OUR

STRATEGY

Building wealth, one brick at a time.

Acquisition Criteria

Identifying undervalued multifamily properties for acquisition, value optimizations, management, and disposition is based on the following criteria:

Emerging Markets

Acquiring the perfect multi-family apartment complex is vital for Platinum Real Estate Ventures’ investment strategy.

Acquisition Practices

We build relationships with local listing brokers. Our strong relationships help us get more information on the properties we wish to acquire.

Value-Add Strategy

At Platinum Real Estate Ventures, we look for opportunities to increase cash flow when acquiring an apartment complex. We make it our business at all times.

Acquisition Criteria:

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Identifying undervalued multifamily properties for acquisition, value optimizations, management, and disposition is based on the following criteria:

Acquisition Criteria:

Identifying undervalued multifamily properties for acquisition, value optimizations, management, and disposition is based on the following criteria:

Market Segments:

The demographic aged 18-35 constitutes 22% of the total U.S. population.
Income: Individuals who rent and have an annual income of $40,000 or higher.
Affordability: Locations where rent accounts for 30% or less of the median income.
Retired Baby Boomers are transitioning to a simpler lifestyle, relishing the hassle-free experience of multifamily living.

Property Criteria

Residential multifamily complexes with multiple units
Preference for pitched roof architecture
Occupancy levels exceeding 80%, except for properties undergoing renovation; exceptions apply if properties are strategically positioned and offer the potential for value enhancement.

Target Values

Dimensions and Cost: Properties comprising 50 or more units falling within the bracket of $4 million to $50 million.
Profits: Anticipated returns ranging from 7% to 10% in Cash on Cash, accompanied by a minimum Debt Service Coverage ratio of 1.25.
Characteristics: Targeting properties graded from C- to B+, situated within areas spanning C- to A grades.
Construction Era: Properties constructed in 1975 or later.
Situation: Concentrating on emerging market regions displaying signs of robust economic expansion in the near and distant future.

Emerging Markets

Acquiring the perfect multifamily complex is vital for Platinum Real Estate Ventures Capital Partners investment strategy. We look for the best location where job opportunities and the local economy are expanding.

Emerging markets are defined by

An influx of people into the area resulting in population growth instead of outmigration.
Job opportunities are on the rise, and relocating to the region, as opposed to being lost.
Both rents and property values are experiencing an upward trajectory.
The local government is fully committed to attracting employment opportunities.
Markets are showing signs of absorbing the excess supply.

Numerous indicators and extensive research contribute to recognizing an emerging market in the United States. Our process commences with conducting comprehensive market research encompassing the following domains:

Employment Expansion Analysis
Demographic Surge Review
Trajectory of Advancement Assessments
Regional Economic Analyses
Patterns Chamber of Commerce Insights

Acquisition Practices

Platinum Real Estate Ventures, LLC prides itself on cultivating strong relationships with local listing brokers, gaining access to off-market “pocket listings” and Bank Owned Properties (REO). Our proactive approach involves direct outreach to property owners rather than solely relying on publicly listed properties. Every individual asset undergoes an exhaustive due diligence process. This process serves to verify both the property’s physical and legal status, and to ensure accurate valuations, ultimately guaranteeing the feasibility of our investment strategies. A comprehensive debt and equity financing strategy is formulated during the initial stages of asset evaluation. Several crucial factors shape this strategy, including property type, the scope of renovations, anticipated holding duration, and investor objectives. Typically, each asset remains within our portfolio for 5-10 years, contingent upon the specifics of its unique business plan.

Disciplined Investment

Selecting assets entails a methodical and regular assessment to pinpoint desirable demand attributes. These include factors like job and population expansion, shifts in demographics, absorption rates of available supply, and beneficial local regulations. Preference in underwriting is granted to markets grappling with supply limitations. On the other hand, markets exhibiting indications of oversupply, such as excess land, alterations in zoning regulations, and spikes in building permits, are deliberately steered clear of.

Value Add Strategy

Consider it from the perspective of a business rather than merely a structure. Its value escalates in tandem with the income it generates. When we acquire a multifamily complex, we focus on identifying distinct prospects to amplify the cash flow across various facets. These opportunities are commonly referred to as “Value Plays” or “Value Adding Components.”

Opportunities for Value Creation We Seize

Owner’s self-management leads to mismanagement
Lack of effective oversight of management firms
Postponed maintenance
Elevated vacancy rates
Rents below the market average

Several instances of value-added strategies we execute at Platinum Real Estate Ventures, LLC include:

Enhance the property’s visual appeal by upgrading its landscaping and introducing amenities like dog parks and carports. Properties in better condition with added amenities tend to command higher prices from residents.
Invest in properties priced 10% or more below current market rental rates. This presents an opportunity to raise rents, promptly elevating the property’s overall value.
Introduce a water and sewage billing system based on actual usage, shifting the cost to residents. Unlike the conventional approach, where landlords cover all water expenses, this method helps balance costs and boosts cash flow. It also encourages residents to be more mindful of consumption, leading to reduced operational expenses.
Elevate the quality of individual units by incorporating fresh paint, modern appliances, upgraded countertops, and new flooring.
Integrate a technology-based revenue generating laundry facility within the complex.
Offer rents that are lower than prevailing market rates.