Investment Approach

  • Discover/investigate/research
  • Identify target investment markets
  • Develop relationships with key property management companies, brokers, etc.
  • Identify opportunities
  • Screen all opportunities to identify targets that best match the investment objective
  • Underwrite based on a thorough understanding of the property operations and realistic revenue projections, operating costs, capital upgrades necessary, and capitalization rates
  • Evaluate full range of potential outcomes and identify critical aspects of investment
  • Thoroughly understand critical success factors
  • Identify multiple exit strategies
  • Talk to contacts to confirm/deny key aspects
  • Negotiate the best possible terms and price
  • Execute contract
  • Create debt and equity structures that provide for a solid investment and maintain necessary spreads and security
  • Actively manage inspections, lease audits, and any renegotiations
  • Close on multifamily asset, actively manage the takeover process and any capital upgrades, oversee operations, and execute the defined exit strategy
  • Actively manage the business plan to disposition, making sure objectives are met

This process ensures that the investment team identifies the most attractive investments, gains a complex understanding of the opportunity, obtains the best deal structure, and efficiently manages the asset until its disposal, while always maintaining our focus of providing maximum return to our investors.

Due Diligence

At Cullor Properties we pride ourselves on thorough due diligence. We understand that a complete assessment of the physical, economic, and market conditions is the only way to accurately determine the opportunity (and exceed expectations). The following are key criteria from our due diligence process:

Physical Due Diligence

  • Evaluation of data and reports, including environmental reports, survey, title work, tax projections, and compliance with city codes, easements, fees, etc.
  • Detailed physical review of property including site access, nearby amenities and competition, neighborhood services, job availability, and quality of life in the area.
  • Physical walkthrough of every apartment unit to identify exactly how the property is being taken care of, and to anticipate turn costs and physical upgrades that are needed.

Economic Due Diligence

  • Detailed underwriting analysis including market rents, sales comparisons, physical inspection, submarket, and economic review.
  • Review of all past financial information including capital upgrades performed, historical financial review, economic trends, maintenance requests, and inspection of rent roll to confirm underwriting.
  • Detailed analysis of current leases and tenants including background checks, crime reports and rental history, and competitive rental surveys.

Our exhaustive investment selection process and due diligence is designed to identify any current issues, as well as the potential future market conditions including market rents and how quickly units are being rented or absorbed, allowing our clients to minimize the risks associated with acquiring real estate while maximizing returns.

 

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