INVESTMENT STRATEGY

Our Company’s Investment Strategy is simple: target distressed properties owned by Motivated Sellers.  Distress is opportunity and provides our company leverage, during negotiations, to create a “WIN-WIN” Situation, for all vested parties.  A distressed property does not always imply it is rundown.  Distress may have come from:

  • The property is mismanaged.
  • Tenants are paying rent that is below what the current market will bear.
  • Property is currently underwater and a balloon payment is soon due.

ACT Investment Properties, LLC aggressively pursues distressed Commercial Properties acquiring Apartment Complexes, Shopping Centers, and Hospitality Opportunities with the intent to buy and hold for 3 to 5 years.  However, market conditions, localized factors (economy and politics), and/ or changing demographics may dictate an earlier, or later exit strategy.  Our company targets properties with a Cap Rate of 8 – 10%, but may consider more risk, if the right opportunity presents itself.

All potential acquisitions are performed with the highest level of due diligence, and thoroughness as well as employing a high degree of both numerical and circumstance analysis to ensure that Investment ROI is met.  During our company’s due diligence, we obtain comps on similar properties comparing Cap Rates, Price Per Square Foot, and the Current Tenant Rent Rates to what the current market will bear.  To determine acquisition feasibility, we focus on the bottom line number…Cash Flow Before Taxes (CFBT) that factors in all debt servicing, ALL Operating Expenses, and Partnership ROI, if applicable.  As part of the Operating Expenses, our company includes the creation of a Capital Reserve, for the property, in the event of an unforeseen major expense arises.  Below is a sample analysis, of our company’s numerical and circumstance analysis, to determine the feasibility of acquisition using real world numbers.

**CLICK THE IMAGE BELOW TO VIEW THE SAMPLE ANALYSIS**

Apartment Photo

ACT Investment Properties, LLC may also pursue Residential Fix and Flip Opportunities.  Such opportunities

  • Revitalize neighborhoods,
  • Restore a pride of ownership to communities, and
  • Develop community relations.