How can a private investing firm can help you build wealth?

Maricela Soberanes Tuesday May 31st, 2022

https://up-plex.com Up Plex is a private investing firm that has helped busy professionals create passive sources of income by offering them investing opportunities in cash flowing and appreciating assets.

Some people we meet now, look at our current situation and think wow! “That’s cool, but is that something I can achieve?”. Well this is a quick recap of our investing journey and how now we are able to help other investors achieve the same.

“Most of our investors are busy professionals who also are heavily taxed that are looking for alternative sources of passive income”.

With over $135M in assets under management via syndications, we have found we have more freedom of location than when we were self-managing our own portfolio. We scaled from 4 doors in 2016 to 35 doors in 2020 to over 2400 doors by the end of the Q1-2022.

We may not own everything ourselves anymore, but we have found that partnerships have made an incredible difference in our chance to impact so many others significantly. It has also allowed us to more than double our net worth in the last 15 months. We have had people asking how we did do it… Mindset… if you truly believe, you will achieve! Of course, you have to take action, but it all starts with believing that you can do it! We found partners, mentors, and investors that had a similar desire for more. So, if you are interested in more, you need to believe it is possible, speak it, tell others, and continue to believe. It is completely achievable for you and anyone else willing to put their mind to it. AND the right team by their side.

Take a moment to review our team’s process in acquiring, improving, and managing our quality multifamily and self-storage investments.

ACQUISITION PROCESS

During the acquisition phase, the deal sponsors spend time finding a deal that meets the team’s investing criteria in the defined target market. They will tour the target markets and submarkets, exploring potential deal leads. They work closely with brokers in the target market. 

The team is underwriting (Reviewing the Finances) to analyze potential deals using a proven conservative tool. Our deal analysis process makes conservative assumptions to vet the potential deal properly. 

If the numbers reflect the potential for the deal to be a profitable asset, the sponsors coordinate with the broker to schedule a property tour. During this tour, many times, an experienced property management team will come along to help identify areas needing improvement. This allows us to underwrite with a more realistic capital expenses budget, potentially leading to better returns to passive investors.  

If the deal analysis and the property tour reveal the potential for a profitable asset, a Letter of Intent (LOI) to purchase is presented to the seller’s agent. 

Often, the team will receive more updated financial information about the property and have a better idea of the needed updates, renovations, and any deferred maintenance to help adjust the initial underwriting. 

THE FINANCIAL ANALYSIS 

An inside of the financial analysis was performed to protect our investors’ capital. 

The second financial analysis involves a more comprehensive and in-depth understanding. This analysis includes but is not limited to income stress testing (can the property meet financial obligations with less than optimal occupancy? Slow rent increase? Cover unexpected expenses?)

The deal analyzer tool allows us to simulate these scenarios and reflect the potential results. Part of this deeper analysis is to budget for capital expenses (CapEx) budget for renovations and improvements, lender-required reserves budget, conservative exit strategies, and conservative rent increases.  

This analysis is used to develop a business plan from acquisition to sale/disposition of the property. 

WHAT TO EXPECT AS A PASSIVE INVESTOR?

Expect transparent and frequent communication throughout the entire investing process. 

There are several ways we will communicate with you. 

The Offering Memorandum is a document where you will be presented with the business plan from acquisition to the sale of the property. This is a comprehensive review detailing projected returns, deal Pro-forma Projections, type of debt/loan, renovation plan, exit strategy and timeline, property and market analysis profile, comparable properties, and their performance.  

The Deal webinar is an informal online live and recorded event to present you with the deal. Here you also have the opportunity to meet all of the deal sponsors if you haven’t.  

You will receive communication from the investor relations coordinator to help you complete needed paperwork and other bank transactions as required. The investor relations coordinator will also send a periodic (usually monthly) update on the business plan execution. 

You should also expect quarterly financial reports and asset performance via email or webinars.  

All along the way, we are partners, we invest alongside. We are there to answer any questions that might come up. We believe an educated investor is a confident investor!

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