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800.946.1412, contact@FPMkc.com 4018 Harvard Lane, Kansas City, Missouri 64133 |
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Investment Property Recommendations
FP Management has a strong background in rental property investment analysis and is currently in the process of reviewing investment opportunities for its investor/owner clients. In some cases (and depending on investor preference), FP Management may co-invest with its clients and act as general partner for the investment. In other cases, we will provide investment advice as part of our efforts to win your property management business.
FP Management’s recommendations are based on the ability of each investment to meet our investment principals and objectives as follows:
GUIDING INVESTMENT PRINCIPALS
1. The rental real estate market in the Kansas City metropolitan area is at or near the bottom and we are now entering a period where real estate values will increase at very modest rates for an extended period of time. As a result, all investment property acquisitions must provide adequate and predictable returns without anticipation of market appreciation.
2. Residential rental real estate investments should be the safest and most predictable of real estate investments. As a result, all steps must be taken to ensure stable cash flows and principal must be insulated as much as possible from downside risk.
INVESTMENT OBJECTIVES
1. Identify opportunities where value can be added through either improved property management or minor cosmetic property enhancements. This value creation will primarily help to eliminate potential downside risk, but will also result in improved investment returns.
2. All investments should provide CURRENT returns to investors of at least 10%. These are not speculative investments and should provide returns immediately. The add-value component discussed above should result in investment returns of 15% - 20%.
3. Because of the stagnant nature of the current real estate market, investors should expect to hold the investment for a period of at least 5 years. This will ensure adequate returns after accounting for selling costs.
INVESTMENT REOMMENDATIONS
The following properties have passed our preliminary review process and are recommended acquisitions:
WILLOWIND APARTMENTS, 94 units, Kansas City, Missouri. This bank-owned property, which comes with 90% financing, is the nicest property in this submarket and, with just a few repairs and some strong management, has the potential to deliver excellent returns.
If you would like to be contacted about future potential investment opportunities, please email Scott Fricker at SFricker@FPMkc.com or call 800.946.1412 x102. |
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