There is an old saying that "God picks your next-door neighbor" For the lucky few that next-door neighbor happens to be a real estate broker with a plenty of good deals to invest in. With Safari Partners LLC we have democratized this old saying by letting you invest with a successful Broker who has other Realtors constantly seeking good investments properties.
Our Real Estate team finds good deals on California apartment buildings. We then divide the required down payment among individual investors.Our aim is to generate and continually increase the net income to be distributed back to our investors in quarterly payments while continually increasing the value of your units.
THE BASIC PLAN:
Purchase an apartment building for $1,000,000 with 25% down ($250,000) and annual rental income of $125,000. The building has an annual rental income multiplier equaling 8 times the value of the rents. $1,000,000 / $125,000 equals 8. This is one of the ways in which the industry establishes property values, AKA: The Gross Rent Multiplier.
When rents go up 4%, or $5,000, this is added the $125,000 = $130,000. You then multiply $130,000 by the 8 gross rent multiplier to get a new building value of $1,040,000, an increase of $40,000, a 16% return on the $250,000 down payment. In addition you can receive dividends from the operation of the building, plus monthly loan principal reduction, creating even more equity in the building. When you compound the 4% rental increases over 5 years your building becomes worth $1,250,000. With a $250,000 increase in value you have doubled your down payment in 5 years by increasing rents 4% per year.
Investment Goals:
1. Spendable income in the form of quarterly dividends.
2. Equity build-up through amortized loan reduction.
3. Inflation hedge for dollar investments.
4. Long-term appreciation.
5. Tax benefits: Some dividend income will be sheltered thru depreciation.
Available reports to members on closing of each property acquisition:
Escrow closing statement.
A copy of recorded Grant Deed to Safari Partners LLC.
A copy of Title Insurance policy on the LLC’s ownership of the property.
A copy of the beginning LLC balance sheet on acquisition of each individual property.
After the end of each Quarter, itemized income statement on year to date rental income, operating expenses and payments. These reports shall either be mailed, e-mailed, or available to view on our confidential Safari Partners LLC website.
Use of Funds:
Safari Partners LLC's will invest in a basket of cash flow apartment buildings and/or fix and flip opportunities as they become available on the market. We will use 10% to 30% down payments. Safari Partners LLC's are each a closed end fund, meaning: when our initial funding is done, there will be no more partners admitted. Existing partners will maintain a constant ownership percentage. Each building will be individually managed to maximize value thru the judicious use of rent increases, leverage, 1031 exchanges and re-financings. Our goal will be to increase dividends while increasing our asset base, using the above tools
Driving force of the fund:
Commissions for Realtors. Active Realtors in the field frequently find or stumble upon good deals in the everyday course of business. Our Realtors submit these deals to the management team. If the deal is good enough, the management team will oversee the purchase, operation, and or fix up as necessary. The Realtor who finds the property earns the sales commission, which has been built into the sale price by the seller.
How we can find additional good deals:
“Well bought is half sold” Safari Realtors has created proprietary software called the “IncomePropertySearcher.” The “Searcher” software gives us the ability to analyze investment properties currently on the market in the Counties of Los Angeles, San Bernadino, Riverside and Orange. Thousands of properties can be rated simultaneously by: best price per square foot, best price per door and best gross rent multiplier. The “Searcher” software can also tell us where to price our buildings when it is time for a sale or exchange. Finding better than average Real Estate Investments will make a big difference in our returns over time.
Commissions for Realtors. Active Realtors in the field frequently find or stumble upon good deals in the everyday course of business. Our Realtors submit these deals to the management team. If the deal is good enough, the management team will oversee the purchase, operation, and or fix up as necessary. The Realtor who finds the property earns the sales commission, which has been built into the sale price by the seller.