I was recently asked at a commercial real estate function, what are your strengths? What is Ten15 Capital good at? I jumped at the opportunity like Tom Cruise jumping on Oprah's couch!
Today we will be exploring our core strengths:
Operating An Asset
What are we good at?
Sourcing Deals: We are ninjas when it comes to sourcing deals. We have a seemingly endless flow of off-market deals that our team is constantly reviewing. This is happening right now, in the middle of one of the most historic Seller's markets. At the time of this blog post, we are actively engaged on more than 10 off-market properties at various stages of negotiation with one under contract.
Underwriting: We are ninjas when it comes to underwriting deals. What is Underwriting? Underwriting multifamily deals is the process of analyzing all of the income and expense streams for a property and looking for opportunities to improve of them. We also look for any and all abnormalities, like high repair expenses or inconsistent collections. Once we have collected all of the data, we analyze it through our financial model to determine what our maximum purchase price could be to achieve our target returns.
Our analysis is thorough, and our spreadsheets are detailed with custom formulas that would make Elon Musk proud. And here is the kicker... we are STRICT and LOYAL to our ethics and standards. This means we are not jumping on a deal for the sake of getting a deal. If the numbers don't meet our returns standards, guess what... NEXT!
Raising Capital: Through our funds, we have deployed several million dollars of equity capital into real estate deals. This comes with great trust and great responsibility, but more importantly for me, it comes with a sense of duty. We invest right alongside our partners, meaning we have skin in the game. This, along with our strong ethical track record, gives our investors the confidence to deploy capital with us.
Sponsorship: Having been sponsors on millions of dollars in multiple commercial loans, we have built a profile within the lending industry and have the best leverage available to us. Banks literally compete for our business.
Operating An Asset: Using charts to track income and expense trends, weekly meetings with a focus on executing the Business Plan and a keen eye for innovation, our Asset Management game is top notch. Before we close on a deal, our Due Diligence team does a full scrub on the financial and physical aspects of the property. The team does multiple studies to determine where the market rents are, and how we can improve on it. Once we have a property under our Asset Management team, we are immediately looking for ways to improve the income and reduce expenses, all while making the community desirable for our residents.
Our top goals for Asset Management:
Maximize Risk-Adjusted Returns
Our investment opportunities average 6-10% annually, with the opportunity to significantly increase that with the participation of the upside on the sale. This would push the return averaged around 15-20% annually, typically.
What is Asset Management? And why are we so passionate about this often overlooked, yet vitally important piece of the investment? This is our bread and butter. This is where we provide tremendous value. This is where I personally have over 18-years experience in, and have absolute passionate for.
Why is this overlooked? Most people think that the Asset Manager's job is to manage the Property Managers. They are completely missing the boat. From sitting in a lot of these Asset Manager and Property Manager calls, I have discovered that most investors sit there and allow the Property Manager to report to them and basically run the meetings. They are being managed by the Property Manager.
What is the Asset Manager's role? Stay tuned!
We are Ten15 Capital, and we are innovating the world of real estate investing via apartment complexes. We create lucrative opportunities via syndication or joint venture projects.
To learn more, please go to our website: www.Ten15.co