solutions through real estate
RES INVESTMENTS
Most of us, if we’re lucky, get to invest in one real estate property at a time – the one we live in – but we dream of owning more for the passive income and tax benefits that create lasting generational wealth.
RES Investments looks for cash flowing multifamily projects in growing markets to buy and hold as a long-term financial strategy because real estate holdings tend to achieve a better return than traditional savings options with less volatility than the stock market.
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Our process includes a foundation of sound investment principles, comprehensive due diligence through every stage of the investment lifecycle, and oversight by an experienced professional team. Our overall goal is to provide the desired return to our investor partners. RES Investments relies on many years of experience in the financial and real estate marketplace to deliver risk-adjusted rates of return that build and sustain investor trust throughout the term of your real estate investment. Yet we are small and flexible enough to cater to the individual needs of our investor partners.
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We seek to create value and preserve capital at every stage of ownership. We utilize extensive market research to source the best deals, then underwrite to finance the purchase through the strategic leveraging. Once acquired, we reposition the property through efficient operations, moderate renovations and rebranding to create additional value known as appreciation. Eventually, when the time is right, we execute a tactical, timely sale to generate the most proceeds to return to our partners.
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You work hard, so should your money. That's why we help busy professionals create more time for who and what they love while reaping additional income and unrivaled tax benefits from apartment investments. Our nimble sourcing, structuring and management skills make RES a smart partner in your investing journey.
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We only raise capital from individuals we know so call, get to know us, and ask about our current opportunities.
NOTE: Real estate investment is a long-term illiquid investment.
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Returns cannot be guaranteed as market conditions can vary rapidly.
OUR PORTFOLIO
Wisconsin Multifamily
PLEASE CONSIDER THESE TOPICS BEFORE INVESTING WITH RES:
The questions below are the most commonly asked of us from new investors, but certainly are not all the topics your should consider before investing. Always speak with your own financial advisor before making any investment decision.
Why RES Investments?
As an integrated company covering development, investment and end-user services, the team at RES understand the lifecycle of a property. Every property we own is crafted and guided to perform as needed to meet its next phase. RES is trained to position the property today for the upcoming stage so that the site realizes it best use and the owners enjoy and profit from their holdings.
We do it all from site location, underwriting, getting a loan, structuring the ownership, legal and financial reporting, repositioning the property to maximize its value, and then, eventually, strategically selling. This wholistic approach is designed to pick the properties with the best up-side potential, holding viability, then resale value to serve as a strong investment vehicle without putting our investors’ time or money at needless risk.
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What is the RES Investment strategy?
We target selected markets in the upper Midwest including Wisconsin, Indiana and outstate Illinois primarily, and will consider Michigan and Ohio. Residents in these states tend to stay in the area and have a strong work ethic. These areas have abundant fresh water, reliable utilities, reasonably priced services and supplies to support the properties, and lots of space so larger units are affordable. Savvy investors know economic cycles come to the Midwest later that the coasts, allowing lead time to prepare for recession-like downturns and position to seize the growth of a upward swing.
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Within these markets, we look for properties in the B and C range of the available A, B, C and D classifications, avoiding either the top or bottom of the range as a cushion in both up and down economic cycles. Once acquired, the cash proceeds are allocated to both reward investors with distributions and to retain enough capital to reinvest into the property to keep it safe, clean and attractive to tenants.
Why multifamily? Aren’t medical offices and storage units popular?
People will always need a roof over their head, but people don’t always want to deal with the lawn, pipes and other hassles of home ownership. Multifamily meets a tenant’s need for carefree lifestyles with the added bonus of a sense of community. Other segments in the real estate marketplace move in and out of favor with various economic conditions. The RES investment approach avoids such speculation.
As an investment category, multifamily offers more security as monthly rental income is pooled from several tenants, lower maintenance costs because several tenants are under one roof, and allows any improvements made to the buildings to be amortized in way that usually creates a tax benefit for the ownership group.
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Why invest with joint ownership?
Our partners get the benefits of real estate investing without spending the time sourcing, securing, financing and maintaining the property itself. It’s a smart trade off of risk and reward when considering the various ways to invest in real estate. Each investor can allocate as much of their portfolio as is appropriate to this market segment yet scale that investment with others to afford a larger, better property to hold. The benefit of a larger property is the ability to still have positive cash flow if a few tenants do not pay their rent, unlike a duplex where one tenant move-out loses half the income. Also, pooling together for a larger site means the cash flow can hire professional management to eliminates any 3am plumbing calls!
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Why invest in real estate now?
Attractive long term, consistent returns as well as great tax advantages to owning real estate, even if only a fractional share, make real estate a favorite part of a well-balanced financial plan. Real estate is considered one of the least risky investments when done correctly – with an eye towards value creation in a strong market – because your investment is backed by a physical asset. You own the land and buildings. The passive income stream from monthly rents allows you to diversify the income generating part of your portfolio without the stress of an unpredictable stock market - we've all seen market disrupters such as the covid pandemic and presidential elections spook the stock market. Real estate avoids that fluctuation.
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How does RES create value in the properties it owns?
RES creates value by engineering and executing disciplined sourcing, management and capital strategies as outlined in its Plan of Ownership for each property. Based on the economic study and due diligence analysis before acquiring a property, these plans cover:
long term forecasting of maintenance and replacement needs of critical components
managing the project revenue stream through leasing cycles
monitoring ‘cost creep’ in operating budgets to preserve cash flow
capital management of both borrowed funds and investor returns
Properties that are acquired using deep market research like RES does respond especially well to value creation tactics. RES provides the oversight of the plan with an experienced team who has the vision to see the potential and avoid the pitfalls so its investor partners can reap the benefits of their passive ownership knowing their investment is handled by real estate seasoned professionals.
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Will you consider buying my property?
RES looks for sites in communities that have a growing employment base, rising rental rates and low vacancies. If you see something that fits this image, call us before you call a broker.