LA County is the largest county in the United States. It’s home to more than 10 million people, working in a diverse range of industries. The county enjoys some of the lowest rental vacancy rates in the country, with limited available housing supply. Los Angeles County has also shown some of the highest rates of long-term property appreciation, of all American real estate markets. Counting the surrounding counties, the greater Los Angeles area is home to more than 20 million people, and a range of diverse industries.

All of our investments are long-term holds. This reduces the risks of the investment, while allowing us to capture the long-term rent growth (and thus property value increase) of apartments in Los Angeles. It also allows us to make needed improvements to the properties. In most cases, we aim to exit a property within 7 to 10 years of purchase. In some cases, we might sell sooner – and it other cases, it makes sense to hold on for longer. We take a strategic approach, depending on the specifics of each property, as well as market conditions.

We acquire properties in various submarkets within Los Angeles County. Our investment analysis focuses on zip code level analysis of local demographics, as well as our deep expertise in particular neighborhoods. We believe in being the absolute experts in a focused number of areas. We’re always observing local trends, and figuring out where it makes sense to acquire properties. 

In most cases, we’ll consider a minimum investment of $100K. In some instances, a larger amount might be required. We take a flexible approach, based on both investor needs and our own capital requirements.

We typically purchase commercial properties of 5+ units, with an emphasis on apartment buildings with between 5 to 25 units. Typical deal sizes vary from $1.4 million to $5 million.

We take two approaches to adding value to properties: Reducing expenses, and increasing income generated by a property. Reducing expenses involves implementing more efficient management practices. This might involve reducing tenant turnover, implementing greater energy conservation, and more.

We also increase a property’s income by executing strategic renovations. This raises the desirability of individual rental units, and the property as a whole. Our goal is to create safe, livable communities, where our tenants feel at home. We believe this makes for a sound long-term investment.

We distribute rental income on a quarterly basis. 

Many of our investments are open to accredited investors, as well as non-accredited investors whom we have a prior relationship with.Some opportunities are only available to accredited investors.

Tax advantages are one of the greatest benefits of investing in commercial real estate. Our limited partners often choose to depreciate their share in an investment, according to IRS rules. For some properties, we engage in a cost segregation study, to accrue even greater tax benefits.

All LME properties are managed internally, through our in-house property management team. This allows us to offer a superior tenant experience, reduce vacancies and other expenses, and ultimately increase investment margins. We believe that no one will care about our property and tenants as much as we do. Therefore, we maintain tight control over the entire process.

Our split varies by transaction. On some transactions, limited partners are entitled to 80% of profits, with us as general partners receiving 20%. On other transactions, the split might be between 60% to 70%, with the general partners receiving between 30% to 40%. Our compensation as general partners is incentive based, that is, dependent on how we much value we add to a property

Yes, you can invest through an SDIRA, and we’ve had multiple investors do so in previous deals. Please keep in mind that due to IRA legal requirements, the process for remitting funds from an SDIRA takes a big longer.