Our Strategy

1

ACQUIRE

Our investment strategy centers on identifying and purchasing Class B and C multifamily properties with potential for value enhancement, situated in robust and high-performing markets

2

IMPROVE

We collaborate with a skilled Property Management team to implement strategic enhancements and optimize operational effectiveness, with the aim of elevating the property's quality and amplifying returns.

3

STABILIZE

After completing the value-enhancement initiatives, there will be a rise in operating income, leading to increased cash flow for investors. At this juncture, our team plans to explore refinancing options for the asset with the objective of further boosting investor cash flow.

4

SELL

Once the property has reached a stable state and its cash flow potential is fully realized, typically within 3 to 7 years, our strategy involves selling the property and distributing the returns to investors in a single payout.

Invest with Us

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FAQs

What is the expected cash on cash return?*

6%+

What is the expected IRR?*

14%+

How often is cash flow distributed to investors?*

Quarterly

What is the average holding period of the investment?*

3-7 years

What type of of assets does Compounding Equity invests in?

Class C & B apartments with value-add opportunities

Who can invest?*

Accredited investors and sophisticated investors with a substantive relationship.

What is the minimum required investment?*

Typically $50,000 is the minimum investment

How many investors are usually in the deal?*

10-25

How risky is multifamily investing?

Any investment has risk and the largest risk in multifamily is the syndication team who is sponsoring the deal. When managed by competent syndicators, multifamily is shown to produce the highest returns for the lowest risk (Sharpe Ratio) when compared to other real estate assets and is much less volatile than the stock market.

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