Learn why more and more investors are choosing to invest in multifamily over other asset classes
Multifamily real estate has typically returned higher risk-adjusted returns (12-18%) compared with the S&P 500 (8-9%), while being less volatile
Multifamily real estate has typically returned higher risk-adjusted returns (12-18%) compared with the S&P 500 (8-9%), while being less volatile
Investors in multifamily properties experience a dependable stream of cash flow without the burden of directly overseeing property management
Specialized tax treatment is applied to real estate investments, with the potential for significant tax reduction through techniques like depreciation and cost segregation.
Amid the current upward trend in interest rates, an increasing number of individuals are opting to forego home purchases and are instead turning to renting, driven by the essential nature of housing.
Investing in multifamily properties can serve as a valuable addition to your asset portfolio, providing enhanced diversification when compared to single-family homes or individual rentals.
We strategically acquire Class A and B multifamily assets in stable, landlord-friendly markets characterized by robust job opportunities and population growth. Our focus is on properties with unit counts ranging from 100 to 500, all designed to generate immediate cash flow upon acquisition.
We actively seek chances to enhance net operating income (NOI) through property renovations and operational efficiency enhancements. By collaborating with seasoned property management and construction teams, we continuously boost the value of our investments over the course of their lifecycle.
Every investment is subjected to thorough underwriting to ensure they align with our rigorous criteria and can withstand adverse scenarios. Our focus is on opportunities that promise a minimum projected return of nearly 100% within a 3-5 year holding period, an annual cash-on-cash return of at least 6%, and an internal rate of return (IRR) ranging from 15% to 18%.
Our team identifies investment opportunities that meet our stringent requirements and align with the interests of our investors. We engage in property underwriting, conduct comprehensive due diligence, and collaborate with construction teams, property managers, brokers, and lenders to develop a sound business plan.
We acquire the asset using capital raised from passive investors and secure financing from a third-party lender.
We implement our business plan, which often involves renovating both the interior and exterior of units, introducing new amenities, and enhancing operational efficiency. Typically, this process spans 1-2 years. In contrast, some business plans may necessitate minimal capital expenditure (capex), with the primary emphasis on optimizing leases and rental rates.
Upon successful completion of the value-add strategy, we leverage the increased property value through refinancing. This step allows us to return a substantial portion of the initial investors’ capital, maximizing their returns.
Our target is a 3-5 year holding period, and we aspire to sell within that timeframe when the right opportunity arises. This approach enables us to return the remaining investors’ capital, in addition to sharing the profits. On occasion, we may opt for another round of property refinancing.
LushMark Capital is a Wyoming-based private equity company specializing in real estate
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Please be aware that none of the content on this website should be utilized or construed as an invitation to sell or a request to purchase any stake in an investment. Any such invitation or request will exclusively be presented through the Confidential Private Offering Memorandum associated with the specific investment. Access to information about these investments is restricted to individuals who either meet the criteria as accredited investors as defined in the Securities Act of 1933, as amended, or individuals who possess a high level of financial expertise, enabling them to assess the advantages and risks of potential investments.