Acquisition
Month 1
Rehabilitation
Months 2-3
Lease Up
Months 4-9
Stabilization
Months 10-24
Refinancing
Months 25-36
Holding Period
Months 37-84
Disposition
Months 85-120
Summary
One Touch's Value-Added Process:
Acquisition
- Proximity to Major Infrastructure
- Urban Core (Inside Beltway)
- Physical Inspection -- Solid Structures and Exterior
- Acquisition Cost 20-25% of 10-Yr. Historical Fair Market Asset Value
- Light Cosmetic Rehab
Rehabilitation
- Maximum Costs up to 20% of 10-Yr. Historical Fair Market Asset Value
- Preferred Contractors for major systems (HVAC, Electrical, Plumbing, Roofing)
- Multiple Crews for Framing, Drywall, Flooring, and Painting
- Architectural and Interior Design
Lease Up
- Partner with Local Housing Authorities
- Serving on Landlord Advisory Board
- SocialServe.com
- Local Online Channels (Craigslist, Creative Loafing)
- Social Media (Facebook, Twitter,
and LinkedIn)
Stabilization
- Partner (Tenant) Selection Critical
- Due Diligence: Employment and
Credit History - Obtain Partner Buy-In Early
- Impromptu Phone Interview
- "Living Room" Discussion to set Expectations & Goals
Refinancing
- Apply 50% Leverage (LTV)
- Cash-Out Refinance Returning Principal Back to Investors
- Operate Asset On-going with Conservative Leverage
Holding Period
- Differentiated Property
Management Model - Quarterly Property Inspections
- Customer Service Survey
- Community Building Events
(e.g. Atlanta Dream WNBA Games)
Disposition
- Exit Investment upon Capital and
Rental Appreciation - Sell to Partner (Tenants) upon Completion of Financial
Awareness Curriculum - Small City Fire & Police Pension Funds
- Foreign Investors Looking for Turn-Key Operation and Yield
- Socially-Conscious Family Investment Offices; Land Trust Conservationist
- REIT/IPO upon Critical Mass
Summary
- Investment Horizon 7-10 Years
- Rehab and Cap-Ex within first 3-Monhts
- Asset Stabilization by Year-2
- Cash-Out Refinance Plan by Year-3 (Returning Principal to Investors; Reducing Liquidity Risk)
- 4-Year Hold Period while Asset Value and Income Appreciate
- Disposition efforts begin by Year-8