INVESTMENT STRATEGY
The primary goal of HCI is to preserve the initial investments of its investors while providing larger than normal cash on cash returns. We do this through investing in value add, B & C level multi family apartment buildings that are in emerging markets and position to appreciate in 3-7 years. We buy with the an exit strategy already in place. Historically, multi family apartment buildings have been the strongest and most reliable investment due to their ability to remain strong during economic uncertainty. When real estate markets crash, often multi family investments become more lucrative due to people’s desire to rent. The trend speaks for itself. Millennials want to rent rather than own. Due to the lack of supply of multi family properties the future holds a rental market shortage which makes these properties more valuable and a more powerful investment vehicle.
HCI's Steps to Successful Investing
THE INVESTOR
- Accredited Investors that earn $200,000 a year, a household income of $300,000 or have a $1,000,000 net worth.
- Investors that want to be part of a experienced real estate investment team
- Investors that that want to create financial freedom through real estate.
- Investors that understand the power of passive income
THE LOCATION
- There are really 4 things we look for when going into an area:
- Job Growth: Is the local government committed to attracting jobs and making it easier for companies to grow
- Population growth: Are there attractive reasons why people would want to uproot their lives and families and move there.
- Rents are continually raising: Are rents continue to go up as more jobs are created and more people move into the area
- Property values are consistently going op: Property values are consistently going op: Have property values shown a consistent trend of increasing over time and with the other 3 above it is projected to continue.
THE PROPERTY
- Multi family properties that are 20+ units
- Mult family properties that range from $1MM – $10MM
- Multi family properties that have “Value Add” components leaving signification cash flow opportunity
- Multi family properties that are in emerging markets (great job and population growth)
- Multi family properties that have 80%+ occupancy rate unless properties need renovation and improved management structures
- Multi family properties that provided a 7-10% cash on cash return and a minimum DSCR (DebService Coverage Ratio) of 1.25
- Multi family properties that are in C- to B+ neighborhoods and condition.
THE ACQUISITION and EXIT STRATEGY
Acquisition: We pride ourselves on the relationships we have built with brokers in strong and vetted real estate markets to get their “pocket listings” as well as partnering with banks to get access to banked owned properties (REO) that are far under market value. Each asset undergoes HCI’s thorough and strong due diligence process to make sure it is the right property in the right area sat the right time.
Exit Strategy: Multi-Family investments is not a short term investment. It is a 3-7 year commitment that have payoffs north of 20% annual returns. This is a game of patient, methodical and meticulous investing. In the acquisition phase HCI is looking for properties that can be sold in 3-7 years for an annual return of 15% or more.
The HCI Investment Process
The Multi-Family Real Estate Investing
It’s Time to Invest in Multi Family Real Estate. We can’t wait to help you achieve the Freedom you deserve.
Invitation to Invest
It’s Time to Invest in Multi Family Real Estate.
We can’t wait to help you achieve the freedom you deserve