Five Reasons Why Your Real Estate Investments Aren't Earning You Money

Top-Five-Reasons.jpg

This article was also published on Forbes.com: Five Reasons

I recently spoke with an investor who told me that he has $500,000 in cash and is looking for the right investment property to acquire. As usual, I asked my standard set of questions: What are your goals, time horizon, risk tolerance and experience level? His responses were stable cash flow with some potential for appreciation, long-term time horizon of 5 to 10 years, not tolerant of high-risk investments and his real estate experience was limited to the purchase of his single-family residence. These are fairly common answers for new investors who are looking to steadily grow their wealth. So far, so good.

Then, I asked how long he had been looking for a property. What he said next shocked me: five years. This investor had been searching for the “right” property to deploy his money for five years. This means that he lost out on the last five years of cash flow and appreciation, and his money suffered from five years of creeping inflation — a poor outcome.

Although shocking, this type of story is not uncommon. In fact, I hear it frequently. Plenty of people desire to be in real estate, but consistently fail to invest successfully. Here are the typical reasons why:

1. No Clear Objectives

The primary reason investors I meet do not make any money in real estate is because they have not taken the time to establish specific, clear objectives. Most investors have answers for the questions I asked our representative investor above and believe that is sufficient for moving forward. But the objectives need to be "SMART":

Specific: What type of property? Which neighborhood?  What price range? What condition?

Measurable: What annual percent cash flow is your threshold? What percent appreciation do you expect to see in five years?

Actionable: What specific steps are required to get to a successful outcome? What are you doing this week to progress?

Relevant: Why are you doing this — to retire, pay for your child’s college education, replace your current income? What will get you out of bed to make this investment successful?

Time-bound: What is the date you plan to have acquired the property?

Without taking time to establish these, like many things in life, failing to plan is planning to fail. No investment is made, or worse, the wrong investments are made and for the wrong reasons.

2. Lack Of Time

A real estate investment must be viewed as a business. As with any business you have clients (tenants), vendors (property managers, contractors, utility providers) and possibly employees. You have cash flow, accounting and capital allocation decisions to make. You must have a marketing and sales strategy in place. And you must be able to generate a return on investment.

All of this can take a significant amount of time to learn and master. There are hundreds of professional investors who do this full-time and are competing with you for the same properties, vendors and financing. It takes real commitment to do properly. You are buying a house — will you dedicate the time and nurturing it requires to thrive, or will you neglect it and drive it into the ground?

3. Poor Management Skills

Whether you self-manage your property (and I highly recommend that you don't) or utilize the services of a professional property manager, you will need to have effective management skills. Interacting with tenants is part art and science as it involves the attraction and retention of quality tenants, balanced by the legal requirements involved with being a landlord. Managing the property manager is a different skill set altogether, as you need to be able to establish an alignment of interests, motivate the property manager to perform and then monitor that performance against expectations.

We constantly acquire properties for our investment funds, and a key gating factor when deciding whether to pursue a property is if we have a quality property management firm in place to run it. We have, on multiple occasions, walked away from deals that were otherwise great investments because we could not find a reputable, aligned property management firm to work with. This is critical: Buying the property is getting to the starting line, not the finish. Once acquired, the real work begins in making improvements and bringing the property into a stable run-state.

4. Inability To See The Big Picture

When buying properties across the U.S. and in many different markets, there are two critical factors we look for before considering an investment: net population increase and diverse economic base. Whether through a high birth rate, people moving into the area or both, the population should see an uptrend. This does not require breakneck population growth, but the population needs to be increasing, which serves as a tailwind to demand.

Secondly, jobs support buyers and renters, which is critical for all real estate asset classes, especially multifamily. Metro areas with two or more major (and growing) industries are ideal. The big picture matters and must be closely aligned with your SMART objectives.

5. Buying The Wrong Property

Even if you've done all of the above, you can still go wrong if you buy the wrong property for your given strategy. Want high cash flow in a tier-one coastal city? Good luck. Are you buying a high-vacancy value-add property 1,000 miles away with no team on the ground? The cards are already stacked against you.

How can you tell if you are buying the right property? Again, it comes down to knowing your overall strategy, talking to experts and local investors and being honest with yourself about your strengths and weaknesses. Finally, if you are new to investing, start smaller and give yourself a decent cash cushion. Repairs will come up, you will experience vacancies and there will be surprises.

