Investar multifamily webinarfinal
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Transcript of Investar multifamily webinarfinal
MULTIFAMILYINVESTINGWEBINARWith your host: Travis Cadman
[
www.investarusa.comPhone: +1(855)456-3223| e-mail: [email protected]
YOU WILL LEARN
The 7 key requirements for successful multifamily investing
3 tax strategies used by the wealthiest real estate investors
The long-term fundamentals that will drive multifamily for 20+ years
The 4 unique and profitable benefits available only to real estate investors
Tax Sheltered Income & Equity Growth
How to Select A Market
Why Multi Family
Types of Multifamily Investments
www.investarusa.comPhone: +1(855)456-3223| e-mail: [email protected]
INVESTAR USAMeet The TeamK1
RYAN MCGRATH
CCIM, CPM
Principal
MICHAEL S. MCGRATH
Chairman/CEOSTEPHEN MITCHELL
MBA
Executive Vice PresidentTravis Cadman
Principal of Investar USA
Webinar Host
www.investarusa.comPhone: +1(855)456-3223| e-mail: [email protected]
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
INVESTAR USAabout usK
www.investarusa.comPhone: +1(855)456-3223| e-mail: [email protected]
$110 Million under management
1
Land Banking Land
Development
Commercial
Properties
Residential
Property
New
Construction
/Development
Mortgage
Investments
Houston
Multifamily
www.investarusa.comPhone: +1(855)456-3223| e-mail: [email protected]
TYPES OF MULTIFAMILY
2-4 units•Duplex,triplex,4-plex
5 to 70 units •Recourse regional bank lending
•On-site management typically
not economical
70 to 300 units plus Individual Investors, Private
Investment Companies,
REIT's, AAA Rated Life
Insurance Companies
RESIDENTIALSMALL
APARTMENTSCOMMERCIAL
MULTIFAMILY
1
www.investarusa.comPhone: +1(855)456-3223| e-mail: [email protected]
WHY INVESTin multifamily1
•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.comPhone: +1(855)456-3223| e-mail: [email protected]
HOW TO SELECTa real estate market
POPULATION GROWTH JOB GROWTH AFFORDABILITY
www.investarusa.comPhone: +1(855)456-3223| e-mail: [email protected]
HOW TO SELECT cont.a real estate market
•Market Cycles
•No Rent Controls
•Trade Availability
•Property Management
•Business Friendly Local and State Gov't
TAX SHELTERED INCOME
& EQUITY GROWTH
www.investarusa.comPhone: +1(855)456-3223| e-mail: [email protected]
THREE POWERFUL1
To increase passive activity losses and generate tax free income
To harvest safe equity and reinvest in additional properties. You can increase your monthly income with no additional investment.
To defer your capital gains tax to increase your current income and accelerate your lifetime wealth creation
Accelerated Depreciation Tax -free refinancing
Sell and Perform1031 Exchange
TAX STRATEGIES
www.investarusa.comPhone: +1(855)456-3223| e-mail: [email protected]
4 Unique and Profitable BenefitsAvailable Only to Real Estate Investors
CASH FLOW
APPRECIATION
PRINCIPAL
PAY DOWN
TAX
BENEFITS
www.investarusa.comPhone: +1(855)456-3223| e-mail: [email protected]
•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)
CASH FLOW1
www.investarusa.comPhone: +1(855)456-3223| e-mail: [email protected]
•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
APPRECIATION1
www.investarusa.comPhone: +1(855)456-3223| e-mail: [email protected]
•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
Principal Pay Downpaying down the mortgage
1
www.investarusa.comPhone: +1(855)456-3223| e-mail: [email protected]
•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
TAX BENEFITS1
YOU CAN SHAPE
YOUR INVESTMENT
RETURNS
15%-18% TOTAL RETURNS
Demographics
& EconomicsTrends that will shape commercial & multifamily investments for the next 25 year
www.investarusa.comPhone: +1(855)456-3223| e-mail: [email protected]
MULTIFAMILY DEMAND DRIVEN BY HOUSEHOLDS
