Putting capital to work through real estate syndication.
Investment strategy.
We’re Multifamily Real Estate investors with a focus on value-add investment opportunities. We improve Class B & C apartment communities in emerging markets nationwide.
Historically, multifamily has been the least volatile real estate asset class during downturns while still offering strong upside potential during upcycles. Within multifamily, Class B & C provides one of the most attractive investment opportunities due to the imbalance between growing apartment demand and limited supply of new units.
When looking at properties to acquire, we seek out complexes that provide several opportunities to add value and increase the cashflow from its’ purchased state.
Acquisition criteria.
Turnpoint identifies undervalued multifamily properties for acquisition, value optimizations, management and disposition.
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Age: The 18-35 year old market segment is 22% of the U.S. population
Income: Renters who earn $40,000 or more annually
Price: Where rent is 30% or less of the median income
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Multifamily residential apartments that hold occupancies above 80% with strong profiles for income & equity appreciation. Pitched Roofs Preferred.
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Size: 20+ units
Returns: 7-10% Cash on Cash, Minimum Debt Service Coverage ratio of 1.25
Type: C- to B+ properties located in B- to A areas
Property Vintage: 1975 or newer
Location: Emerging market areas with indicators for strong near and long-term economic growth
Emerging markets.
Great locale is a value-driving priority. We are diligent in our research, exploring opportunities where jobs and local economies are expanding.
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Our focus is on markets where young professionals are moving. Markets with improved living costs and thriving metropolitan access.
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People moving in
Job creation
Rent and property value rising
Local government dedicated to attracting jobs
Markets starting to absorb oversupply
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Job growth report
Population growth
Path of progress reports
Local economic reports & trends
Chamber of Commerce reports
Value plays we capitalize on.
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We bring in the right partners to make sure every property is well managed.
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The largest cause for tenants to leave the property. We fix things for our tenants so they want to stay.
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We increase value on undervalued properties to gain higher investor return.
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We turn around poor supervision & execution from management companies to add-value.
Adding value.
Renovated Units
Improve interiors with new flooring, paint, appliances, countertops, floors and fixtures. We apply cosmetic in-unit enhancements to achieve a higher rent base.
Rent to Market
Purchasing a property that is 10% or more under current market rents. We are able to increase the income by adding value, then raising rents to proven market rates.
RUBS
Implement a water and sewage bill-back system to charge the residents for actual usage. Most apartment owners pay for all the water. As we bill back the tenants it off-sets our utility expense, therefore, raising our bottom line income.
Exterior Appeal
Improve the exterior aesthetics through landscaping, dog parks, playgrounds, etc. Tenants are willing to pay more to live in a complex that provides amenities and is well taken care of.