Real estate can be a fantastic investment, or it can be the exact opposite. It all depends on how seriously you approach the business aspects of it.

 

About BENA Capital:

BENA Capital manages real estate investment funds, with a central focus on the acquisition and management of residential multifamily assets in growing markets.  BENA Capital's funds provide investors with ease of entry, reliable quarterly cash flow, and portfolio diversification.  Our proven strategies emphasize sound investing in carefully researched, quality properties that have steady, long-term capital appreciation potential.

Click for Investor Overview PDF: BENA Capital Overview

To learn more about BENA Capital, visit: http://www.bena-capital.com/

Who Wants To Be A Millionaire?

why real estate image.jpg

Real estate, especially when diversified in a balanced fund, is a powerful tool for investors to build wealth, generate consistent income, and hedge against vulnerability in the stock market. It continues to be a portfolio staple of high net-worth and institutional investors.

Well-managed, quality real estate, offers investors a wide range of benefits, including:

  • A stable, diversified portfolio

  • Reliable quarterly dividends

  • Long-term appreciation potential

  • Shorter-term forced appreciation through value-add activities

  • Hedging against inflation & stock market swings

  • Tax advantages

In the arena of alternative asset classes, real estate knows no rival. Morgan Stanley’s Millionaire Investor Survey reported that U.S. millionaires view real estate as the #1 alternative-asset class to own. Especially as stocks are now showing volatility, owning real estate is attractive because of the appreciation potential of property value and reliable stream of rental income.

At BENA Capital, our newly launched Mosaic Fund adds an extra layer of risk protection by being debt-free. That means zero risk of default. Furthermore, investors pay no fees. Our goal is to help you invest in real estate and provide you the upside of investing without the time commitment or complexity of ownership.

If you are not already investing, we can help you get started.

About BENA Capital

BENA Capital manages real estate investment funds, with a central focus on the acquisition and management of residential multifamily assets in growing markets. BENA Capital's funds provide investors with ease of entry, reliable quarterly cash flow, and portfolio diversification. Our proven strategies emphasize sound investing in carefully researched, quality properties that have steady, long-term capital appreciation potential.

BENA Capital Mosaic Fund: Mosaic Fund

BENA Capital Investor Overview PDF: BENA Capital Overview

Executive Roundtable: BENA Capital

Kimberly Yeh, Managing Director - Acquisitions

Kimberly Yeh, Managing Director - Acquisitions

BENA Capital was recently invited to a closed-door Executive Roundtable in San Francisco, California. We were asked to share our industry insights and participate in a hosted Q&A session. We have permission to publish an abridged transcript of that conversation - here's an exclusive insider look at the interview with Kimberly Yeh, Managing Director of Acquisitions.

Host: BENA Capital has become one of the leaders in the private equity real estate space to champion debt-free investing. We have Kimberly Yeh, Managing Director of Acquisitions joining us today. Welcome.

Yeh: Thank you; good morning.

Host: To start us off, tell us - Why the "no debt" motto? Why is it important to you and how does it benefit investors?

Yeh: Good question. In the late 2000s, we saw the effects of debt obligation in the "Great Recession," spurred by the housing crisis. Everyday you would read about how the collapse of the housing market lead to millions of hard-working people losing their homes, how it wiped out trillions in household wealth. We wanted to change the landscape. To help people take back control so that this couldn't happen to them.

Host: And that's how the idea for BENA Capital was born.

Yeh: Yes; we built a vehicle for people to invest without the worry that another financial crisis would put them at risk of going under because of debt default. And as an added bonus, risk is inherently lower because there are no debt payments hindering cash flow and zero interest rate sensitivity.

Host: What else makes BENA Capital unique? How do you differentiate yourself from competitors?

Yeh: Aside from being debt-free, our company has a few core tenets we live by. At the very top of that list is that our investors come first. Every decision we make hinges on whether that decision will protect our investors’ best interests. Whether it will protect and grow our investors' capital. Whether we're making it as easy as possible for our investors to invest. Investors are our number one priority - we have an extremely experienced, extremely agile team. We listen to our investors' feedback and we adapt to their needs.

And you asked what differentiates us. In addition to being debt-free and putting investors first, our funds have no hidden fees. The returns we are targeting are 100% transparent. You will see other funds advertise high returns but those don't take into account all the miscellaneous transaction-based fees hidden in the offering material fine print, for acquisitions or committed capital for example. We don't have any of that. It's important to us that we align our interests with our investors' interests.

