Masterminds Take-Aways
TAKE-AWAYS FROM TEN DAYS OF MASTERMINDS Darin and I are compulsive learners, and we’re always looking for an edge that will improve your returns and grow our business. Personally, I spend a lot of mon...
02 July, 2021
Strategy
Presario targets opportunities that offer value creation through new construction and existing assets that have consistent cash flow and identifiable long term financial upside. We strategically select opportunities throughout locations in Texas and the prevailing Southwest, allowing Presario convenient geographic reach to oversee each investment.
With a strong market for healthcare, technology, energy, healthy employment rates, and increased housing demand, the Texas economy has consistently grown faster than the nation as a whole. While experiencing record growth, the region’s economy is also well-diversified and offers relatively low business costs and an attractive quality of life, making the multifamily housing market a desirable and lucrative investment. Target investment types are divided among three primary categories:
Class A Multifamily | Development
Presario targets multifamily real estate developments utilizing HUD 221 (d)(4) debt financing leveraging our HUD Sponsor approval. Our ability to partner with strong sponsors and developers and implement creative and flexible partnership structures allows us the opportunity to participate in high-quality projects across the region. These premium quality developments are positioned in strategic locations that have a high demand for residence and typically provide our investors the strongest returns during a three to seven year hold period. Target returns to our investors are 17%-22% IRR’s or a 2X multiple by year five.
Class A Multifamily | Stabilized & Cash Flowing
Presario seeks high-quality Class A assets that are located in active markets with projected employment growth and offer opportunistic upside through improved management or minor capital improvements. Our local capital source and our ability to be creative, speedy, and flexible in our process with sellers gives us a competitive advantage to secure assets. Our strategy includes incorporating better-leveraged debt through a HUD 223 (f) acquisition or refinance, improved operations, and investor participation in tax strategies not typically captured in a fund format.
HUD | AFFORDABILITY | P3
Presario has experience utilizing P3 (Public Private Partnerships) including city endorsed Affordability Housing Development Assistance Bonds that offer benefits to residents, investors, and developers. Our strategy in utilizing HUD insured loans is a competitive advantage considering the high leverage, low risk, and best-fixed rates in the industry. HUD’s required third party underwriting and annual audits enhance project credibility and best practices for property management, reporting, and record keeping.
SAMPLE PROJECTS
PARTNERSHIP
DEVELOPERS | SPONSORS
Presario’s main business plan focuses on multifamily real estate leveraging 221 (d)(4) HUD insured loans for ground up construction and 223 (f) loans for acquisition and repositioning. Presario Ventures brings forth the capital needed to co-sponsor and co-invest with developers and operators with a proven track record for development, redevelopment, and operations. The development or sponsor partner will earn promoted returns alongside Presario Ventures after achieving threshold internal rates of return, negotiated according to the risk for the particular property type and investment strategy.
This structure provides incentives to Presario Ventures and its developer/operator partners who may have unique opportunities and development capabilities that fall in line with our investment strategy. Our ability to partner with proven sponsors and developers and formulate creative, flexible partnership structures allows us the opportunity to participate in first-rate projects across diverse markets in our targeted areas.
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NEWS
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