The current financial environment has created a new opportunity for larger sums of readily available cash. A lack of bank and institutional financing has reduced the number of qualified buyers for most properties who are now required to make “all cash” offers. The Fund will use its buying power from the pooled funds to make highly discounted purchases. This capital strategy assures the lowest cost of acquisition possible.
The Bullseye Capital Approach
While market distress has created more opportunities for the Fund than have existed since the Great Depression, the Fund is basing its strategy only on owner distress and building distress. These types of distress present opportunities regardless of the market cycle. It is just that this stroke of the market cycle has created more of them, and as the Fund takes advantage of it, allows for even more upside as the market recovers.
Three primary skill sets provide the means to capitalize on these opportunities. First is the ability to analyze the propert
properly to buy right. Second is our ability to manage the rehabilitation of the property cost effectively. Third is managing the property to keep costs down and revenues up once it is rehabillitated. The Bullseye Capital team has all three of these skill sets.
Finally, our “secret weapon” is a reserve of ready-cash. Cash buyers who can act quickly get the best deals. Cash contributed by our investors is the basis for the Fund – enabling us to make the most of today’s opportunity for all involved and to achieve superior returns.
Bullseye Capital is focused on investing its talent and capital to acquire distressed commercial and multi-family real estate at deep discounts in regions exhibiting the underlying fundamentals for economic growth, job growth, and population growth. These basics for solid and continued demand for multi-family commercial property will allow Bullseye Capital’s strategy to achieve its projected returns for the Fund and its investors.
The Bullseye Capital Profit Formula
The Bullseye Capital profit formula is straightforward. We look for distressed assets – properties that have problems that we can fix using the assets and resources available to our Fund. Our team’s special skills make it possible for us to revitalize distressed assets, breathing new life and enhanced value into those properties that meet the criteria of the Fund. The financial resources of the Fund make it possible for the Fund to purchase the properties under consideration at the deepest discounts since we will not rely on bank funds – and bank delays – to acquire property.
We Control Our Destiny – The Bullseye Strategy
The Bullseye Capital Real Property Opportunity Fund’s acquisition team can see through the “fluff” and make determinations about the aspects of a “broken” property that can be fixed. Our breakdown about how quickly and at what cost these elements can be renovated and resolved makes it possible for us to identify and monetize high-value anomalies in the
marketplace. Our ability to add value to these owner and property difficulties is completely controllable. We avoid situations that depend on market corrections to make money.
We look for properties that have been priced lower than the cost to renovate them dictates. This is the anomaly. We fix what is broken. We add the value. We bring the value of the sub-standard properties up to the market level.
Therefore, we do not rely on changes in the market to deliver returns to our investors. We rely on our skills in picking and rehabilitating properties.
Our formula is clear-cut for our expert team. We look for properties where the owner has to sell. Our network of hundreds of brokers will tell us where the deals are. Since we are high volume buyers who pay full commissions – we will see deals before others do. We frequently will get the inside track on opportunities that our team can monetize quickly.
We also will seek properties that have been managed poorly: where the rents are low, the vacancy is high or the
building requires some “tender loving care” rehabilitation. We will correct the problems and turn the properties over for rapid realization of profit.
A Bullseye transaction is one where our team will use its collective experience and skills in order to fashion a precise
business plan that will monetize the building’s deficiencies to our benefit. In our experience, putting a project back on track can increase the value of a property by 30% to 100% in a short amount of time.
The key to making money in these uncertain times, whether the real estate is subject to owner distress or building distress, is to quickly remedy the problem, turn the property over and take a profit. We do not wait for the market to rebound.