Investment Strategies

CAB Properties LLC helps investors benefit from cash flow as passive income and capital appreciation via real estate. We provision the entire deal from start to finish for our investors. The investor only needs to conduct their own due diligence.

investors-image-300x200Real Estate is an investment vehicle with many advantages, including:

  • Cash Flow
  • Portfolio Diversification
  • Passive Income
  • Depreciation
  • Appreciation
  • Amortization
  • Tax Advantages

Many people are not aware that you can invest in cash-flow, real estate with funds you already have such as an IRA or an old 401k utilizing a vehicle such as a Self-Directed IRA and even a HSA (Health Saving Account).

CAB’s investment structure varies depending on the deal. Investments are typically from 2 to 10 years or more. The target Internal Rate of Return runs between 12% to 20%. A typical investment size is $55,000 to 350,000+.

CAB Properties LLC acquires Real estate in Vivacious Cash Flowing markets throughout the South Chicagoland. Each investment’s success is measured by location, tenant profile and growth potential. Some of the assets may require some physical renovation and repositioning. Each investment will benefit from our hands-on approach, aggressive asset management, extensive construction experience and implementation of systems to optimize efficiency and vivacious Cashflow.

The ultimate goal within each investment opportunity is to acquire assets that will realize the strongest risk-adjusted returns over the life of the investment.

UNDERSTANDING TWO DISTINCT TYPES OF INVESTMENTS

Debt investing:

Debt investors are individuals who invest in our deals for a fixed rate of return. This investment loan is secured against the property we acquire, and we simply pay the investor a quarterly payment based on an agreed upon interest rate and amortization schedule. Typically the debt investor can expect to be paid 6% – 10% interest, with their loan secured in first lien position on the loan. On some investments we also utilize institutional financing, in which case the debt investor would be in second lien position and should expect a higher interest rate.

Equity Investing:

Equity investors are individuals who invest in our deals for a percentage share of the profits. We structure most of our deals using equity investors (which we refer to as our “equity partners”). Our equity partners are able to “participate” in the deal by sharing in the risks and rewards. Typically our equity partners receive a percentage of the monthly cash flow from the property, and a percentage of the upside from equity growth on the “back-end” of the deal when we sell the property. And, equity investors also receive the benefit of depreciation expense for income tax purposes. With our primary strategy being “Forced Appreciation” this can be a very attractive opportunity for investors.

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  • Meet and evaluate our fit with your investor identity
  • We Identify properties for investment

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  • We negotiate the deal
  • We provide required documents
  • We perform inspections
  • You review with attorney and accountant
  • You conduct due diligence

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  • You make decision on investment options
  • You fund the investment
  • We underwrite the deal and negotiate
  • We submit an LOI (Letter of Intent)
  • We place financing on the deal
  • We fund investments from private equity

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  • Provide rehabilitation, if needed.
  • Tenant screening and placement
  • We provide ongoing management oversight
  • We provide quarterly updates to investors
  • Our accountants provide financial reporting twice per year
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