Executive Summary - SRE Investing
2012 Executive Summary for Buy and Hold Portfolio: Single Family Residential (SFR) Properties.
“I’d buy up a couple hundred thousand single family homes if I could. Held for a period of time and purchased at low rates, houses are even better than stocks.”
- Warren Buffet appearing on CNBC February 27, 2012.
After a six-year downward spiral, the SFR real estate market in Southern California is prime for buy and hold Investors. With prices down an average of 34%, and holding, from the peak in 2006, the demand for portfolio properties is climbing rapidly. Affordable financing, high demand for rental properties and a positive outlook for year-over-year increases in home value makes now the time to buy and hold real estate in Los Angeles.
As former President and Founder of the #1 RE/MAX residential and commercial brokerage in Los Angeles from 1992-2010, in 25 years of real estate, I’ve never seen a better time to buy.
President and CEO
SRE: Connected. Efficient. Experienced.
SRE has purchased over $60,000,000 in Los Angeles real estate.
The southern California market is prime for buy and hold investors with immediate cash flow which has not been available for over a decade. SRE has relationships with bank asset managers in both large (B of A, Wells, Chase) and small (Bank of California, Golden West, etc) banks as well as hundreds of REO Agents and short-sale specialists (Coldwell Banker, RE/MAX, Prudential, Keller-Williams, Hilton and Hyland, etc). We are among the most prolific bidders at auction.com, genesis and on the court house steps. We are also able to provide opportunities in bulk sales and off-market property second-to-none in our marketplace.
SRE is committed to protecting capital and creating profit for our Clients and Partners. Through experience, quality control and accountability, SRE leads investors to successful and profitable transactions.
Our comprehensive acquisition process includes extensive “due diligence” as our team thoroughly researches each property. Our experience and track record allows us to find hidden opportunities that individual investors may overlook.
We also bring something extra to our valued Clients. In addition to our 18 years in ownership of a top L.A. real estate company, our proficiency in the “pre-foreclosure” market provides our Clients with hard-to-find product. Many of our acquired properties are not on the open market and are discovered through our extensive network of long-standing relationships. Additionally, our in-house real estate team customizes each search to the portfolio requirements of our Client.
Our evaluation process includes comparison of the current market value, the current market rental value, the peak market value and the projected appreciation. SRE dedicates a great deal of attention to tracking the market and anticipating the frequent changes inherent in this economic climate.
SRE employs teams of experienced, licensed and bonded Contractors specializing in property preparation for tenants as well as full rehab for re-sale. We also maintain excellent relationships with Los Angeles city officials and these good practices help keep projects on target. Our efficiency at preparing homes for immediate occupancy and/or for the resale market is unequaled and allows us to deliver superior product at a competitive price.
Leasing and Management:
The Leasing and Management Team provides investors with detailed monthly reports on all facets of each property and tenant. Each Investor receives their property updates in a format that fits their financial needs. Property Managers also work with Investors to determine the “added value” goals of each property to be completed either immediately or over time.
Sales and Brokerage.
Our skilled Sales and Brokerage Division, with over 25 years of award-winning experience in Los Angeles, bring the top price, exposure, networking, negotiation, and representation to the resale process.
1. Source the property.
2. Conduct extensive due diligence.
3. Assess probable vacancy/legal/eviction costs if any.
4. Evaluate scope of repairs and create budget.
5. Negotiate terms and finalize documentation for purchase.
6. Initiate “Cash for Keys” eviction process, if necessary.
7. Establish your customized SRE weblink for each project to show you the scope of work, track construction progress
and continuing financial overview.
8. Complete rehab repairs.
Place new tenant in property, if applicable.
Provide on-going property management with monthly/annual financial reports to Investor.
I welcome the opportunity to discuss your Los Angeles real estate portfolio with you.
Jay Belson, CEO
By Seth Phillips