Investar multifamily webinarfinal

MULTIFAMILYINVESTINGWEBINARWith your host: Travis Cadman

[

www.investarusa.comPhone: +1(855)456-3223| e-mail: [email protected]

YOU WILL LEARN

The 7 key requirements for successful multifamily investing

3 tax strategies used by the wealthiest real estate investors

The long-term fundamentals that will drive multifamily for 20+ years

The 4 unique and profitable benefits available only to real estate investors

Tax Sheltered Income & Equity Growth

How to Select A Market

Why Multi Family

Types of Multifamily Investments


INVESTAR USAMeet The TeamK1

RYAN MCGRATH

CCIM, CPM

Principal

MICHAEL S. MCGRATH

Chairman/CEOSTEPHEN MITCHELL

MBA

Executive Vice PresidentTravis Cadman

Principal of Investar USA

Webinar Host


The principals of Investar USA have been active developers/investors in real estate in both Canada and the U.S. for over 30 years.

•100 Million in Commercial Real Estate Under Management

•Over 30 years of real estate and portfolio management experience

•Over 2000 Real Estate Transactions

•Acquire over $20 Million in new assets every year

•Large family of investor clients - domestic and international

INVESTAR USAabout usK


$110 Million under management

1

Land Banking Land

Development

Commercial

Properties

Residential

Property

New

Construction

/Development

Mortgage

Investments

Houston

Multifamily


TYPES OF MULTIFAMILY

2-4 units•Duplex,triplex,4-plex

5 to 70 units •Recourse regional bank lending

•On-site management typically

not economical

70 to 300 units plus Individual Investors, Private

Investment Companies,

REIT's, AAA Rated Life

Insurance Companies

RESIDENTIALSMALL

APARTMENTSCOMMERCIAL

MULTIFAMILY

1


WHY INVESTin multifamily1

•Always in Demand - Food & Shelter

•Recession Proof

•Inflation Hedge

•Leverage - Bank Financing

•Tax Benefits

•Professional Property Management

•Appreciation

•Cash Flow

•Value Add

•Re-Finance

•Historically - the safest real estate asset with lowest risk and highest Sharp Ratio (risk adjusted returns) for the last 100 years

•Economic Cycle Resistant - Can generate yield in every market environment


HOW TO SELECTa real estate market

POPULATION GROWTH JOB GROWTH AFFORDABILITY


HOW TO SELECT cont.a real estate market

•Market Cycles

•No Rent Controls

•Trade Availability

•Property Management

•Business Friendly Local and State Gov't

TAX SHELTERED INCOME

& EQUITY GROWTH


THREE POWERFUL1

To increase passive activity losses and generate tax free income

To harvest safe equity and reinvest in additional properties. You can increase your monthly income with no additional investment.

To defer your capital gains tax to increase your current income and accelerate your lifetime wealth creation

Accelerated Depreciation Tax -free refinancing

Sell and Perform1031 Exchange

TAX STRATEGIES


4 Unique and Profitable BenefitsAvailable Only to Real Estate Investors

CASH FLOW

APPRECIATION

PRINCIPAL

PAY DOWN

TAX

BENEFITS


•Monthly or quarterly net income from the property

•Gross rents less operating expenses, capital improvements and debt

•Can safely achieve 5% to 9%+ in annual net income (B and C Grade Assets)

CASH FLOW1


•Increase in the value of the property through increases in Net Operating Income (NOI) or Capital Improvements of both

•Realized at property sale or refinance

•Typically the largest gain on transaction

•Can safely achieve 6% to 10% benefit a year on a 70% to 75% LTV property

APPRECIATION1


•The monthly benefit to the investors from reducing the loan balance

•Only realized at property sale or refinance

•3% to 4% annual benefit per year on 70% to 75% LTV property

•Tenants will pay down your mortgage

Principal Pay Downpaying down the mortgage

1


•Real Estate is one of the most tax-advantaged asset classes (Oil & Gas, Farming as well)

