The Time is Now
The residential real estate market is in a state of dysfunction causing valuations to be highly favorable to investors. The steady stream of foreclosures, lack of available credit to home buyers, government regulation and oversight, valuation methods used by appraisers, and several other factors have driven home values below rational levels and suspended the market. Single family homes can be purchased, repaired and entered into rental service at a cost basis of 50% of replacement value while generating cap rates as high as 20%. These factors present a finite buy-in period to an unprecedented current income and capital growth opportunity for investors.
Key Property Solutions, LLC. has created an avenue for investors to participate in fully managed portfolios of single and 2-4 unit multi-family rental property. Historically the investment community ignored this sector because of challenges in managing a disbursed asset base... until now. With current valuations, our proven business model and ownership structure, investors now have access to this opportunity. Key Property Solutions, LLC. is best in class in the acquisition, renovation, property management and resale of single family homes. We are well positioned to execute during this finite buy-in period offering a significant growth and income opportunity to investors through managed portfolios.
The Market
The timing has never been better
Residential real estate has been a core investment choice for hands-on individual investors for decades with growth, income and tax shield advantages in a single investment. Today, market conditions combined with our operational efficiencies have created a unique opportunity in the single family home sector. No more speculation on builders. Instead you have the surety of present performance with day one dividends and best in class management. So how do we select the local markets where we operate? The areas most suitable to our investment strategy are determined by several factors. We start with key economic indicators including household formations, population growth, job market, corporate base, schools and transportation infrastructure. In the areas we see stability and potential for growth, we research the local real estate market to ascertain whether there is a positive relationship between market rents and the cost basis to buy, fix and lease single family rental property. And finally, we consider nuances in the acquisition process for that local market in terms of potential volume and complexity of transactions. There are value-added and opportunistic opportunities throughout the country in residential real estate. We are looking at markets that are most favorable from both a current income and capital growth perspective.
Our Company
Key Property Solutions, LLC is strategically positioned to execute. We are committed to the continuous improvement of our people, processes and technology.
Acquisitions
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Property Management
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Renovations
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Disposition
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Partnership Strategy
Our investors can choose from a range of options that meet their individual goals and objectives.
Partner Profile:
Private capital is our fund raising channel for this opportunity. Institutional money sources prefer centrally managed real estate such as multi-family complexes. Commercial and consumer financing products are scarcely available in today’s market. And venture capital does not fit our model. This leaves an opportunity for accredited investors to participate in a fully securitized capital growth and income investment. Therefore, we are seeking private equity to participate as limited preferred partners.
Ownership Structure and Exit:
The entity structure is a Georgia Limited Liability Company. Key Property Solutions, LLC is the General Managing Partner and investors are Limited Preferred Partners. Future offerings include an income portfolio paying distributions quarterly and a growth portfolio that reinvests profits to purchase additional income producing assets. The exit strategies include either a phased sell-off of individual properties, or a one time sale to an institutional investor based on cap rate and proven operating history.
Portfolio examples provided upon request.
