The Multifamily Real Estate Group Presentation

The Multifamily Real Estate Group LLC

Unlocking the potential of multifamily living Manny J. Herrera founder and CEO

WWW.MREEXCHANGE.COM

Introduction My name is Manuel J. Herrera, a Florida licensed real estate agents associated with Dalton Wade Real Estate Group and founder of Multifamily Real Estate Group LLC We provide comprehensive support in connection with the acquisitions, sales and Financing of multifamily real estate Investment transactions.

Manny J. Herrera SL 3425146 Dalton Wade Real Estate Group LLC (813) 9515880

Our Mission Our Mission is to revolutionize the multifamily property market, becoming the foremost platform that empowers investors and property owners to seamlessly buy and sell multifamily properties, setting a new standard for efficiency and security in the industry.

We believe that multifamily housing is critical to our society. It is the most efficient way to increase the supply of housing necessary to accommodate employment, support community stability, and enhance the quality of life.

Our Core Values Transparency: We believe that transparency is the cornerstone of trust and confidence. By offering complete and easily accessible information about properties, market trends, and transaction processes, we empower our users to make informed decisions.

Collaboration: We recognize that multifamily real estate transactions involve a multitude of roles - from buyers and sellers to brokers and bankers.

We strive to create an ecosystem where all stakeholders seamlessly collaborate, leveraging each other's strengths to achieve mutually beneficial outcomes.

Awareness: We are committed to raising awareness about the multifamily real estate market, providing our users with the knowledge and insights they need to thrive.

What is a multifamily property?

Definition A multifamily real estate property is a single or multiple building set up to accommodate more than one family, living separately.

Multifamily real estate can range from a duplex to an apartment complex with hundreds of units.

A duplex

A building with two houses side–by-side , sharing a common wall

4-plex

A building with Four housing units.

Low-rise Apartments

An apartment complex is a group of buildings that contains multiple rental housing units.

Garden-tyle Apartments

High-rise apartment Atlanta GA

Our Team

The Real Estate Agent In multifamily transactions, real estate agents plays a pivotal role by facilitating property transactions, guiding clients through complex processes, negotiating deals, and ensuring smooth communication between buyers, sellers, and other involved parties.

The Title Insurance Company The Title Insurance company is crucial in multifamily transactions as it provides protection against potential ownership disputes, ensuring clear property ownership records and safeguarding against unforeseen legal issues related to the property's title. Also The title Insurance company acts as the escrow agent for secure fund

distribution.

The Mortgage Bank The banker is essential in facilitating financing for property acquisition or rehabilitation, offering diverse options such as conventional mortgages and government-backed loans like Fannie Mae and Freddie Mac loans. Their role involves a thorough evaluation of the borrower's creditworthiness and an assessment of the property's financial performance.

The Property Management Company.

The multifamily real estate management company is vital as it oversees property operations, tenant relations, maintenance, and financial aspects, ensuring efficient and profitable functioning of residential complexes.

Multifamily Real Estate Investment

Definition Multifamily real estate investment entails the development or acquisition of properties designed to accommodate multiple households, aimed at generating rental income and potentially realizing long-term appreciation."

Business Model

The Business Model ü Acquisition: Property bought based on a predefined strategy.

ü Renovation: If needed, the property is upgraded. ü Rental Phase: Property is rented out for a specific duration. ü Rent Adjustment: Rents are adjusted to match the market. ü Sale: Property is sold once it appreciates as desired.

Acquire

Renovate

Hold

Stabilize

Re-sell

" Appreciation" is achieved by: o Improving operational efficiencies, o

Appreciation

Actualizing rental income.

o Reducing expenses, and o Optimizing management.

These actions directly impact the property's value, resulting in capital gains upon sale.

Features and benefits

Investors benefit from predictable cash flows ( the rents), and capital gains (property appreciation).

Cash Flow and Capital gain

•

Multifamily Real Estate Investment is not as risky or volatile as stocks, and

•

It offers higher potential returns than most fixedincome assets.

Low Risk / High Returns

The investment is backed by hard assets: the building and the land.

Solid Collateral

Repairs, Renovation costs, maintenance, and depreciation are tax deductible.

Multifamily Real Estate is 1031 Exchange friendly

Tax Efficient

•

During the recession, the demand for multi-family real estate grows.

•

During inflation, rents go up and multi-family property prices rise.

•

During recovery, they stabilize

Economic resilience

Multifamily Real estate is leverage efficient, because It lets buyers use 75 to 80 % financing to purchase a property while your returns are based on Cash on Cash invested.

