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Investment Criteria

We will consider for acquisition multifamily properties that meet the following criteria:

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Value- Add Strategy

Our Capital Strategies At Work

While certain real estate capital groups focused on passive income properties, we believe that active management that creates value in underserved properties, resulting in rental income growth through quality of living improvements allows for higher overall equity returns.    Here’s a simple example.  A 64 unit multi-family property doesn’t have any washer or dryer units on-site or in the units.  If a washer/dryer unit is installed, the rent rate for each unit will increase by $100.00.  The cost to install each washer/dryer unit is $5,000 (plumbing, carpentry and flooring) and the monthly operational expenses rise by $25.00.  The additional $75.00 rent x 12 months x 64 units = $57,600 added to the bottom line.  Most people make the mistake of thinking that it’s a poor investment because it will take 67 months to recover the $5,000 investment at $75/month payback (ignoring cost of funds).  However, that’s not how we see it.  The property later sells at a 6.00% cap rate, the additional $57,600 NOI adds $960,000 to the value of the asset.   Our $320,000 investment ($5,000 x 64 units) created $640,000 in new value, or a 200% return on just that strategy.  That’s where equity grows.  Depending on the property, we offer different investment opportunities for investors, including preferred returns, profit share and quarterly distributions.   DSP Real Estate Capital earns a monthly management fee along with a percentage of the profit upon the sale of the asset.  Our anticipated average holding time is six (6) to eight (8) years.  We’re interested in having a conversation with you, and if investing along with DSP Real Estate Capital aligns with your goals, we’d welcome you to DSP Real Estate Capital. 

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