Our portfolio includes ~2,450+ units and ~$350M+ of assets in the DFW and Jacksonville markets.
Due to the stringent nature of SEC guidelines for a syndication, it prohibits Cap X Capital to publicly advertise its current offerings. Furthermore, we may prohibit some investors for certain opportunities based on their risk tolerance and sophistication level. You must be an “accredited investor” or a “sophisticated investor” to qualify for participation in these offerings.
Cap X Capital recognizes the value a partnership can provide in a real estate acquisition. We are highly selective in who we co-sponsor with. At the same time, we enjoy working with those that share the same vision and strategic goals/framework.
As co-sponsors, we provide the following value to the team: raising capital, net worth requirements, deal analysis, management, liquidity at various stages, relationships with attorneys, vendors, and brokers, etc. If you are interested in co-sponsoring with us, please contact us.
INVEST IN MULTIFAMILY
RETURNS AND EQUITY GROWTH
Over decades, investors have enjoyed the stability and rapid growth of the multifamily market. Unlike single family investment properties, the value of multifamily properties relies on net operating income (NOI).
Skilled owners can increase gross income by adding value, raising rent, and increasing other streams of income while decreasing expenses and operational inefficiencies. The enhanced NOI drives the price upward to the benefit of our investors through both returns and equity growth.
With economies of scale, tax advantages, and mitigated risk, multifamily investments can provide cash flow to the passive investor without the hands-on management and demands of single family investments.
Cap X Capital Multifamily seeks B/C class value-add properties in high growth markets which provide stability and mitigate risk.
Cap X Capital Multifamily syndicates multifamily deals through investor relationships.
We provide the bank loan and the investors provide the down payment and upfront expenses.
4. PROPERTY MANAGEMENT
After acquisition, Cap X Capital Multifamily manages and oversees the property with a vetted property management company.
After paying mortgage and operating expenses, we send monthly cash flow to investors.
In the first 24 months, we make value added improvements to the property and raise the rent as well as decrease expenses.
7. SALE OF PROPERTY
In year 5, when the timing is right, Cap X Capital Multifamily sells the property.
Investors share in profit of the property.
Benefits to our Investment Strategy
Through syndication, we are able to decrease the risk level for our investors by spreading the risk through many portfolios instead of any one investor bearing the risk. Our investors, moreover, invest across multiple syndications to further mitigate their risk positions.
The vast majority of our acquisitions are done via syndication. This allows our investors to realize the financial strength and knowledge of the sponsor within their personal profile. By bringing together investors, we can capitalize on high value deals with strong returns.
We work closely with our CPAs to ensure that tax benefits are maximized. For detailed answers on how real estate transactions can be tax advantageous, please contact your CPA.
Multifamily assets allow us to leverage economies of scale by dedicating full time staff to each asset and ensure property management is in place. Our investors are truly passive since Cap X Capital actively manages and oversees the entire asset from project start to finish.
We structure most of our Mutifamily projects in creative ways to allow a cash flow component from the beginning of the project. Occasionally, our high yield play assets require waiting a short period for distributions, but our returns are always risk adjusted.
We underwrite our deals to ensure we service the debt from the income of the property. In fact, our conservative underwriting ensures plenty of debt service coverage.
As opposed to the traditional single family housing market, multifamily assets are not only less susceptible to market volatility, they are also valued differently. Multifamily assets are primarily valued by the Net Operating Income (NOI); hence, we have the ability to force the appreciation of the asset by increasing the NOI. Almost all of our projects have a heavy value-add component which allows us to realize the forced appreciation from rehab, improving inefficiencies, and through capital improvements.
Enzo Multifamily’s structure of multifamily acquisitions is done in a way that protects the investors from any risk associated with other assets. For one thing, each asset is purchased through a limited liability company (LLC). This arrangement provides certain legal protections. Please reach out to your attorney for more information on asset protection.