Our Investment Strategy

The primary goal of Pinnacle Team Investments is to preserve the investments of its investors, while providing significant cash on cash returns. We do this through investing in value add, B & C multi family apartment buildings that are in emerging markets and in a strong position to appreciate over the next 3-7 years.

We buy with an exit strategy already in place. Historically, multi family apartment buildings have been the strongest and most reliable investment due to their ability to remain strong during economic uncertainty. When real estate markets crash, often multi family investments become more lucrative due to people’s desire to rent.

The trend speaks for itself. Millennials want to rent rather than own. Due to the lack of supply of multi family properties the future holds a rental market shortage which makes these properties more valuable and a more powerful investment vehicle.

We Look For 3 Criteria:

Right Property

Multi family properties that are 20+ units
Mult family properties that range from $1MM – $10MM
Multi family properties that have “Value Add” components leaving signification cash flow opportunity
Multi family properties that are in emerging markets (great job and population growth)
Multi family properties that have 80%+ occupancy rate unless properties need renovation and improved management structures
Multi family properties that provided a 7-10% cash on cash return and a minimum DSCR (Debt Service Coverage Ratio) of 1.25

Right Location

Job Growth: Is the local government committed to attracting jobs and making it easier for companies to grow
Population Growth: Are there attractive reasons why people would want to uproot their lives and families and move there.
Rents are continually rising: Are rents continue to go up as more jobs are created and more people move into the area
Property values are consistently increasing: Have property values shown a consistent trend of increasing over time and with the other 3 above, it is projected to continue.

Right Time

Right before explosive growth is about to happen
The area is in the middle of a steady climb
Right before a large company is going to open up operations in that city creating more opportunities and more jobs
When a property has deferred maintenance and poor management making the price lower and the opportunity greater
Before a property hits the market