INVESTMENT PROCESS
We work with individuals and high net worth individuals who want to passively invest in institutional quality real estate. Our investors typically want to diversify their investment portfolio and receive all the benefits of owning real estate without directly managing it.
FIND A DEAL & RAISE MONEY
Plum Street Capital will find an investment property and invite you to invest in the opportunity. A single purpose limited liability company will be created, along with an operating agreement detailing out deal terms.
EXECUTE ACQUISITION & BUSNESS PLAN
​The capital stack will be made up of a pool of individual investors (equity) and a mortgage (debt) to purchase the property. Plum Street Capital will manage the investment on behalf of the investors and undertake business plan operations.
DISTRIBUTIONS & BENEFITS
Investors receive cash flow distributions and other benefits associated with owning real estate. We will plan to refinance and return a portion of investor equity and continue to cash flow or sell the asset to achieve desired returns.
INVESTMENT CRITERIA
VALUE ADD
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Less than 90% occupied
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In-place units leased below market
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Capital improvement or renovation needed
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Ability to increase rents with capex plan
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Eligible for bridge financing
STABILIZED
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90%+ occupancy​
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Units leased at market-rate
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New build or no major capital improvements needed
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Steady cash flow
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Eligible for permanent financing
PROPERTY SELECTION
What we look for:
Location
We believe that established and rapidly growing markets provide the most favorable locations to achieve effective risk-adjusted returns. We search for properties that are near public transportation and are easily accessible to major throughfares.
Market Fundamentals
Key characteristics we focus on include population growth, high job growth in high wage industries, supply and demand, and key market drivers like a university, major employer, or airport.
Rental Growth
​We look at historical data and conduct extensive research to forecast appropriate rental rates for financial projections. Competitive sets, historical occupancies, market fundamentals, and economic drivers help us determine how much we can grow our profits.