CASE STUDY #1
Targeted entry level investors transitioning from single to multi-family portfolios.
Due to the age and size of the properties, maintenance and management was a challenge; preventing the client from optimizing their capital and equity invested in the property.
The most qualified buyer pool was identified by marketing to cooperating residential and investment brokers that we’ve worked with in the past. Specifically targeting entry level investors transitioning from single family to multi-family portfolios, utilizing Fannie Mae lending terms. The Client utilized the accumulated equity to exchange into another investment property forecast to yield a 45% return on equity.
“I have been working with The Waller Group for over 10 years. They’ve provided much of the single family home inventory I purchased during the distressed market. I’m now re-balancing my portfolio and netting an average of 200% return on capital; they are executing sales at prices over 100% more than the prices I purchased the properties 6-10 years ago. Logan’s astute negotiating and marketing skills have benefited his team, as well as mine”
CASE STUDY #2
Increased portfolio NOI by over 125% year one.
The Client had a troubled asset experiencing a negative NOI. The land was undeveloped and being roadblocked by City liens totaling more than the value of the property. The City was close to foreclosing on those liens, creating a situation that prevented the Seller from liquidating the property.
The highest and best use of the land was identified as being a redevelopment project for condo-grade apartments or town homes. Waller Group resolved city liens through demonstrating that the highest and best use wouId increase the tax base; providing justification for the City to negotiate down prior liens on the property. Waller Group simultaneously worked with the City to mitigate a future developers risk surrounding utility easements and flood plain issues previously hindering development. A developer was secured through targeted marketing based on the proposed development plans. The Client sold the property and deferred all capital gains through a 1031 Exchange, trading into additional income properties at a 7% CAP and creating an annual increase in NOI over 125% Year 1.
“Logan Waller and the team exceeded my expectations, not only by working with the city, which I had previously attempted for over 10 years to resolve, but also identifying replacement income properties which were not on the market, as a result they’ve helped me sell additional properties utilizing the 1031 capital gain deferment, which has allowed me to significantly upgrade my portfolio and increase my net operating income.”
CASE STUDY #3
Presented a non-financeable property using enhanced marketing to foreign investors and out-of-market absentee owners.
After completing extensive renovations, The Client was considering a Sale or refinance to fund another acquisition. However, unseasoned rents were making a disposition or refinance a challenge.
The rent potential was demonstrated through strategic lease up of select units, resulting in a clear picture of a value-add property with a stabilized Pro Forma. The marketing plan included targeting foreign investors and absentee owners in markets outside of the DFW metroplex. The property was heavily marketed in other domestic markets where there is little investment sales inventory under $2,000,000. This enhanced marketing resulted in multiple offers, securing a contract over ask price with a back-up contract in place, and closing with no re-trade.
“Logan Waller and the rest of the Waller Group team generated multiple offers within 45 days of listing my property for sale. I was pleased with the net execution and how they marketed the property, especially considering it was not financeable. They generated a cash offer over asking price. More recently they’ve identified an off-market value-add property for me and I am looking forward to a long-term relationship with them. I am happy to recommend Logan and his team to anyone owning or managing investment real estate.”
CASE STUDY #4
Repositioned an inefficient portfolio to achieve a 130% NOI increase.
The Client was suffering from underutilized capital and poor property performance. Property taxes continued to escalate due to high land value in the Urban Core and the asset’s RSF was underutilized for MF-2 zoning. In addition, the property incurred higher than average maintenance expenses due to it’s age. Refinancing was not an option, and the client would incur a significant capital gains tax due to appreciation and the low tax basis.
The highest and best use of the land was identified as town home development.
Marketing plan was executed targeting builders, developers, and speculative land banking investors. The Client was able to 1031 exchange into 86 units in the emerging southern sector of Dallas. The larger portfolio allowed the client to achieve improved management efficiencies through economies of scale. Achieving a 130% increase in portfolio NOI after stabilizing the properties.
“We were approached by brokers constantly but were not planning to sell our properties for several years. Logan framed the benefits of making better utilization of our equity, and demonstrated that the timing in the market was ripe based on our investment goals. We’re fortunate to have sold our Hall St. portfolio when we did; with the increased pricing for multi-family properties throughout the DFW metroplex we’ve benefited not only from increased net operating income over the past 2 years but a property price appreciation gain on our replacement properties far exceeding the property appreciation of the current value of the properties we sold.”