www.investarusa.comPhone: +1(855)456-3223| e-mail: [email protected]
"Once in a generation“ population cycle dynamics
New renter household
Formation =
1,820,000/year
New apartment units
placed
In service = 235,000/year
Supply/Demand
Gap = 1,585,000/year
www.investarusa.comPhone: +1(855)456-3223| e-mail: [email protected]
MULTIFAMILY DEMAND 2 Largest demographic groups
are in the 2 largest rental groups
www.investarusa.comPhone: +1(855)456-3223| e-mail: [email protected]
Immigration Growth1
www.investarusa.comPhone: +1(855)456-3223| e-mail: [email protected]
U.S. HOMEOWNERSHIP1
www.investarusa.comPhone: +1(855)456-3223| e-mail: [email protected]
Multifamily will outperform every other asset class"1
Demographics
& EconomicsTrends that will shape commercial & multifamily investments for the next 25 year
www.investarusa.comPhone: +1(855)456-3223| e-mail: [email protected]
•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
The Most Proven Wealth Creation Tool1
STEP-BY-STEP
PROCESSThe 7 Key Requirements for Successful Multi-Family Investing
www.investarusa.comPhone: +1(855)456-3223| e-mail: [email protected]
Understand Your
Current Assets Planning Investment Options
Partner Evaluation Deal Review Funds
Allocation/Subscription
Monitor/Track
Performance
STEP-BY-STEP ProcessKey requirements
www.investarusa.comPhone: +1(855)456-3223| e-mail: [email protected]
LAZY ASSETSInvestment Capital Not working Hard For You
Money in Savings/Checking
Qualified Retirement Accounts
(IRA,401K, RRSP,RRIF,etc.)
Look for Global ROE
Return on Equity over 6%
Brokerage Accounts
Safe Home Equity
Underperforming Real Estate
nI
www.investarusa.comPhone: +1(855)456-3223| e-mail: [email protected]
PLANNINGWhat do you want to achieve ?
Goals
Tax Shelter
Equity Growth
Yield
WealthPreservation
www.investarusa.comPhone: +1(855)456-3223| e-mail: [email protected]
•Private/Public Real Estate Investment Trust (REIT)
•Limited Partnerships
•Direct Ownership
•Owner - Active Manager (labor intensive but profitable)
INVESTMENT OPTIONS1
www.investarusa.comPhone: +1(855)456-3223| e-mail: [email protected]
YOUR PARTNER
PARTNER EVALUATIONKey Evaluation Criteria “Who” matters tremendously
Strategy/Philosophy (Income,Development,Appreciation,etc,)
Principals
Performance History
Growth Forecast
Experience
1
1
www.investarusa.comPhone: +1(855)456-3223| e-mail: [email protected]
INVESTMENT EVALUATIONDeal Review
OPERATIONS
MARKETING
&
ASSET CLASS
H
FINANCIAL
PROJECTIONS
G
AGREEMENT
APPROACH
www.investarusa.comPhone: +1(855)456-3223| e-mail: [email protected]
FUND/ SUBSCRIBE
Actual
Investment
Process
TWO
Investment Contribution
THREE
Closing
ONE
Investment Package
FOUR
Reporting & Communications
FIVE
Property Tour
K
2
www.investarusa.comPhone: +1(855)456-3223| e-mail: [email protected]
Performance Reporting (quarterly/semi-annually)
Distributions (wire, e-bank, courier)
Tax Reporting
Personal communications/advisory 1 to 2 times per year
MONITOR/ TRACKDo you see what I see?
www.investarusa.comPhone: +1(855)456-3223| e-mail: [email protected]
Understand Your Current Assets
Planning
Investment Options
Partner Evaluation
Deal Review
Funds Allocation/Subscription
Monitor/Track Performance
STEP-BY-STEP ProcessSUMMARY
j
h
s
z
QUESTIONS
AND
ANSWERS
www.investarusa.comPhone: +1(855)456-3223| e-mail: [email protected]
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
Toll Free: 1-(855)456-3223
www.investarusa.comPhone: +1(855)456-3223| e-mail: [email protected]
THANK YOU FOR JOINING US
t
v
Follow-us on our social links
facebook.com/InvestarUSA
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 InvestmentCHECKLIST
Every Investor needs this in their toolbox.
THANK YOU
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