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Investing in multifamily real estate properties in Houston, Texas from founder Travis Cadman of Investar USA

Investing in multifamily real estate properties in Houston, Texas from founder Travis Cadman of Investar USA

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Investar multifamily webinarfinal Presentation Transcript

  • 1. [ MULTIFAMILY INVESTING WEBINAR With your host: Travis Cadman
  • 2. YOU WILL LEARN Types of Multifamily Investments Why Multi Family How to Select A Market Tax Sheltered Income & Equity Growth The 4 unique and profitable benefits available only to real estate investors The long-term fundamentals that will drive multifamily for 20+ years 3 tax strategies used by the wealthiest real estate investors The 7 key requirements for successful multifamily investing www.investarusa.com Phone: +1(855)456-3223| e-mail: info@investarusa.com
  • 3. K 1 Travis Cadman Principal of Investar USA Webinar Host INVESTAR USA Meet The Team MICHAEL S. MCGRATH Chairman/CEO RYAN MCGRATH CCIM, CPM Principal www.investarusa.com Phone: +1(855)456-3223| e-mail: info@investarusa.com STEPHEN MITCHELL MBA Executive Vice President
  • 4. K INVESTAR USA about us The principals of Investar USA have been active developers/investors in real estate in both Canada and the U.S. for over 30 years. •100 Million in Commercial Real Estate Under Management •Over 30 years of real estate and portfolio management experience •Over 2000 Real Estate Transactions •Acquire over $20 Million in new assets every year •Large family of investor clients - domestic and international www.investarusa.com Phone: +1(855)456-3223| e-mail: info@investarusa.com
  • 5. $110 Million under management Land Banking Land Development New Construction /Development Commercial Properties Mortgage Investments www.investarusa.com Residential Property Houston Multifamily Phone: +1(855)456-3223| e-mail: info@investarusa.com 1
  • 6. 1 TYPES OF MULTIFAMILY RESIDENTIAL SMALL APARTMENTS COMMERCIAL MULTIFAMILY 2-4 units 5 to 70 units 70 to 300 units plus •Duplex,triplex,4-plex •Recourse regional bank lending •On-site management typically not economical Individual Investors, Private Investment Companies, REIT's, AAA Rated Life Insurance Companies www.investarusa.com Phone: +1(855)456-3223| e-mail: info@investarusa.com
  • 7. WHY INVESTin multifamily 1 •Always in Demand - Food & Shelter •Recession Proof •Inflation Hedge •Leverage - Bank Financing •Tax Benefits •Professional Property Management •Appreciation •Cash Flow •Value Add •Re-Finance •Historically - the safest real estate asset with lowest risk and highest Sharp Ratio (risk adjusted returns) for the last 100 years •Economic Cycle Resistant - Can generate yield in every market environment www.investarusa.com Phone: +1(855)456-3223| e-mail: info@investarusa.com
  • 8. HOW TO SELECT a real estate market POPULATION GROWTH JOB GROWTH AFFORDABILITY www.investarusa.com Phone: +1(855)456-3223| e-mail: info@investarusa.com
  • 9. HOW TO SELECT cont. a real estate market •Market Cycles •No Rent Controls •Trade Availability •Property Management •Business Friendly Local and State Gov't www.investarusa.com Phone: +1(855)456-3223| e-mail: info@investarusa.com
  • 10.  TAX SHELTERED INCOME & EQUITY GROWTH
  • 11. 1 THREE POWERFUL TAX STRATEGIES Accelerated Depreciation To increase passive activity losses and generate tax free income Tax -free refinancing To harvest safe equity and reinvest in additional properties. You can increase your monthly income with no additional investment. www.investarusa.com Phone: +1(855)456-3223| e-mail: info@investarusa.com Sell and Perform 1031 Exchange To defer your capital gains tax to increase your current income and accelerate your lifetime wealth creation
  • 12. 4 Unique and Profitable Benefits Available Only to Real Estate Investors CASH FLOW APPRECIATION PRINCIPAL PAY DOWN TAX BENEFITS www.investarusa.com Phone: +1(855)456-3223| e-mail: info@investarusa.com
  • 13. CASH FLOW 1 •Monthly or quarterly net income from the property •Gross rents less operating expenses, capital improvements and debt •Can safely achieve 5% to 9%+ in annual net income (B and C Grade Assets) www.investarusa.com Phone: +1(855)456-3223| e-mail: info@investarusa.com
  • 14. APPRECIATION 1 •Increase in the value of the property through increases in Net Operating Income (NOI) or Capital Improvements of both •Realized at property sale or refinance •Typically the largest gain on transaction •Can safely achieve 6% to 10% benefit a year on a 70% to 75% LTV property www.investarusa.com Phone: +1(855)456-3223| e-mail: info@investarusa.com
  • 15. 1 Principal Pay Down paying down the mortgage •The monthly benefit to the investors from reducing the loan balance •Only realized at property sale or refinance •3% to 4% annual benefit per year on 70% to 75% LTV property •Tenants will pay down your mortgage www.investarusa.com Phone: +1(855)456-3223| e-mail: info@investarusa.com
