Gary Smith
New York, NY (USA)
Role(s):
C-Level Executive (CEO, CFO, etc.)
Real Estate Properties and Home Financing Corporation
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Startup
Location:
New York
Industry:
Real Estate
Year Founded:
2009
Number Employees:
1-10 people
Business Stage:
Growth (not profitable)
Entity Type:
"S" Corporation
Description:
Real Estate Properties and Home Financing Corporation and Real Estate Property Solutions, LLC are operated and managed by Gary P. Smith, P.E. a licensed Professional Engineer with over 22 years of experience managing multi-million and multi-billion dollar operations, construction, projects and programs. Mr. Smith is operating his two companies under a three phase business plan.
The 1st phase is to acquire real estate properties at purchase prices that minimally are at least 35% below After Repair Value. The initial properties that are targeted for acquisition generally need no to little repair work (general painting, carpeting/flooring, minor space partition modifications etc.) and are in rental markets that minimally will yield 12% to 15% capitalization rate net income. Mr. Smith is currently primarily targeting the metropolitan areas of Philadelphia, Pennsylvania and Wilmington, Delaware to acquire the initial residential properties due to these locales containing tens of thousands of real properties that can be obtained at costs that yield good positive rental income cash flow; in addition to the proximity of these two locales to Mr. Smith's Manhattan, New York residence and Mr. Smith’s parents’ Wilmington, Delaware residence. The first phase primary exit strategy is to profitably resell the acquired real estate to private investors as turnkey investment properties, with tenants and property management in place, for which the private investors will receive net cash on cash returns in the range of 10% to 12%. Secondary 1st phase exit strategies are to hold and rent the acquired properties for very good positive cash flow and to resell the properties to the occupying tenants under lease option purchase agreements.
The 2nd business plan phase is for Mr. Smith's companies to acquire real properties at very discounted prices below After Repair Value that are in need of significant rehabilitation and/or renovation work, for which Mr. Smith will initially provide the construction management and general contracting coordination services. The exit strategy for the 2nd business plan phase is to market the rehabilitated/renovated properties for resell to both investors and homeowners for Mr. Smith and his financial partners to receive minimum targeted 25% cash on cash return on investments.
The 3rd business plan phase is for Mr. Smith and his financial partners to acquire large multi unit residential (apartment) complexes that yield a minimum of 15% net cash on cash returns. To better execute phase 3 Mr. Smith is shortly planning on embarking on acquiring a Real Estate Salespersons license so that he can most fully utilize his extensive training and knowledge in creative real estate financing along with his engineering, construction, operations, project and program management background to acquire and executive manage the property managers' operations of multi-million dollar residential buildings particularly within (but not limited to) Manhattan, New York. The exit strategy for the multi-unit residential buildings acquired will be to hold possession of them for good and steady positive rental income along with equity through natural and forced appreciation.