Host: BENA's new fund is launching in October. What should we know about it?

Yeh: Yes, the Mosaic Fund. On the heels of our successful value-add offering earlier this year, investors asked for a stable income fund - they wanted passive, consistently cash flowing opportunities and portfolio diversification across geographies and markets. The Mosaic Fund gives them all of that.

And investors get paid first. The cash flow you see projected with the Mosaic Fund is what you should expect every quarter when you get your dividend checks in the mail.

Host: That's a really interesting point --about lining up target returns apples-to-apples. Something we don't often think about, but should. So, for those of us interested in investing, what are our next steps?

Yeh: We're very accessible. You can email, call us, or drop us a quick note on our website - www.bena-capital.com. Pre-registration for the Mosaic Fund is available through 9/30 and the fund officially launches 10/1. Reach out to us; we'd love to hear from you and to discuss your investment goals.

Host: As a female executive in an often male-dominated field, what advice would you give to the next generation of female leaders?

Yeh: Don't underestimate what you can do when you put your mind and heart into something. Be confident enough to share what you know with others and humble enough to ask questions when you don't know the answers. You don't become a leader and innovator in your field of expertise by standing on the sidelines. Dive in -- never stop learning; knowledge is power that no one can take away.

Host: That's great advice. Thank you for your time and for joining us today.

Yeh: My pleasure.

About BENA Capital

BENA Capital manages real estate investment funds, with a central focus on the acquisition and management of residential multifamily assets in growing markets. BENA Capital's funds provide investors with ease of entry, reliable quarterly cash flow, and portfolio diversification. Our proven strategies emphasize sound investing in carefully researched, quality properties that have steady, long-term capital appreciation potential.

BENA Capital Mosaic Fund: Mosaic Fund

BENA Capital Investor Overview PDF: BENA Capital Overview

How to Score a Real Estate Deal in Any Market

Score a Deal in Any Market Image.jpg

*Our article has also been published at Forbes.com: Link

With most things in life, the best advice someone can give is to take a step back and look at the bigger picture. But when you’re evaluating real estate markets for investment, I’ve found that you have to get into the nitty gritty details.

By extrapolating assumptions from your local market to another, for example, you’re at risk of oversimplifying the playing field and overlooking potential deals that can either generate substantial cash flow or long-term appreciation. Think about it like the weather. Just because it’s a balmy day in Los Angeles doesn’t mean that there can’t be snow in New York at the same time. And even more granularly, there are submarkets within markets -- just like how - in California - it can be 100 degrees in Concord when only 25 miles away, it’s 54 degrees in San Francisco.

Knowing real estate markets intimately and being able to correctly identify the phase each market is currently in, is the key to recognizing what is a good investment vs. what to pass on.

The Basics

There are 4 phases in the cycle of real estate, and they look like this:

Score a Deal in Any Market - Cycle Image.jpg.png

Phase I: Recovery

Recovery is typically the most difficult phase to identify – when a real estate market is recovering from a recession, demand can still be slow. Rental growth can seem flat and new builds are few and far between, so a lot of the time, the market can still look like it is in a slump. However, to those closely monitoring the data, upward trends in property viewings, the reduced pace of previous decline, or a break in the downward trend, are all signs that the market is coming out of the downturn.

During recovery, value-add properties with some need for renovation require careful evaluation but can present an opportunity to acquire, improve, and then resell the asset for strong returns during the upcoming expansion phase. This would also be the time to snap up core assets in a prime location and then ride the market up to expansion.

Phase II: Expansion

Markets in expansion are transitioning up and are faced with growing demand. The economy and job growth in these markets will look strong; rents are on the rise and vacancy is low. New construction jobs are plentiful, and at the height of this phase, supply and demand reach equilibrium. During this phase, developers can capitalize on higher demand and investors not keen on shouldering too much risk can pursue core plus strategies knowing that turnover is likely to be lower and rents are rising.

This is also a prime time to deploy value-add tactics. Investors and funds who know what they are looking for can secure neglected properties that require TLC or are mismanaged, at a discounted price, then bring these assets into full productivity before reselling for considerable profit.

