August 15, 2014

I’m pleased to announce that Altus was featured in the 2014 Edition of Game Changers presented by the North Bay Biz.  The purpose of this bonus issue is to provide a special focus on the people and organizations that are shaping the future of the North Bay.  Please click here to view the article. 

 

Now on to current business.  Let me start by saying, “Wow!” - things are hot, hot, hot here at Altus.  In the past few weeks we’ve seen an impressive ramp up in our project list and new opportunities are coming our way daily.  These are exciting times as we are working deals across multiple classes of real estate simultaneously.  Last week we were faced with turning away interested investors because we were so quick to fund a project in full.

But fear not, because as you read on below you will see that there are still many opportunities in the pipeline.  Let’s take a look…

Commercial:

  • We are scheduled to close on the 2 commercial buildings in Rohnert Park, CA next week.  Not only did we fund this deal in full, but we had to turn away several hundred thousand dollars from multiple investors that wanted to participate.  This project should be a very steady performer for Altus and its partners. 

Retail:

  • We are negotiating a LOI for a 19,000 sqft. strip center in Folsom, CA in the $4M range.  This is an off-market deal and the center is 100% occupied with rents substantially below market.  We are completing our due diligence and if things go as expected we will be looking to raise ~$1.4M to purchase this property.  Please contact our office at (707) 932-5887 if you or anyone you know may be interested in this opportunity.

Funds:

Altus Multi Tenant Income Fund  

  • As I type this update we are closing on 33 Condo units in Sacramento, marking our first purchase for the Fund!  This transaction included the sale of a Deed of Trust owned by MTIF 3 days before the cash was needed for the full face value of the note, meaning we really maximized the interest collected and value received.  This condo purchase will provide strong cash flow with upside potential that could be substantial.
  • We currently have an accepted LOI for the $4.2M purchase of 138 apartment units in Tulsa.  We have had an extensive dialog with the sellers and they seem very professional when compared others we have worked with.  This makes us cautiously optimistic about this transaction moving forward.  Due to provisions in the MTIF documents that limit the amount of out of state purchases we will be looking to raise additional funds for this transaction.  We will be working out those details during our due diligence period.  If you have any interest in this deal, please contact our office directly at (707) 932-5887.
  • We ended up passing on the 5 units in Santa Rosa.  The numbers just didn’t add up to what was originally presented so we are setting our sights elsewhere. 

Altus Hybrid Growth Fund

  • We are scheduled to close on the sale of our flip project in Sonoma this coming Monday.  While this was one of the more difficult projects we have been involved with we were pleased that it went into contract after only 3 days on the market and with multiple offers over asking.  We should realize an attractive profit on this deal.
  • We just put another property into contract in Sonoma for a potential future flip.  We will be completing our inspections and due diligence on this new property next week. 

Opportunity Knocks:

Sonoma County:

  • Two weeks ago we purchased a rehab property in SW Santa Rosa for ~$450K and we currently have a contract to sell that same piece of property for $630K.  We will carry back a portion of the sales price for a larger payoff down the road.
  • We are in contract on a property in Sonoma $30K above our expected sales price, only 5 days after the property was listed for sale.  As a bonus, the offer is all cash, with no contingencies, and a 7 day close.
  • We will be wrapping up rehab on another property in Sonoma next week and based on the recommendation of our Realtors we will market it starting the week after Labor Day.
  • In Napa we have a beautiful 4 bedroom home that went on the market in the busy summer season. We have recently dropped the price on this property in the hopes of getting it into contract soon. 

Sacramento area:

  • In late July and early August we sold 3 condos in Carmichael and we have 2 additional units we are currently negotiating on with a single buyer.  We have one vacant unit available and will be putting a tenant occupied unit on the market next week. 
  • Currently we have two single family properties on the market in the Sacramento/Loomis area. Both are generating interest and we are hoping to have offers soon.
  • Interested in owning income property or looking to do a 1031 Exchange?  We have a few remaining condos for sale in the Carmichael complex.  We have a lender in place to provide financing and the required cash down is approximately $35K per unit.  Please call our office at (707) 932-5887 for more information.

More Alternative Assets – Alfalfa and Oil:

  • We are currently working on the purchase of a large agricultural property (alfalfa) with a triple-net leaseback. which would allow us to control substantial amounts of important natural resources (water and farm land), it also is structured in such a way that strong consistent income will be achieved through the NNN leaseback, guaranteed by a very wealthy individual.
  • We have mentioned shallow oil before and now it has become a reality. We are partnering with a company out of Houston on the reworking of several wells in the North West Texas. Shallow oil is far less risky than the more well known and traditional methods of oil extraction but still provides great tax benefits and returns. Because it is a new space to us and because this is the first time working with this company we are only investing our own money. Our first profit distribution check is scheduled to be received within 4 months and we will provide an update to our database at that time.

If you do not currently receive our Opportunity Knocks emails with specific investment opportunities or if you have any interest in discussing any of the above opportunities in greater depth, please respond to this email or contact our office at (707) 932-5887.  We will happily add you to our distribution list and/or schedule an appointment to discuss your investing needs further.

 

Best,

 

Kristy Brooks

Altus Equity Group, LP

Office:  707/932-5887

Fax:  707/544-2972