What We Buy
Whether you’re coming to Cove Equity LLC as a passive investor, buyer, seller, or real estate broker/agent, you’ll want to know how we run our business and the properties we buy, owner/operate, and invest in. It’s important to us to show transparency, integrity, and accountability as part of our core values. As we pursue multifamily investing opportunities, we need to follow strict purchasing criteria. Here’s your opportunity to look “under the hood” at our criteria.
What We Buy
Our primary aim in buying properties is Class B real estate location. These Class C & B properties are typically found in neighborhoods with growing desirability, stable employers, middle incomes, and well-regarded school systems. We look for value-add properties. We work with sellers and brokers who have off-market properties and want a quick, discreet sale with confidence that buyers can close.
What We Buy
- Class B & C Properties in Class B Areas
- Value-Add or Turnkey
Value Add:
- 85% – 90% occupied
- Not stabilized
- Rents are 10%-40%
- Below market
- Cosmetic Updates needed
Turn Key / Cash Flow:
- Stabilized Rents are near market value
- Buy it and cash flow at takeover
- A&B Class markets
Deep Construction / Distressed or Deep Value Add:
- Not stabilized
- Highly vacant (30% – 70% Occupancy).
- Needs heavy rehab & construction
What We Look for Overall?
Overall, we look for cash-flowing apartments and rentals. Our goal is to buy, stabilize, increase rents, refi, and pay off with lenders and investors quickly—typically within 18-30 months or less! We then hold the property to create long-term wealth for us and our investors.
Why?
These criteria help us stay true to our core values. We look for a good initial cash flow to provide stability in financing. That cash flow lets us quickly make the property improvements needed to stay compliant. By purchasing with a bridge loan or a permanent loan from Fannie Mae/Freddie Mac, we can better keep our investors’ preferred returns at 8-10% until refi. That way, we can provide financial security and freedom for our passive investors with a growing return on investment each year.