Nalu Capital Real Estate Investment Strategy
Learn more about how our acquisition method and value-adding strategy allow us to transform your wealth into a profitable investment.
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Why Invest With Us?
Nalu Capital draws upon years of experience with multifamily real estate investments to provide personalized opportunities for investors. Through our in-depth research of emerging markets and acquisition practices, we help investors discover the best places to buy multi-family homes.
Now operating in 7+ states, Nalu Capital manages over 3,750+ units, while investors enjoy 34% average investment returns. Whether you’re learning how to start investing in multifamily real estate or diversifying your assets, we’re here to help expand and protect your wealth.
Benefits of InvestingOur Acquisition Method
Protecting our investors’ capital is at the core of Nalu Capital’s mission and focus when investing in multifamily real estate. Our passive real estate investing strategy centers around finding and improving Class B & C apartment complexes in secondary and tertiary markets.
Multifamily investments are among the least volatile real estate assets you can hold. They offer strong performance and are highly attractive investment opportunities in emerging market segments optimal for long-term economic growth.
Here’s an overview of the overall acquisition method we adopt to ensure the best real estate syndication returns on your rental property investment:
01
Offering Memorandum
Also known as a private placement memorandum (PPM), this document outlines essential information about the property along with a breakdown of potential risks.
02
Investor Commitment
Next, we confirm the investor’s legally binding obligation for their contributions of capital and the timeframe of transfers to a given fund.
03
Private Placement Memorandum
The private placement memorandum document includes all the information about your real estate investments and is sometimes referred to as an offering document.
04
Wire Funds
Once all the details and documentation have been finalized, the funds are wired through to proceed with the property’s purchase.
05
Close the Property
The last step in the multi-family real estate transaction, closing on the property, finalizes the procedure and secures the transfer of ownership.
06
Monthly Property Updates
With the property ownership secure, investors receive monthly updates covering comprehensive information on its overall performance leading towards quarterly distributions.
Our Acquisition Criteria
Nalu Capital conducts a stringent acquisition process incorporating a series of criteria for assessing multifamily real estate opportunities. Through this process, we can sustainably invest in undervalued properties with the best value optimization, management, and disposition opportunities.
Market Segments
We consider a series of data points and market trends to pinpoint multi-family real estate with the potential for high-yield returns on investment. We’ve found that the right combination of local demographics including age, average incomes, and rental prices have consistently helped us achieve unmatched growth and returns.
Property Criteria
Nalu Capital’s acquisition process involves a stringent property assessment when approaching a new investment opportunity. For example, we like to see occupancy above 80%, unless the opportunity has renovation potential. We diligently seek opportunities for adding value in all our investments to force appreciation.
Target Values
Our focus on type C- to B+ properties constructed after 1975 allows us to maximize economic growth in the near and long term. Our typical target property has 50+ units and is ideally valued in the $4-50 million range. This provides us with the confidence to predictably ensure returns of up to 10% cash on cash.
Ninety percent of all millionaires become so through
investing in and owning real estate.
Our Value-Adding Methodology
Nalu Capital believes investing in real estate should prioritize income generation that increases your cash flow. That’s why we consider a range of Value Plays for potential real estate opportunities to force appreciation and ensure profitable returns.
Acquisition Practices
Fostering healthy relationships with local listing brokers and multi-family property owners is at the heart of our acquisition process. By accessing properties before they come to market, we’re able to conduct thorough due diligence to verify valuations and optimize investment strategies. Our evaluation includes developing a debt and financing strategy, assessing renovations, and clarifying our investment objectives.
Investment Discipline
The next step entails thoroughly assessing core variables covering local demographic shifts associated with population and economic growth. This includes breaking down supply absorption rates and positive local legislation designed to streamline real estate development progress. We focus on the most favorable underwriting opportunities by avoiding markets saturated with surplus land where zoning and building permits impede development.
Value-Add Strategy
When purchasing an apartment complex, we look for value plays that increase the potential for high-yield returns and cash flow. Negative value plays, including mismanagement, poor supervision, and high vacancies, offer opportunities for improvement and growth. Likewise, positive changes that improve the surrounding environment or amenities can also increase the rents and value of properties.
Proven Track Record
Discover more about our track record of multifamily property investments by exploring our portfolio of property assets.
Portfolio Value
$400MM+
Total Units
3,750+
Past Assets
10.43%
Average COC
35.33%
Average ARR
$73,135,679
Equity Created
Current Assets
$239,310,000
Total Asset Value
95%
Occupancy
$30,870,000
Equity Created
Interested in multifamily real estate investing?
Contact us for more information today.
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