FUNDING FIRST
Investors Commit Capital
The U.S. Securities and Exchange Commission rules in Regulation D allow Padua Partners to raise capital from both accredited investors and non-accredited investors with a prior relationship.
ACQUISITION
The Selection Process
We look for underperforming multifamily properties that have opportunity for forced-appreciation through renovations and improved management. These are properties with:
— Motivated sellers
— Great locations
— Poor property management
— Unappealing aesthetics
— Outdated interiors
— High vacancy
— Deferred maintenance
— Low cash flow
The Purchase Process
After identifying an opportunity, we:
— Conduct a financial analysis
— Determine all of the risk factors
— Seek optimal financing
— Negotiate the purchase agreement
— Find an experienced property manager
— Vet and secure a contractor
— Complete due diligence
FORCED APPRECIATION
The Renovation Process
Immediately after closing, we begin forcing appreciation (increasing the property’s value) by increasing the property’s income. This process may include:
— Updating the outdated units
— Renovating the exterior features
— Improving property management
— Increasing occupancy
— Decreasing expenses
— Increasing rent
THE REWARD
Exit Strategy
When the property is stabilized (90% occupancy for 90 days), we look to either:
sell, split the profits, and reinvest proceeds into the purchase of another apartment building
or
refinance the property, return cash to investors, and hold for a later sale