The next 10-20 years may be the best time in recent history to invest in urban apartments. With the increased demand from the over 75 million Millennials entering the market, the continued downsizing of Baby Boomers and increased government regulations, fees, and taxes adding to the cost of real estate development, demand for California apartments is on the rise. Additionally, the 2008-2012 capital and credit crisis affected supply for years to come. The landscape of renters currently includes Millennials, aging populations, and immigrants. Their preferences for a better quality of life trend towards urban living, and apartments close to job opportunities and public transportation.
Crawford Park Financial forms Limited Liability Corporations (LLC) to acquire multifamily residential communities to take advantage of the long term trends for apartments. The business plan is to purchase apartment buildings in markets with high barriers to entry and at prices substantially below the cost to construct a new, similar building. The LLC will then take a value added approach to improve the building through renovation, enhanced curb appeal and professional management. This also includes reducing on-going operational expenses to maximize rental income from the building. The company serves as Managing Member, Asset Manager and Co-Investor. With more than 25 years of experience in the real estate business, we are active managers through all aspects of the property investment cycle: purchase, renovation, management and subsequent sale of the property.
Crawford Park allows a passive investor access to participate in a professionally managed apartment investment not available to most investors. The apartment LLC pays you monthly income. The cash flow is sheltered from high income taxes due to depreciation expenditures. The gain from the principal pay down and property appreciation is tax differed until the sale of the property. Apartment ownership will not make you rich quickly, but there is no better investment.
This is not an offer to buy or sell any security. Securities are only offered by Private Placement Memorandum or prospectus to suitable, accredited investors, investments are highly speculative, subject to up-front fees and expenses that may impact investor returns and outweigh the tax benefits, are generally illiquid, the stated investment objectives may not be met, appreciation and income are not guaranteed, conflicts of interest may exist, and there is potential for the loss of principal invested.
As with any real estate investment there are various risks to commercial real estate, including but not limited to: illiquidity, limited transferability, and occupant vacancy which may negatively impact cash flow and even cause a loss of principal. Real Estate values may fluctuate based on economic and environmental factors.