The Value-Add Strategy

IN MULTIFAMILY INVESTING

Executing a value-add strategy hinges on two key factors:
Identifying markets in the path of progress (emerging markets) where
natural appreciation will occur, then identifying a property with deficiencies
to improve and force the appreciation of the property.

Our Criteria

We are fixated on protecting our investors’ capital so we focus on investing in properties that meet our specific criteria

A & B class value-add multifamily properties

Type

1990s and Newer

Vintage

$5M - $20M
Range

Size

6%+ Cash on Cash
16%+ Annualized
Rate of Return

Projected Returns

Multiple avenues of forcing appreciation

Value-Add

3-7 years

Hold Time

Our Methodology

How we acquire properties… Through Syndication!

A real estate syndication is the pooling of money from investors that will be used to buy a large apartment complex. This involves active investors (Black Cedar Investments) who actively manage the deal (see “Our Process” below) and passive investors (you) who invest their money into the deal. So when you invest with us, you have ownership in the property, receive cash distributions, and build equity – without any management responsibilities.

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Multifamily
Investment Strategies

Value-Add Investments

  • B & C Class assests needing improvements.
  • High upside, but considerable capital needs.
  • 13-15% annualized returns with variability.

Core Investments

  • A+ & A Class assests
  • Consistent Cash flow compareable to bonds.
  • 7-10% annualized returns with little variability.

Core Plus Investments

  • A & B Class assests that may need minor improvements.
  • Moderate upside with minimal capital needs.
  • 9-13% annualized returns with some variability.

Opportunistic Investments

  • New multifamily developments.
  • High upside with high debt.
  • 20%+ annualized returns with high variability.

Value-Add Investments

  • B & C Class assests needing improvements.
  • High upside, but considerable capital needs.
  • 13-15% annualized returns with variability.

Core Investments

  • A+ & A Class assests
  • Consistent Cash flow compareable to bonds.
  • 7-10% annualized returns with little variability.

Core Plus Investments

  • A & B Class assests that may need minor improvements.
  • Moderate upside with minimal capital needs.
  • 9-13% annualized returns with some variability.

Opportunistic Investments

  • New multifamily developments.
  • High upside with high debt.
  • 20%+ annualized returns with high variability.

*** These are broad generalizations and not a representation of what returns can or should be expected for any of these investment strategies. Each investment opportunity will have return projections unique to that project. No return amounts are guaranteed.

Our Value-Add
Investment Process

Continuous
Market Evaluation

We tirelessly conduct market research to ensure our focus will always be on acquiring assets in the path of progress — areas where high natural appreciation is most likely to occur.

Continuous
relationship building

We source quality deals through leveraging win-win relationships with commercial listing brokers and other industry professionals in our target markets.

Analyze 100’s of deals

We scrutinize every deal (property) we come across. We ensure the deal matches our criteria and create an initial value-add strategy for the property.

Submit offers on deals
that fit return criteria

When a deal meets our criteria, we submit an offer (on roughly 10% of the deals analyzed).

Go under contract

When the price negotiations are right, we go under contract on the property (on roughly 10% of the offers submitted).

Perform Due Diligence and establish value-add business plan

While under contract, we verify all the information about the property to ensure it will be a quality investment. We then develop our value-add strategy into a full-fledged business plan.

Obtain financing (through a mortgage and syndication)

While under contract, we leverage top-notch industry professionals to obtain quality financing. It's also during this time that investors can place funds to passively invest in the property.

Close on the property

Escrow is closed and we officially own the property (time to celebrate…before getting back right back to work).

Execute the value-add
business plan

Upon acquiring a property, we implement our value-add business plan to force appreciation and take it to the next level. Meanwhile, investors receive regular distributions. Along with providing cash flow disbursements to investors, we prepare regular reports and information about the asset so investors are always up to date on the asset.

Exit the deal with maximized returns for investors

As part of our continuous market evaluation, we track when the best times are to sell and maximize investor returns.
(Then it’s REALLY time to celebrate!)

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No Offer of Securities—Disclosure of Interests. Under no circumstances should any material at this site be used or considered as an offer to sell or a solicitation of any offer to buy an interest in any investment. Any such offer or solicitation will be made only by means of the Confidential Private Offering Memorandum relating to the particular investment. Access to information about the investments are limited to investors who either qualify as accredited investors within the meaning of the Securities Act of 1933, as amended, or those investors who generally are sophisticated in financial matters, such that they are capable of evaluating the merits and risks of prospective investments.