At Property Ventures RE, we follow a clear and disciplined investment strategy focused on multi-family real estate opportunities. Our approach ensures that each property meets specific financial and operational criteria to maximize returns while minimizing risk. Here’s an overview of our core investment guidelines:
Investment Criteria
We focus on acquiring multi-family properties within a transaction size of $2 million to $15 million. This allows us to target high-quality assets while maintaining flexibility across various markets.
Our investments are centered around B and C-class properties, typically built in 1980 or newer. These properties provide the right balance of affordability and potential for value creation, aligning with our strategic goals.
- Property Size: 50 - 250 units
- Property Location: B and C-class properties located in secondary and tertiary markets
- Occupancy Rate: We focus on assets that are 85%+ occupied and capable of obtaining long-term debt financing.
Our strategy is designed for sustainable, long-term growth. With a focus on market research, property management, and value creation, we ensure that every asset in our portfolio contributes to the overall success of our investment objectives.
Our approach is designed to deliver strong returns for our investors through careful financial management. We target the following performance metrics:
- Cash-on-Cash Return: 8%+ per year at takeover in primary markets with a 3-5 year hold period.
- Annualized Rate of Return (IRR): 18%+
- Debt Coverage Ratio: 1.6
- Target Cap Rate: 6%+
Our typical hold period for assets spans 3-7 years.
We seek investment opportunities in primary and emerging markets nationwide. By focusing on areas with strong growth potential, we ensure that our investments are positioned to benefit from both cash flow and long-term appreciation.