Buying Criteria

The following criteria are used in identifying multifamily properties for acquisition, management and re-sale.  These criteria and the acquisitions that they produce, re-enforce The Miles Groups’ contrarian philosophy of buying undervalued properties. 

 

General Criteria

  • Potential High Yield Income Streams
  • Various capitalization rates depending on cash requirements, appreciation potential and property. 
  • We purchase properties in two ways: Cash Equity – “All Cash” – since The Miles Group has the capability to arrange financing, and the assumption of existing mortgages.
  • Preferable off market properties.  Broker properties are welcomed.
  • We will not pay full retail value unless you are willing to finance at very favorable terms.
  • We can help with a 1031 Exchange.

 

Property Criteria

  • Multifamily residential apartments: Anywhere
  • Property must be operational
  • Property must be able to cash flow upon acquisition.
  • We generally prefer class B and class C properties.
  • Minimum size:  4 units up to 150 units.  Will consider 2-family with strong upside.
  • Age – any age but preferably properties constructed in the early to mid-80’s. 
  • Roofs – prefer pitched construction.  But, will consider flat roof based on price, age and location.
  • Minimum Occupancy – 70-80% however, The Miles Group will consider lower occupancy of 50% on properties that require major renovation, if the properties are well located and present value enhancement opportunities.

 

We are not fixated on Cap rate like so many other investors.  Many buyers and sellers alike put quite a bit of weight on the capitalization rate (or Cap rate).  While the Cap rate is an important factor in determining the viability of the investment, it is not the only factor that we use to determine value.  Our criteria is based on a property’s ability to generate income, and there are times when a property can generate sufficient income to foster the purchase based on other factors, such as terms.  We work on the premise that everyone wins in the transaction.