Premium Investments
Over the years, the Bay Area multi-family real estate market has provided great opportunities for investors. A combination of factors, including, low vacancy rates, rising rents, and strong market demand, have provided the potential for above-average returns through monthly cash flow and asset appreciation. Most recently, with the economic downturn and over supply of bank owned/foreclosed property, even more opportunities seem to exist to buy real estate at historically low prices.
Although the typical strategy of Buy Low & Sell High is simple, the execution can prove perilous for most investors. Unlike investing in the stock or debt markets which, for most people, is a passive activity, real estate investing requires active involvement on a daily basis. Many have lost hundreds of thousands of dollars on real estate investments by simply letting them run on their own. A couple months’ vacancy in a few apartments can wipe out the entire net income for the year. But, still the day-to-day job of asset management continues.
Since most investors have additional full-time careers, they do not have the time to devote enough attention to their investment. Soon, their returns diminish or problems arise and they have little choice but to hire professional property management firms to do the work for them. Unfortunately, typical management firms work primarily to maintain the status quo of their portfolios rather than to increasing the overall asset valuation. Consequently, the assets’ desired upside potential is rarely achieved, the investor becomes dissatisfied with the management firm and the investor is forced to liquidate the asset at a loss. This common scenario causes many investors to avoid investing in real estate and lose out on potentially fabulous returns. Such investors end up limiting their diversification by investing their savings only in debt and equity markets, even with today’s market volatility and low yields.
Using the real estate investment strategy outlined above, the partners at Premium Investments have been successful in regularly achieving exceptionally high returns. Premium Investments objective is to utilize our investors’ capital, along with their own (usually between 20% and 40% of the equity), to locate, purchase, turn around and manage undervalued multi-family and commercial properties. They don’t invest to maintain the status quo, but to make the properties achieve or exceed their potential. Over the past 15 years, they have been able to do just that.
For more information please contact, Sam Sorokin or Craig Beckerman.