REI CAPITAL VENTURES
Developing Dreams Together
IMAGINE THE POSSIBILITIES
REI Capital Ventures is a private equity real estate firm focused on the acquisition and development of multifamily real estate assets on behalf of and with our investors.
Founded by husband and wife team, Chris and Keri Bednarz,
REI Capital Ventures is the definitive resource
for all things real estate and multifamily investing.
Our mission is to bring quality investment opportunities to our private investor clients and deliver value by providing extensive underwriting, servicing, and reporting for each property. By leveraging our team’s expertise, REI Capital Ventures offers a more thorough and efficient process for investing in quality multifamily real estate that would typically not be available to the individual investor.
CORE VALUES
As a real estate investment firm, we focus on integrity, trust and transparency not only with our investors but with our sponsor and development partners as well.
PRIDE
We take PRIDE in our investments by choosing to focus on properties that are high quality or that can be repositioned and transformed into
high quality assets
PURSUIT
We actively pursue strong investment opportunities and have the dedicated resources and personnel to execute on our business plan to building a strong pipeline of deals
PRECISION
With PRECISION we take every investment opportunity though our structured, strictly conservative underwriting process to make sure it fits our investment criteria
PARTNERS
We are constantly growing our strategic PARTNERS by continually building our network and relationships with project partners who have local expertise and infrastructure
PRESERVERANCE
Every project requires PRESEVERANCE until execution. We have trust in our team and our process to see the project to the finish. Keeping our promise to the investors is our fiduciary responsibility
PROXIMITY
We ensure that each property that we consider is within close PROXIMITY to one of our asset managing team members so as adequate supervision will be in place at all times
PERFORMANCE
We will ensure that the asset PERFORMS first and foremost so that we can achieve or exceed our projections, helping us maintain high investor satisfaction at all times
GET TO KNOW OUR TEAM
Exceptional People. Extraordinary Results.
CHRIS BEDNARZ
Co-Founder/CEO & Project Manager
Chris has successfully invested in real estate since 2006. After liquidating his 5000 acre cotton farming operation in 2017, he and his wife Keri co-founded REI Capital Ventures. Chris has a talent for ensuring that projects are completed on schedule and under budget. When he's not at the negotiation table he loves to get dirty. If he's not spending time with his wife and five children, you can often find him demoing a commercial property or roofing a residential flip.
WHY MULTIFAMILY?
SYNDICATION
Over 90% of multifamily purchases are made through a syndication. A syndication allows you to take advantage of the experience and financial strength of the sponsor and to aggregate capital among other investors to invest in otherwise unobtainable, high-value apartments with high returns.
TAX ADVANTAGES
We do not serve as tax strategists. Please consult your CPA for specific benefits of these investment types. Our real estate investments would generally have the primary added tax value of depreciation.
CASH DISTRIBUTIONS
Depending on the level of the value-add component of the asset, most properties will produce a cash yield from the beginning. In some cases where the value-add component is a high vacancy rate, the strategy may require investors to accept more risk with little or no dividends in the beginning in exchange for a larger return later.
RISK REDUCTION
By investing with other investors through a syndicator with a proven track record, investment risk is dispersed among all the investors. A syndication allows you to adjust your investment to a more comfortable risk level.
PRINCIPAL PAYDOWN
Through the life cycle of the syndication, rental income from the property pays all debt service. Upon sale of the property principal reductions will be returned to investors.
ECONOMIES OF SCALE
Single family properties or small multifamily properties do not have sufficient revenue to hire full time staff. Because of this, owners are typically required to handle all day to day operations of the property. With a multifamily syndication, revenue is sufficient to hire full time staff to operate the property with oversight and direction from the syndicator.
CAPITAL APPRECIATION
Unlike single family homes, a multifamily apartment syndication is a business that is valued primarily by its Net Operating Income (NOI), not by property comps. Through physical and operational improvements, you can increase the value of the property by increasing NOI. All of the properties we pursue have a value-add component which provides an opportunity to capture appreciation through capital improvements or through streamlining known operational inefficiencies with current owners.
ASSET PROTECTION
Each syndication purchases the multifamily asset through a limited liability company (LLC). An LLC provides its members with certain personal legal protections against lawsuits and personal financial liability. Consult with your attorney for specific advice on the benefits of investing through a syndication.
