OUR MISSION & VALUES
To pursue real estate investment, development and management opportunities responsibly and with integrity for the benefit of our investors, partners, tenants, employees, company and the community.
To provide superior housing at competitive rates;
Treat investors and customers with respect, and
Be a trusted and dependable investment partner.
Buy Right: Buying right is essential in our business. We buy on ACTUAL numbers, not on a pro-forma basis or a bet on appreciation. We buy properties that are currently cash flowing and the possibility for forced appreciation through repositioning. In order to pursue a property,it must fit into our buying metrics allowing us to create a healthy return on investment for our investors and the partnership.
Finance Right: Both GP’s are fortunate enough to have stable high-income salaries, money-generating rental properties, and low debt to income ratios. This allows us to acquire more creative financing options to further increase the return we can provide to our investors.
Manage Right: Our business model always has superior third party property management in place. Superior management is the KEY to how well the property performs. The GP’s have very high expectations of themselves, and therefore, have very high expectations about how our properties are being managed.
Buying Metrics for Future Properties
Size of Asset
We are focused on buying properties between 25 and 125 units in order to maximize economies of scale. This particular asset size will be too small for institutional money, and too large for most individual investors.
The entire southeast. Currently, we are more focused on Virginia and North Carolina due to where we live. However, we are looking to expand to other states where we see the potential for growth and where we can establish the strong relationships with proven and trustworthy property managers. We look for cities that have a growing population and job market to insure sustainable returns for our investors.
We are looking for B and C multifamily properties with “value add” potential. Typically we target underperforming assets that have been either mismanaged or poorly maintained and currently have under-market rents.
When Two Three Two Investment Company LLC invests in a property, we want to be able to reposition it in less than a year and get a cash on cash (COC) return of greater than 14.8 percent annually for the company. This allows us to pay our investors a preferred rate of return.
Two Three Two Investment Company LLC has a 1-7 year hold strategy depending on market conditions and the current state of the asset. At the time of sale or refinance, the investors should expect a full return of all capital in this investment; meanwhile the projection for yearly return will be between 5%-8% depending on the amount invested.
What am I investing in?You are investing in a debt deal that is structured around a multi-family real estate investment.
What will be the return on my investment?The variable return is based on how much capital is initially invested. Typical returns will range from 5% with return of initial capital invested between 1-7 years based on the asset performance.
What are the terms?Two Three Two Investment Company LLC pays its investors first and quarterly. Initial capital invested will be paid back within 1-7 years depending on performance of asset.
What is the minimal capital investment required?Currently the minimum investment is $50,000
Why should I trust Two Three Two Investment Company LLC?We have very conservative underwriting, a successful track record and we have surrounded ourselves with a veteran team of professionals (see next page). We invest in every deal alongside your capital.
Why invest in real estate passively?Asset value correlated to net operating income (NOI) Ability to co-invest with professionals Diversification of portfolio
What are the best attributes of an investment in real estate?Tangible Asset You can force appreciation Everyone needs a place to live Multifamily valuations are based on its own Net Operating Income not the surrounding comps Less than .04% of all Multifamily loans defaulted during 2008* (https://www.mba.org/Documents/mba.org/files/.../MultifamilyMarketUpdate12-09.pdf)
Can I be a general partner?We are not seeking equity partners at this time.
What are the risks?With any investment there is an inherent risk that you could lose money. At Two Three Two Investment Company LLC we work hard to mitigate that risk by following our purchasing metrics and underwriting very conservatively. As With any investment, we encourage you to seek the advice of your own advisors before closing on a deal.
Who is this investment right for?Someone seeking a higher return compared to any bank, CD or bond currently available with minimal risk . For example, as of August, 2018 highest money market return 1.9% (Ally Bank), highest 5 year CD return, 3.0% (Ally Bank), average bond return historically 5.5%. Someone who wants to diversify their portfolio through a passive real estate investment. Two Three Two Investment Company LLC currently offers preferred returns of 5% that are distributed monthly or quarterly.