STRATEGY

OUR STRATEGY


Capital Perservation & Capital Growth

Every Investor's Goal: minimize downside risk and maximize upside opportunity. In real estate, risk can be controlled and opportunity can be maximized by:

BUYING RIGHT → FINANCING RIGHT → MANAGING RIGHT

At Venture, we never waiver on our criteria, and we aren't in the business of speculating. We develop a deep knowledge of our markets, perform strict analysis, and only move forward if the prospective project meets our conservative metrics.

1. Identify

We typically look at 100 properties to find 1 suitable opportunity for investment. Once an opportunity has been identified, we'll conduct a preliminary financial analyis and pro forma. Provided it meets our conservative return criteria for investors, we will submit a Letter of Intent (LOI) to purchase the property. If the seller accepts, we move on to step two.

2. Acquire

After we are under contract, it is time for formal due diligence wherein every aspect of the proposed acquisition is scrutinized. Individual units are walked through one by one, rent rolls are reviewed, and strict underwriting begins.

Concurrently, we will be proposing the project to lenders and the opportunity to prospective investors. We will negotiate the most advantageous, conservative financing that can be found for the project. Investments are taken first come, first serve.

The investment documents will be completed and distributed, and which point the investors will be able contribute their capital. Time to close.

3. Stabilize

Once acquired, redevelopment, renovation, and management streamlining at the community begin immediately.

We will progressively reposition the community, increase occupancy, rebrand (in some cases), improve the tenant base, increase rents, decrease expenses, and altogether transform the property into a modern community.

Once the community begins to stabilize, monthly partner distributions and cash flow to investors begin. Distributions are paid monthly to investors at Venture.

4. Optimize

This is where a good project becomes a great project, wherein we implement our proven management strategies, procedures, and services. These small adjustments improve net cash flow, optimize property performance, and maximize property value. At this point, monthly partner distributions continue to increase.

5. Exit

Once we have acheived our projected income targets, we will explore a capital event, including a possible cash-out refinance or a sale. This decision will be driven by a combination of the current state of the market and our commitment to maximizing investor internal rate of return (IRR).

If refinanced, up to 100% of the invested capital may be returned. Our investors will continue to receive monthly distributions. If sold, the initial capital invested will be returned first (Preferred Equity) and then the capital gain will be distributed pro rata.
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