CREATING VALUE. MAINTAINING EXCELLENCE.

Leverage Holdings is a real estate private equity firm with a mission of creating extraordinary value in the multi-family asset class. We maintain a sharp focus on developing and nurturing relationships in the Commercial Real Estate sector to build a portfolio that facilitates long-term, sustainable growth through active management and optimal risk management.

LEVERAGING OUR EXPERIENCE TO CREATE A SUPERLATIVE ASSET PORTFOLIO.

Since the inception of Leverage Companies, leadership at Leverage Holdings has been a part of over $500,000,000 in real estate transactions and closed over 400 unique transactions. We leverage this experience and expertise in order to curate our portfolio of holdings.

OUR STRATEGY

Our 7 step process

  1. Find a Property that meets our investment criteria

  2. Our team makes an offer and comes to an agreement with the seller

  3. Our offer is accepted and our syndication process begins

  4. We start our Due Diligence Process and boots on the ground research and inspections

  5. Our team reviews the findings and updates the business plan accordingly

  6. Legal Documents drafted, Investors secured, mortgage approved and closing scheduled

  7. We close on the property and start our business plan

OPPORTUNITY SOURCING

The 100:30:10:1 method

Using our direct-to-seller approach, we ensure we are the right buyer for the right seller. Our team of transaction professionals work closely with each seller to ensure a smooth closing, with the process allowing for us to meet our internal standards for optimal return metrics.

  • SUBMARKET LOCATION

    Full analysis of macroeconomic, supply and demand, political, and demographic trends.

  • HISTORY OF PROPERTY

    Research on every aspect of the property, due diligence, title history, prior use, non conforming use, permitting history, zoning history, etc.

  • Condition of Property

    Our team of contractors get us accurate quotes from exterior, to foundation, basement, common areas, to individual unit requirements to stabilize the property

PROPERTY ANALYSIS

  • Competition

    We love markets with high barriers to entry, it allows us to use our expertise to solve complex problems our competition can’t.

  • Business Plan for the best ROI

    We draft a business plan detailing our strategy, step by step with timelines to offer our stakeholders accurate expectations and get to stabilization as fast and efficiently as possible

POST-CLOSING MILESTONE TIMELINE

REVENUE MODEL

• Create and Add Value by executing our calculated business plan and data-driven approach

• Stabilize the property through updating, rehabilitation and construction, increasing the NOI

• Refinance the property to recapture our equity investment

• Actively manage and operate to ensure sustainable distributions

CAPITAL STRUCTURE

Target Metrics

We target value add multifamily, Our target is 50+ units, target Refinance at 75% LTV within 12-18 months, We offer our capital partners an 8% preferred return on their capital, with a target 5y project level IRR of 20% or greater.

Limited Partner (LP)

Our Limited Partners are our investors.  They receive preferred returns for contribution of capital towards the equity required for the deal.

General Partner (GP)

As a General Partner, we are in control of the deal, from sourcing opportunities, securing financing, structuring capital stacks and operating agreements, interviewing and selecting the best professionals to work with us, including contractors and property managers, and executing on our business plan.

WHY WE INVEST IN REAL ESTATE

Real estate has historically been a safer asset class than stocks, with higher returns.  Multi Family in particular has outperformed the S&P 500 in market upswings and has been more resilient in recessions.

Housing prices have been steadily rising for over 40 years.

COVID has increased demand for housing and strengthened the liquidity of the Asset Class.

Why now?

  • Lock in Current Rates

    As interest rates increase, buyers may face higher borrowing costs, which can impact their purchasing power. By selling your apartment now, you can lock in a sale with buyers who are still benefiting from relatively lower interest rates, making your property more appealing to them.

  • Avoid Potential Price Depreciation

    Rising interest rates can affect property affordability for buyers, potentially leading to reduced demand and downward pressure on property prices. By selling before this happens, you can avoid potential depreciation in the value of your apartment.

  • Reinvest at Higher Rates

    If you're planning to reinvest the proceeds from selling your apartment, higher interest rates can work in your favor. You may find opportunities to invest in financial instruments that offer better returns than what was available when rates were lower.

  • Improve Portfolio Flexibility

    Selling your apartment in a rising interest rate environment can give you greater flexibility to diversify your investment portfolio. You can allocate your capital into other assets or investment opportunities that are less sensitive to interest rate changes.

  • Reduce Mortgage Demand

    With increasing interest rates, the demand for new mortgages may decrease, leading to a potential decline in the number of qualified buyers in the market. Selling your apartment now can help you take advantage of the current pool of interested and financially capable buyers.

  • Minimize Holding Costs

    Selling your apartment before interest rates rise further can help you minimize holding costs associated with owning the property. This includes mortgage interest payments, property taxes, maintenance expenses, and other carrying costs.

  • Avoid Refinancing Challenges

    If you have an existing mortgage on the apartment, rising interest rates could make it more challenging for potential buyers to secure affordable financing. Selling before this becomes a significant concern can help you avoid potential financing obstacles.

  • Reduce Market Uncertainty

    The real estate market can be sensitive to interest rate fluctuations, and rising rates may introduce uncertainty. By selling your apartment now, you can mitigate the uncertainty and secure a sale while market conditions are still relatively stable.

HOW WE MAXIMIZE VALUE

•Creative capital structuring

•Depreciation and Tax Strategy

•Cost Segregation Depreciation

•Our depreciation strategy allows us and our partners to capture an oversized tax shield by restructuring the depreciable life of our assets to a shortened period

INCREASING DEMAND

•As housing prices rise, and residential uncertainty looms, demand for apartments will be outweighing supply

•Vacancy in rental units has been on a decline for over 10 years, this illustrates the demand outweighing supply, even with constant increasing supply


Lagging supply

•As demand for housing continues to exponentially increase, newly constructed units cannot meet the market demand.
•Existing Multi Family will provide a long-term, sustainable opportunity to capture outsized returns.

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