Phase III: Hypersupply

Hypersupply occurs when an economy shifts into decline or new developments continue in parallel with falling demand. Both cause occupancy rates to fall and rental growth to slow. During this phase, savvy investors look for solid assets with stable tenants and long-term leases already in place. Even though no one can predict when the next expansion phase will come about, these fixed-term assets ensure a level of high performance until the next lease roll, providing stability when recession hits. Similarly, investors who can keep an even keel can take advantage of prime real estate divestitures from panicking sellers.

Phase IV: Recession

When the players in a market either don’t recognize the downturn, or choose to disregard the warning signs of waning demand, the hypersupply phase falls into the recession phase. Recession is distinguishable by its heavy supply, high vacancy rates, and reductions in rent. In this highly saturated market, investors willing to take on higher risk can acquire distressed bank-owned properties, vacant land developments, tear-downs, and construction projects at bargain prices compared to replacement cost. This is a long-term play for the patient investor willing to work to stabilize the asset and hold until the cycle moves back through the recovery phase.  Investors must be very choosy, or risk getting cut as they catch a falling knife.

Final Takeaway

What’s important to remember is that different markets can be in different phases simultaneously.  So a strategy that works in the Hypersupply phase in San Francisco will be less effective in an Expansion phase in Dallas. 

Additionally, no one can predict how long each phase will last. Even if we take into account historical data, we can’t count on the same highs and the same lows, because the economy and is an ever-evolving playing field. Furthermore, since cycles can vary depending on geography and property type, the key is to be vigilant and to understand the nuances of each market and the best strategy to implement in each given situation. In doing so, you can build a diversified real estate investment portfolio robust enough to weather any storm.

Warm Regards,

Kimberly Yeh
Managing Director - Real Estate Acquisitions

About BENA Capital

BENA Capital manages real estate investment funds, with a central focus on the acquisition and management of residential multifamily assets in growing markets. BENA Capital's funds provide investors with ease of entry, reliable quarterly cash flow, and portfolio diversification. Our proven strategies emphasize sound investing in carefully researched, quality properties that have steady, long-term capital appreciation potential.

Click for Investor Overview PDF: BENA Capital Overview

BENA Capital Announces Multifamily Acquisition in Fort Worth, TX

Fort-Worth-Skyline-Evening-Panorama-2.jpg

 

BENA Capital is pleased to announce its latest acquisition of a multi-family apartment asset in Fort Worth, Texas.

The Dallas/Fort Worth market is strong and growing.  It is the fastest growing metropolitan area in the country, adding over 146,000 residents in 2017.  Fort Worth is the 15th largest city in the United States and continues to grow substantially, both in numbers of residents and jobs.  Over the past 12 months it has added jobs at twice the rate of the national average.  Cities with this type of robust growth are rare, and an effective strategy to capitalize on this growth is to acquire solid properties in transition areas just on the fringe of this rapid growth.  These types of properties tend to benefit from price appreciation as the population searches for additional housing units.
 
The property is in one of these transition zones, located in the Hillside Morningside neighborhood, just southeast of downtown Fort Worth.  Already an established neighborhood, old homes are being taken down and being replaced with new construction.  Less than 10 minutes away, a much-anticipated boutique hotel set to open next year will create 160 full-time jobs and have an annual economic impact of about $25 million. Only 5 minutes away, a $30 million luxury mixed-use complex is being built along with $8.6 million in infrastructure improvements.
 
The acquisition is the second of BENA Capital’s Balanced Investing Fund, focused on a balance between quarterly dividends and asset value appreciation.  We are excited about the prospects of this property due to its location.  It is currently vacant and will require some rehab work, which is scheduled for completion over the next 14 days.  Once leased it should be a healthy contributor to the fund.

If you are interested in learning about our upcoming funds and investment opportunities, feel free to reach out directly.

Warm Regards,

Kimberly Yeh
Managing Director - Real Estate Acquisitions

 

About BENA Capital

BENA Capital manages real estate investment funds, with a central focus on the acquisition and management of residential multifamily assets in growing markets. BENA Capital's funds provide investors with ease of entry, reliable quarterly cash flow, and portfolio diversification. Our proven strategies emphasize sound investing in carefully researched, quality properties that have steady, long-term capital appreciation potential.

Click for Investor Overview PDF: BENA Capital Overview

Press Release: BENA Capital Joins Forbes Real Estate Council

300x250 FREC x3.png

 

SAN RAMON, CA – BENA Capital, a private real estate investment firm, has been selected to join the Forbes Real Estate Council, an invitation-only community comprised of leaders in the real estate industry.

