KPRIME Investment Properties, LLC. specializes in the identification and acquisition of quality real estate properties. Scouring the markets, we target properties that are severely distressed, functionally obsolete, and/or overlooked but which have the potential of substantial added value from key capital improvements. These improvements, along with our professional management style, consistently yield high returns.
Listed below is the typical process used with each property in our investment programs.
Purchasing a property at a proper value is a major key to yielding a good return at the end of an investment. Kprime checks banks, Real Estate Boards, MLS, the internet, and newspapers, and also drives the neighborhoods routinely looking for suitably priced properties. Other Realtors are encouraged to bring us properties. In this manner, hundreds of properties are viewed before we select a single one.
Once various properties have been identified as potential investments, a preliminary renovation/capital improvement budget and a neighborhood analysis is undertaken for each property. If there is sufficient equity between the cost of the project and what the property can yield (based on its neighborhood location), we initiate an all cash offer. While the offering team is drawing the offer, the development/construction team is firming up the renovation/capital improvement schedule and the Realtor team is firming up the property value in relation to the neighborhood. If the reults of the analysis are favorable, then the all cash offer is presented.
The negotiating process is usually quite rigorous and time consuming. Once there is Buyer/Seller agreement on a property, escrow is opened and due diligence starts. The property is inspected thoroughly before contingencies are removed. During escrow the development/construction team is gearing up to start the renovation process. Plans are drawn up and the permit process begins. If all goes well the property is then purchased and physical construction actually starts.
As permits are obtained and budgets are prepared, KPrime employees and sub-contractors will begin working on the property. Labor and material costs are routinely tracked and assigned to the appropriate budgetary line items, thereby keeping the project on budget. As construction progresses, the Realtor team continually reviews the property to ensure it is developed to its fullest potential. Once the construction work is finished, the team is careful to have all permits signed off, allowing for the sale process to commence.
Even before construction is finalized the marketing team is reviewing the property's area for new listings and sales to ensure current information is used when pricing it for sale. The team is also reviewing the property to determine what level of staging will be necessary. We move quickly since the dynamic market requires precise timing to maximize the yield on each investment. For this very reason, properties may be put on the market prior to construction completion.
Once a sale is completed and escrow has closed, a partnership report will be prepared by KPrime to determine the profitability of the property. Depending on when the sale occurs in the overall life of the investment program, the sale proceeds will either be re-invested or distributed to the partners. This is the customary process used for each property within our partnerships.
