LONG-TERM HOLD

We are a long-term hold investor. We do not promote constant “churning” of our properties. We have recognized, after many years of experience, that the best way to maximize returns is to purchase a high-quality, safe, long-term investment property at the best price, operate it better than your competition, and hold it for the long term.

REFINANCE

Our distributions are generated through cash flow, as well as regular refinances of the property. We time our refinances around peaks in net operating income of the properties, as well as interest rate fluctuation. The result is tremendous tax-free distribution to partners.

TAX BENEFITS

We have set up multiple ways to build wealth through our investments. Our structure provides investors with terrific tax benefits regardless of their investment level. We also allow investors to use their defined benefits plans and IRAs to invest in our properties. Our investments can also be used as an effective estate-planning tool for many generations.

ACQUISITIONS

We are very selective in our buying criteria

• Our primary focus is on what we feel is the most prudent investment: apartments in Southern California
• We only buy properties that are within reasonable driving distance of our Irvine headquarters so that we can “smother” these assets with hands-on management. Geographically, our borders are Ventura to the north, San Diego to the south, the Pacific Ocean to the west, and the lower desert to the east. This is one of the most diverse and desirable markets in the country.
• Our acquisitions are typically over 100 units. However, if there is a smaller property near one of our existing assets, we will certainly investigate that opportunity.
• With our in-house renovation company, we are perfectly suited for value-add investment opportunities.
• We have a full-time acquisition team in the market uncovering every opportunity. Many times, we are able to find transactions before they hit the open market.
• We are flexible, nimble, and able to act quickly. Creative structuring is our hallmark.

ASSET MANAGEMENT

• Our investors receive detailed annual reporting books highlighting the performance of their investments.
• We hold an annual partners meeting to provide an in-person update on the state of the market and our portfolio.
• Our properties are managed by our in-house management company, Advanced Management Company (AMC), so that we are able to closely control the day-to-day workings of our assets.
• To most efficiently and effectively execute our value-add investment strategy, we have our in-house construction company called R³ Construction Services, Inc. R³ can seamlessly complete all aspects of property renovations. We build our own cabinets, self-perform plumbing, HVAC, wood repair, electrical, painting, window installation, and masonry.
• Because our strategy is to hold for the long term, we use the most durable materials that are lasting and efficient in order to diminish management costs and repairs and maintenance.