient
Avoid the cyclical nature and unavoidable risk of standard equities. Invest in tangible assists that perform in all market cycles
Tax Benefits
Every investment involves the creation of it's own LLC of which you the investor are a shareholder allowing for pass-through depreciation of the assets providing significant tax benefits
Funding Options
Investors can use CASH
Self-Directed IRA's
Solo 401k's
Simple IRA's
Trusts
or
LLC's
INVESTMENT TYPE
Multifamily apartment complexes that are under valued or have been poorly managed creating a value-add opportunity
TARGET MARKETS
The Southeastern United States:
Affordability, Rapid Population & Infrastructure growth matched with landlord friendly regulations.
PROJECTED RETURNS
15%+ AAR
(Average Annualized Return)
HOLD PERIOD
Typically 3 - 7 Years
WE FOCUS ON VALUE-ADD REAL ESTATE
Four Oaks' strategy is to capitalize on favorable demographics and supply/demand in metro areas in the SOUTHEAST through the acquisition of Class B and C multifamily assets.
Our objective is to enhance the value of investments through extensive renovations, while maximizing returns to investors and providing residents with an improved quality of living.
We target assets with highly desirable locations in close proximity to large employment centers, major thoroughfares, public transportation access points, public schools, retail centers and grocery stores.
The end result is affordable, high quality properties, in desirable locations, that are acquired at a discount relative to market.
WHY CLASS B & C APARTMENT COMPLEXES
Class B and C properties have experienced an increased demand as rising rates have pushed renters towards more affordable options. And as the wage gap and income disparity across the country builds, aggregate demand for Class B and C properties is also expected to increase.
Need for these assets exists regardless of economic cycles. In tougher economic climates, Class A- and B+ renters may be forced to trade down to Class B/C multifamily. Newer/younger entrants to the renting pool also tend to look for value properties. B/C class fills needs in both robust and weak economic cycles.
No new “B” & “C” class properties are being built for working-class individuals. When new apartment complexes are built, they are inherently class “A” properties with a corresponding higher rent.
These complexes are typically older and offer the chance for value-add renovations that we require in order to increase cash flow potential.
INVESTING IN REAL ESTATE WITH A
SELF DIRECTED IRA
You can use your retirement funds to open a Self-Directed IRA (SDIRA) account with Rocket Dollar to invest with Four Oaks Capital. Rocket Dollar makes it quick and easy to signup online, backed by the simple and transparent price of $15 per month (regardless of the amount of assets or number of transactions) and a one-time set-up of $360. You can utilize the code FOUROAKS to take advantage of $100 off.
You will maintain all benefits of a typical retirement account, and if you are self-employed you may qualify for the Self-Directed Solo 401(k), which offers tax deferred contributions up to $56,000/year. For more information take a look at Rocket Dollar's Knowledge Base, schedule a call or signup online.
WHY WE USE ROCKET DOLLAR
-The fees are about ⅓ of your traditional Self-Directed IRA custodian
-The fees are pulled from your credit card as opposed from being pulled from your IRA account
-We at Four Oaks Capital appreciate intuitive design
-They offer our investors $100 off the set-up fee with code FOUROAKS
