Hammer Capital Group provides multifamily investment opportunities that provide high returns for its investors by purchasing value add Class B and C properties in the Dallas-Fort Worth Metroplex and other emerging markets, refinancing to return investor capital, then holding long-term to create a steady income stream for its investors.
OUR STRATEGY
Research & Acquisition
Our operators are constantly assessing the economic landscape of our target market to understand the drivers of supply and demand over time. MSA and sub-market data inform the underwriting process and contribute to our overall strategy.
Our team utilizes proven financial models to forecast and analyze every dollar of cash flow that goes in and out of a deal. Only a small percentage of deals meet our conservative criteria and make it past initial underwriting.
We fight hard for favorable pricing and deal terms that benefit our investors. We negotiate from a position of high leverage and are always prepared to walk away from a bad deal.
Before committing our capital to a deal, we seek to uncover all material risks. This includes physical assessments, interviews, and financial reviews. If we discover any issues that add risk to the deal, we either negotiate or walk away.
Our operators work closely with their teams of lenders and escrow officers to deploy investor capital quickly and obtain title so we can begin executing our business plan and distributing revenues.
Renovation & Management
Our deal operators begin executing a pre-determined scope of work, including unit renovations, deffered maintenance, and community enhancement projects. We spend a significant amount of capital to ensure renovations achieve a high standard of quality.
Marketing a property for rent is an art, and our operators utilize many tools to ensure our units get leased quickly to qualified tenants at premium rates.
Our operators work closely with property managers to maximize rent collections and minimize operating expenses. The goal is to increase Net Operating Income, which directly translates to an increase in property value and cash flow distributions.
For longer-term deals, we take advantage of value-creation by refinancing. This process allows us to return capital to our investors, lower interest rates, and extend loan maturities.
Disposition & Reinvestment
Prior to the end of the hold period, and after the property value has significantly increased, our operators will engage a team of brokers to market the property for sale at an attractive price.
After the close of escrow, we will return investor capital and receive a success fee after investors have achieved a specified return rate.
Investors will be invited to re-invest their capital in a new deal. If possible, we will utilize a 1031 exchange to defer taxes on capital gains.
PROPERTY CRITERIA
25-100 units | 1970+ | Class B or C
RETURN TARGET
15%+ Internal Rate of Return
2.0x+ Equity Multiple
HOLD PERIOD
2 to 7 years