•Tax-free income

•Tax-free refinance capital

•Tax-deferred capital gains

•Worst case CRE taxes are best case in other asset classes

TAX BENEFITS1

YOU CAN SHAPE

YOUR INVESTMENT

RETURNS

15%-18% TOTAL RETURNS

Demographics

& EconomicsTrends that will shape commercial & multifamily investments for the next 25 year


MULTIFAMILY DEMAND DRIVEN BY HOUSEHOLDS


"Once in a generation“ population cycle dynamics

New renter household

Formation =

1,820,000/year

New apartment units

placed

In service = 235,000/year

Supply/Demand

Gap = 1,585,000/year


MULTIFAMILY DEMAND 2 Largest demographic groups

are in the 2 largest rental groups


Immigration Growth1


U.S. HOMEOWNERSHIP1


Multifamily will outperform every other asset class"1

Demographics

& EconomicsTrends that will shape commercial & multifamily investments for the next 25 year


•The largest wealth building source in the Forbes 400 is commercial real estate

•90% of the Forbes 400 retained their wealth through real estate investments

•Nearly all millionaires earned their first million through their own business or real estate investments

•The wealthiest investors own commercial real estate

•The fundamentals favor multifamily for the next 20+ years

The Most Proven Wealth Creation Tool1

STEP-BY-STEP

PROCESSThe 7 Key Requirements for Successful Multi-Family Investing


Understand Your

Current Assets Planning Investment Options

Partner Evaluation Deal Review Funds

Allocation/Subscription

Monitor/Track

Performance

STEP-BY-STEP ProcessKey requirements


LAZY ASSETSInvestment Capital Not working Hard For You

Money in Savings/Checking

Qualified Retirement Accounts

(IRA,401K, RRSP,RRIF,etc.)

Look for Global ROE

Return on Equity over 6%

Brokerage Accounts

Safe Home Equity

Underperforming Real Estate

nI


PLANNINGWhat do you want to achieve ?

Goals

Tax Shelter

Equity Growth

Yield

WealthPreservation


•Private/Public Real Estate Investment Trust (REIT)

•Limited Partnerships

•Direct Ownership

•Owner - Active Manager (labor intensive but profitable)

INVESTMENT OPTIONS1


YOUR PARTNER

PARTNER EVALUATIONKey Evaluation Criteria “Who” matters tremendously

Strategy/Philosophy (Income,Development,Appreciation,etc,)

Principals

Performance History

Growth Forecast

Experience

1

1


INVESTMENT EVALUATIONDeal Review

OPERATIONS

MARKETING

&

ASSET CLASS

H

FINANCIAL

PROJECTIONS

G

AGREEMENT

APPROACH


FUND/ SUBSCRIBE

Actual

Investment

Process

TWO

Investment Contribution

THREE

Closing

ONE

Investment Package

FOUR

Reporting & Communications

FIVE

Property Tour

K

2


Performance Reporting (quarterly/semi-annually)

Distributions (wire, e-bank, courier)

Tax Reporting

Personal communications/advisory 1 to 2 times per year

MONITOR/ TRACKDo you see what I see?


Understand Your Current Assets

Planning

Investment Options

Partner Evaluation

Deal Review

Funds Allocation/Subscription

Monitor/Track Performance

STEP-BY-STEP ProcessSUMMARY

j

h

s

z

QUESTIONS

AND

ANSWERS


CONTACT US

ARIZONA OR TEXAS

Investar USA has 2 offices located in Phoenix, Arizona and Houston, Texas.

Our sales team would be happy to show you available properties in either location.

CONTACT

Toll Free: 1-(855)456-3223

EMAIL

[email protected]


THANK YOU FOR JOINING US

t

v

Follow-us on our social links

FACEBOOK

facebook.com/InvestarUSA

TWITTER

twitter.com/arizonainvestar

YouTube

youtube.com/arizonainvestar

Post your comments about this webinar on facebook or send your comments by email and we will send you an exclusive document.

Multi-Family InvestmentCHECKLIST

Every Investor needs this in their toolbox.

THANK YOU

[

Investar multifamily webinarfinal

Real Estate

Transcript of Investar multifamily webinarfinal