PROCESS
We have developed a proprietary data driven platform that gives you direct access to highly curated commercial real estate investments alongside some of the most experienced operators in the country.
Find and Locate Properties
The initial underwriting process kicks off a comprehensive due diligence schedule that taps into our extensive structuring expertise. From onsite inspections to a financial deep-dive to mitigating potential risks while maximizing rewards, we dig deep on each potential deal, with only the most qualified moving forward.
- “Distressed” properties or properties requiring cosmetic and/or substantial rehab work;
- Under-performing properties with market- and/or management-related challenges;
- Off-market opportunities and direct-to-seller opportunities that can be negotiated directly with owner(s).
Value Add Planning
To build value, TEP focuses on renovation work to best position each investment property. By taking this critical step, our team is able to refresh or, in some cases, overhaul under performing assets, increasing interest and driving rents in the right direction. This, in turn, immediately improves cash flow and long-term capital appreciation, while limiting ongoing maintenance expenses, creating a more valuable asset for all parties.
Due Diligence
Once we’ve identified potential opportunities, our expert team filters based on key factors— including price, location and asset quality. This process ensures we only acquire investment properties that meet our goals and expectations, and that will pass the stringent underwriting process that follows.
Results and Exit Strategy
Post renovations, our properties command significant rental increases and will generate rental revenues month after month and year after year. Once a property is stabilized, we may refinance it to put in place long term financing at fixed interest rate. At that time, we may pay off short term construction / acquisition loans and may pay investors back some or all of their capital.
WHY INVEST IN COMMERCIAL REAL ESTATE?
STABILITY
DEPRECIATION
TAX BENEFITS
LEVERAGE
CASH FLOW
APPRECIATION
We typically seek off-market, direct to seller properties, which provides an added layer of value to our investors and partners. We implement targeted direct marketing aimed at owners and property managers.
We also build relationships with brokers, lenders, local professionals, and other industry contacts to identify off-market properties before they are listed.
We buy cash flowing real estate so that our investors can earn returns from day 1, EVEN IF the market softens.
TRUST THE POWER OF REAL ESTATE INVESTING
- All in costs are low.
- Adaptive reuse provides value for renters.
- Massive shortage of housing.
- The right hotel models are virtually overnight conversions, since many contain kitchenettes, wide hallways, tall ceilings, individual climate control systems, and even extra rooms with units, like sitting areas and private bedrooms.
- Hotels with the right kind of flow could easily become units where seniors can live mostly independently, but they would still able to be monitored by a nursing staff.
- Multifamily real estate provides high average annual total returns.
- According to data from the U.S. Census Bureau, renting represents the most common form of housing for the millennial generation.
- The baby boomer generation is increasingly opting to rent property over home-ownership.
- Shorter term lease agreements allow for faster increases in rent.
- Increasing demand for workforce rentals.
- Banks feel most comfortable with loans on this asset class.
- Large income potentials with very low overhead, and fewer expenses.
- Fewer construction costs then any other asset class.
- Big cash flow with large income potential.
- Legal simplicity, proper handling of collections and delinquencies is far easier.
- States are increasingly allowing facility operators to serve lien notices via email rather than Certified or registered mail.
- This sector provides contact less commerce proving to be successfully deployed unmanned, remote-management strategies for higher investor returns.
Ground up construction allows your company to have full control over the design and specifications your business wants and needs, without having to plan for what currently exists. While other types of construction can be more cost effective, such as remodeling, it has its constraints because you have to plan for the space that’s already there.
Building from the ground up can ensure that you will be a part of the construction process and can determine the exact specifications you want.
The biggest advantage of ground-up construction is unlimited flexibility.
At trust Equity Partners, we foster collaboration and engage our clients as active participants from concept to completion. This interaction ensures there is a shared vision so that construction project goals and expectations are aligned and understood from the start.
- Most of the time less expensive alternative to re-purposing a building.
- Full Control and Flexibility of the project.
- Investors are part of the process.
- Higher returns, and equity multiples.
- Mobile home parks allow us to acquire more units for less money. It’s the lowest cost investment per unit of any real estate asset class.
- Most parks are just the land, and not the units themselves. This means the cost of investment is typically a lot less in comparison to the number of units.
- Only real estate segment that grows stronger as the economy weakens.
- Hedge against economic decline.
- Limited Supply.
- High yields.
So what are Opportunity Zones?
Simply put economically-distressed communities that may qualify for tax deferment. For those who invest in Opportunity Zones, they will be eligible for a 10% step-up in basis after holding the investment for over 5 years. This option delivers invaluable resources to economically struggling communities that need it most, contributing to the area’s growth. You can defer taxes on capital gains from several asset classes such as: multifamily, self-storage, hospitality, diversified portfolios + more.
ACQUISITION STRATEGY
Once acquired, Trust Equity Partners renovates and rehabs investment properties. Our acquisitions may require substantial CAPEX budgets, but by focusing on these (often-distressed and sometimes-overlooked) properties, we are able to acquire high-value assets in prime locations.
MARKET STRATEGY
TEP’s strategy is to focus on primary and secondary markets with growing populations and expanding economies. This growth leads to more rental demand and increasing rents.