Our philosophy
CREI Partners focuses its business on value-add multi-family opportunities and build-to-rent developments. 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
Acquisition Target
- 1975 or newer construction with 100+ Unit Apartments
- Nationwide Growth Markets with Attractive Apartment Fundamentals
- Special focus and priority on Texas and Southeast Markets
- 85%+ Occupancy
- Value Add renovation opportunities to achieve rent premiums
- Increasing net operating income via moderate capital expenditures
- $10M-$40M Purchase Price
Investor Returns
- All investment returns vary based on the individual property
- Minimum $50,000 investment (some opportunities higher)
- 3-7 year hold period
- Min preferred return 7+% with 12%+ IRR
INVESTING IN GROWTH MARKETS WITH STRONG APARTMENT FUNDAMENTALS
We partner with proven sponsors and syndicators to understand sub-markets at a hyper local level. We primarily focus on Texas and Southeast USA due to the strong apartment fundamentals (as shown above) and strategic partnership relationships.
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.
CREI PARTNERS Pillars
Disciplined Strategy
- We focus on cash flow not appreciation. Forced appreciation through cash flow focuses on decreasing expenses and increasing revenues through creative processes.
- Secure conservative and disciplined debt to weather any financial storm that may come to reduce risk for our investor’s capital.
- Cash Reserves upfront in our operating account to allow maximum flexibility and strength regardless of market conditions.
Experienced Partners
- We build strong partnerships with market brokers, attorneys, lenders, tax advisors, and other experts in the multi-family. We are bigger than our company, and challenge ourselves to surround our team with the best in the industry.
- We do our homework extensively and use the resources of our partners and research platforms to ensure we have the best market knowledge available.
Investment Transparency
- The transparency starts when we first connect with an investor and continues throughout our partnership.
- Our Investor Portal provides full transparency on the asset and provides current progress updates on the property. Quarterly calls are scheduled as a touch point in the investment process.
- We handle the life cycle of the investment while you receive available after expense quarterly cash flow distributions. All financial information including distributions, return calculations, statements, and K-1’s are available in the Investor Portal.
Results Driven
- We do not benefit in the returns after expenses until our investors are paid their preferred returns.
- We strive to exceed investors target return expectations. When results are met, more wealth is created providing opportunities to partner in the future.
- We are investing alongside you. We treat your investment as if it were our own ALWAYS.
