ApartmentVestors Leadership
[/vc_column_text]Spencer Cullor
Founding Principal
Spencer Cullor Real estate investor, business owner, author, speaker, and current Director of Commercial Acquisitions, Spencer has developed an extensive…
Gary Cullor
Principal
Gary Cullor Business operator and owner, Gary Cullor has become successful in many business sectors. A graduate of the University…
Craig Domann
Vice President of Investor Services
Craig Domann Craig has been involved in real estate for more than 25 years in various capacities, owner, investor, landlord…
How We Started
ApartmentVestors was initially formed to provide a retirement income for our family. Over the many years of business, we had amassed a lot of assets and equity, but those properties were never our main focus and did not provide for cash flow income. As we sold our operating businesses, we were looking for a way to turn our assets into a retirement income. We started by using our construction background to build new homes and sell them. We made some good money, but it wasn’t steady and predictable and every time we sold a home, we had to start over. After doing a lot of research, we found commercial real estate and our investment world changed forever.
With single family homes and building, you buy a property, improve or build it, and wait to sell it to see how much money you’re going to make or if you’re going to make any money at all. With multifamily real estate, you can make money when you buy it, make money while you own it, and make money when you sell it. This seemed like a much better plan.
Unlike the single-family homes we’d built which were much more speculative, commercial real estate provided for so a steady-predictable income based on long operations history, equity growth, and leverage that single-family homes just can’t. Using multifamily assets, we’ve been able to monetize the equity we had by selling the non-cashflow producing real estate and turning it into cashflow producing real estate. It’s allowed us to create a steady income, protect our current equity, and actually grow the equity we have by using leverage. On top of that, we now have tenants paying off our loans each and every month.
Why Did We Form ApartmentVestors?
We formed AparmtentVestors after being asked by friends, family, and business associates many times how they could get involved after watching us for a while. ApartmentVestors was formed to allow others to get involved with us in investing in these awesome assets. We wanted to give the individual investor, who doesn’t have the experience and history that we have, the opportunity to take advantage of the benefits these large multifamily investments provide alongside us without having to have the millions of dollars in equity by themselves that is required to invest in these types of deals. By partnering with like-minded individuals, it allowed us to take advantage of many more of the opportunities we’ve identified while allowing everyone to benefit. It’s a win/win situation for everyone.
[/vc_column_text][/vc_tta_section][vc_tta_section title=”Investment Philosophy & Approach to Investing” tab_id=”1524071284945-a05d5846-4672″][vc_column_text]Investment Philosophy
Transaction Structure
ApartmentVestors utilizes our relationships with high net worth investors to obtain equity investments which, along with third-party debt, provide the capital to acquire and manage multifamily assets and to add value through improving expense management, increasing occupancy, and providing for strategic capital upgrades that can be immediately capitalized on to increase investor returns. We have the ability to select great opportunities, add value, and manage them to high quality long-term valuable housing.
Asset Selection/Craftsman Approach
ApartmentVestors focuses on multifamily properties with value-add opportunities that allow us to reach exceptional returns for our investment partners. ApartmentVestors focuses on multifamily assets surrounded by solid demographics and multiple job opportunities for our tenants. We do not have a “cookie-cutter” approach for our multifamily transactions. We strive to match the specific property opportunity with the right market so that an optimum balance of risk and return is achieved. We value our creative opportunities and seek to utilize industry best practices to create great multifamily housing and strong returns for our investors.
Repeat Teams and Transactions
We utilize established capital, broker, construction, management, legal, accounting, and other relationships. Many of these represent repeat partners, structures, and transactions. We strive to be the best at organizing opportunities and providing sound, well-structured investment opportunities for our partners.
Focus on the Customer
We focus very carefully on the potential customer. In the multifamily business, our prime renter demographic is people ages 18-35 who desire a typical type of property and have certain needs. Some of the information we evaluate for each property to make sure it fits with our key customers’ needs are: what type of amenities our customers desire, lease terms, how much disposable income they have, and where they are employed.
We constantly seek properties that fill our key renters’ needs and modify our product to optimize customer satisfaction and enhance returns. We balance a consistent focus on quality with an exhaustive analysis of costs of capital upgrades. Buying the cheapest property isn’t a formula for success; instead, acquiring a solid product with upside potential, which the consumer believes offers them a great value and lifestyle, is a formula for success.
Strict Financial Controls/Accounting
ApartmentVestors has the leadership to facilitate smooth relationships with our capital partners and lenders. We take pride in our investment underwriting, financial reporting, and investor relationships. All transactions and reports must be transparent – our reputation and relationship with our partners are more important than any transaction. We provide monthly reports, investor conference calls, and also an investor website with updated investment information so that investor receives full access to investment information at any time.
Investment Approach
This process ensures that the investment team identifies the most attractive investments, gains a complex understanding of the opportunity, obtains the best deal structure, and efficiently manages the asset until its disposal, while always maintaining our focus of providing maximum return to our investors. Due DiligenceAt ApartmentVestors we pride ourselves on thorough due diligence. We understand that a complete assessment of the physical, economic, and market conditions is the only way to accurately determine the opportunity (and exceed expectations). The following are key criteria from our due diligence process: Physical Due Diligence
Economic Due Diligence
Our exhaustive investment selection process and due diligence is designed to identify any current issues, as well as the potential future market conditions including market rents and how quickly units are being rented or absorbed, allowing our clients to minimize the risks associated with acquiring real estate while maximizing returns. |
ApartmentVestors Focuses on Multifamily Assets with Value-Add Potential.
