Strategy

                                  Multifamily & Senior Living

The last decade has paved the road for multifamily, proving to be one of the most stable assets in commercial real estate. Demographic shifts as millennials and baby boomers value portability, combined with rising home and construction costs create a surplus of demand. We target B and C class workforce housing that provides quality living at an affordable price point in growing cities.

When it comes to Senior Living Facilities, a major benefit for investors in the Senior Housing space is the resiliency of this particular sector of the commercial market. A key component of the Senior Housing market’s success is its lack of reliance on a particular economic or real estate environment. Senior Housing has been the number one performing commercial real estate sector for the last ten years. This includes the period encompassing the 2007 capital market collapse, in-which returns among other commercial sectors fell as much as 20%.

 

                                  Manufactured Housing Communities

Manufactured Housing Communities, otherwise known as Mobile Home Parks, are seeing increasing consumer demand as the cost of living rises, backed with investor demand as investors wake up to the potential as it outperformed nearly every real estate asset class over the last 20 years. This combined with the fact that there is a reduction of supply due to local government restrictions makes us believe that these may provide the strongest risk adjusted return of any real estate asset class.

                                  Self Storage

Self Storage offers a number of distinct benefits including, but not limited to:

  • Low operating expense ratios 
  • Ongoing cash flow 
  • Broad adoption
  • Long average tenancies (900+ days)
  • Beneficiary of population movement, both up and down 

                                  Industrial

 

Industrial assets are proving to be the optimal choice for both real estate investors and corporate occupiers.

  • E-commerce continues to set records
  • Urban logistics move closer to the customer
  • Undersupplied market segments in select urban cores
  • The Fourth Industrial Robotic Revolution is well underway 
  • Low re-leasing costs and lower financial drain when vacant 

 

    Our Process

    01

    Buy

    We focus exclusively on purchasing existing assets at a discount to replacement cost with some form of value add component.

    02

    Improve

    Through implementing a “90 Day Plan” at takeover, backed with on going operations with close oversite we are able to improve the bottom line.

    03

    Sell

    We position ourselves to have optionality of when we exit by having the right financing in place, selling only when it’s in the best interest and we have greater opportunity cost elsewhere.

    Frequently Asked Questions

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    How do I get started investing with Turnkey Capital?
    You can get started investing once you have registered for our investor portal and have had an introduction phone call with someone from our team. To register for our investor portal

    click here: https://turnkeycapital.com/invest-with-us/

    From here, you will begin receiving monthly newsletters and deal announcements that will explain what you need to do in order to partner with us on each specific deal.

    What is an accredited investor?

    The SEC defines an accredited investor as an individual with a net worth of at least $1 million or an annual income of $200,000, or $300,000 for married couples, for at least three years.

    What is a sophisticated investor? Can non-accredited investors also invest?

    The SEC defines a sophisticated investor as an individual who has enough knowledge and experience in business matters to evaluate the risks and merits of an investment. In syndications which are offered through the 506b exemption, sophisticated, non-accredited investors are permitted to invest as long as they have a pre-existing relationship with the sponsor.

    What type of accounts can I invest with? Can I invest IRA, QRP, or 401K money?

    Yes. We currently support personal investment accounts, joint accounts, and certain entity accounts (Trusts, Limited Liability Companies, Limited Partnerships, C Corporations, and S Corporations). You will need to contact your IRA, QRP, & 401K provider to obtain the required forms if investing with a retirement account. Returns will be issued to the retirement account. Discuss with your CPA & retirement plan custodian to learn more about the tax treatment.

    What is a K1? When do we receive them?

    As a partner in the LLC that purchases the properties, you will receive a K-1. A K-1 is a tax form used by partnerships to provide investors with detailed information on their share of a partnership’s taxable income. Partnerships are generally not subject to federal or state income tax, but instead issue a K-1 to each investor to report his or her share of the partnership’s income, gains, losses, deductions and credits. The K-1s are provided to investors on an annual basis so that each investor can include K-1 amounts on his or her tax return. Our goal is to finalize all K-1s by March 31st, this way investors have them in hand for tax season.

    How are distribution levels determined and how frequently are they paid?

    Distributions are a function of income generation at a property for a given period.  We generally target distributing the offered preferred each month, in addition to any additional upside at the end of each quarter. If a property performance is strong, distribution levels can be above projections and if property performance is weaker than expected, distributions may be below targets.

    How are investors compensated upon a refinance?

    In the event of a refinance, investors would be compensated as they would for a capital transaction. In other words, at refinance, any proceeds received will go directly back to investors, paying down their initial principal. This decreases investors initial equity exposure, while maintaining their pro rata share of ownership within the deal.

    How do interest rate moves impact a property’s distributions?

    Interest rates would rise likely in the event of 1) inflation or 2) strong economic growth. Typically, in an inflationary environment, or during periods of strong economic growth we are able to collect higher rents as cost of living increasing.  The same would apply in the inverse; weaker economic situations would have implications for occupancy and rent growth, however, lower interest rates would be likely reducing our interest burden.  In most cases, especially in periods in which we are vulnerable to interest rate rises, we prefer to use long term, fixed rate debt which serves as a hedge against inflation.

    Where can I find quarterly performance reports on the assets I invested in?

    Our investor portal has secure access to view monthly income statements, important documents, and quarterly reports.  If you have yet to set up a portal account, be sure to visit our website or contact our team.

    If I need money for an emergency is there an early exit option? What are possible ways to exit and how will Requity assist?

    Our investments should be considered illiquid but we will make our best effort to accommodate emergencies/unusual circumstances in which we will either find another investor to purchase your existing position or buy it out ourselves. 

    Our Address

    2614 Bothell Everett Hwy,
    Bothell, WA 98021 

    Send Mail

    michael@turnkeycapital.com

    Our Number

    (425) 275-7389