Scott Gerber, founder of Forbes Councils, says, “We are honored to welcome BENA Capital into the community. Our mission with Forbes Councils is to curate successful professionals from every industry, creating a vetted, social capital-driven network that helps every member make an even greater impact on the business world.”

Since 2014, BENA Capital has successfully generated competitive returns for its investors through debt-free real estate investments. The company manages real estate funds with a diverse portfolio of multi-family residential, single-family residential, and condominium properties nationwide. BENA Capital exercises a rigorous due diligence process to acquire undervalued or under-performing properties in strategic locations and partners only with best-in-class management teams to bring these assets into full productivity.  As a result, the firm has driven transformational outcomes to maximize portfolio value and deliver the best results for investors.

BENA Capital's acceptance into the Forbes Real Estate Council aligns with the company's commitment to provide valuable thought leadership in the real estate sector. Today, BENA Capital's newsletters deliver strategic direction and market insights to investors, and as part of the Forbes Real Estate Council, BENA Capital will continue to bring industry expertise and practical experience to a broader national audience.

About BENA Capital

BENA Capital manages real estate investment funds, with a central focus on the acquisition and management of residential multifamily assets in growing markets. BENA Capital's funds provide a simple way to invest, reliable quarterly cash flow, and portfolio diversification. The firm's proven strategies emphasize sound investing in carefully researched, quality properties that have steady, long-term capital appreciation potential.

Click for Investor Overview PDF: BENA Capital Overview

3 Common Mistakes in Real Estate Investing, and How to Avoid Them

3 Mistakes to Avoid Image.jpg

A good private real estate manager should be performing the proper due diligence to protect and grow your investment. Read BENA Capital's quick tips below on how to avoid falling victim to 3 common mistakes in real estate investing.

1. Substituting Technology for Niche Market Knowledge

We have all heard this age old adage when it comes to real estate: “Location, location, location.” In an era where technology rules the world – where you can virtually stroll through the neighborhood using Google street view and where Yelp provides additional transparency on proximity to local amenities – it can be tempting to make real estate decisions based solely on the information available on the internet. But while technology is a useful tool for a preliminary assessment, it is no match for niche market knowledge from those who live and breathe the local real estate market every single day.

That's why it's important to have strong relationships with:

  • Brokers – the best brokers will send you hot listings with your criteria in mind prior to them hitting the market. They will know up and coming areas in major transition where you can capitalize on the growth and capture the appreciation.
  • Property managers – dependable property managers will understand your tenant base, won't need hand holding, and can come up with innovative solutions that align with your investment strategy, save you money, while keeping tenants happy.
  • Contractors – most people forget that good contractors are worth their weight in gold. Bad contractors make false promises and cause you delays (which can waste valuable time and cost you thousands of dollars in lost rental income).

2. Trusting Numbers as Advertised Without Doing the Math

Whether you are trying to figure out the best financing strategy for you, property valuation, or the asset's return on investment (ROI), you should always run the numbers independently of what has been advertised. With listings touting high rental incomes, cap rates, and cash on cash returns, some make the mistake of taking those numbers at face value without understanding the assumptions behind them. For example, does that 11% cap rate include pro forma rental income numbers much higher than what's achievable in the local market? How long will your rental have to sit vacant for to get to the rental income advertised? What routine expenses and maintenance are being included or omitted? When do the current leases end, or are tenants renting month to month? Are the comps provided in the same vicinity of the subject property, or are they too far away to be relevant? While most brokers will not blatantly lie when asked those questions, they will rarely offer such information voluntarily.

3. Letting Emotions Drive Decisions


Investments are like businesses and should be treated as such. You need to determine the short term and long term goals that work for you, your investment criteria, your exit strategy, and the level of risk you are willing to accept. Without this solid foundation, your resolve can waiver during the course of a stressful real estate transaction, and your decisions could come back to haunt you. When you’ve invested time and effort to close a deal, it can be tempting to move forward even in the face of red flags – whether that be in the form of a bad inspection report or not being able to find a trustworthy property manager – knowing your risk threshold and when the pass on a transaction is important. On the other hand, many of the best investments are not turnkey. Knowing how to evaluate cost vs. benefit, risk vs. reward, is crucial. In each case, keep your original set of criteria and goals in mind instead of letting emotions cloud your judgement.