  • 16. TAX BENEFITS 1 •Real Estate is one of the most tax-advantaged asset classes (Oil & Gas, Farming as well) •Tax-free income •Tax-free refinance capital •Tax-deferred capital gains •Worst case CRE taxes are best case in other asset classes www.investarusa.com Phone: +1(855)456-3223| e-mail: info@investarusa.com
  • 17.  YOU CAN SHAPE YOUR INVESTMENT RETURNS 15%-18% TOTAL RETURNS
  • 18. Demographics & Economics Trends that will shape commercial & multifamily investments for the next 25 year
  • 19. MULTIFAMILY DEMAND DRIVEN BY HOUSEHOLDS www.investarusa.com Phone: +1(855)456-3223| e-mail: info@investarusa.com
  • 20. "Once in a generation“ population cycle dynamics     New renter household Formation = 1,820,000/year Supply/Demand Gap = 1,585,000/year   New apartment units placed In service = 235,000/year www.investarusa.com Phone: +1(855)456-3223| e-mail: info@investarusa.com
  • 21. MULTIFAMILY DEMAND 2 Largest demographic groups are in the 2 largest rental groups www.investarusa.com Phone: +1(855)456-3223| e-mail: info@investarusa.com
  • 22. Immigration Growth 1 www.investarusa.com Phone: +1(855)456-3223| e-mail: info@investarusa.com
  • 23. U.S. HOMEOWNERSHIP 1 www.investarusa.com Phone: +1(855)456-3223| e-mail: info@investarusa.com
  • 24. Multifamily will outperform every other asset class" 1 www.investarusa.com Phone: +1(855)456-3223| e-mail: info@investarusa.com
  • 25. Demographics & Economics Trends that will shape commercial & multifamily investments for the next 25 year
  • 26. The Most Proven Wealth Creation Tool 1 •The largest wealth building source in the Forbes 400 is commercial real estate •90% of the Forbes 400 retained their wealth through real estate investments •Nearly all millionaires earned their first million through their own business or real estate investments •The wealthiest investors own commercial real estate •The fundamentals favor multifamily for the next 20+ years www.investarusa.com Phone: +1(855)456-3223| e-mail: info@investarusa.com
  • 27. STEP-BY-STEP PROCESS The 7 Key Requirements for Successful Multi-Family Investing
  • 28. STEP-BY-STEP Process Key requirements Understand Your Current Assets Planning Investment Options Partner Evaluation Deal Review Funds Allocation/Subscription Monitor/Track Performance www.investarusa.com Phone: +1(855)456-3223| e-mail: info@investarusa.com
  • 29. LAZY ASSETS Investment Capital Not working Hard For You Money in Savings/Checking  Brokerage Accounts I Qualified Retirement Accounts (IRA,401K, RRSP,RRIF,etc.)   n Safe Home Equity Underperforming Real Estate Look for Global ROE Return on Equity over 6% www.investarusa.com Phone: +1(855)456-3223| e-mail: info@investarusa.com
  • 30. PLANNING What do you want to achieve ? Wealth Preservation Tax Shelter Yield Equity Growth Goals www.investarusa.com Phone: +1(855)456-3223| e-mail: info@investarusa.com
  • 31. INVESTMENT OPTIONS 1 •Private/Public Real Estate Investment Trust (REIT) •Limited Partnerships •Direct Ownership •Owner - Active Manager (labor intensive but profitable) www.investarusa.com Phone: +1(855)456-3223| e-mail: info@investarusa.com
  • 32. PARTNER EVALUATION Key Evaluation Criteria “Who” matters tremendously Strategy/Philosophy (Income,Development,Appreciation,etc,) Principals 1 Performance History 1 Growth Forecast YOUR PARTNER Experience www.investarusa.com Phone: +1(855)456-3223| e-mail: info@investarusa.com
  • 33. INVESTMENT EVALUATION Deal Review H MARKETING & ASSET CLASS APPROACH G FINANCIAL PROJECTIONS  OPERATIONS  AGREEMENT www.investarusa.com Phone: +1(855)456-3223| e-mail: info@investarusa.com
  • 34. FUND/ SUBSCRIBE ONE  Investment Package TWO Investment Contribution FIVE Property Tour 2 K Actual Investment Process THREE Closing FOUR Reporting & Communications   www.investarusa.com Phone: +1(855)456-3223| e-mail: info@investarusa.com
  • 35. MONITOR/ TRACK Do you see what I see?  Performance Reporting (quarterly/semi-annually)  Distributions (wire, e-bank, courier)  Tax Reporting  Personal communications/advisory 1 to 2 times per year www.investarusa.com Phone: +1(855)456-3223| e-mail: info@investarusa.com
  • 36. STEP-BY-STEP Process SUMMARY s Understand Your Current Assets z Planning Investment Options h Partner Evaluation Deal Review Funds Allocation/Subscription j Monitor/Track Performance www.investarusa.com Phone: +1(855)456-3223| e-mail: info@investarusa.com
  • 37.  QUESTIONS AND ANSWERS
  • 38. CONTACT US ARIZONA OR TEXAS Investar USA has 2 offices located in Phoenix, Arizona and Houston, Texas. Our sales team would be happy to show you available properties in either location. CONTACT EMAIL Toll Free: 1-(855)456-3223 info@investarusa.com  www.investarusa.com Phone: +1(855)456-3223| e-mail: info@investarusa.com
  • 39. THANK YOU FOR JOINING US Follow-us on our social links v FACEBOOK facebook.com/InvestarUSA t TWITTER twitter.com/arizonainvestar  YouTube youtube.com/arizonainvestar Post your comments about this webinar on facebook or send your comments by email and we will send you an exclusive document. Multi-Family Investment CHECKLIST Every Investor needs this in their toolbox. www.investarusa.com Phone: +1(855)456-3223| e-mail: info@investarusa.com
  • 40. [ THANK YOU