- Cash Flow
- Portfolio Diversification
- Passive Income
- Tax Advantages
Our investment structure varies depending on the deal. Our investments are typically from 2 to 7 years. The target Internal Rate of Return is between 12% to 20%. Typically, the investment size is $25,000 to 250,000+.
The Crecco companies acquire apartment homes in emerging markets throughout the United States. Each investment’s success is measured by location, tenant profile and growth potential. Some of the assets may require some physical renovation and repositioning. Each investment will benefit from our hands-on approach, aggressive asset management, extensive construction experience and implementation of systems to optimize efficiency and cash flow.
The ultimate goal within each investment opportunity is to acquire assets that will realize the strongest risk-adjusted returns over the life of the investment.
Debt investors are individuals who invest in our deals for a fixed rate of return. This investment loan is secured against the property we acquire, and we simply pay the investor a monthly payment based on an agreed upon interest rate and amortization schedule. Typically the debt investor can expect to be paid 6% – 10% interest, with their loan secured in first lien position on the loan. On some investments we also utilize institutional financing, in which case the debt investor would be in second lien position and should expect a higher interest rate.
Equity investors are individuals who invest in our deals for a percentage share of the profits. We structure most of our deals using equity investors (which we refer to as our “equity partners”). Our equity partners are able to “participate” in the deal by sharing in the risks and rewards. Typically our equity partners receive a percentage of the monthly cash flow from the property, and a percentage of the upside from equity growth on the “back-end” of the deal when we sell the property. And, equity investors also receive the benefit of depreciation expense for income tax purposes. With our primary strategy being “value-add” this can be a very attractive opportunity for investors.
Our investment process:
- We will meet with you and present the investment opportunity
- We will give you the required documents
- You will review with your attorney and account
- You will perform your due diligence
- You decide to invest
- You fund the investment
- We provide quarterly updates to investors via webinars
- Our accountants provide financial reporting twice per year
Our acquisition process
- We identify a property
- We underwrite the deal
- We submit an LOI
- We negotiate
- We perform inspections and due diligence
- We place financing on the deal
- We fund the investments from private equity
- We rehab if needed
- We manage the property managers via a weekly phone meeting with our in-house asset manager