Haddon screens investments by analyzing the property’s location, competitors, and operational inefficiencies. The site’s visibility, traffic count, and ease of access are considered along with the surrounding area’s single-family housing stock, apartment inventory, retail presence, and school district rankings. The area median income and projected population growth are also key to determining market viability.
The firm drills down into the subject property’s trade area to determine if the submarket is under or over supplied. Comparable properties are identified and a rent survey is completed to determine how much rents can be increased. Haddon’s team visits each comparable property, examining its amenity package and location, to determine how to rank the subject property within that particular submarket.
Haddon will analyze historical operations to determine how much value can be unlocked by implementing a sophisticated marketing campaign while capturing various sources of other income. Expenses are constantly reviewed in an effort to stabilize operations and enhance overall returns.
An initial construction budget will be completed during the underwriting process and finalized after the site visit. Accurate construction budgets ensure that the property can be significantly repositioned.
Haddon’s team spends a significant amount of time and resources pre-screening deals and performing due diligence so that you can have access to the most profitable opportunities.
Sourcing, analyzing, and closing deals is a labor-intensive process. By investing alongside Haddon, you can leverage Haddon’s resources and experience to diversify your portfolio. Haddon’s experienced professionals have access to deal flow from the nation’s top brokerage firms as well as relationships with owners who will transact on an off market basis.
Investing with Haddon via a syndication is an effective way to reduce risk while pursuing real estate investments. You can enjoy the scale and efficiency of the company’s offerings rather than going it alone on real estate ventures. Avoid risking hundreds of thousands of dollars, signing personal guarantees, and dealing with the day to day headaches of managing rental properties. Outsource your real estate investing to Haddon so you can focus on growing your income.
The capital stack will typically consist of debt levels ranging from 60% to 65% loan to value (LTV).
Haddon’s goal is to use leverage prudently so investors can achieve attractive cash on cash yields without
having to absorb excessive risk.
The balance of monies required will be funded through the raising of cash equity. In order to achieve an
alignment of interests, Haddon Property Group will contribute a substantial portion of the equity required
for each project.
All investments are structured as limited partnerships. As a result, profits and losses are passed through the partnership to the investor’s personal tax returns. The losses from depreciation shelters the investor’s taxable income and reduces their income tax liability.
The aforementioned tax benefits are intended to be a general summary and in no way constitute legal or tax advice. We encourage you to consult your CPA or attorney for assistance in fully understanding the tax consequences of investing in limited partnerships.