Posted by Bobek Realty on Mar 18th, 2013
Caldwell Holdings owner, Josh Caldwell, raises $50 million in equity to invest in multi-family properties in Florida, Tennessee, Alabama, Georgia, and the Carolinas.
Despite austere times, Josh Caldwell of Caldwell Holdings, LLC has managed to find $50 million in equity money to fund his company’s latest project: The purchase of commercial multi-family real estate.
The organization is a real estate investing group located in Pittsburgh, PA and Mr. Caldwell believes that the time is ripe to expand into this market because of important economic factors which we briefly outline below.
- The weak economy actually promotes this opportunity because there are no other multi-family projects on the horizon as the 2008 market crash has sapped the finances of companies that would participate. Additionally, many established multi-family properties are now in receivership and banks are extremely keen to remove assets that are not performing from their portfolio. Strong investors such as Caldwell Holdings are in the perfect position to take advantage due to this lack of competition and relative weakness of rivals.
- Riskier investments are performing abysmally with banks giving less than 1% on deposit accounts. Add in the dire performance of stock market funds which are riskier and less rewarding than real estate and you have investors eager to plunge into a market that is safer and gives a better level of performance. This explains how Caldwell managed to get $50 million in private equity.
- Most of the money comes from private citizens’ retirement funds and they favor the easy transitioning of their money from stocks to real estate. Caldwell Holdings can offer a higher return on investment than virtually all competing investment types at a lower cost.
Now that the cash is in the pot, Caldwell Holdings are responsible for finding the best deals in a marketplace that is not easy to conquer. However, the company has used their experience and skill to create extremely specific criteria which massively narrows down the field. Here is a quick insight into the Caldwell strategy:
- All properties must be 50 units or greater in size.
- There is no upper size limit.
- Only properties in South Carolina, Florida, Tennessee, Alabama, Georgia and North Carolina will be considered.
- The ideal location is a metropolitan area.
- Each property must have a problem that can be solved (High vacancy rate, rents below market average, deferred maintenance, extra land that can be sold or used to create more units).
- Most properties will be owned by the banks or else the mortgage will be in default.
- The majority of properties will not be well advertised.
Overall, Caldwell Holdings aim to find a number of high yield investments and ensure that investors have made the right decision by funding the project. If you have a property that fits the above criteria, get in touch with Caldwell Holdings for a deal that will benefit all parties.
Image license: iStockphoto (view source)
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