Our philosophy
CREI Partners focuses its business on value-add multi-family opportunities. Properties are identified through a disciplined selection criterion, while utilizing CREI Partners experienced team to execute the investment process to its fullest potential. We built and continuously align our business to these four pillars: Disciplined Strategy. Investment Transparency. Experienced Partners. Results Driven.
Desired Investment Criterion
VALUE ADD
- Class B or C Garden Style Apartments
- Priority Markets Austin, San Antonio and Houston
- 1980 or newer construction
- $4M+ range
- Minimum of 70+ units
- 85%+ Occupancy
- Purchase price less than 80% of replacement costs
- Increasing market fundamentals
- Renovation opportunities to achieve rent premiums
- Increasing net operating income via moderate capital expenditures
- 5-7-year hold period
- Minimum Debt Service Coverage Ratio of 1.25
- 12-15%+ IRR
Texas Multi-Family Markets
Primary and Secondary Market Locations are our focus along with a disciplined approach to understanding sub-markets at a hyper local level. Our current target markets are Austin, San Antonio and Houston due to close proximity to where we live and have experienced partners to execute our investment strategy. These markets meet our market investment fundamental attributes. As we grow into other markets these fundamentals must be present for us to invest.
Attributes of Strong Apartment Fundamentals:
- Landlord Friendly State
- % of Job Growth Trending Upwards
- % of Population Growth Trending Upwards
- % of Income Growth Trending Upwards
- % of Crime Rate Trending Downwards
- Strong partner relationships to execute the investment strategy.
Our Investment Process
MARKET ASSESSMENT
Our assessments start with determining which markets we invest in. Our priority markets are chosen through rigorous research and data on the following metrics over the past 5 years: Unemployment Rates, Population Growth, Population Age, Job Diversity, Top Employers, and Supply/Demand of Apartments to include building permits.
PROPERTY ANALYSIS
Our analysis primarily focuses on not for sale “off market” opportunities as they provide in most cases the best value-add opportunities. We find and analyze opportunities using the best available online research platforms, along with sweat equity in building relationships with local commercial real estate partners, contacting owners and visiting properties.
DUE DILIGENCE
We have an experienced team who has gone through multiple property acquisitions. During due diligence we will verify financial reports, tenant occupancy, and conduct our own property inspection through a third-party inspector.
ACQUISITION
Making it to acquisition is an exciting time for our investors and team!
VALUE ADD (REPOSITION ASSET)
The hard work now begins in executing our strategic building plan. Our team and partners will work together soon after acquisition to reposition/renovate the property. Depending on positive cash flow after expenses investor returns are distributed quarterly. This cycle can take 12 months to two years to complete.
ASSET MANAGEMENT
This process is critical and possibly the most important aspect of the operation. Our experienced team will work closely with the property management team to maximize occupancy, control expenses, add revenue, and increase resident satisfaction. During this phase investor distributions are paid to maximize returns.
EXIT STRATEGY
From day one we are focused on our exit strategy to protect our investors capital and maximize returns. We are constantly surveying the market to determine the best time to sell the property. Typically, we are focused on selling within 3-5 years after acquisition depending on the value-add strategy.