Leverage Efficient

As a consequence of being leverage efficient, Multifamily Real Estate investment is readily Scalable

Scalability

$49,655,100.00 $9,931,020.00

$41,379,250.00 $8,275,850.00

$33,103,400.00 $6,620,680.00

$24,827,550.00 $4,965,510.00

$16,551,700.00

$3,310,340.00

$2,879,995.80

Investors purchase price

$14,399,979.00

Scalability

1 2 3 4 5 6 Investors $2,879,995.8$3,310,340.0$4,965,510.0$6,620,680.0$8,275,850.0$9,931,020.0 purchase price $14,399,979.$16,551,700.$24,827,550.$33,103,400.$41,379,250.$49,655,100.

Leverage Purchase at 80% LTV

Acquisition Strategies

Strategies we Support Core

Core Plus

1. Acquire stabilized Asset type A, and B+.

1. Acquire Asset type B, B+.

2. Keep them as they are,

2. Make minor Improvements,

3. Hold them for some time.

3. Update rents.

4. Sell them in the future,

4. Improve management, marketing , 5. sell them, in the future, .

Value-Added 1. Acquire Asset Type B-, C. 2. Complete a major renovation that takes months or years to complete, 3. Hold them for some time.

4. Refinance loan 5. Sell them in the future.

1.

"The 'Core' strategy is widely recognized as the safest option, closely resembling fixed income (bonds) in terms of risk and potential returns.

2.

Core

This strategy employs lower leverage than other approaches, while thtypicallye property's essential characteristics remain relatively stable, ensuring steady and predictable cash flows.

3.

Properties pursued under the 'Core' strategy are often situated in major urban centers, where demand is consistent.

4.

This approach suits passive and conservative investors seeking steady, higher-than-average market returns. and potential for capital gains.

5.

With attributes such as low capitalization rates and extended holding periods (typically 5 to 10 years), the 'Core' strategy offers a stable investment avenue."

1. Acquire stabilized Asset type A, and B+.

2. Keep them as they are, 3. Hold them for some time.

4. Sell them in the future,

1.

The 'Core Pluss' strategy is widely recognized as the next level of safety, offering higher potential returns than fixed income (bonds) while maintaining a reasonable risk profile.

2.

Core Plus

This strategy often employs more leverage than the 'Core' approach, involving noticeable property enhancements that result in improved cash flows.

1. Acquire Asset type B, B+.

2.Make cosmetic Impro vements.

3.

Suited for investors who are less conservative and seek higher-than-average market returns, the 'Core Plus' strategy combines income generation with some potential for capital appreciation.

4.

Typically, investments under this strategy involve holding periods of up to 5 years or less."

3. Update rents.

4. Improve management, marketing , 5. sell them, in the future .

1.

"The 'Value-Added' strategy stands out as one of the most lucrative options. This approach offers the potential for double-digit returns, with a substantial portion stemming from capital appreciation.

2.

Unlike other strategies, 'Value-Added' tends to

Value-Added

utilize more leverage, often involving loan refinancing.

3.

Distinctive for its significant property changes, this

that takes months or years to complete,

due to higher vacancy rates during renovation

3. Hold them for some time.

It's ideally suited for aggressive investors seeking elevated cash-on-cash yields and an opportunity to participate in capital appreciation.

5.

Complete a major renovation

strategy may experience fluctuations in cash flows periods.

4.

1. Acquire Asset Type B-, C. 2.

The 'Value-Added' strategy often comes with a shorter holding period of 5 to 7 years.

4. Refinance loan 5. Sell them in the future.

Risk Levels

Our Process

PROCESS

Market Identification

Issue letter of intent

Conduct due diligence

Acquisition strategy

Invite banks

Sign P&S Contract

Property selection

Invite investors

Closing

Underwrite property (Financial analysis )

Tour the property

Identifying Emerging Markets Emerging Markets are new growing or correcting markets with the following profile: u

Growing job opportunities and employment rates that surpass the national average.

u

A growing population that is forecast to continue growing.

u

Future real estate development plans.

u

Affordability (based on price to rent ratio)

u

Increasing absorption rate.

We actively pursue multifamily real estate properties in emerging markets at any given time.

Tampa Market

u

Tampa Bay's multifamily real estate sector stands at the intersection of population growth, economic resilience, and housing market challenges in 2024. u

mortgage rates drop below 7% 12/14/2023

u

Tampa Employment annual growth rate 3% vs national 1.3%

u

Population Growth: 1.61%

u

12-month absorption rate: + 3,976 units

u

Units Under Construction: 17,689 Units

u

Inventory Units: 219,000

Thank you Thank you for your interest in joining our team.

Your enthusiasm aligns perfectly with our vision to revolutionize the multifamily property market. We're dedicated to empowering investors and property owners, setting new benchmarks for efficiency and security in the industry.

Your appreciation for multifamily housing's vital role in society deeply resonates with us. We sincerely believe in its power to enhance communities, support stability, and elevate overall quality of life in our society.

Thank you once more for considering joining our mission. The prospect of collaborating and creating a significant impact together is truly invigorating.

Warm regards,

Manuel J Herrera Manny J. Herrera SL 3425146 Dalton Wade Real Estate Group LLC (813) 9515880