Multifamily Investment Criteria:
Property Type: Class B & C multifamily stabilized or with reposition opportunities.
Locations: Primary and secondary cities throughout the Midwest that maintain growth.
Target Property Size: 100 units or larger
CAP Rates: Market rates
Deal Size: $3,000,000 – $20,000,000, with $1 to 3 million in funds provided is the “sweet spot”. Larger and smaller deals will be considered on a limited basis.
Cash Equity: “All Cash” preferred, but will also consider the assumption of existing mortgages.
Additional Property Criteria:
Age: Prefer properties constructed in the mid-1980s and newer, but will consider others on a case-by-case basis.
Roofs: pitched construction preferred
Utilities: Individually metered
Minimum occupancy: 80%. However, we will consider reposition opportunities if the properties are well-located and present value enhancement opportunities
Value Add: Consistently looking to acquire assets with opportunities to add value through physical improvements, curing of deferred maintenance or with opportunities to improve management efficiency.
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Asset Management
ApartmentVestors experience in managing various multifamily, retail, residential, warehouse, farm and land leases, construction projects, and redevelopment opportunities has given us a strong background and unique perspective in managing successful investments, whether we directly manage the property or manage a qualified property management company.
ApartmentVestors stresses training, expertise, and experience in a variety of management areas, including property selection, market analysis, legal, tax, and accounting matters, and of the utmost importance, strong professional expertise in day-to-day management activities. ApartmentVestors is unique in its total approach to real estate management by understanding how real estate investments develop from concept through construction, financing, and marketing through long-term investment.
ApartmentVestors partners with property management companies offering on-site and regional property management teams who are well-educated and experienced in leasing, maintenance, and coordination with their property management company’s main offices, which ensures that operations will run smoothly.
ApartmentVestors Investor Services
Due Diligence: ApartmentVestors will thoroughly analyze the properties to be purchased by the ApartmentVestors Fund (AVF). Investors will be encouraged to review the information as available and may also conduct some of their own investigation if they choose to do so.
Investor Conference Calls: These are typically held each quarter or more often if needed, to provide updates and recommendations to the Members.
Management Updates: ApartmentVestors frequently follows up with on-site and off-site personnel and forwards a report (or posts them in the Investor area of the website) to the Members on these activities and current occupation. These updates include a weekly management traffic report, monthly updated tenant ledgers, and delinquent rent report.
Site Visit Reports: Annually or as needed, ApartmentVestors, will perform an audit of site management and the financial reporting, and report this to the Members, noting any concerns or recommendations for their consideration.
Monthly Financial Updates: A very detailed report on financial results, including operating activity, reserve balances, and amounts available for distribution to the Members, is made each month. This includes a summary for the project, and is also broken down for each Member by their membership interest.
Annual Report for Tax Purposes: Members will receive annual reports that contain all information necessary for the Members to complete their K-1. ApartmentVestors does not complete the K-1 itself.
Investment Success
ApartmentVestors endeavors to meet a standard of excellence backed by a tradition of professionalism. These efforts have resulted in cash flow, net operating income, and value growth. ApartmentVestors has excelled in real estate investments because it is our primary business. A proven track record, the ability to creatively structure investments, a construction background, meticulous attention to detail, and value-enhanced property management are all qualities that have contributed to the successes of ApartmentVestors and our various investor entities.
[/vc_column_text][/vc_tta_section][/vc_tta_accordion][/vc_column][/vc_row][vc_row][vc_column]ApartmentVestors is dedicated to the use of real estate investments for the protection, preservation, and enhancement of invested capital. Our combination of real estate expertise and multi-disciplined skills, with a philosophy of “hands-on management,” has produced an established group of companies devoted to quality, innovation, and performance. This has resulted in past successes and is the foundation upon which we are building a successful future in real estate investment.
Free Investment Report
Investor Testimonials
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We are so glad you purchased this property. We were skeptical, but you have done everything you said you would and more. It’s amazing the transformation you’ve made. We now use you as an example of how to turn a property around and improve the community. We hope you purchase more properties in our city. – Officer Kirk, City of Gladstone
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I was very hesitant to invest with ApartmentVestors after workign with other real estate investment companies who were only out for themselves. ApartmentVestors has done exactly what they said they would and they really care about me, the investor. It’s the best investment I have ever made. I only wish I would have invested more. – Mahavir
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Thank you for letting me be a part of this investment. It’s been awesome! I am so appreciative for all you have done for us. – Leonard
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Investing with you and my IRA has been effortless. You have worked so hard for all of us and it shows! The investment and our experience have completely exceeded my expectations and I look forward to investing in more projects with you. – Elise
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I can’t believe how much you’ve changed our property for the better. It looks awesome! I am so proud to be an owner and investor. The checks each quarter are nice too! – Melissa