Commercial

When considering where to invest and which property to acquire, RT Real Estate Group's acquisition team carefully analyzes all aspects of the deal. Our due diligence includes detailed review of several years of financial statements, current market conditions, local competition, economic fundamentals, etc.  This process allows RT Real Estate Group to understand the market cycle of the target city and implement the correct acquisition, management and exit strategies.

Acquisitions

We use a variety of strategies for sourcing properties with value-added attributes. In a competitive real estate environment it is difficult to find exceptional deals. RT Real Estate Group stands its ground for acquiring solid assets and actively sources properties through relationships with local brokers, property management companies and owners.  We maintain the philosophy that there is no substitute for sound market and financial analysis, patience and persistence to ensure the right acquisition.

At any given time, we are developing key relationships within emerging markets that have been identified to present the highest level of value and return for the company and its affiliates.


Emerging markets can be defined as new growth markets or correcting markets from a previous cycle down-turn. There are several variables that are used to identify these markets from historic growth patterns to future population and job growth projections. Demographic variables such as population growth are just one component in this complex evaluation process and are used in conjunction with a myriad of other economic factors to determine whether a market is truly emerging.

Acquisition Criteria

  • Located in a business-friendly market
  • Population and job growth potential 
  • Potential for strong cash flow and re-sale appreciation
  • Strong capitalization rates and cash on cash returns

Property Criteria

  • Multi-family residential apartment building with 30 or more units
  • Price range is generally $1,000,000 - $7,000,000 
  • "B" or "C" class properties constructed in the early to mid 80’s
  • Pitched roof construction
  • Minimum occupancy of 85%
  • Value-added opportunities

Property Analysis

Once a property has been identified and an acceptable price and purchase terms have been negotiated, RT Real Estate Group enters into a due diligence period where the asset is thoroughly examined. The time frame varies from project to project but usually takes approximately 30 to 45 days.


During this review period our team interviews and hires the most qualified and reputable property management company, building inspector, engineer and legal advisor. With the expertise each of these professionals provides we are able to completely evaluate the property. Any deferred maintenance and required capital expenditures will be fully documented to ensure the purchase price reflects the property condition. 


Historical financial statements, rent rolls and actual expenses will also be carefully analyzed to ensure that there are no surprises regarding the financial performance of the property.

Property Management

Our goal is to ensure that properties acquired by RT Real Estate Group are a desirable place to live for current and prospective residents, improve on-site management, reduce expenses, beautify the property buildings and grounds, and develop a property specific marketing plan to attract residents and increase occupancy rates.


Each property will be professionally managed by a reputable local property management company. Within each market, property management companies will go through a thorough vetting process to ensure their qualifications, expertise, goals and culture are in-line with the objectives set forth for each property.  RT Real Estate Group firmly believes that a sound business plan for each property as well as a hands-on approach to managing property managers is essential for the financial success of the property.