Davis Capital Partners, LLC’s Post

Vision 2028: Our Path to $400M AUM Our portfolio holds over 200 multifamily units with $100M under management. By 2028, we aim to expand by adding 400 units and reaching $400M. Here's our plan: Strategy We focus on Connecting Communities by developing affordable, high-quality projects. Tailoring customized solutions for each community, we create long-term value to boost community and investor returns. Market We analyze factors like population growth, supply constraints, and economic diversification. We're bullish on the Greater LA area, especially with the unique outlook to come with the 2028 LA Olympics. Acquisition Our acquisitions team is split into 2 divisions. The on-market team builds relationships with brokers, while the off-market team connects with property owners, targeting assets often overlooked by brokers. Relationships Our strength lies in building and maintaining relationships. By engaging with owners, brokers, and the community, we secure prime deals and ensure our projects align with community needs. Connecting the Verticals Our integrated services and collaborative approach create real estate efficiency. Effective asset and property management, efficient construction practices, and regular financial monitoring ensure smooth operations and robust cash flow.

We are already 70% subscribed on our upcoming 192-unit multifamily acquisition in the Raleigh-Durham and Greensboro, North Carolina area. We received 3 term-sheets from larger institutional investors for up to $7,000,000 in equity because they see the value. A few reasons why we love this deal… - 94% occupied - 20% - 22% Projected return per year - 2x Equity Multiple (get back $200K for every $100K) - Rare discounted off-market opportunity with a $500K price discount - Fixed rate debt - cashflow positive from day 1 - High population growth market in the path-of-progress - Strong job growth (only 25-30 minutes from Research Triangle Park and Greensboro) -Institutional-class asset with value-add opportunity. We’ve been oversubscribed with our recent acquisitions, and we expect this opportunity to fill up quickly. If you are an accredited investor, click here to schedule a call with us and secure your spot: https://lnkd.in/eNRhHDJz

Acquiring these 6 sought-after acquisitions compliments CAPREIT's high-grading strategy, while working with community housing providers to preserve affordable housing. It’s a win-win situation for housing supply for Canadian families. #REITSforhousing #cre #realestate #realestatetransaction #acquisition #bestplacetoinvest

Why the "In Place" Cap Rate Metric Can Be Deceptive When evaluating multifamily acquisitions, investors often consider the "in-place" cap rate. Here are the most common methods for calculating it: • 𝗧-𝟭𝟮: Take the actual net operating income (NOI) from the past 12 months and divide it by the purchase price. • 𝗧-𝟯 𝗥𝗲𝘃𝗲𝗻𝘂𝗲 𝗼𝘃𝗲𝗿 𝗧-𝟭𝟮 𝗘𝘅𝗽𝗲𝗻𝘀𝗲𝘀: Annualize the revenue from the past 3 months, subtract the actual operating expenses from the past 12 months, and divide the resulting NOI by the purchase price. • 𝗧-𝟯 𝗥𝗲𝘃𝗲𝗻𝘂𝗲 𝗼𝘃𝗲𝗿 𝗣𝗿𝗼 𝗙𝗼𝗿𝗺𝗮 𝗘𝘅𝗽𝗲𝗻𝘀𝗲𝘀: Annualize the revenue from the past 3 months, subtract projected/budgeted operating expenses, and divide the resulting NOI by the purchase price. Relying solely on a going-in cap rate metric based on 𝗧-𝟭𝟮 NOI has its limitations. For instance, if the T-12 shows an uptrend or downtrend in revenue, using 𝗧-𝟯 𝗿𝗲𝘃𝗲𝗻𝘂𝗲 𝗼𝘃𝗲𝗿 𝗧-𝟭𝟮 𝗲𝘅𝗽𝗲𝗻𝘀𝗲𝘀 allows investors to normalize revenue for recent trends at the property. This provides a more accurate reflection of in-place revenue, making the T-3 over T-12 cap rate calculation often preferred over the pure 𝗧-𝟭𝟮 NOI calculation. However, metrics based solely on recorded results (𝗧-𝟭𝟮 and 𝗧-𝟯 𝗼𝘃𝗲𝗿 𝗧-𝟭𝟮) can be misleading. For example, an owner might reduce spending significantly before a sale, leading to artificially low recorded expenses and an inflated perception of the deal's attractiveness. Additionally, the seller could understate operating expenses by recording them below the net operating income line as capital expenditures. Given this reality, investors should also consider a cap rate metric that includes the anticipated expense load upon acquisition, such as 𝗧-𝟯 𝗿𝗲𝘃𝗲𝗻𝘂𝗲 𝗼𝘃𝗲𝗿 𝗽𝗿𝗼 𝗳𝗼𝗿𝗺𝗮 𝗲𝘅𝗽𝗲𝗻𝘀𝗲𝘀. This approach normalizes revenue for recent trends at the subject property and adjusts expenses to reflect what they will look like under new ownership, offering a clearer picture of the buyer's "going in" unlevered yield. In our acquisitions process, we weight the analysis more on 𝗧-𝟯 𝗿𝗲𝘃𝗲𝗻𝘂𝗲 𝗼𝘃𝗲𝗿 𝗽𝗿𝗼 𝗳𝗼𝗿𝗺𝗮 𝗲𝘅𝗽𝗲𝗻𝘀𝗲𝘀 to obtain an accurate picture of operations after acquisition; however, we look at all three metrics, as each provides valuable insights to help round out our analysis. What key metrics do you consider in your acquisitions process? Share your thoughts in the comments below!

