multifamily investing

Multifamily InvestmentsMultifamily InvestmentsNorthern CaliforniaNorthern California

Bullseye Investment Group

B.I.G.

What We’ll CoverWhat We’ll Cover

Who Is Bullseye Investors Group B.I.G?Who Is Bullseye Investors Group B.I.G?

Why Now Is The Best Time to Invest in Why Now Is The Best Time to Invest in Multifamily real estate?Multifamily real estate?

Why Multi-Family real estate?Why Multi-Family real estate?

Why invest with B.I.G.?Why invest with B.I.G.?

Bullseye Investment GroupBullseye Investment Group

Kal S. Takhar Principal

Who’s Kal Takhar?Who’s Kal Takhar?Completed the acquisition, development and saleCompleted the acquisition, development and sale

of single family home communities of nearlyof single family home communities of nearly1,000 units.1,000 units.

20+ years Real Estate Development/Construction 20+ years Real Estate Development/Construction

California Real Estate Broker license 1995California Real Estate Broker license 1995

Started Small…..

Then Got B.I.G.Then Got B.I.G.

Why now is the best time to invest Why now is the best time to invest in Multifamily Real Estate?in Multifamily Real Estate?

Crash is HappeningCrash is Happening

““Be fearful when others are greedy and Be fearful when others are greedy and greedy when others are fearful”greedy when others are fearful”

Warren BuffettWarren Buffett

Opportunities for the next year or so that Opportunities for the next year or so that we haven’t seen for decadeswe haven’t seen for decades

Why Multi-FamilyWhy Multi-Family

2nd quarter of 2011 shows the lowest vacancy rate since 2008

Rent rising to historic highs of 2000 & 2005

Record low production of new units 2011

Shifting favorable consumer sentiments toward renting versus homeownership


Cash Flow

Can provide a substantial positive cash flow.

Create comfortable lives, retirements, and ongoing income for the entire holding period.

As value increases over time, the owner via tenants rent is also paying down the mortgage. This increases equity, and some investors borrow against it for leverage and more investments.


Quality Management

You invest without having to “get your hands dirty” managing the asset

You will not have to deal with tenants, change light bulbs or replace toilets

Property management services offer as much service or as little as you wish.


Value AddAcquire value-add multi-family properties below replacement cost and projected stabilized value Perform property-appropriate capital expenditures focused on driving rental growth Complete lease-up of repositioned asset with increased rental rates Sell stabilized properties and provide short-term investor returns.


Less RiskLow risk combined with ability to keep pace with inflation through short-term leases.

Demand for apartment residences continues to rise, even as the overall economy remains hampered by the aftermath of the housing bubble

As of 2nd quarter 2011, the markets are tighter, debt and equity capital are more available, and sales volume is rising.


Highest DemandLimited supply

Growing demand

Household creation continues

Young adults tend to be renters and are capturing a disproportionately larger share of job additions.

Eventually recession will end causing an even higher demand

Why Multi-Family

Changing AttitudesIn 2010 was the largest drop in homeownership in 70 years

Americans are less interested in owning a home

A survey commissioned by the National Apartment Association conducted in May 2010 found that 76 percent of consumers prefer renting to ownership, a 5 percent increase from 2008

Lack of consumer confidence in single family housing, their own financial position and lingering unemployment rates

Very few households are exiting the apartment sector to make first-time home purchases due to fears of negative equity, stringent financing and lack of down payment funds

Why Multi-FamilyWhy Multi-FamilyEconomies of Scale

Compared to single family homes, apartment buildings are far superior in terms of cash flow, but also far lower risk.

Lower expenses per unit

Higher overall cash flow.

The more money your building makes the more it is worth

Proven knowledge and track Proven knowledge and track record of market placerecord of market place

Consistently Hit Our NumbersConsistently Hit Our Numbers

Higher Returns than most Higher Returns than most investmentsinvestments

Consistently CommunicateConsistently Communicate

Why Invest With B.I.G.?

Investment StrategyInvestment Strategy Focus on the repositioning or redevelopment of assets that are underperforming Focus on the repositioning or redevelopment of assets that are underperforming

due to their physical deterioration, functional obsolescence and/or operational due to their physical deterioration, functional obsolescence and/or operational constraints. Our investment objective is two fold. constraints. Our investment objective is two fold.

The first is to realize cash-flows from operations that provide annual cash The first is to realize cash-flows from operations that provide annual cash distributions to investors. distributions to investors.

