How We Work
EquityBuild Inc. Property
When you invest in a property through EquityBuild, you get a team and a process - tested and proven though decades of experience.
That's not to say we have created the ultimate one-size-fits-all model. Anybody who claims to have that is either lying or crazy.
Through years of active real estate investing ― more than a thousand transactions:
- We have learned how to identify undervalued markets and properties.
- We have learned how to structure deals to maximize performance.
- We have learned how to build relationships at the neighborhood level, so we can uncover the hidden gems.
- We have learned how to build fluid, high-performing teams, which include agents, birddogs, analysts, contractors and property managers.
- We have learned how to make real estate deliver passive cash flow our clients can rely on.
We understand tax implications, and we carefully plan exit strategies. We have access to a vast amount of information. We know how to analyze and leverage it so we can take positive action.
And we move fast when the time comes to make a deal.
Most of all, we have learned never to rest on our laurels. We approach each new deal for the unique opportunity it presents while assuming nothing.
Sure, we have enormous experience. But we are always learning and continually innovating our proprietary systems and methods.
An EquityBuild Inc. Property.
Terms and Conditions
The EquityBuild Method:
Operational Mastery is the Key to Success in Real Estate Investing
1/ Uncover Promising Properties
To succeed as a real estate investor, you first need to be able to find value and jump on it fast. We identify underperforming properties that can be quickly and affordably stabilized. But such properties are few and far between. If our proprietary econometric model doesn't show a strong chance of success, we won't even look at a property. We close less than one out of ten deals initiated. Our reputation and proven speed in the marketplace are strong. We get the best deals before anyone else ever sees them.
Bottom line: the way to find these opportunities is by talking to EquityBuild.
2/ Structuring the Deal
The key to investing with EquityBuild is in our name. Our investors build equity in their properties month after month. They use the rents they receive to make their mortgage payments and to pay all the building's operating expenses. For this to work, Net Operating Income must meet or exceed projections. Ensuring this requires enormous expertise and attention to detail when structuring your deal.
You can count on EquityBuild's decades of experience to make sure your deal gets done right.
3/ Thoughtful, Affordable Renovations
Solid buildings and appealing units attract desirable renters. Their condition and upkeep must be well-maintained. We use an intensive three-stage underwriting process. It ensures we discover major problems before we close on a property. This reduces the risk of expensive repairs. We're experts in planning and executing affordable rehab work. Our buildings have appealing units.
EquityBuild properties generate positive free cash flow as they maintain or appreciate in value.
4/ Securing Financing
Banks don't often make construction loans these days. And they're seldom willing to lend on properties requiring significant turnaround. Since the great recession, lending standards have become far more stringent.
Even when banks made construction loans, they would take two months to process. Sellers just won't wait that long. They sign contracts with buyers who can prove they have the cash to close quickly.
We understand this dynamic well. This is why we can educate you on private funding opportunities so you can meet those demands.
EquityBuild is experienced at every step in the process, and we're there to guide you every step of the way.
5/ Property Management
EquityBuild owners don't want to deal with the demands of running an apartment building, such as taking midnight calls from tenants or ensuring the maintenance schedule is carefully followed. That's why buildings need a qualified property manager.
- Units must be rented out with little time lost to vacancy.
- Tenants must be screened and selected for their positive rental history.
- Rent collections must be timely.
- Rents received must meet projections. Rates should be kept at or above market. And an optimal mix of private renters and those with housing vouchers should be cultivated.
- Property and unit condition must be maintained to standards with ongoing and affordable maintenance and repairs carried out.
- Operating expenses must be closely monitored and kept as low as possible, including money spent on property management itself.
Because of our power in the market, EquityBuild uses only the best property managers. They keep a watchful eye on the performance and condition of your property 24/7.
EquityBuild Inc. Property
EquityBuild's Three Guarantees
EquityBuild is reversing the risk on behalf of our investors. We are raising the bar with our three unique, industry-leading guarantees on every property we sell. They cover the factors we control directly. These guarantees are straightforward and clear. And since their introduction, they have ushered in a new era in real estate investing.
Guarantee 1: Net Operating Income
On a quarterly basis, investors will be compensated for any deficiency between the represented net operating income and the actual net operating income (1) through the stabilization period and (2) once stabilization has been achieved to the point of refinance eligibility.
Guarantee 2: Major Systems
We will repair or replace your plumbing, electrical, roofing or HVAC system if it fails during the first two years of ownership.
Guarantee 3: Property Value
The value of your EquityBuild property will not drop below the cost of purchasing and renovating the property. Should you incur a loss, EquityBuild will reimburse you the difference.
Real Estate has proven to be the best asset class for building enduring wealth. EquityBuild's powerful Three Guarantees make investing in real estate more reliable than ever.
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