We've secured the deal for $13M less than what the original owner paid 5 years ago! And last Friday, we officially closed on it! This acquisition would not have been possible without your support, and I appreciate your invaluable trust and partnership. I've said this deal is the best one we've seen in Multifamily in more than 5 years, with $143M AUM and 1043 units under management… I've seen more than our fair share! …… Overview of The Ridley acquisition: 👇🏿 Purchase price: Acquired at $66k per unit, a 30% discount below market. Neighboring comps: A neighboring property sold for ~$104K per unit last month. Strategic location: In the heart of Houston's Galleria/Uptown District, a major business and commercial hub. …… Investment highlights: 👇🏿 Annual Return Rate (ARR) of 20-25% Equity Multiple of 2.3x Average Cash on Cash returns of 7-9% $75k Minimum Investment …… The state of this asset: 👇🏿 "Distressed seller but NOT a distressed asset" → We've secured the deal for $13M less than what the original owner paid 5 years ago! → The seller has invested $4M in capital expenditures to enhance the property. → The property currently sits at 90% occupancy → Although the seller is distressed, the property is NOT distressed and even qualifies for highly desirable Agency Debt based on its condition & financial performance. → $26M to assets under our management  → 405 units added to our units I’m excited to kick off our business plan for this asset as soon as possible. Our in-house property management firm, Emerge Living, oversees the operations! Would you like to get added to our investor community? Drop me a DM and I’ll add you! Drop a follow and join my journey! Trust me, bigger things are yet to come 🚀

🌟 Exciting Updates from AJ Horn Properties! 🌟 Since May 2024, AJ Horn Properties has been on an impressive acquisition spree, further solidifying our footprint in the real estate market. We're thrilled to share our latest milestones: 🏡 Prospect Street Package: We have acquired four distressed properties in Mount Vernon and Marion, Ohio. These properties present a fantastic investment opportunity with significant potential for value appreciation and rental income increase. With a strategic renovation plan, we're excited to unlock their full potential. 🏞 Apple Valley Homesites: Two new homesites have been added to our portfolio, promising to bring high-quality residential options to this thriving community. 🏠 Mt Vernon Homesite: Another prime homesite acquisition in Mt Vernon, reinforcing our commitment to expanding our presence in key growth areas. In addition to these acquisitions, we're proud to announce the expansion and creation of our corporate structure: 🏢 Horn Capital Investments: Established as our parent company, Horn Capital Investments spearheads strategic initiatives and capital allocation, driving our growth and success. 🔨 Shipley and Strout: As our dedicated facilitator for property construction, Shipley and Strout ensures that all AJ Horn Properties' developments are executed with excellence and efficiency. Their expertise in constructing luxury homes is a key asset in delivering top-tier residential projects. These strategic moves align with our vision of providing high-quality housing solutions and maximizing investment returns. We look forward to continuing this journey of growth and success. #RealEstate #Investments #Growth #AJHornProperties #HornCapitalInvestments #ShipleyAndStrout #PropertyDevelopment #RealEstateInvesting

