Tucson Multi-Family
Investment Group
Residential Income Investments in Southern Arizona
Residential Income Investments in Southern Arizona
The name, “Tucson Multi-Family Investment Group,” is an intentional double-entendre. Not only does it describe the type of properties we focus on, but it reflects our commitment as a real estate syndicator. Traditionally, investment properties were owned by the wealthy. Our goal is to make the financial benefits of income property ownership available to investors of all means. Offering low minimum investments and above average returns, TMFIG makes residential income property ownership easily accessible and provides a solid base of security. We do work with wealthy clients as single investors as well but we want you to know that our door is open to all.
Each joint venture opportunity we offer clearly outlines exactly where the property stands with regard to current cash flow, physical condition, current occupancy, rate of return and how long we expect to be invested in that property. In most cases, we only buy properties that already have a strong positive cash flow and we expect to own it for a very long time. As a joint venture investor, you can expect to receive a great rate of return for a long time as well.
We offer our joint venture partners what we call “Preferred Distributions.” Quite simply, this means you get paid your portion of the profits first. If for some reason there is a significant drop in the occupancy rate or a large unexpected expense, any profits go first to the joint venture investors, and then to us. We can’t guarantee that there will always be enough to pay you the “Preferred Rate” in your contract. But because we don’t charge a management fee before distributions, you can rest assured that we will do everything possible to make it happen, because we don’t make our money until after you do. As total rents rise with inflation, so will your return. After you get your "Preferred Distribution" and we get our fixed rate, additional cash flow is distributed based on each party's membership percentage.
So take a look at what we have to offer. Review the financial information in detail. Run it past your financial adviser, accountant or legal counsel. Call or email us with your questions. We are here to make this a true “win” for everyone involved.
OUR BUYING STRATEGY
We look for properties that meet these criteria.
Strong current cash flow: It is not part of our strategy to “buy on the come.” In other words, if it’s not already making money as it is, we will not take the risk that it will make money if we raise the rents, make significant improvements to the condition, spend a lot of money on advertising to increase occupancy, etc.
Good Condition: The property is already in generally good operational condition and we can expect not to make significant repairs or capital improvements in excess of $20,000 in the next few years.
Location: Located in a generally safe neighborhood within the metro-Tucson community. We look for housing that is aimed at lower-middle- to middle-income families. Affordable housing is a key component of our philosophy as well as our financial strategy.
Configuration. They will usually have 8-24 units. We generally avoid properties with a pool to limit liability. We look for on-site laundry facilities.
OUR OPERATING STRATEGY
Our properties will be maintained in a safe and modestly decorous manner. We don’t buy in “slums” and there will be no “slum lord” management under our stewardship. Exploitation is not an acceptable component of our philosophy or operating strategy.
The property will be managed by a well-respected, professional management personnel who understand our standards for respect and their accountability both to us and to our tenants.
Most of the complexes we buy will be held for an extended period of time without a set exit strategy, or plan to sell.
RICHARD WM. SAILORS - CEO
Rick started his career as a school teacher. He went on to become a school district administrator and a dean-level administrator at a public university. Moving away from education he was a Regional Manager of a insurance and securities firm supervising almost 30 agents in Phoenix, Casa Grande and Tucson, Arizona.
He later became the General Manager of KSMQ-TV in Minnesota and then WEIU-TV in Illinois. Most recently, Rick raised capital and oversaw every aspect of creating an innovative alternative energy project in Utah. This plant recycles waste tires into fuel oil, recyclable steel and other value-added energy products. Rick has also consulted for other alternative energy projects in the States and overseas.
After a couple of decades away, Rick has returned to Tucson to be close to parents, and even better yet, grandkids! He now focuses his attention on developing cooperative projects that allow everyday investors the opportunity to participate in real estate investments getting returns that have traditionally only been available to the “Big Guys.” Rick started managing rental property in 1989 and has raised over $5 million since then.
Rick and his wife both graduated from the University of Arizona, have six children, three grandchildren and have been married for over 35 years.
What is real estate syndication?
It simply means that a group of investors have pooled their money together to make money on a piece of real estate.
What is crowd-funding?
It is the same as syndication, just a newer, more “hip” phrase.
What does “Preferred Distributions” mean?
It means that you get paid before we do. When the money is ready to distribute, as a cash investor, you and your fellow cash investors get 100% of it until you have all reached the “Preferred Return” stipulated in your investment agreement. Since we don’t make money until after that point, it is important to us to do everything possible to make sure the investment is successful.
Is my rate guaranteed?
No. As explained above, we will do everything possible to generate the return we have stipulated in your contract because we don’t make money until you do. We don’t charge a management fee that comes off the top either. There may be something that causes a significant drop in occupancy or a significant expense could arise. This may temporarily disrupt the amount of cash available for distributions. We will make every effort to get everything back on track as soon as possible.
Can I sell my investment or give it to someone else?
We do not put any restrictions on transferring your investment to others. However, some investment structures may have regulatory restrictions that might affect the transferability of a particular holding. Any such restrictions are spelled out in the offering. There is a simple, legal solution that can make your investment available to sell or transfer at any time. Just ask us if you have a concern. It is always a good idea to have your agreement reviewed by your legal and/or tax adviser(s).
What is so important about shared depreciation?
The government allows investors to deduct expenses of a business. All but one deductible expense are paid by the LLC before calculating the amount of cash to distribute to investors. This one expense is depreciation. You will be able to reduce the amount of your taxable income from the property by using your share of the depreciation.
How do you make your money?
We find investments with a very strong cash flow, one that potentially offers something more than the “Preferred Rate” we offer you. We do everything we can to make every property successful since we don't get paid until after the cash investors receive their "Preferred Rate". The more successful it is, the more likely we are to make our fixed rate and there is usually even more distributions that will be split among all parties based on the terms in the agreement
Is there more to my investment than just the annual cash flow?
There certainly is. Income producing properties are valued on how much net income they produce. So the harder we work to get you your “Preferred Rate” and income for us, the more valuable the property becomes to us all. If and when the time comes to sell, everyone will share in the profits.
What is your plan for selling the property?
For each property, we clearly state the investment strategy behind the investment. Some are intended to be short-term investments. We will buy a property, fix it up, get it full of tenants and then sell it at a higher value. Most of our properties are “buy and hold” projects. We don’t intend to sell them for many years to come. If we do sell a property, you share in the outcome. You will receive your ownership percentage of the net proceeds of the sale.
What if I want to sell my investment?
When you go to sell your investment, its value is determined by how much money it returns each year. We make no guarantees as to what that value will be. We will provide you will all the financial information you or your representative need to determine a reasonable value. We will also announce your sale to other investors if you want us to. We do not act as a broker or charge any fees. We simply help investors communicate with each other. It is also important that you structure the investment appropriately in the beginning.
+1 520-954-0204
rwsreig@gmail.com
Tucson, AZ
for Passive Real Estate Investing
In Real Estate Through Crowdfunding
Why Cash Flow is King
(crowdfunding)