Investment
Foundos Realty is seeking investment capital to quickly take advantage of real estate acquisitions that meet or exceed our criteria. In a downturn the competition is fierce. Our financing instruments will include equity funds, LLC’s, general partnerships, joint ventures and individuals, each having its own return criteria with an emphasis on speed. We will provide analysis to satisfy any financial institution’s requirements.

Foundos is looking for an anticipated initial investment of $100M and expects this to produce approximately $500M in purchases. We will not guarantee an unrealistic return but look to realize a gain within 5 to 10 years at which time we would sell or refinance depending on the financial, tax, and market conditions.

Strategy
In order to be considered for acquisition, a property must first pass through two “stress tests” or risk analysis tools developed in house by the firm’s partners as a gauge to determine the appropriate set of assumptions used during the due diligence process. (To see an example of the stress test process, please click the images on the left.) Once the tests a performed, a decision is made to move forward with a full due diligence. This research will include an exhaustive market, financial, and property analysis, which will also include a physical inspection by one or both of the firm’s principals. At this time, Foundos Realty will then extend the offer to participate as a limited partner in the opportunity to a list of potential investors cultivated through various means. The number of required investors will be determined by Foundos Realty, and those seeking to be included will be provided all data and reporting to make the determination for themselves.

Once the equity portion has been established, Foundos Realty will continue to closing, at which time it will assume management and leasing control. Reporting, fully audited by a third party CPA firm, will be provided on a monthly basis, with disbursements in cash flow occurring quarterly. Although, no guarantees are made to the success of an investment, Foundos Realty employs a conservative and realistic approach to asset analysis and management. Properties will be purchased on a basis that provides a cash flow after incurring market rate debt service. Discounts are applied for vacant space and inflated rental rates, while operating expenses are weighed against the firm’s understanding of the actual versus supplied on a line item basis.

The exit strategy lies within the properties ability to produce an acceptable return on the investment capital. The “going in” plan is to properly manage and lease the investment over time, wait for the market to return, and then dispose of the asset. Purchasing the asset based on the correct number, reflecting market rental rates and operating expenses, allows for this plan to be successful. This timing is driven by market conditions or the presence of a buyer with favorable terms.