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TLC Capital Group educates, partners, and invests alongside our investors, ensuring all decisions are made with their best interest first.
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Why Real Estate
Cash Flow
After all expenses are paid, quarterly distributions go out to investors.
Stability
TLC Capital Group is less volatile and continues to outperform traditional stock based investments.
Tax Benefits
Depreciation is a tax write-off that enables you to keep more of your profits.
Leverage
You can leverage real estate, this allows you to buy a $10M property with only $2.5M.
Amortization
Residents pay down debt which creates equity, this leads to long-term wealth.
Appreciation
Forced appreciation through strategic value plays increase the overall value of the property.
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Our Acquisition Method
TLC Capital Group core mission of protecting our investment partners’ capital begins with our sole focus on multifamily properties. The firm’s strategy focuses on improving Class B & C apartment communities in secondary and tertiary markets nationwide. Historically, multi family real estate has been the least volatile asset class during downturns while still offering strong upside potential during upcycles. Within multi family real estate , Class B & C provides one of the most attractive investment opportunities due to the imbalance between the strong and growing demand and limited new supply of these units.
Market Segments
- Age: The 18-35 year old market segment is 22% of the U.S. population
- Income: Renters who earn $40,000 or more annually
- Price: Where rent is 30% or less of the median income
- Retiring Baby Boomers are scaling down and enjoying maintenance free multifamily living
Property Criteria
- Multifamily residential apartments
- Pitched roof construction preferred
- Occupancy above 80% with the exception of properties that require renovation, providing properties are well located and present value-add opportunities
Target Values
- Size and Price: 50+ units in the $1MM – $10MM range
- Returns: 7-10% Cash on Cash, Minimum Debt Service Coverage ratio of 1.25
- Type: C- to B+ properties located in C- to A areas
- Property Vintage: 1970 or newer
- Location: Emerging market areas with indicators for strong near and long-term economic growth
Acquisition Practices
TLC Capital Group takes pride in building relationships with local listing brokers. Our searches include soliciting owners directly instead of waiting for properties to come to market.
Investment Discipline
Asset selection involves a systematic and routine evaluation to identify favorable demand characteristics, such as job and population growth, demographic trends, supply absorption rates, and supportive local legislation.
Value-Add Strategy
This is the business plan for the asset. For multi-family real estate more income it generates, the more it is worth. When we buy an apartment complex or building, we are looking for opportunities to increase the cashflow in different areas. This is called “Value add”.
Our Process
Investment Process
Assess opportunity
Financial Analysis
Physical Due Diligence
Asset Acquisition
Value Add strategy
Asset Management
Exit Strategy
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Tell Us About Yourself
We’d love to share new offerings with you and begin a conversation about partnering with TLC Capital Group.