Leverage magnifies results in both directions. At Leader, we size debt to each property’s business plan, budget for carrying costs before income is stabilized, and hold cash reserves so we are not forced to act at the wrong time.
Leader manages every property day to day, so your ownership can be fully passive. You receive regular financial reporting, an annual investor meeting, and access to property documents through the Leaders Library, unlike a mutual fund or REIT with an unknown pool of properties, tenants or markets.
1 When we put money to work—yours and ours—our preference is to invest in multi-tenant properties located in desirable areas, with the features and sizing that have historically produced consistently successful results.
2 We size debt to each property’s business plan. Stabilized properties target long-term loan-to-value of about 70% or less. A value-add acquisition may use short-term bridge financing that is refinanced once income is stabilized. Each offering discloses its debt terms, its reserves, and how carrying costs are funded until then.
3 Our strategy going in is aimed at maintaining the cash flow necessary to make the best decisions for the partnership, rather than being forced to act—or react—at inopportune times. Operating in this way, we can adjust tenancies where needed, increase rental rates as appropriate, and continually work to facilitate asset appreciation over time.
4 We generally focus on properties where the prospect of vacancies is low, but we also consider opportunities where vacancies exist, or are anticipated. In those cases, we will have a known budget in place to fill the vacancy.
5 Our targeted deal size for each property is $4-10 million, though some properties will potentially be considered for select commercial real estate opportunities with price tags up to $40 million.
Continue to