Our Strategy
We acquire undervalued and mis-managed multi family properties with the intention of adding value through renovations, branding and operational efficiencies. We by B and C class properties with significant upside potential in tertiary markets throughout the south eastern United States. Through this process we provide our investors consistent and dependable cash flow, favorable tax advantages and above average returns.
Our Process
Market Research
We have a meticulous data driven approach to evaluating and selecting only the best markets with a strong growth rate in both population job growth diverse employment environment, low vacancy and favorable crime trends that sustain growth potential. We further analyze the neighborhoods in the sub markets in these cities to ensure we are only selecting assets in highly desirable areas.
Due Diligence
We stress test all of our projects with incredibly conservative analysis to help protect against downside potential while maximizing returns through our value-add approach. We evaluate all worst-case scenario and perform robust due diligence over both the asset’s financials and physical condition leaving no rock unturned and nothing up to chance.
Value Add
Because we are so selective with our target markets, coupled with light to moderate renovations and re-branding, we are able to raise rents and increase the occupancy to increase the overall revenue being generated by the property. We then focus our efforts on lowering minimizing expenses through operational efficiencies. This three-prong approach to increasing our net operating income will force the appreciation of our assets and maximize investor returns.
Opportunity Sourcing and Equity Structuring
We leverage our strong broker and vendor relationships to find underperforming assets with high upside potential. We work with our capital partners on an ongoing basis to evaluate investment objectives to effectively establish our business plan and disposition strategy to achieve those goals.
Acquisition
We execute our acquisition in a timely and cost-effective manner. Then we promptly begin the execution of our business plan.
Exit Strategy
In order to capitalize on our newly created equity from the forced appreciation we are afforded with multiple exit strategies. We can either refinance and retain the assets which allows for long-term growth and appreciation or disposition the asset through a sale in 2 to 10 years depending on market conditions and our investors’ objectives.
How do our partners make money?
- Quarterly distributions of cash flow from property.
- Forced appreciation from increasing our net operating income which drives up the value of the asset.
- Debt pay down during the holding period of the property.
- Tax benefits arising from utilizing tactics such as cost segregation, accelerated depreciation and the potential to defer capital gains tax through 1031 exchanges.
- Large payout at refinance or ultimate disposition of the property.
Why partner with Crestworth Capital?
- Truly passive income.
- Attractive return on investment compared to other asset classes.
- Recession resistant returns not correlated to Wall Street.
- Limited liability.
- Tax advantages.
- Intrinsic value of real estate helps protect against the downside.