We've secured the deal for $13M less than what the original owner paid 5 years ago! And last Friday, we officially closed on it! This acquisition would not have been possible without your support, and I appreciate your invaluable trust and partnership. I've said this deal is the best one we've seen in Multifamily in more than 5 years, with $143M AUM and 1043 units under management… I've seen more than our fair share! …… Overview of The Ridley acquisition: 👇🏿 Purchase price: Acquired at $66k per unit, a 30% discount below market. Neighboring comps: A neighboring property sold for ~$104K per unit last month. Strategic location: In the heart of Houston's Galleria/Uptown District, a major business and commercial hub. …… Investment highlights: 👇🏿 Annual Return Rate (ARR) of 20-25% Equity Multiple of 2.3x Average Cash on Cash returns of 7-9% $75k Minimum Investment …… The state of this asset: 👇🏿 "Distressed seller but NOT a distressed asset" → We've secured the deal for $13M less than what the original owner paid 5 years ago! → The seller has invested $4M in capital expenditures to enhance the property. → The property currently sits at 90% occupancy → Although the seller is distressed, the property is NOT distressed and even qualifies for highly desirable Agency Debt based on its condition & financial performance. → $26M to assets under our management  → 405 units added to our units I’m excited to kick off our business plan for this asset as soon as possible. Our in-house property management firm, Emerge Living, oversees the operations! Starting next month, I will give you regular investor updates to inform you about our progress. The first comprehensive set of financials will be included in the next update. Would you like to get added to our investor community? Drop me a DM and I’ll add you! Drop a follow and join my journey! Trust me, bigger things are yet to come 🚀

Ever wondered why a home might come back on the market? 🤔🏡 There are many reasons a property reappears for sale, and it doesn't always mean there's something wrong with it. Sometimes, financing falls through, the buyer's circumstances change, or inspection results lead to renegotiations that don't work out. It could also be as simple as the buyer getting cold feet. If you see a home back on the market, it might just be your second chance opportunity!🔑 Jeffery L. Hein Real Estate Consulting Sales & Acquisitions 📲760-753-2000 🌐[email protected] 🪪DRE#01232396 Premiere RE Group DRE# 01520947 Premiere Properties, Commercial, Investment 📍6183 Paseo Del Norte #150 Carlsbad, CA 92011 #jeffreyheinrealtor #carlsbadcahomes #delmarcahomes #carlsbadcarealestate #sandiegocarealestate #investementrealestate #encinitascarealestate

New memo on SFR Portfolio Acquisitions: On November 3, 2021, Zillow reported a staggering single-quarter loss of $420 million and declared an immediate withdrawal from their home-flipping venture. Opendoor and Redfin experienced similar losses, and their stock prices subsequently collapsed by over 90%. But these well-publicized failures weren’t mere blips confined to a few companies in 2021 and 2022. Currently, a wide range of single-family investors face significant challenges with their portfolios. Some have entered receivership and began the process of shutting down, while others are burdened by significant unrealized losses, disappointing returns, and uncertain futures. We think single-family homes can be great investments that offer some of the best risk adjusted returns available in real estate writ large. However, it's crucial for investors to understand the complexity and active involvement required to effectively build and manage profitable single family home portfolios. To us, it seems that many investors have instead adopted a “how hard can it be?” attitude towards single-family investment resulting in disappointing (or even disastrous) returns. We are releasing a series of memos to help guide investors and managers assemble highquality and high-performing single-family rental portfolios. Smaller investors should appreciate that single-family investment is not the passive enterprise promised by course-selling gurus. Larger investors should consider the significant operational challenges inherent in implementing these considerations at scale. This first memo discusses the first stage in assembling a high-performing single-family rental portfolio: home acquisition. (click the link for the full memo) https://lnkd.in/gCnke2P3