You Can Read Part 2 Via This Link
You Can Read Part 3 Via This Link
I am starting this Part 4 of the series in part because it is a new year. More substantially the company I have been investing and writing about has made a very significant shift in their model. Both the type of assets and the purchase structure have changed dramatically from what they were when I started investing with them more than two years ago. I will address that and more in a moment, but first my quarterly investment and performance update for the last quarter of 2017.
Q4 payments were made on time. Quarterly reports made available as well.
First bracket () is number of months since fully occupied. First percentage is annualized returns since that time. Second bracket is annualized return for the last quarter.
Portfolio 1 (24 months): 9.1% (3.6%)
Portfolio 2 (20 months): 11.3% (10.1%)
Portfolio 3 (12 months): 9.6% (9.4%)
Portfolio 5 (7 month): 11.9% (9.9%)
Portfolio 7 (not yet): exceeded 8% preferred
Portfolio 1 has continued its downward trend - worse quarter performance yet. The company reported that there are two vacancies. They have renovated them and started to market at least one on the MLS. Market conditions are favorable for doing so. I'm told the first one listed had multiple offers close to asking within a few days of the listing. This is the first implementation of any kind of exit strategy for any of these portfolios. I am excited to see how this goes.
Portfolio 7, the 50 unit multifamily, my most recent investment, had 84% occupancy at the end of the quarter, reflecting some turnover renovations to be marketed at new rates. This first payout came a little under the 8% preferred, which they will make up in future payouts. However, the timing of my last minute investment actually resulted in a higher percentage ...
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