Education
About Multifamily
Multifamily real estate refers to properties that contain multiple housing units within a single building or complex. These units can range from a duplex (two units) to large apartment complexes with hundreds of units. Investing in multifamily properties can be an attractive way to build wealth, as they often provide a steady stream of rental income and the potential for property appreciation.
Some of the benefits of multifamily investing include:
Genuinely Passive Income
As the General Partner (GP), BL Hess takes on the leadership or managing role in a real estate investment partnership. In the context of real estate syndications or partnerships, the GP is responsible for the day-to-day management of the project, including the acquisition, development, operations, and eventual sale of the property. This means that you, the Limited Partner (LP) enjoy the passive income while we take care of the hard work.
Great Returns
Multifamily investing produces great returns from leveraging two things: tenant leases and appreciation of the asset through value-added opportunities.
Tax Benefits
The tax benefits of multifamily real estate investing can significantly reduce the amount of taxes you owe, increasing your overall cash flow and investment returns. These benefits are part of why real estate investing is often seen as one of the best ways to build wealth. Be sure to work with a qualified tax advisor to maximize these advantages and ensure you're following all applicable tax laws.
Other Benefits
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Historically stable investments
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Hedge against inflation
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Exceptional tax benefits
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Leverage with pooling of resources through syndication
Our Process
Acquisition
01
Broker Relationships
Broker relationships are critical to helping identify potential investment opportunities. Brokers often have access to off-market deals, listings, and information about available properties. Maintaining strong, trustworthy relationships with brokers is crucial for gaining early access to deals and securing favorable terms on acquisitions. We handle the hard work of establishing these connections on behalf of our investors!
02
Underwriting
The process of underwriting assesses multiple facets of a property and the market in which it is located. Factors such as rent growth, cap rates, operating expenses, and financing terms are evaluated. It includes risk analysis, such as evaluating the property's market trends and economic conditions and helps set the purchase price, financing strategy, and investor returns anticipated for the property.
03
Due Diligence
Due diligence is the comprehensive investigation conducted before finalizing an acquisition. It ensures that the team has thoroughly reviewed all aspects of the property to identify any potential risks or issues that could impact the investment. This process includes inspecting the property physically, reviewing financial and legal documents, and verifying that all assumptions made during underwriting are accurate.
Syndication
01
Investor Portal/Deal Share
The investor portal is an online platform where investors can access details about their investments in a real estate syndication. It allows them to track performance, view financials, receive updates, and communicate with the syndication team. It's a centralized hub for investors to stay informed and manage their investments.
02
Investment
The investment is the capital that investors contribute to fund the acquisition, renovation, and management of a property. These investments are pooled together, with the syndicator (or general partner) using the funds to operate the property and generate returns for the investors (limited partners).
03
Investor Communication
Investor communication involves keeping investors updated on the status of their investment, property performance, and other relevant news. This typically includes regular reports, financial statements, distributions, and occasional newsletters or updates. Effective communication helps build trust and ensures transparency throughout the investment period.
Business Plan
Value-Add
A Value-Add strategy in real estate syndication refers to making improvements or enhancements to a property in order to increase its value, rents, or overall performance. The goal is to unlock greater returns for investors by boosting the property's cash flow and appreciation potential. These improvements could be physical (e.g., renovations, upgrading amenities) or operational (e.g., reducing costs, improving management).
Refinance
Refinancing is the process of replacing the original loan used to purchase or improve a property with a new loan. In real estate syndication, refinancing often occurs after the value of the property has increased through value-add strategies or market appreciation. By refinancing, the team can pull out equity to return to investors while maintaining ownership of the property, allowing them to recoup part of their investment while still receiving ongoing cash flow.
Exit Strategy
The Exit Strategy outlines how the team plans to eventually sell or otherwise liquidate the property to generate returns for investors. This strategy is essential because it defines when and how the investors will receive their profits. The exit could involve selling the property outright, refinancing, or a combination of both, depending on the market conditions and the financial goals of the syndication.