Mid Month Update December 15, 2014
The holidays are upon us and I hope that each of you has the opportunity to spend time with family and friends over the next few weeks reflecting on 2014 and looking ahead to 2015 and all of its exciting possibilities. I will be heading back East for Christmas and some down time with my family. I’m looking forward to coming back refreshed, revitalized and ready to tackle the New Year.
Here’s how we’re wrapping up 2014 at Altus:
Altus Hybrid Growth Fund
- Renovations to the Palm Avenue property in Healdsburg are ongoing while the rental market remains strong and we are seeing gradual rent increases as we move into the New Year.
- Given the scarcity of new flip projects, we are looking at the possibility of using stagnant capital in a line of credit to do real estate secured hard money loans. When cash is needed, the notes are sold and investable cash becomes available. This is a strategy we’ve had success in implementing in our Multi Family Income Fund.
Altus Multi Tenant Income Fund
- Our 33 units in Sacramento remain 100% occupied thanks to the efforts of the property management company hired to oversee these units.
- We had to pass on the two complexes previously in contract in Sacramento due inconsistencies in the financials coupled with sellers who were unwilling to meet us where we needed to be in terms of price based on the numbers provided.
- We do have a 51 unit complex under contract in Redding, CA that we are excited about. All units were vacated and recently remodeled. The sellers have expensive hard money in place and are motivated to sell prior to full releasing/stabilization which works to our advantage. We have the property in contract at an extremely attractive CAP rate estimated at 8%. Financing is lined up at a 4.5% fixed rate for 7 years at a 25 year amortization schedule. Because of our previously existing relationship with this particular bank we were able to secure financing prior to the property being completely stabilized. We are just waiting for a roof report before removing contingencies and we expect to close by the end of this year.
- As mentioned above, we have been making loans out of the Multi Tenant Income Fund and we’re selling two of those loans to current Altus Investors this week to provide the needed capital to close on the Redding property. If you have any interest in purchasing notes in the future, please reply to this email or contact our office at (707) 932-5887 and we will put your name on our list.
- We are continuing our discussions on several complexes in Oklahoma City and Tulsa, although we don’t have agreements in place as of yet.
- As per the original fund strategy, we are currently liquidating this portfolio of homes.
- Since last month we have sold two properties, 3 more went into contract to sell and we are in the process of rehabbing two more to go on the market in the next few weeks.
- Graton, CA – Two units will be vacant by February and will receive complete remodels. The third unit will receive a small bathroom remodel while tenant occupied. Once work is completed, all units will be leased up at market rents (nearly double what we’re getting now) and sold as a package of 3 homes on one lot.
- Sonoma, CA – Cabinets, vanities, and windows…oh my! Permits are in hand for the addition and we are placing all kinds of orders for all kinds of materials to keep this project on track for an early spring sale.
- Napa, CA – We are finally in contract to sell the 4/2 home on Spencer St. in historic Napa! Our agents are working diligently to ensure a smooth closing process.
- Loomis, CA – Still available is this luxurious 2,600 sqft. 4 br/4 ba home set on 10 acres, complete with a 9 stall barn, riding arena and 3 car garage.
- Carmichael, CA - 4 condo units are available either individually or in a discounted, bulk package. Please contact our office at (707) 932-5887 if you have any interest. This is a great 1031 Exchange opportunity!
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 detail, please reply to this email or call our office at (707) 932-5887. We will gladly add you to our distribution list and/or schedule an appointment to discuss your investing needs further.
Wishing you and yours a happy holiday season.
See you in 2015!