PARTNER WITH US
What We Do
In plain terms, we help investors build a solid reliable income stream that is independent of the volatility and excessive fees of the stock market and unlike traditional annuities will grow the value of your assets.
This will allow you to enjoy the safe stable retirement you so richly deserve.
Ask us about how you can use your IRA or 401k to invest in Real Estate!
The Investment
First Floor Equity invests in “Hybrid Housing” properties in very desirable growing markets around the country.
What is Hybrid Housing?
Hybrid Housing is a new business model that sits between a traditional hotel and an apartment building.
A traditional hotel works well for 1-6 nights and an apartment works best for people who need housing for longer than 180 days. Hybrid Housing directly addresses the growing need for furnished short stay housing for 7-180 days.
The goal of Hybrid Housing is to maximize the number of nightly guests at the highest rate possible, then fill in the remaining vacancies with weekly and monthly rate guests. By always selecting the highest rate guests first, the maximum nightly revenue is achieved.
This is a data-driven, artificial intelligence optimized model that utilizes highly sophisticated software which allows us to make pricing and occupancy decisions in real time. This minimizes operating expenses while maximizing revenues to yield above average performance and recession resistance.
We’ve identified this as the most attractive real estate investment opportunity currently available for several reasons: Huge demand, predictable income, and capital preservation.
Who needs Hybrid Housing?
Our new GIG economy, the increasing demand for a flexible workforce, and the development of health care hubs, has significantly increased the need for this type of lodging.
Some of the potential guests that fit this profile are:
Traveling Nurses
Consultants
People completing internships or other job training
People in transition: divorce, new job, relocation to a new city
Project workers: IT, construction, plant maintenance, other short employment contracts
People traveling for medical care or family member’s medical care
People traveling for educational programs (college summer school or certificate programs)
This list just touches the tip of the iceberg. This is a HUGE underserved market.
Predictable Income:
Our stable occupancy rates typically result in steady passive returns for our investors (our goal is a 10% preferred return). We personally invest in every single project right alongside you. We underwrite for a 60-65% occupancy even though most of our properties have occupancies over 85% once fully stabilized to the new model.
Capital Preservation:
This is not a REIT or a fund where you own shares. As a Limited Partner, you own a percentage of the project, which allows for incredibly generous (and legal) tax advantages. You enjoy all the benefits of owning real estate without the hassle of tenants, toilets, and termites. Besides an above-average return, you also own a stable asset and the potential to defer taxes on the income.
The Process
How do we develop Hybrid Housing?
1
First, we research the markets to find those areas of the country that are experiencing the largest population and wage growth
2
Then we identify an existing hotel in this area that is underperforming to the marketplace
3
We acquire the property for significantly less than replacement cost
4
Make the necessary improvements to convert the property into Hybrid Housing
5
Implement a sophisticated marketing plan utilizing our cloud-based hotel management software, as well as Online Travel Agents (Booking.com, Expedia.com, Airbnb, etc.), social media advertising (Google Ads, Facebook's reservation engine, Craigslist, etc.) and website direct booking
6
Start earning exceptional returns on a stable appreciating asset
Frequently Asked Questions
How do I Invest?
First, you must be an accredited investor or a sophisticated investor. Our opportunities are offered only to those that are prequalified. So, you NEED to get on our mailing list NOW and have an investor qualification call with us!
We are constantly looking for new opportunities and when we find them, we must act quickly. Our goal is to help you learn and get ready to invest so that you can act when the opportunity does present itself.
My Financial Advisor told me not to do this, Why?
A few of the reasons may be:
- Real Estate Syndication is not a regulated investment vehicle (which is why not everyone can participate). All investments carry some form of risk. Smart investors understand the concept of risk adjusted returns and that is why they flock to Commercial Real Estate investments.
- We generally offer better returns than your financial advisor can offer, and we certainly offer better tax savings.
If your stomach can handle it, read the terms and conditions of any mutual fund. We were shocked the first time we did. The only one sure to make money is the mutual fund and your Financial Advisor. You carry all the risk with no guarantee of positive returns and even possible significant loss of principal.
As previously mentioned, we invest in all the opportunities we present to you. We walk the talk.
How will this affect my taxes?
The IRS allows investors in real estate investments to deduct a portion of the purchase price and capital improvements made to the property through depreciation expense. You should consult with your tax advisor, but typically this depreciation adjustment allows investors to reduce taxable investment income. This deduction often exceeds the amount of taxable income paid to the investor during the year.
Further, when the investment property is ultimately sold or refinanced, investors are generally taxed at a lower capital gains tax rate. Investors may also be able to take advantage of another tax benefit called a 1031 exchange to further defer taxes.
Do I have to manage the property?
No, our partnerships are created by General Partners who put the project together, take responsibility for the management and upkeep of the property, as well as assume most of the risk. You (the Limited Partner) then invest in the project. Limited partners are not active in the management of the asset but receive the investment benefits of real, income-producing property.
NEED MORE INFORMATION ABOUT REAL ESTATE PARTNERSHIPS?
We would love to discuss this with you further. Please schedule a call using this link: