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AFI's cradle-to-grave acquisitions program partners with well-capitalized Property Owners. AFI's acquisition team handles the majority of work involved in acquiring new apartment complexes, including deal sourcing, underwriting, site inspections, contract negotiations, financing analysis, and due diligence. AFI leverages its geographical footprint and relationships to identify opportunities through various channels aligned with client criteria. Property Owner partners focus on creating ownership structures, raising equity, and placing debt.
Acquisitions Consulting
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The Acquisitions Process
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Leverages AFI’s geographical footprint and 35+ years of relationships to identify and source acquisition opportunities through on-market, off-market direct to investor, small regional brokerages, REO, and more.
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AFI's 17-page Financial Analysis Summary evaluates a property's potential with demographic data, rent comparisons, submarket analysis, and crime risk index. It includes a 7-year expense-to-income proforma and a detailed 48-month model for informed investment decisions.
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Projects that meet investment criteria and are “Certified” for investor review.
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One investor is selected per acquisition opportunity.
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AFI hosts an initial opportunity call to review the investment opportunity with the investor. Investor gives a YES or NO.
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AFI's Comprehensive Site Visit thoroughly evaluates a property, covering staff interviews, operational metrics, marketing efforts, demographic and market analysis, and a detailed physical inspection. This service provides valuable insights into occupancy rates, delinquency levels, online presence, and property condition, equipping investors with essential information for informed multifamily investment decisions.
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AFI and the investor collaborate to determine pricing and negotiate transaction.
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AFI coordinates specialized contractors for a thorough property inspection, review financial records to optimize revenue and reduce expenses, and evaluate management practices and market trends to ensure quality and long-term viability. AFI's comprehensive due diligence process informs a strategic investment plan to maximize asset performance and success.
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AFI charges a 2% consulting fee at successful closings.
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The Waterfall
After the Property Owner has realized an annual 10% return on their equity, AFI shares in an 80(Investors)/20(AFI) waterfall structure in excess of this threshold. The waterfall distribution is implemented only after the Owner has achieved the 10% return.
Example: If an Owner invests $10 million in a property, the first $1 million in profit per year goes directly to the Owner. Any annual earnings exceeding $1 million would then be split 80% to the Owner and 20% to AFI
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FAQs
I'm interested in acquiring multifamily properties. What services does your acquisitions team provide?
AFI's acquisitions team offers comprehensive support for acquiring multifamily properties nationwide. Our services include sourcing deals, conducting detailed underwriting and due diligence, negotiating contracts, arranging financing, overseeing closings, and developing comprehensive business plans.
I want extensive coverage and sourcing. How do you identify attractive investment opportunities?
AFI utilizes robust data mining and analysis to uncover multifamily acquisition opportunities across the country that align with our clients' specific investment criteria. Our team efficiently evaluates a high volume of deals, focusing on those with the best risk-adjusted return profiles.
I want an experienced multifamily acquisitions partner. What experience does your team have?
AFI, LLC has over 35 years of experience acquiring multifamily assets nationwide for a diverse range of investment clients. We have developed proven systems and a comprehensive underwriting platform to ensure predictable, repeatable execution.
I'm looking to invest in value-add multifamily opportunities. How does your team identify properties with upside potential?
AFI's acquisitions team specializes in underwriting and executing value-add business plans for multifamily properties. We leverage advanced analytics to identify assets with operational upside achievable through renovations, repositioning, improved management efficiencies, and other value-creation strategies. Our rigorous underwriting process models the execution risk and return potential of each value-add opportunity to align with our clients' investment criteria.
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