PASSIVE: We take care of all aspects of the projects from acquiring, managing, and dispositioning. This allows our investors to relax and enjoy the benefits of owning real estate without the stress.
VALUE ADD UPSIDE: We target properties that have additional upside through renovations and operational improvements to force additional value.
CASHFLOW: Income producing assets provide a reliable stream of income to our investors through ongoing operational income from the property.
TAX SAVINGS: The tax code provides incentives to real estate owners such as depreciation, 1031 exchanges, deductions, and tax-free cash out refinances.
APPRECIATION: Multifamily real estate benefit from natural appreciation over time due to inflation and supply and demand. Unlike single family investments, apartment values are heavily weighted on the properties income, which provide a higher level of control.
OWNERSHIP: Unlike stocks or a REIT, when you invest in a syndication you become a percentage owner in the asset. Investing alongside us and other passive investors enables the acquisition of larger assets.
PASSIVE INCOME AND FINANCIAL INDEPENDENCE THROUGH REAL ESTATE SYNDICATIONS
WHAT IS A SYNDICATION?
A multifamily syndication is a partnership where a group of investors pool their money together to purchase large assets that would otherwise be difficult for someone to acquire on their own. The typical structure consists of general partners and limited partners. The General Partner, or syndicator, is responsible for overseeing and managing the property from acquisition, signing the loan, due diligence, renovation, and daily operations. They have full liability over the company and its decisions. Limited Partners are passive partners who invest in a portion of the equity investment and typically are not involved in the daily responsibilities of the company and have no personal risks beyond their investment.
ACQUISTION
When evaluating an asset, we are conservative with our underwriting, ensuring a comfortable margin for any unknown issues that may arise. We invest in strong developing markets that provide consistent population growth as well as diverse employment, low crime, and a stable tenant base. We select stabilized, value-add assets in B or C class areas that provide strong returns.
REPOSITION
The asset will be repositioned by adding value through reducing expenses and driving up the operating income by completing any necessary renovations, adding enhancements, correcting previous managerial and operational issues, and getting the rent at fair market rent. Our property manager will keep the property running efficiently and at its greatest state.
CASHFLOW
During this period, we will get the property operating under stable conditions, allowing our investors to receive steady cashflow over the course of the hold as well as long-term appreciation. Investors can also expect transparency with quarterly performance reports on distributions.
DISPOSITION
During evaluation of the property, market, and where it is in its cycle, we will implement the plan that allows us to exit at a sale price that generates maximum profits for our investors as well as return the rest of their invested capital.
REFINANCE
If the property can be refinanced, we aim to return up to 60% of investors’ equity within the first 2-3 years, reducing risks and getting a return back tax free.
COMPANY INFORMATION
Company: AABA CAPITAL
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