Investors interested in joining us undergo a process of approval. It is essential that they have a long-term investment horizon and comply with the regulations outlined in the 506(b) and 506(c) laws. For more detailed information, we invite you read this article.
Our value-add strategy contemplates a business plan that involve renovating and improving the
property to increase its income-generating potential. This process takes time, as it may involve
improving interior and exterior of the property by upgrading units, enhancing amenities, or
designing the distribution of the units. Additionally, to maximize the cash flow of the investor,
there is a period of stabilization required to attract higher-quality tenants and increase rental
On the other hand, Real estate markets go through cycles of expansion and contraction. The 5 to 7
year holding period aligns with a typical market cycle, allowing investors to capture potential
upside during a favorable market phase. therefore, by holding the property for this duration,
investors can ride the market upswing and maximize their returns. At Apex, we are always aiming
to growth value, so we are constantly evaluating exit strategies such as selling the property,
refinancing, or distributing profits to investors
Cash on cash is a way for real estate investors to measure the return on their investment. It
compares the cash income generated by a property to the amount of cash invested. A higher cash
on cash return means a higher return on investment. It's a quick and easy way for investors to
evaluate the profitability of a real estate investment.
At Apex, there are several variables to determine the rents. First, we consider the current rent of
the property as we buy existing buildings. Second, we use comps to determine the right price,
using properties that have similar number of units, amenities, or nearby locations. Finally, as we
execute our business plan, we increase the rent to increase the income-generating potential for
The dividend distribution to investors varies across our projects. However, the most common periodicity is 3 months.
The estimated first payment is stated in the offering documents of each investment, which is determined by the management considering the stabilization period and the conditions of the property, including the cash flow and DSCR indicator.
Unlevered returns represent the return on investment without considering any financing or debt
while levered returns consider the effects of borrowing money to finance the acquisition or
operation of the multifamily property. Levered returns take into account the mortgage interest
payments and leverage the equity invested to potentially amplify the overall return on investment.
At Apex, we optimize the debt/equity structure to maximize the value for the investor and you will
find this concept in the offering package of the investments.
At Apex, there are several variables to determine the rents. First, we consider the current rent of the property as we buy existing buildings. Second, we use comps to determine the right price, using properties that have similar number of units, amenities, or nearby locations. Finally, as we execute our business plan, we increase the rent to increase the income-generating potential for investors.