- Finding property with value potential
- Obtaining financing
- Picking a property manage
When it comes to investing in real estate in general, eight out of 10 Kiplinger survey respondents say that selecting properties with valuepotential is the most challenging part of the process. Survey participants also identified two major elements of the value proposition: ensuring a consistent income stream and planning or accounting for capital improvements.
- Securing a consistent income stream. Every property that GEG sells comes with a Rental Assurance guarantee. “We do extensive due diligence,” says Immel. “For example, if we buy a 177-unit building, we look at the five-year trailing rent roll to see the trends within the complex. But we also realize that it isn’t fair if out of those 177 units … 176 of them are great, but one of the tenants loses a job two months into it. So we’ve implemented a program where we cover tenant occupancy for the first year of ownership. We want consistency across the board.”
Planning for capital improvements. GEG rehabs all investment properties that aren’t new construction. Thus, investors can reasonably expect that major expenses become limited in the short-term. “If you intend to hang on to the asset for 20 plus years, then you can build up the cash flow as a fund to update the unit down the road,” says Immel. “But if you’re hanging on to this for five to seven years, you shouldn’t need to be making major expenditures inside the units.”
A history of buying, developing and managing millions of dollars of real estate investments nationwide.
Prior relationships with lenders who are familiar with the way GEG selects and develops its properties.
Bulk buying power which results in significant equity positions for the end buyer.
- A reputation for securing phenomenal assets in phenomenal markets.
Managing the property