• Bluepeak Asset Management
    Real estate services company focused on sustained excellence
  • Property Management Services
    Smart, first-class property management services by seasoned real estate professionals
  • Asset Management Services
    Maximizing return on investment from acquisition to sale
  • Investment Properties
    Suitable real estate opportunities for investors
  • Office
  • Medical Office
  • Flex/Industrial/Data Center
  • Retail
  • Multi-family/Rental Units
  •  

Investment Opportunities



 

Real Estate Investment Benefits

Investment real estate offers key benefits to people seeking monthly income, capital preservation, capital appreciation, and risk diversification.  For most, if not all investors, real estate is an excellent direct investment vehicle under today's turbulent economic climate with stock market volatility and the low money market rates that financial institutions offer for capital. (For brokers representing the sellers of an investment property that might fit Bluepeak's acquisition criteria, please visit our Acquisitions page.)

Real estate as an investment class offers 6 main advantages: inefficient markets, more control, leverage, inflation hedge, depreciation, and deferred capital gains tax:

1. Inefficient Markets - profits can be made by investors with better information, expertise, diligence and resources.  A great investment property can be found with the appropriate price, income, location with proper diligence and effort, and not be discovered by other investors.  This is the opposite of the public stock markets where information must be accessible to all, and those with non-public information are barred by law to trade/profit from it.

2. More Control - An investor has the ability to influence the performance of investment real estate, but cannot influence key components of the stock market - interest rates, inflation, bonds, and the management of public companies.  Investors can determine the management, leasing, operations and capital expenditures on real estate.  They can also insure against damage and up to the replacement cost improvements.

3. Leverage - real estate offers the ability to multiply gains (and losses) though financing.  Real estate is traditionally financed and lending institutions are very familiar with this asset class.  The correct level of financing  can multiply the returns on investment real estate.  For smaller properties, some investors choose to avoid financing altogether.

4. Inflation Hedge - real estate is tangible and a hard asset.  In other words, it has intrinsic value (land and any improvements) that will not disappear.  When the the value of money (purchasing power)  decreases and the price of good and services increases (inflation), the value of real estate does not decline.  Thus, the price of the real estate increases with inflation.  Real estate has a place in an investment portfolio because it offers risk diversification.

5. Depreciation - is a estimated tax loss allowed by the IRS due to estimated wear, tear and obsolescence for the physical improvements upon land.  These "paper losses" can offset the taxable income from the investment real estate.  Commercial property is depreciated over 39 years, and residential income property is depreciated over 27.5 years.  For more information on this important benefit of real estate, you can speak to a qualified tax advisor like a tax preparation Certified Public Accountant (CPA).

6. Deferred Capital Gains Tax - Real estate investors are allowed to defer the taxes on their capital gains under IRC Code Section 1031 exchange, a "1031 exchange", by selling one qualified property, identifying another qualified property within 45 days and then completing the transaction within 180 days.  This allows investors to grow their wealth more quickly and defer the taxes consequences.   For more information on this important benefit of real estate, you can speak to a qualified tax advisor like a tax preparation Certified Public Accountant (CPA).
 

Sample Opportunities

Bluepeak Asset Management employs a disciplined, conservative, analytical investment philosophy for our private investors.  We can help investors throughout the life cycle of their investments in real estate: property identification, acquisitions, financing, leasing, property/asset management, disposition and reinvestment. 

At this point in time, our analysis shows that  multi-family and rental units are excellent real estate investments  for private investors.  Here are some sample investment opportunities in the market today (they do not include acquisition costs):

 

Location:

Los Angeles, Multi-Family

Price:

$3,750,000

Price per Unit:

$156,250

Scheduled Gross Income:

$360,844 (includes a 5% vacancy reserve)

Expenses:

$136,933

Net Operating Income:

$223,911

Debt Service: $152.582 (4.75%, 30 yr amortization, due in 7 ys, 65 LTV)

Cash Flow:

$71,329

Cap Rate:

5.97%

Cash on Cash Return:

5.43%

 

Location:

Orange County, Rental Unit

Price:

$161,000

Price per Unit:

$161,000

Scheduled Gross Income:

$17,100 (includes a 5% vacancy reserve)

Expenses:

$7,769

Net Operating Income:

$9,331

Debt Service: n/a

Cash Flow:

$9,331

Cap Rate:

5.8%

Cash on Cash Return:

5.8%

 

The above examples don't factor in the "upside" benefits of annual rent growth and depreciation, nor being an inflation hedge or the deferred capital gains tax benefits upon sale.
 

Buying Great Investment Properties

If you are looking to purchase a great investment property, Bluepeak can help you.  One of our core real estate practices is helping private investors throughout the entire process of investing in real estate, from acquisition to reinvestment, which can be quite challenging at times.

If you are seeking a 1031 investment property or seeking to an investment property to generate better returns, we can provide the expert real estate assistance to successfully achieve your goals.  We can help investors with all aspects of investing in real estate, including sourcing and identifying suitable property, due diligence, acquisition, financing, asset management, property leasing, property management, disposition and reinvestment.  It's easy to get started, just call or email us to let us know what your investment needs are.

We look forward to earning your business and serving your real estate needs at Bluepeak Asset Management.  Contact us today.