We all have that one friend who boasts about their real estate success in XYZ city every chance they get, or the one that laments buying property in the same XYZ city when everyone else did. Don't jump into investing in real estate without understanding the level of commitment needed to make your investments successful, and don't make hasty decisions based on one case study. One single point of data does not make a trend line. It's not easy, but with the right planning, mindset, and focus, real estate can be a strong component of an investment portfolio.

 

About BENA Capital

BENA Capital manages real estate investment funds, with a central focus on the acquisition and management of residential multifamily assets in growing markets. BENA Capital's funds provide a simple way to invest, reliable quarterly cash flow, and portfolio diversification. The firm's proven strategies emphasize sound investing in carefully researched, quality properties that have steady, long-term capital appreciation potential.

Click for Investor Overview PDF: BENA Capital Overview

BENA Capital Announces Multifamily Acquisition in Hartford, CT

BENA Capital is pleased to announce its latest acquisition of a multi-family apartment asset in Hartford, Connecticut. The property is located in West Hartford, less than 5 minutes to the State Capitol building downtown and within 10 minutes from 9 of the top 25 largest employers in the State of Connecticut – including Aetna, Pratt & Whitney, and Hartford Hospital. In addition, IT consulting firm Infosys recently announced that it will hire 1,000 employees in Hartford and establish a $21 million Technology & Innovation Center to further advance insurance and health care-centric technologies. The property, which was previously owner-managed with below-market rents is poised to benefit from its central location and new economic investments propelling growth in the city.

Yousif Abudra, Managing Director said, “BENA Capital’s all-cash, debt-free offer, paired with niche market knowledge from strategic partnerships enabled a quick close, and helped us successfully compete against 10 other potential investors.

In spite of the competition, the competitive advantage of the all-cash fund and attractive terms allowed us to acquire the asset at 12% below asking price.”

Value-Add Strategy

BENA Capital plans to implement an aggressive phased strategy to improve the property in Q2 2018. Initially, targeted value-add projects and repairs will be undertaken to improve the appeal of the property. In parallel, the hands-on property management team is familiar with the local market, and will increase current rents to enhance cash flow. Finally, the owners of the adjacent property are already in the process of rehabbing both the interior and exterior as well, which will further enhance curb appeal and improve future value.

The acquisition is the first of BENA Capital’s newest fund, the Balanced Investing Fund, focused on a balance between quarterly dividends and asset value appreciation. Two additional transactions are also in progress at this time, and are currently in the due diligence phase. These will round out the portfolio with cash-flowing properties in growing locations, which will provide our investors with geographic diversification, rich quarterly dividends, and strong appreciation potential.

About BENA Capital

BENA Capital manages real estate investment funds, with a central focus on the acquisition and management of residential multifamily assets in growing markets. BENA Capital's funds provide investors with ease of entry, reliable quarterly cash flow, and portfolio diversification. Our proven strategies emphasize sound investing in carefully researched, quality properties that have steady, long-term capital appreciation potential.

Click for Investor Overview PDF: BENA Capital Overview

BENA Capital Announces Sale of Merced Investment

uc-merced-econ-impact.jpg

BENA Capital LLC, a real estate investment fund manager, has completed the sale of its multifamily residential property in Merced, CA.  “This was a home run for our investors as we delivered returns that significantly exceeded projections,” said Managing Director Yousif Abudra.

 

Value-Add Approach

BENA Capital took a value-add approach and implemented a phased renovation strategy to increase the occupancy rate of the property from 20% to 100% within 8 weeks of purchase.  Once fully occupied, the property produced cash flow returns to investors that were 38% higher than originally projected.

Managing Director of Acquisitions, Kimberly Yeh selected the Merced asset based upon its location and value-add potential, saying “We identified the Merced asset in January 2016 as an attractive acquisition opportunity due to the property’s strong value-add potential and the region’s notable growth trends.  Located within 15 minutes of the UC Merced campus, and less than a mile from the new $46MM UC Merced Downtown Center, the property was poised to benefit from the prime location coupled with a value-add approach.”

 

Strong Investment Return

Yousif Abudra said, “The team came together to produce a strong result for our investors.  Our contractor began work immediately after acquisition, and delivered the project on time and on budget.  Meanwhile, our property management team hit the ground running to bring the occupancy up to capacity.  Due to both of their efforts, we were able to not only achieve 100% occupancy, but do so at above-market rents.”

The property sold to a local investor looking for a turn-key, stabilized investment. 

