Multi-family Real Estate Investing Simplified
The BCG team acquires and operates apartment buildings in order to:
- Create value for our investors
- Improve our neighborhoods
- Provide a high quality of life for our tenants
By leveraging the power of our experienced team and streamlined processes, we have simplified operations to focus on scaling the business to bring more investment opportunities to you!
We keep our investment strategies simple by providing:
- Consistent transparency - no fine print to translate
- Investment options with no hidden fees - we share our fees and our underwriting models
- Win / Win investing - we don't win unless YOU win
- Regular communication - we don't sit on bad news
- Lower buy-in amounts - you don't have to be wealthy to get involved
- Easy to understand terms - no wild waterfalls that require an MBA to understand
- Easy access to the general partners - we will get on the phone, day or night, to answer any questions
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The BCG Strategy
Our team targets off-market, value-add capable, multi-family properties from 5-20 units, $1.5-$4MIL in value in high demand, growth markets and sub-markets.
We strategically look for properties that need updating, are currently mis-managed and have the ability to create additional revenue or a path to significantly reduce expenses.
Upon closing, our team looks to begin executing our business plan, which typically includes some form of value-add work or updates. This could include any activities that improve net operating income (NOI) through either a revenue increase or an expense decrease.
Some things we have done in the past include:
Remodeling units to command higher rents
Cleaning out and renting non-used space such as garages or storage areas
Removing costly utilities or contracts left by the former owner
Converting units to short-term rentals (STRs) or medium-term rentals (MTRs)
Once improvements are made, our team turns our focus towards maintaining and optimizing our operations. This simply means effectively monitoring, evaluating and course correcting against our metrics that we track on a monthly basis. The ultimate goal here is to maximize our return for our investors and maintain a superb living experience for our tenants. BCG manages all of their assets in house.
We track our budgets, compare to actuals and update forecasts monthly to make sure we are always on track. We also look to bring experts in to optimize tax savings through cost segregation studies to capture bonus depreciation where applicable.
Our team focuses on what we lovingly refer to the area around Milwaukee Ave in Chicago as the "Milwaukee Corridor." This several mile strip runs diagonally across Chicago and features some amazing neighborhoods such as Wicker Park, Bucktown, Fulton Market District and Logan Square. Each of these areas are experiencing rapid transformation and investment influx for development, as they are the most sought after pieces of real estate in Chicago. These areas are loaded with restaurants, shops, bars and some amazing parks. Young professions are the target rental population who make up a majority of our existing tenant base as well as the total tenant pool to choose from. Vacancy rates are historically low for these areas, as we often see less than 4 day turnovers between tenants.
Why Multi Family
Investing in multi-family real estate offers some unique advantages that resonate with our investing objectives:
Returns - Multi family real estate investing offers competitive returns historically outpacing other investment vehicles such as stocks, bonds and mutual funds. Our team spends a lot of time analyzing deals to find undervalued properties that have opportunities to unlock value through renovations, improvements, adding revenue streams or decreasing expenses to increase NOI and investor returns.
Tax Advantages - There are several tax advantages to investing in real estate that are not available when investing in stocks, bonds, businesses etc. Our investors are able to benefit from legal tax avoidance and deferment strategies such as depreciation, cost segregation, 1031 exchanges and tax-free cash-out refinances.
Scale - Buying small apartment buildings allows for the purchase of several units under one roof all at once, making the management and operation of the asset simplified, enabling our team to grow at a faster pace.
Competition - Our target property size (5-20 units) is an underserved space. The big players want to operate in the larger real estate communities, and the large pool of smaller players are too small to buy in this price range, making the competition limited.
Loan Structure - Small apartments (5+ units) are eligible for a Small Apartment Loan financing product that allows for non-recourse financing focusing on the building more than the people investing. This makes the bank or lending institution more aligned with our goals.
Passive Income and Wealth Building - Investing in multifamily is the best way to create passive income, hands down. We make your money work hard for you so you can earn returns passively while you sleep. Our goal is to help in your financial freedom journey!