When searching for and choosing multi-family properties to invest in, it is important to have different criteria that help you determine whether a property is a good or a bad investment. Below are the principles that Chi Equities follows when investing in properties:
Invest in Up-And-Coming Chicago Neighborhoods
Chi Equities is a Chicago-based multi-family real estate investment company, and as such, we know and buy in Chicago neighborhoods. As noted in his bio, Louie Santiago is experienced with many different neighborhoods, giving him an eye toward finding locations which are expected to increase in value.
Don’t Rush Into a Deal
Once a potential property is found, it is extremely important to perform due diligence and not just buy a building to add it to our list of assets. During due diligence, we evaluate many different aspects of the deal, such as current occupancy, actual vs. comparable rents, and projected rate of return. Chi Equities has turned down over a hundred deals because one particular aspect didn’t match our stringent requirements.
Find Deals that are Immediately Cash Flow Positive
When choosing to invest in a deal, the ultimate goal is to receive a Return on Investment (ROI) for any money put in. Some firms invest with the goal of eventually making money. Chi Equities is committed to deals that are expected to return cash immediately. Because of this, our investors can gain financial freedom sooner.
Minor Construction is Okay
Turn-key properties are great to find, but they can be rare. If a property meets several other criteria, but needs cosmetic upgrades, that is not a deterrent. Chi Equities has significant experience fixing properties to make sure they’re safe and reliable. We also maintain a pool of contractors to assist in different areas such as painting and landscaping.
Major Construction Has to be Strategic
As mentioned above, minor upgrades appear in many different investments. However, there are some situations where larger tasks need to be accomplished. A common example is building out new units in an existing property. These situations, while not ideal, can have a significant upside. Major projects like these are evaluated on a case-by-case basis to determine their benefit.
The Chi Equities Advantage
All of the above goes into our process of selecting our investments. If you have any questions or want to learn more, you can reach us at info@chiequities.com. If you would like to see how these principles can work in your favor, you can apply to be an investor here!