STRATEGY & FOCUS
REI Capital Ventures targets opportunities that offer value creation through new construction and existing assets that have and value-add component with consistent cash flow and identifiable long term financial upside. We strategically select opportunities throughout Texas. With a strong market for healthcare, technology, energy, healthy employment rates, and increased housing demand, the Texas economy has consistently grown faster than the nation as a whole. While experiencing record growth, the region’s economy is also well diversified and offers relatively low business costs and an attractive quality of life, making the multifamily housing market a desirable and lucrative investment. Commercial multifamily real estate has proven to be an asset class that provides superior risk adjusted
returns while minimizing risk.
CLASS A MULTIFAMILY DEVELOPMENT
REI Capital Ventures focuses on Multifamily real estate developments utilizing HUD 221 (d)(4) debt financing leveraging our HUD Sponsor approval. Our ability to partner with strong sponsors and developers and implement creative and flexible partnership structures allows us the opportunity to participate in high-quality projects across the region. These premium quality developments are positioned in strategic locations that have a high demand for residence and typically provide our investors the strongest returns during a three to seven year hold period. Target returns to our investors are 17%-22% IRR’s or a 2X multiple by year five.
CLASS B TO C+ STABILIZED & CASH FLOWING VALUE-ADD MULTIFAMILY
REI Capital Ventures also seeks high-quality Class B to C+ assets that are located in active markets with projected employment growth and offer opportunistic upside through improved management or minor capital improvements. Our local capital source and our ability to be creative, speedy, and flexible in our process with sellers gives us a competitive advantage to secure assets. Our strategy includes incorporating better-leveraged debt through a HUD 223 (f) acquisition or refinance, improved operations, and investor participation in tax strategies not typically captured in other investment vehicles.
CO-DEVELOPERS & SPONSORS
REI Captial Ventures main business plan focuses on multifamily real estate leveraging 221 (d)(4) HUD insured loans for ground up construction and 223 (f) loans for acquisition and repositioning. REI Capital Ventures can bring the capital needed to co-develop and/or co-sponsor with developers and operators with a proven track record for development, redevelopment, and operations.
COMMON QUESTIONS
HOW DO I KNOW IF I AM A SOPHISTICATED INVESTOR OR AN ACCREDITED INVESTOR?
Generally speaking, sophisticated investors must have sufficient knowledge and experience in financial and business matters to make them capable of evaluating the merits and risks of the prospective investment. To qualify as an accredited investor, at a minimum you must have earned income that exceeded $200,000 (or $300,000 together with a spouse) in each of the prior two years, and reasonably expects the same for the current year or has a net worth over $1 million, either alone or together with a spouse (excluding the value of the person’s primary residence). Reference the SEC guidelines at https://www.sec.gov/answers/rule506.htm for a more detailed description. To find out if you are qualified under this definition, contact us.
DOES THE DEAL SPONSOR/SYNDICATOR INVEST FUNDS IN THE PROPERTY WITH THE INVESTORS?
Yes. We believe in all of our offerings and invest along side our investors in each syndication.
WHAT IS A TYPICAL MINIMUM INVESTMENT AMOUNT?
The minimum investment amount ranges from $50,000 to $100,000+ for each syndication.
HOW OFTEN DO YOU MAKE DISTRIBUTIONS?
Quarterly distributions is the standard, however, each syndication is a businesses with varying distribution amounts based on the performance of the property. Each syndication has a specific strategy based on the specific value-add components of the asset.
CAN I INVEST THROUGH MY ENTITY (LLC, CORPORATION, PARTNERSHIP, ETC.)?
Yes. You can invest through an entity as long as the members meet the SEC investor requirements.
CAN I USE MY IRA OR 401(K) TO INVEST?
Yes, you can use your self-directed IRA (SDIRA) or you can convert an existing IRA or old 401(k) to a SDIRA to invest in our syndications. Contact your CPA to learn the details. Quest IRA is a popular IRA custodian among investors. Be sure to shop around to find the best service and fees for their custodial services.
WHAT ARE THE TYPICAL RETURNS FOR INVESTORS?
There are three main types of returns from real estate; cash flow, principal pay-down, and appreciation. These returns will vary from property to property, so, please, contact us for more specific information regarding total returns.