“We were able to sell at a premium because we delivered what the market was looking for – a stable, cash-flowing asset.  The Merced property shows the true power of implementing our value-add strategy.  Our investors achieved a stunning IRR (Internal Rate of Return) in 20 months – without utilizing any debt,” Abudra concluded.

 

About BENA Capital:

BENA Capital manages real estate investment funds, with a central focus on the acquisition and management of residential multifamily assets in growing markets.  BENA Capital's funds provide investors with ease of entry, reliable quarterly cash flow, and portfolio diversification.  Our proven strategies emphasize sound investing in carefully researched, quality properties that have steady, long-term capital appreciation potential.

Click for Investor Overview PDF: BENA Capital Overview

To learn more about BENA Capital, visit: http://www.bena-capital.com/

Fall 2017 Update & New Markets to Watch

Fall 2017 Update - New Markets.jpg

With summer having come to a close, we want to take a moment to wish our investors a happy fall and to share a few noteworthy developments in the latter half of 2017.

Acquisition Updates

Earlier this quarter, BENA Capital, LLC announced the successful acquisition of another multi-family residential property in Abilene, TX.

We identified the Abilene asset as an attractive acquisition opportunity due to the property’s robust value-add potential and the region’s strong growth trends. Located less than ¼ mile from Abilene Christian University and two hours west of the Dallas/Fort Worth Metroplex – the property was brought to us by our broker in the area who knows we are an all-cash buyer.  It is expected to provide 6% annual cash flow and return 50-55% within four years.  Over the past three months, extensive value-add improvements have been made to the property.  As those improvements come to completion, units have started to lease, with 48 prospective tenants interested in the three units remaining.

New Markets to Watch

With Tier I Markets peaking, we will continue to focus on Tier II and Tier III markets with resilient economies buoyed by employers and universities. We have set up strategic partnerships with a network of real estate brokers in a number of new markets where jobs and renter populations are growing.

Rising home prices and mortgage rates continue to make home-buying less affordable and renting more attractive. This results in stable cash flows and long-term capital appreciation potential for investors who have the ability to leverage zero-debt investment models, such as the one BENA Capital offers, to tap into the multi-family niche.

Here are a few new markets on our watch list:

Fort Worth, Texas

Home to more than 7 million people and growing, the Dallas/Fort-Worth area has added an average of ~100,000 jobs/year since 2010. Local leaders have made attracting large employers a high priority, and major corporations such as AT&T, American Airlines, and Lockheed Martin call the metroplex home. With the University of Texas at Arlington, Texas Christian University, and the University of North Texas also located in the region, there is no shortage of well-educated millennials eager to stay after graduation.

Fall 2017 Update - Job Growth.jpg

Raleigh, North Carolina

The metro area surrounding Raleigh, NC has been one of the fastest growing in the country. Since 2010, the city’s population has increased ~15%. USA Today recently named Raleigh the third best place in the U.S. for business and careers, most notably in the technology and life sciences sectors. Nearby tier one universities with deep talent pools include NC State University, the University of North Carolina at Chapel Hill, and Duke University.  They provide a solid foundation that continues to fuel innovation and prosperity in the region. Additionally, Red Hat (headquartered in Raleigh) and Citrix are both major employers in the area. Technology giants like these, along with Research Triangle Park (which includes neighboring anchor cities Durham and Chapel Hill), have been catalysts in the area’s continued revitalization and economic growth.

Chattanooga, Tennessee

Chattanooga proudly touts its “Gig City" badge. When the city built the fastest internet in the U.S., it attracted new businesses to the region. According to an independent study conducted by the University of Tennessee in 2015, this helped add roughly $865M to the local economy since 2010. With its 140-acre downtown “Innovation District” anchored by the Edney Innovation Center and its budding start-up scene, Chattanooga is reshaping itself as a technology solutions hub.


Invest Wisely,

Yousif


Yousif Abudra is Managing Director - Real Estate Investments at BENA Capital. 

BENA Capital manages real estate investment funds, with a central focus on the acquisition and management of residential multifamily assets in growing markets.  BENA Capital's funds provide investors with ease of entry, reliable quarterly cash flow, and portfolio diversification.  Our proven strategies emphasize sound investing in carefully researched, quality properties that have steady, long-term capital appreciation potential.

To learn more about BENA Capital, visit: http://www.bena-capital.com/

Click for Investor Overview PDF: BENA Capital - Overview