How are Passive Investing Opportunities created? | The behind the scenes of creating a passive investing opportunity for hands off investors.

admin Thursday July 15th, 2021

What Up Plex can do for you as a passive investor

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

THE ACQUISITION PROCESS

During the acquisition phase, the deal sponsors dedicate time to 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 deals leads.  They work closely with brokers in the target market.

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

If the numbers reflect the potential for the deal to be a profitable asset, the sponsors coordinate with the broker to schedule a tour of the property.  During this tour, many times an experienced property management team will come along to help identify areas needing improvement that can potentially lead to better returns for passive investors.

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

Oftentimes the team will receive more updated financial information of the property and will 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 sell 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 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 needed. 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 webinar.  

When you invest with us, our investor relationship is a win-win situation in which we work diligently to put the money you work so hard to earn, to work for you. We are not only working to meet our financial goals but those of our investors.  It is a commitment we make to you and your family.  

Visit us and connect with us using any of the links below:

https://up-plex.com

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