investment strategy
A Roadmap For Growing Wealth
Target Asset
Remodel
LS Equity will target strategically located multifamily assets in the 10-50 unit range. We will pursue value-add opportunities to force appreciation through interior and exterior capital improvements. This allows us to re-tenant the property and increase rents to market rates. Apartment buildings in Los Angeles typically appreciate at much higher rates than other markets across the country.By targeting submarkets with strong demand drivers, low vacancy rates, high upside potential, and large rent deltas, we aim to increase cash flow immediately and sell for a large profit at the end of the holding period. Our ideal location will be one city off the beach in a gentrifying area. Indicators for us to look at will be household income levels and population growth.
Force Appreciation
Value-Add
Naturally, real estate appreciates over time. LS Equity has a proven method on how to force appreciation on assets and realize gains on investments more quickly than other models. We will force appreciation by using our 4-step method: Acquire distressed property with rental upside, buyout tenants, remodel, re-lease units at market rental rates.
Return Equity
Grow + Preserve
Once appreciation has been forced; LS Equity will perform a cash-out refinance to return equity to it's investors.
Cash Flow
Start Earning Passive Cash
Naturally, real estate appreciates over time. LS Equity has a proven method on how to force appreciation on assets and realize gains on investments more quickly than other models. We will force appreciation by using our 4-step method: Acquire distressed property with rental upside, buyout tenants, remodel, re-lease units at market rental rates.
Exit Strategy
1031 or Capital Gains
Typical acquisitions will have a 5-year cycle. At the end of year five, LS Equity will sell the property for a profit and pay out investors. Investors will have the option to either cash out or perform a 1031 Exchange with LS Equity and roll their profits into another deal.