Due Diligence
01
Conduct Target Property Research
As the real estate adage goes, “Money is made at the purchase, not at the sale.” We believe this to be true, which is why we conduct extensive research into every property we intend to acquire. This includes reviewing property surveys, leases, appraisals, governmental documents, photos of the property, property title, tax forms, environmental reports, property condition reports, zoning documents, construction documents, material correspondence, city records, offering memorandums or other documents sourced from public records and the seller’s agent.
02
Assess the Opportunity
We analyze every bit of information related to a target property and determine whether or not it meets our standards for quality and potential for delivering returns that meet our established thresholds. In addition to our own underwriting analysis, we have an additional underwriter perform secondary underwriting to affirm our assessment and validate our assumptions. We believe in “measuring twice and cutting once so,” to speak. 1880 Capital investors have the peace of mind in knowing that only the highest quality commercial real estate assets that are run through two levels of review and validation qualify as targets for acquisition and inclusion in our funds.
03
Secure Debt Financing to Complete the Capital Structure
Capital contributions from our investors and 1880 Capital comprise the equity portion of the capital required to purchase commercial real estate properties. We have relationships with preferred lenders who specialize in financing commercial real estate syndications to contribute the debt portion of the capital structure. Every property acquisition is unique and economic factors, such as the interest rate environment, determine the mix of debt and equity for the capital structure of every deal. We leverage our extensive commercial real estate experience and expertise to determine the ideal mix of debt and equity in order to deliver maximum returns to our investors.
04
Inspect the Property
05
Additional Due Diligence
06
Legal Review
Our legal team, who specialize in commercial real estate, reviews legal documentation in order to ensure that transactions are in order and there are no unexpected surprises at closing. They determine whether or not there are liabilities or other legal issues that may affect the purchase transaction or our ability to sell the property after the hold period. If areas of caution are identified, they work with us to remediate the prior to closing.
RETURN ON EQUITY
How It Works
1880 Capital Purchases and Manages the Commercial Real Estate Assets
You Invest In
Our Fund and Receive Periodic Distributions
You Receive
24/7 Access to
the
Performance of Your Investment
We Sell the Properties,
Liquidate the
Fund, and Split Profits with You
Close
Tenants pay rent
Tenants pay rent, usually monthly.
Revenue can also come from
parking, signage, etc.
Building expenses are paid
The real estate operator or property
manager pays building expenses
from the rental income.
Investors are paid
After expenses are paid, the
remaining income is distributed
to our investors first, then us.
Upon sale of the property, equity is distributed back to investors along with any profits from the sale.
A MEET-UP AND COFFEE ARE ALWAYS FREE
Sign Up to Learn More About Investing in Commercial Real Estate Today
Ready to learn more about our Commercial Real Estate investment opportunities? Sign up for an initial consultation with our team today. There’s no obligation to invest, and our team is happy to answer any questions you may have. Whether you’re a seasoned investor or new to the world of Commercial Real Estate, we’re here to support you every step of the way.