Real Estate Investing

i. The Strategic Plan

All real estate investments should be formed around a solid investment strategy, specifically tailored to your needs. This is fundamental to any successful investor. Determining the objectives of the client, and therefore the strategic plan, is crucial in planning an investment strategy for them. It is so important, we will not invest for a client until we fully understand what the client aims are.

Once a strategic plan has been developed, you are then in a position to tailor an investment strategy specific to your needs. The investment strategy details particular acquisitions over a specific time period. The strategy is influenced by your goals. Someone who is looking to retire within 5 years may have different aims than a younger investor at the beginning of their career.

The combination of the strategic plan and investment strategy allows you to plan a route to achieving your goal. For example, suppose you wanted to buy your own medical office building with multiple offices for independent clinicians, but did not have sufficient funds necessary to acquire the asset. Do you give up or do you develop a investment strategy that maximizes your acquisitions from your initial investment, with the intention of building a portfolio - a portfolio that you can allow to appreciate and then use the appreciation to buy the office at a point in the future?

ii. Building your portfolio - acquiring real estate

PDS believes in providing a service tailored for each individual client
We now have a strategic plan for our client. This details the type of asset we are looking to buy (commercial, residential), the amount of investment per asset, whether the client is investing as an individual or with colleagues as a group, the timeframe for the acquisitions and also what exit strategy is.

Using specialized negotiating techniques, we source the real estate we think should form part of that particular client’s portfolio. We then offer the real estate to the client who, after reviewing all information on that asset, decides whether they want to proceed and acquire that asset or not. Once the client has decided which real estate to acquire as part of his or her portfolio, we co-ordinate all aspects to the escrow process and work with lenders to provide the loans that best fit the needs of the client and the acquisition. We also work with property management companies to source tenants and provide the routine management once the asset has been acquired.

Real estate sourcing and purchase
We research all regions of the U.S. to determine which areas show the best future growth and greatest potential for real estate appreciation—down to the zip code level. It is not sufficient to tell our clients that ‘city A shows great potential’, because within city A there are many different sub-regions (local markets and economics).

We gather information on local market conditions, potential for tenanting, and future potential for that area. Once we are satisfied that an area meets our criteria, we look for suitable types of real estate for sale and use our experience to negotiate the purchase at a discount.  We then offer the real estate to our clients.

Acquisition and appraisal
Whether the acquisition is residential or commercial, each client receives a comprehensive property report for each asset sourced. The client assesses the real estate and then decides whether or not to incorporate it into his or her portfolio.

Closing
Once a client has reserved a property, PDS works with the seller and lender to facilitate the escrow process through to closing. Since title goes to the client, clients must sign all required forms. However, PDS will sort through all the checks, assessments and documentation needed to make this process as smooth and efficient as possible. Before closing, the purchase price is confirmed by a full appraisal carried out on the property by an independent, fully qualified appraiser.

Property Management
From the moment a client reserves a property and starts the escrow process, PDS works hard to locate tenants. Property management encompasses many aspects from day-to-day managing of your asset to locating and keeping tenants.

PDS is unique in that it offers a program specifically for tenants that increases tenancy level and longevity. We will describe this in detail to our clients. The tenancy program maximizes the possibility of having full occupancy by suitable tenants as soon as the real estate has been acquired.

Initially, we work with local companies to provide all the usual property management services. However where possible, property management will come under the control of PDS.

ii. Key facts to acquiring real estate with PDS

   1. Your real estate will be sourced and acquired over a period determined by you, starting from signing of contracts
   2. PDS strives to simplify and minimize expenses incurred by you in acquiring the real estate
   3. We minimize the fees paid and the expenses incurred by our clients in managing their portfolio

Your Evolving Portfolio
The key facts to PDS building you a portfolio…

1. We determine with you the 'composition' of the real estate to be acquired based on your requirements (short and long-term) and the level of investment
   • level of investment in commercial real estate
   • level of investment in residential real estate
2. We confirm with you the timeframe for acquisition of the real estate
3. We source and then analyze the real estate prior to preparing a brochure for you to review on each asset
4. Once you confirm you want to proceed with the acquisition, we co-ordinate all inspections and checks prior to closing
5. We continue until your portfolio has been acquired

Acquisition Years
Acquiring real estate as part of your portfolio with PDS is a multiple step process. The section in our web site titled “Building your portfolio” describes the basic program of acquiring portfolio properties. This process takes place over a period comfortable for the client, at which point the target value of the portfolio is reached. During this time, PDS also coordinates management of properties as they move into your portfolio.

Please click here for examples on how we can work with clients

Property Management
After the acquisition of your real estate, PDS will coordinate the property management of each individual asset. We will liaise with property management companies in the local areas selected by you to manage your properties.

Asset Management
In addition, we will asset manage your portfolio from a financial perspective. Your portfolio should not be static – it should evolve as the economy both locally and nationally changes. PDS will adapt your portfolio to these changes, utilizing tax-deferred exchanges to exchange individual assets within your portfolio for maximally appreciating assets. We continually work to build the portfolio and maximize the return for you.

In addition, by leveraging the increasing equity in your portfolio, you can take advantage of more opportunities to further maximize your wealth creation.

Some of the ways PDS creates new opportunities for you are:

• Helping you adapt your portfolio to changing local and national markets
• Finding opportunities to expand your residential portfolio to include commercial or industrial real estate
• Finding opportunities to expand into international real estate
• Utilizing advantages of 1031 property exchanges
• Recommending appropriate changes in proportion of residential/commercial holdings
• Sourcing hotels, retirement communities, and construction projects

Our goal is to maximize the capital gain of your portfolio.

Disposition (of assets) Years
Near the end of the agreed term of asset management, PDS will work with you to ensure that you have a well-considered plan for the disposition of your portfolio. You may, of course, retain your holdings and PDS strongly advises consulting with a qualified estate planner to aid in these decisions.