Proven Approach
Multi-family investment involves pooling funds from multiple investors to invest in a multi-family property collectively. Throughout the process, AAIG Capital communicates with investors, providing regular updates, financial reports, and transparency regarding the property’s performance. Investors benefit from our expertise and professional management while diversifying their investment portfolio and earning attractive returns from multi-family real estate.
Here’s how it works in a nutshell:
The Opportunity:
AAIG Capital, through its network of brokers and sellers, identifies a viable multi-family property investment opportunity. A legal entity, such as a limited liability company (LLC), is then created to serve as the Investment entity.
Investor Participation:
AAIG Capital presents the investment opportunity to potential investors, offering shares or units in the Investment entity. Investors contribute capital to this entity based on their desired investment amount.
Property Acquisition:
Once the necessary capital is raised, the entity uses the pooled funds along with bank financing, to acquire the targeted multi-family property. AAIG Capital negotiates the purchase, performs due diligence, and completes the transaction.
Asset Management:
Next comes the responsibility of managing the multi-family property. This includes overseeing property operations, tenant management, rent collection, maintenance, and other day-to-day activities. The goal is to maximize income, control expenses, and most importantly increase property value to yield maximum returns over the life of the investment.
Distribution of Returns:
Multi-family property generates rental income, the entity distributes returns to investors based on their ownership percentage. These returns typically come in the form of regular cash distributions during ownership and operation of the property and a large lump sum profit, due to property appreciation, upon sale and disposition of the property.
Exit Strategy:
Typical exit strategy, involves selling the property at the most advantageous time for a profit after a certain holding period or refinancing to leverage equity. Lump sum proceeds from the sale or refinance are distributed among the investors according to their ownership stakes.