CEO & FOUNDER

---

We are in very questionable economic times... interest rates, inflation, pending recession?

Why commercial and multifamily investing?

Increasing Demand –The economic downturn has put home ownership out of reach for many consumers and rental occupancy will continue to increase. 

A higher rate of foreclosures and short sales; more people moving to rentals U.S. population growth is expected to exceed 60 million over the next 25 years. 

New construction development has been down, increasing overall demand for affordable housing. 

According to Marcus & Millichap Research Services:  There has been a population increase of 5.5 million in the “Echo Boomer” category (Ages 20-34), significantly increasing renter demand. 

Projected demand for new apartments averages 430,000 units per year for the next 10 years.

Kelly Housing Group acquires and manages multifamily properties in emerging markets that produce excellent cash flow during ownership and strong cash distributions at the time of sale.

Battle-tested assets.

In proven markets.

Managed by veteran and highly-experienced teams.

How we find the right market?    

We locate emerging markets by performing thorough market research, job growth reports, population growth, employment growth, Path of Progress Reports, local economic reports & trends and Chamber of Commerce Reports.    

How do we pinpoint the right deal?    

We locate value-add and turn-key multi family dwellings in the transitioning and booming markets from our network of Brokers - especially their “Pocket Listings,” motivated landlords, REOs, short sales and foreclosures.    

We take a conservative approach.  We only buy in areas where there is a predictable path of progress.  We typically want to be in and out of a market in 5-10 years, depending on where we are in the real estate cycle.      

What is value add?    

Value-Add (Momentum Play) Properties, located through our network of Brokers, Sellers & other means present the following opportunities:  

Motivated Sellers 

Bad management 

Low Rents 

Deferred maintenance 

Burnt Out Landlords 

Ratio Utility Bill System (RUBS) 

Condo-conversion options  

How do we ensure a solid acquisition for our Investors?    

We conduct a full property inspection, including physical and financial due diligence 

Negotiate contracts and place the right financing on the property 

We qualify for loans within the entity or get outside sponsors 

Local Assets Managers and team members oversee the property 

Issue Financial Reports  

Cash Flow Disbursements  

Hold periodical web and teleconference meetings 

Visit Properties on periodical basis 

What happens when we decide to liquidate asset?    

Prepare marketing materials, contact sales brokers, select a buyer, negotiate contracts and close. Then...    

Do FINAL Disbursements of Equity GAINS!    

What are the Tax Advantages with investing in commercial and multifamily?   

Depreciation Tax Laws allow annual depreciation to be written off as an expense item, resulting in an additional tax shelter. 

No Capital Gains Tax: Your taxes can be deferred for life if you roll-over your capital gains to another like-kind investment property (also known as 1031 exchange). 

15% Tax Liability On Cash Flows: Your spendable cash flow is subject to a 15% tax liability, BUT is covered due to the deductions allowed for operation/ depreciation of the property to each investor. 

Depreciation is a non-cash deduction. It reduces taxable income from the investment property.  

Most investment properties go up in value every year, but on paper their value is going down due to depreciation. 

Other important info:

Apartment Buildings and Neighborhoods by class:    

A: Luxury properties with modern amenities, good location, building <10 years old, white collar tenants. Good buy if you like negative cash flow! 

B: Tenant mix of white and blue collar workers, ok location, building <20 years old. Good buy for appreciation. 

C: Tenant mix of blue collar workers and Section 8, building <30 years old. Good buy for cash flow. 

D: War zone, building >30 years old, may be difficult to collect rents, high crime rate. Good buy if you own an AK-47!   

We focus on B and C class value-add and turn key properties.

Let’s collaborate and win! 

Book a call below to determine how we can serve each other.