fbr Multi-Family Value-Add investments
FBR Investment Fund unlocks the potential of existing properties and maximizes their value through our multi-family value-add investment projects. Not only do we acquire existing multi-family properties and renovate them, we also purchase other types of property (commercial office, downtown historic buildings, etc.) and repurpose/convert this space into multi-family units. Basically, at FBR Investment Fund, we specialize in acquiring properties that we renovate and improve, allowing investors like you to build equity and generate cash flow from rental income, all while benefiting from long-term property appreciation.
Investing in multi-family value-adds offers a host of advantages without the high upfront costs typically associated with such projects. Through real estate syndication, we pool funds from multiple investors to finance a single deal, making it accessible with a low minimum investment. By joining our investment group, you become a member of the entity that owns the property, leveraging the expertise of our experienced real estate team who manages the project from start to finish.
the benefits of multi-family value-add investments
Immediate Cash Flow.
Existing properties generate rental income right away, providing you with a reliable and passive income stream.
Quick Increase in Equity.
As we renovate and improve the property, its value increases, allowing you to build equity and realize substantial gains.
Asset Stability.
Once the property is upgraded and renovated the stability of rents and property value strengthens, Additionally, real estate investments are known for their stability, outperforming the stock market and providing consistent returns over time.
Added Value = Greater Appreciation.
Due to the property renovations, premiums will be able to be charged in rents. An increase in property income translates into an increase in property value and appreciation.
Tax Advantages of Real Estate.
Enjoy tax deductions on your income taxes as you invest in these multi-family value-add properties, including the pass-through of depreciation expenses.
The multi-family value-add development process
Choosing the Right Property
Our team of experts employs a meticulous approach to identify properties with the greatest potential for transformation through extensive due diligence, market analysis, and leveraging industry connections. We pinpoint two types of properties for acquisition:
1) Well-priced multi-family properties with 100 units or fewer. We focus on properties that can be immediately improved to enhance their overall appeal and value. This includes properties with mismanagement issues, below-market rents, or untapped potential. By addressing these factors, we create opportunities to increase rental rates and maximize returns.
2) Office or downtown historic buildings which can be repurposed into mixed-use multi-family properties. These properties typically have a ‘prime location’ component and are converted into a first-floor restaurant space which is leased out to a successful local operator, with our lofts or apartments in the additional space in subsequent floors above. These properties are given unique characteristics such as exposed brick, etc. and when done correctly, the potential for both long-term and short-term rental income, along with resulting property value/equity, is very strong.
Purchasing the Property
Once we identify a property that meets our criteria, we establish the entity, secure financing, complete all necessary documents, and close the deal. This allows investors to participate and claim an ownership stake in the property.
The Renovation Process
Upon acquiring the property, our renovation process begins. We enhance both the interior and exterior of the building, revamping common areas, upgrading fixtures, and improving individual units. Renovations typically take between 9 and 18 months, and we continue to remodel units as they become vacant during the rental holding period. By remodeling vacant units, we can attract tenants at higher rental rates and stabilize the property.
The Rental Holding Period
Our experienced team handles every aspect of the rental holding process, including financing, tenant screenings, property management oversight, and accounting services. Equity investors receive quarterly distributions based on their ownership percentage, while debt investors receive monthly distributions at fixed rates throughout the hold period.
Equity Investment and Debt Offerings
We offer the flexibility to invest in either equity or debt structures. With equity investments, you gain ownership in the underlying real estate, while debt investments allow you to serve as a lender to the project.
Time Frame of the Investment
A multi-family value-add investment typically spans 3-5 years, encompassing the renovation phase and the rental holding period. The timeline commences upon opening escrow for property purchase, followed by the renovation process, property stabilization, and rental income generation. Distributions are prorated based on your investment duration and share ownership.
Once market conditions, interest rates, and buyer demand align, we make informed decisions to sell the property. Investors are notified when the property appraisal process begins, and upon closing the sale, distributions are made within 10 business days.
Come Invest With Us!
Join us in seizing the potential of multi-family value-add investments. Click the ‘Get Started’ button below or Contact Us today to explore these opportunities.