Acquisition Strategy
Acquire and Reposition Undervalued Assets
While more favorable lending environments in the past allowed for the purchase of adequately performing properties financed by bank loans combined with the raising of 35%-50% of the purchase price, today's environment favors an acquisition strategy that reduces the cost of acquisition by taking advantage of undervalued and underperforming assets. A focus on properties that do not merit bank financing increases the initial capital investment (125% of the actual purchase price) but lowers actual cost by reducing the number of competitive bids. With a focus on repositioning after capital upgrades and improved property management, Nahas Realty & Investments projects attaining long-term financing in the second year to deliver significant ROI to investors.
Investment Criteria
Nahas Realty & Investments invests in broadly undervalued residential properties and undervalued B and C grade, multifamily apartment buildings. Our key aims are stability of cash flows and asset appreciation. Our objective is to secure positive cash flow within a year after repositioning and increased revenue after the first year and throughout the holding period, with projected ROI of at least 10% in the second year and at least 20%-30% compounded returns or IRR over 5 years. Defining a profitable exit strategy is also integral to our investing, with value appreciation realized through sale or refinancing.
Operations
Nahas Realty & Investments adopts a systematic method to ensure the success of each investment property. Following each acquisition, Nahas Realty & Investments develops a 5-year plan of action to ensure the property becomes the preferred rental living community in its area. We define a multidimensional strategy that encompasses improving the property's overall quality and livability at a sustainable pace that is consistent with our goals to improve the occupancy rate, the quality of the rent roll, and the cash flow of the property. Our approach stresses careful attention to both cost and tenant relations by providing property management that is trustworthy and timely.
Investor Relations
Nahas Realty & Investments understands that partnerships hinge upon the quality of the relationship. Transparency and dependability are thus our commitments to every investor partner. Our investors can expect superior visibility into their investments, combined with consistent, positive returns. Nahas Realty & Investments provides regular communication of timely and accurate performance data on investments aimed at producing monthly or quarterly cash distributions.
