Happy Easter!

Easter is a beautiful day and time of the year!

As we wait for the NY lawmakers to agree on a budget, property owners brace for additional legislation to disrupt the housing market. They are debating two options to solve the lack of affordable housing:

1. Incentivize developers and builders to build affordable housing

2. Tenant protections enabling tenants to stay in their apartments

In the meantime, we are excited to do our next deal in Florida!

Over the last 3+ years, we have purchased 6 properties in Florida and Tennessee. Each deal has performed very well using a similar strategy:

· Identifying and purchasing property owners that operate underperforming multifamily real estate!

Underperforming real estate allows us to increase the value of the property in a reasonably short period of time.

Our investors benefit with excellent returns on their investments.

We are excited to build the portfolio in Pinellas County, just outside Tampa and St. Petersburg.

Our most recent purchase in Kenneth City is a 50 unit complex purchased in August of 2023. The property WAS the problem property that is situated in a beautiful, convenient area surrounded by a single family subdivision and neighboring condominium properties.

In 8 short months, the property’s exterior was transformed in several ways.

· New roofs

· Fresh exterior paint

· Newly installed hardscape sidewalks

· New fencing and asphalt work

The rent roll is increasing month by month as we renew leases at much higher rents and improve the vacated apartment bringing them to market rent:

· 25 units renovated

· 20 legacy tenants renewed closer to market rent

· 5 legacy tenants left to renew or replace

We are projecting to capture 95% of the rental upside and be at 95% occupancy by the Fall of 2024. At that point, we will be relatively stabilized and the investors begin to see healthy distributions.

We have several similar assets in the area that have been successfully stabilized and currently being optimized through monthly operations.

If you are interested in partnering with experts in this space, let’s talk!

Regards,

Bill

REAL ESTATE LINGO:

Underperforming real estate – Property in some level of distress which can include:

· Rental income distress

· Physical distress

· Management distress

Stabilized – the property has been improved and the income is operating at 95% of full potential