Investing Expertise

Our Investing Strategy

We at QC Capital utilize our expertise in risk/return analysis to identify the best multifamily investments the market has to offer. Our strategy prioritizes stability which provides the flexibility needed to capitalize on favorable economic and demographic trends with minimal down-side.

Portfolio

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Strategy

Our Main Focuses

Our investment strategy starts with our 3 main focus areas. Our portfolio, direction, and investor strategies must first align with these three strategy based criteria.

Core +

Our Core+ strategy targets newer, and well-positioned stabilized assets with moderate leverage and longer investment periods. Upon acquisition, we look to unlock additional value through focused asset management.

Value Add

Our value add strategy targets undervalued, and often undermanaged assets in strategic locations and uses moderate leverage to increase the property's efficiency through interior/exterior renovations and management restructurings.

Targeted Markets

We are actively expanding our portfolio throughout the United States. Currently our investment focus is in a few key states. Click the invest with us button below to learn more about our market & investment strategy.

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Our Reach

where we purchase properties and & how we select markets in the USA

Rent Growth

The 5 year growth forecast is one of our key indicators. We use a powerful proprietary method to calculate this value.

Employment

We look for metros and submarkets that are adding a significant number of high-paying jobs, resulting in a stable local economy.

Sales Trends

We continuously monitor local sales to compute cap rates and determine whether our cap rates are on target to reach our projections.

Supply & Demand

We monitor supply of local units carefully to ensure it will not spike the vacancy rates and negatively impact rents.

Asset Identification

Our approach begins by identifying assets that possess upside potential located in strategic markets with strong growth fundamentals.

Identify Markets

We start by identifying submarkets that possess strong growth potential. This analysis primarily involves determining projected job growth and population growth as well as identifying supply/demand dynamics, and barriers to entry.

Micro Market Analysis

Once a submarket is selected, we shift our attention to identifying residential pockets with strong demand drivers such as low crime rates, good schools, and access to necessities like hospitals or retail and office centers.

Setting The Criteria

Once a Micro Market is selected. We use external, macro, and micro factors to set our investment criteria. This list of factors includes analyzing metrics from the capital markets like treasury spreads, and debt terms, to metrics from the real estate markets like evictions, renter affordability, and cap rate trends.

Financial Underwriting

Our approach begins by identifying assets that possess upside potential located in strategic markets with strong growth fundamentals.

T-12 Analysis

The Trailing 12, or T12, is a document that contains categorized revenue and expense items for the past 12 months. Our team meticulously analyzes the full trailing 12 of each property which provides a clear picture of the property's performance history.

Rent Roll Analysis

By analyzing the Rent Roll, a document containing valuable information on all current tenants, our team is able to better understand the current situation of the property and where it will be heading in the coming months. This document typically contains tenant specific data such as months at the property, current rent, and other fees owed.

Comparable Analysis

Comparables, or "Comps" are similar properties within a small radius of our subject property, usually our competitors. By analyzing and understanding what our competitors are implementing at their properties, we can outline both the opportunities and limitations of our subject property.

Business Strategy

The last step of this stage is to create our business strategy. By utilizing all of the data received up to this point, our investment committee formulates a plan to create value. Our goal... increase revenue and decrease expenses, all without creating significant execution risk.

Risk Analysis

Once the underwriting process is complete and a strategy is created, we meticulously review our business plan to identify each of the risks associated with the project

Debt Service

Our team diligently analyzes key metrics associated with our debt service assumptions to ensure we are obtaining positive leverage with minimal default risk.

Stress Tests

Finally, our investment committee will run our projections through stress tests which adjust key variables such as vacancy, rent growth, and stabilization time down to extreme levels which allows our team to accurately visualize all downside scenarios. We then review cash flow metrics to ensure the success of our investment isn't tied to one variable. This step is critical and accounts for a majority of the time spent underwriting potential assts. As mentioned before, this analysis allows our team to visualize returns in best case scenarios, worst case scenarios, and everywhere in between.

Return Analysis

Finally, our investment committee uses a list of key metrics to determine the investment's overall return potential. We use this return analysis together with the risk profile created in the previous step to determine the true quality of each investment.

IRR (Internal Rate Of Return)

The Internal Rate of Return (IRR) is a metric used to determine the time adjusted return from our investment. By discounting cash flows received in the future, the IRR metric allows investors to see the quality of their future cash flows compared to other investments.

Cash On Cash

The Cash on Cash metric represents the percentage of a cash flow compared against the capital invested. This metrics excludes any significant capital events such as sales or refinances. A high percentage represents strong cash flows produced from the property which helps mitigate default risk.

Risk Adjusted Return

Finally, QC Capital uses formulas created internally to determine the overall quality of each asset adjusted for risk, and term length. This metric is essential, and is able to provide investors with a much more accurate representation of the investment quality.

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Frequently asked questions

Have questions? Here are some answers that may help. If don't see an answer here give us a call.

How much do I need to get started?

QC Capital requires a minimum investment of $50,000 to get started.

Is real estate an historically safe investment?

Yes, real estate appreciates over time, meaning that even with annual fluctuations, historically your money will grow.

Can anyone invest with QC Capital?

Any individual who meets the $50,000 minimum and has goals that are aligned with QC Capital Group will be considered to join our investor community.

How long will my money be tied up?

QC Capital Group will invest your capital for 4-7 years. At the end of that period, you can choose to either take your profit and exit the investment or you can choose to reinvest again.