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HOW IT WORKS

Get started by joining the McKenna Capital Investor Club.

LET'S CHAT

We look forward to getting to know you and helping you discover whether passive real estate investing is right for you.

INVEST

We'll share passive investment opportunities with you, and if you decide to invest, we'll help you through it, step by step.

SIT BACK

Once you invest, you can sit back and relax. You'll then receive ongoing updates and cash flow.

INVESTORS MAKE MONEY 4 WAYS

CA$HFLOW

from operations

Positive cash flow from rental income is typically distributed to investors quarterly and in lump sum payouts at disposition and/or refinancing.

APPRECIATION

from capital & operational improvements

Unlike single family homes, a multifamily apartment syndication is a business valued primarily by its Net Operating Income (NOI), not property comps. Through physical and operational improvements, you can increase the value of the property by increasing NOI. 

AMORTIZATION

to build equity

Revenue from regular operations & rental income pays down the debt on the property, which in turn builds equity for investors.

DEPRECIATION

& other tax benefits

Investors benefit from tax benefits such as accelerated depreciation and cost segregation, possible 1031 exchanges into new projects and tax free return of initial equity.

INVESTMENT APPROACH

We focus on value-add 
 multifamily, self storage and manufactured home park opportunities 

We invest in the path of progress with strong growth indicators

We diversify across recession-resilient niches which perform well in all market cycles

Invest with experienced syndicators that have proven track record of success

WHY VALUE-ADD REAL ESTATE?

It's Non-Speculative and Consistent

VALUE-ADD

  • Improving Income-Producing B and C Class

  • 40% of return from Income / 60% from Sale

  • Highest Level of Cash Flow and Flexibility


DEVELOPMENT

  • Building new or salvaging D Class properties

  • 10% of return from Income / 90% from Sale

  • Most Speculative


CORE/CORE PLUS

  • Holding A Class Units with Stabilized Income

  • 70% of return from Income / 30% from Sale

  • Least Flexible

McKenna Capital: Why Value-Add Real Estate?

WHY CLASS B & C PROPERTIES?

Macroeconomic Resiliency.

Class A

New Construction or recently remodeled
Top amenities
High-income tenants
Great location
Little or no deferred maintenance issues

Class B

Class C

Lowest Vacancy Rates
Older properties or not recently remodeled
Few or no added amenities
Middle-income tenants
 
"Value-Add" investment opportunity
Some deferred maintenance issues, but generally well-maintained
Older properties or desperately-in-need-of-remodeling
Needs infrastructure improvement
Lower-Income Tenants
Longer vacancies
Less desirable locations

ECONOMIC DOWNTURN

ECONOMIC BOOM

During a recession, Class A renters move to Class B. During economic boom, Class C move to Class B.

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