Investar multifamily webinarfinal

[

MULTIFAMILY
INVESTING
WEBINAR
With your host: Travis Cadman

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

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

STEPHEN MITCHELL
MBA
Executive Vice President

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

$110 Million under management

Land Banking

Land
Development

New
Construction
/Development

Commercial
Properties

Mortgage
Investments
www.investarusa.com

Residential
Property

Houston
Multifamily


1

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

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

HOW TO SELECT
a real estate market
POPULATION GROWTH

JOB GROWTH

AFFORDABILITY

www.investarusa.com

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


TAX SHELTERED INCOME
& EQUITY GROWTH

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


Sell and Perform
1031 Exchange

To defer your capital
gains tax to increase
your current income
and accelerate your
lifetime wealth
creation

4 Unique and Profitable Benefits
Available Only to Real Estate Investors

CASH FLOW

APPRECIATION
PRINCIPAL
PAY DOWN
TAX
BENEFITS

www.investarusa.com

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

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

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

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


YOU CAN SHAPE
YOUR INVESTMENT
RETURNS
15%-18% TOTAL
RETURNS

Demographics
& Economics
Trends that will shape
commercial & multifamily
investments for the next 25 year

MULTIFAMILY DEMAND
DRIVEN BY HOUSEHOLDS

www.investarusa.com

"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

MULTIFAMILY DEMAND
2 Largest demographic groups
are in the 2 largest rental groups

www.investarusa.com

Immigration Growth
1

www.investarusa.com

U.S. HOMEOWNERSHIP
1

www.investarusa.com

Multifamily will outperform every other asset class"
1

www.investarusa.com

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

STEP-BY-STEP
PROCESS
The 7 Key Requirements for
Successful Multi-Family Investing

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

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

PLANNING
What do you want to achieve ?

Wealth
Preservation

Tax
Shelter

Yield

Equity
Growth

Goals

www.investarusa.com


INVESTMENT OPTIONS
1

•Private/Public Real Estate Investment Trust (REIT)
•Limited Partnerships
•Direct Ownership
•Owner - Active Manager (labor intensive but profitable)

www.investarusa.com

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

INVESTMENT EVALUATION
Deal Review
H
MARKETING
&
ASSET CLASS

APPROACH

G
FINANCIAL
PROJECTIONS


OPERATIONS


AGREEMENT

www.investarusa.com

FUND/ SUBSCRIBE
ONE



Investment
Package
TWO

Investment
Contribution

FIVE

Property
Tour

2

K

Actual
Investment
Process

THREE

Closing

FOUR

Reporting &
Communications





www.investarusa.com


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

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

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

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

Investar multifamily webinarfinal

Recommended

Recommended

More Related Content

Viewers also liked

Viewers also liked (7)

Similar to Investar multifamily webinarfinal

Similar to Investar multifamily webinarfinal (20)

Recently uploaded

Recently uploaded (20)

Investar multifamily webinarfinal