In the areas where we invest, we are a known quantity with a strong reputation. This means we are approached before a property is marketed publicly, giving us a unique opportunity to invest in neighborhoods with little to no competition.
We acquire several kinds of units. Sometimes, we acquire units that have some level of heavy distress, where the seller can’t make payments or ran out of capital mid-renovation or cannot fix violations. We raise money to be an all-cash buyer, execute deals quickly, or use a combination of cash and credit lines to close on good deals rapidly.
Other situations might bring us units owned by older operators who built a respectable portfolio in a particular area when properties were less expensive and rents lower. Over time, as neighborhoods change, some operators are ready to sell their portfolio to an investor like Icarus Investment Group, realizing we can manage the portfolio they’ve built and take it to the next level.
We have a reputation for buying people’s books of business. We have become a logical buyer to acquire an entire portfolio. We model in the fact that we’re going to renovate to a high standard, revamp common areas, and substantially raise market value, which benefits the entire neighborhood. We bring vision, strategy and capital to the table.
Another opportunity that often arises is that we will see off-market portfolios for sale that have a great deal of upside. Many seasoned veterans have built respectable portfolios in particular areas when properties were less expensive and rents lower. Over time, as neighborhoods change, some operators are ready to sell their portfolio slightly under market to Icarus Investment Group, realizing we can get them a good price, close fast, and have a positive impact on the residents who wish to stay in their properties as we upgrade their former buildings and manage the portfolio they’ve built. We benefit as we are able to overcome the years of deferred maintenance and take the building to the next level by increasing retention, reducing expenses and boosting the profitability. In the pockets we invest in, the premium for recently upgraded units is significantly higher than the original rents, not to mention the substantially increased demand as the price for the upgraded units is still significantly more affordable than living right near downtown, while still being close enough to commute easily.