The second is, providing year-after-year gains in value, allowing for additional The second is, providing year-after-year gains in value, allowing for additional cash distributions from either disposition or refinance. cash distributions from either disposition or refinance.

In general, B.I.G. takes a buy and hold approach to investing. However, the In general, B.I.G. takes a buy and hold approach to investing. However, the duration that we hold an asset is typically driven by the previously described duration that we hold an asset is typically driven by the previously described market cycles. The investment period can be anywhere from 3 to 5 years or market cycles. The investment period can be anywhere from 3 to 5 years or more.more.

We remain acutely aware of the market conditions in the areas that we invest and We remain acutely aware of the market conditions in the areas that we invest and are always looking for the next emerging market for our network of investors. are always looking for the next emerging market for our network of investors.

How do I invest?How do I invest? B.I.G. does not gather up capital and then proceed to acquire assets to where your B.I.G. does not gather up capital and then proceed to acquire assets to where your

investment is part of a pool or syndication.investment is part of a pool or syndication.

Instead, properties are identified in advance of your investment. This is achieved by B.I.G. Instead, properties are identified in advance of your investment. This is achieved by B.I.G. constantly seeking opportunities so that there are generally ample investments to choose constantly seeking opportunities so that there are generally ample investments to choose from in varying investment size.from in varying investment size.

B.I.G. can then provide you alternatives so that you can choose your investment individually B.I.G. can then provide you alternatives so that you can choose your investment individually at which time your equity ownership of the asset is negotiated and established prior to at which time your equity ownership of the asset is negotiated and established prior to acquisition versus being a part of a large pool of funds.acquisition versus being a part of a large pool of funds.

B.I.G. finds this to be more advantageous to the individual investor from standpoint of B.I.G. finds this to be more advantageous to the individual investor from standpoint of knowledge of potential return on investment as well as being able to identify the asset into knowledge of potential return on investment as well as being able to identify the asset into which the investor has specifically invested for tax purposes, etc.which the investor has specifically invested for tax purposes, etc.

You You mustmust complete a simple complete a simple Accredited Investor Disclosure FormAccredited Investor Disclosure Form (sample on next slide) and (sample on next slide) and submit to us prior to further discussing your investment.submit to us prior to further discussing your investment.

Shortly after submission of the Shortly after submission of the Accredited Investor Disclosure FormAccredited Investor Disclosure Form we can meet and discuss we can meet and discuss your investment goals. We then commence providing you with investment opportunities. your investment goals. We then commence providing you with investment opportunities.

Accredited Investor Disclosure FormAccredited Investor Disclosure Form

NameName _____________________________________________________________________________ _____________________________________________________________________________

StreetStreet _____________________________________________________________________________ _____________________________________________________________________________

CityCity StateState ZipZip _________________________________________ _________________________________________PhonePhone ______________________ ______________________

Net Worth CertificationNet Worth Certification I am a natural person whose individual net worth, or joint net worth with my spouse, I am a natural person whose individual net worth, or joint net worth with my spouse, at this time at this time excludingexcluding the value of my primary residence exceeds $1,000,000. the value of my primary residence exceeds $1,000,000.

Income CertificationIncome Certification I am a natural person who had an individual income in excess of $200,000 in each of the I am a natural person who had an individual income in excess of $200,000 in each of the two most recent years or joint income with my spouse in excess of $300,000 in each of those years and I have a two most recent years or joint income with my spouse in excess of $300,000 in each of those years and I have a reasonable expectation of reaching the same income level in the current year. reasonable expectation of reaching the same income level in the current year.

Certification of Accredited Investor StatusCertification of Accredited Investor Status I have read and understand the meaning of "accredited investor" I have read and understand the meaning of "accredited investor" as described above and certify that I meet at least one of the requirement shown above as defined in Regulation as described above and certify that I meet at least one of the requirement shown above as defined in Regulation D of the Securities & Exchange Commission. D of the Securities & Exchange Commission.

Certification of Information SubmittedCertification of Information Submitted I certify that all the information submitted is true and correct. I certify that all the information submitted is true and correct.

I am interested in information on the Investment . I am interested in information on the Investment . Please Contact Me Please Contact Me

__________________________________________________________________________________ ____________________________________________ SignatureSignature DateDate

Who Invests WithWho Invests WithB.I.GB.I.G

High Net Worth IndividualsHigh Net Worth Individuals

InstitutionsInstitutions

multifamily investing

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