Seattle Area Real Estate Investment Strategy

M&M Ventures is committed to a disciplined approach to commercial real estate investing:

We only acquire multifamily properties with potential to add value through remodeling and renovation or are mis-managed with below market rents or both.

Aquisition

Acquire B/C multifamily value-add properties in growing, path of progress neighborhoods that exhibit strong quality of life factors and generate mid-to-high single digit cash-on-cash returns at time of acquisition.

Renovate & Remodel

Complete cost effective, yet lasting renovations and unit remodels.

Focus on Operational Upside

Raise rents to market rates as units turn over, decrease vacancies through proactive leasing programs and lower operating expenses by upgrading property infrastructure.

Consider Timing

Balance the timing of the renovation work and migration to market rents with city/neighborhood ordinances in place at the time and satisfaction of our residents.

Property Stabilization

Achieve full lease up and property stabilization, usually within 18 to 36 months.

Refinance/Hold or Sell Assets Opportunistically

We evaluate every asset's eventual Hold/Sell decision based on future market supply, competitive factors, current market opportunities to redeploy capital and current tax implications, such as capital gains rates vs. tax free refinancing.

WHY M&M VENTURES

Risk Moderation

Compared to other commercial real estate investments, our multifamily value add approach significantly moderates risk.

1418 2nd Ave W, Lower Queen Anne, Seattle, 98119, WA, United States

CRE Investment Options	Timing & Economic Risk	Construction Cost Risk	Financing Risk	Market Rent Growth Return	Value Add Return
*Multifamily Value Add	*B/C apartment demand is counter-cycle (everyone needs a place to live), multi tenant vs single tenant and positive cash flow at acquisition.	*Renovation construction costs are typically 10% to 50% of new build costs	*Fixed rate acquisition financing based on cash flow at acquisition.	*Rent growth is relatively steady	*Rent growth from renovations AND market rent growth
Multifamily No Value Add	Same - or somewhat less - economic risk as Multifamily Value Add	No construction costs	Same as Value Add	Same as Value Add	Rent growth from market rent growth alone
Multifamily Ground Up Development	Significant economic risk during 5 to 7 year development time and no positive cash flow until lease up.	Significant construction costs.	Interim construction loan with high variable rate and strict covenants & PGs.	No rental income opportunity during development period	Relies on development value for 100% of projects return
Office, Retail, Industrial, Hospitality (Hotels)	Higher economic risks from single tenant property, unemployment, buying habits (Amazon affect) and geo/political shifts (Covid).	No construction costs	Higher interest rate acquisition financing based on higher risk property	Volitile changes in rent due to economic fluctuations	Contractual rent growth that can lead or lag inflation

Our Stringent

Acquisition Criteria

The best way to moderate a deal’s risk and achieve outsized returns is to choose the right deal in the first place. Because of our stringent acquisition parameters, we reject opportunities that don’t meet our high standards based on the following criteria:

1. LOCATION

Up and coming metro, fringe neighborhood locations with significant job and income growth potential.

2. PHYSICAL CONDITION

Dated or poorly maintained properties that can be updated, renovated or repositioned to add value.

3. MANAGEMENT

Mis-managed communities with below market rents.

4. MARKET CONDITIONS

Be patient and seek new value add deals more aggressively during market downturns.

How we succeed:

Our prior property management experience allows our investment team to truly understand the ever changing multifamily real estate business–in real time.

With a background in property management, we understand what most investors don't:

Multifamily local market rental rates & fees
Apartment marketing and lease administration
State and city tenant/landlord laws
Vacancy rates and other operational expense metrics
Accurate cost estimates for remodels, ongoing maintenance and capital reserve requirements.
Consistent and effective communication with our residents

We formed our own in-house Property Management Team in 2019 and managed all of our own properties for two years. We hoped this effort would make us smarter, more savvy investors by understanding the business on a deeper level. And today, we can confidently say this has proven to be true. In March 2021, we decided to focus all of our attention and resources on syndication investments. At that time, we conducted a thorough search and vetting process of the top local area property management firms. InCity Properties rose to the top quickly as we saw that their customer service goals and guiding principles align with M&M Ventures.

As of April 2021, InCity is our chosen partner to manage properties of M&M Ventures. They are experienced and their customer base aligns with our property sizes and locations.

By making this shift we can take all we've learned and focus on putting it into action on the investment side. Our in-house property management experience enables us to be more astute investors. From analysis of new properties, to identifying poorly managed or value-add opportunities, we are moving into the future with confidence that our decisions are backed by a wealth of experience that many investors haven't gained.

Diversification benefit for investors

Diversification is a key component of any investment strategy. From our investor’s perspective, commercial real estate is a key component in diversifying your portfolio of stock and bond investments. Historically, returns on commercial real estate investments are not highly correlated to the volatile swings in the stock market. This is because real estate shares characteristics of both stocks and bonds: real estate generates consistent monthly rental income (like bonds) and yet has significant capital gain potential (like stocks). Furthermore, well located commercial real estate has intrinsic underlying value and will never be worthless, unlike stocks.