Investors 2016-11-15T05:10:23+00:00

Investment Philosophy

Bonvolo focuses on multi-family and commercial properties for acquisition, management, long range cash flow, and occasional re-sale for highest profit scenarios. We position our investments to provide investors greater capital growth and income streams through their IRAs and other investment funds, all while backed by the dependability of real estate assets, professional management, equity, and insurance. We remove the volatility and uncertainty of the stock market and mutual funds while investing in tangible hard assets that thrive with inflation and exceed the returns available through bank accounts, CDs, bonds, and other conservative investment vehicles. Our investment criteria and resulting acquisitions follow the company’s conservative philosophy of buying undervalued properties with increasing upside potential. We acquire properties that provide investor returns through recurring cash flow, momentum plays, and value-add opportunities.

ROI Models

Debt or Equity Investing

  • Provide a consistent and dependable source of income that is significantly higher than most current market alternatives
  • Backed by the increased safety of real estate assets, equity, and insurance
  • No direct responsibilities for the investor regarding property management or equity positions that may require additional capital calls
  • Risks and responsibilities for returns are placed on Bonvolo to deliver to the investor

Primary ROI Model: Long Term Cash Flow

  • After initial remodel and lease-up phase, then we hold for long term cash flow that provides investor returns better than most investment vehicles while also providing higher safety backed by real estate
  • Generally hold for at least 5 years, then either cash-out refinance or continue direct cash flow investment depending on current financing & sales markets plus our investors’ initial plans

Secondary ROI Model: Re-position / Add Value and Re-sell

  • Improve property conditions, lease-up, and market for high ROI sale
  • Investor gets money back sooner to reinvest elsewhere, including optional investment in next opportunity with us

Market Selection

After studying, networking, and contacting cities, Chambers of Commerce, and economic advisors, we have been able to target specific markets that are in the path of progress. This has allowed the company to focus on areas of growth both locally and across the country. The company continues to seek expert consultation to make substantial investments.

We focus on either very steady and dependable markets or new growth markets that are correcting markets from previous cycle down turns. There are several variables used to identify these markets from historic growth patterns as well as future projections that are weighed in the ultimate decision process. The demographic variables are just one component in this complex evaluation processed used.

An essential ingredient in our success is having high quality management of multifamily / commercial properties and teams in place for whatever market the company may seek to be in. We partner with those companies that possess special training, operational & marketing expertise, and knowledge of the market dynamics. We take a unique approach by understanding the concepts of managing the management teams, finances, and marketing for long term investments. We work with teams who are well educated and experience in leasing, maintenance, and coordination of onsite and regional management.

We are dedicated to real estate investing for the protection and enhancement of investment capital. Our expertise in multifamily, office, and retail – combined with the hands on approach of our management teams – drives the performance, success, and strong foundation needed for our investors and company.

We are open to many markets. We strategically investigate key markets that have an increased likelihood of both near and long term higher return on investment. We also tactically respond to high return opportunities in other markets that come to us through our increasing network of connections and which meet even more stringent criteria. Current priorities are being placed in several Washington state markets and two out of state markets which demonstrate an exceptional balance between higher returns, stability, and growth.

General Property Criteria

Multi-family

  • No matter where in the economic cycle, people need a place to live
  • Location:
    • Well-located with stable tenant base or increasing base from path-of-progress
    • Stable – or preferably increasing – local economic drivers, companies, job growth
    • Good advertising visibility
    • Solid local property management team available
    • Ability for future investor buyers to finance (i.e., lenders are receptive to area)
    • Prefer average market rents to be lower cost than average PITI mortgages for single family home ownership
    • Occupancy levels high for well-run apartment complexes in 2 mile radius
    • Low level of vacant overall complexes in area that could be re-positioned by others as future competition
    • Low level of new construction permits in 3 mile radius
  • Number of units: Prefer 20+ though property fundamentals are more important than specific number of units
  • Age: Any age depending on condition and infrastructure, but preferably 1980+
  • Pitched roofs, sub-metered primary utilities, good plumbing and electrical infrastructure
  • Minimum occupancy:
    • Cash flow: 80+% occupancy
    • Re-position: Any occupancy depending on price point, post-acquisition projects, and conservative reserves in place

 

Office & Retail

  • Selective, sometimes contrarian purchases
  • Location:
    • Well-located with stable area base of quality commercial tenants or increasing base from path-of-progress, or consider options where zoning has restricted future commercial development and property has “grandfathered in” advantage
    • Stable – or preferably increasing – local economic drivers, companies, job growth
    • High visibility and accessibility
    • High traffic count
    • Flexibility for current and future tenants / uses
    • Compatible with other local commercial properties
      • Synergistic where people go for similar services (medical, nightlife, etc.)
      • Or different but needed uses (grocery, government services, etc.)
  • Age: Any age depending on condition and infrastructure, but preferably 1980+
  • Pitched roofs, sub-metered primary utilities, good plumbing and electrical infrastructure
  • Minimum occupancy:
    • Cash flow: 75+% occupancy
    • Re-position: Any occupancy depending on price point, post-acquisition projects, and conservative reserves in place