Investor Benefits
Benefits
By investing with us, you receive the benefits of real estate ownership, while avoiding the headaches associated with managing the investment. Our investment model requires us to invest alongside our investors, putting our own investment capital at risk. This approach puts us on the same course with our investors, which helps build compatible goals and objectives.
The following benefits, unique to real estate investing, can help you build a comfortable net worth over time. Your goals and objectives are unique. Please consult with your investment and tax advisors prior to making any commitment to invest.
CASH FLOW
Quality real estate purchased with cash and conservative levels of debt, can produce passive monthly cash flow. In today’s low yield environment, real estate remains a top choice for generating income. We strive for yields generally 150-250 basis points (1.5%-2.5%) above our cost of capital. In today’s market environment, this equates to annualized yields in the 6.0%-7.0% range, pre-tax.
APPRECIATION
Real estate is a tangible asset. Over the course of time, real estate assets appreciate in value because the underlying rental income grows with inflation, as does the replacement cost of the improvements.
TAX SHELTER
Real estate enjoys a unique advantage among competing asset classes; depreciation. During the course of ownership, real estate investments are depreciated for tax purposes, providing tax shelter against current rental income, resulting in higher current yields. (Note: Depreciation recapture at the end of the investment will result in additional tax liability.)
LOWER COST
STRUCTURE
Many investors don’t have sufficient capital to purchase an investment property on their own. And unfortunately, smaller properties don’t achieve the economies of scale that can be realized on larger acquisitions. McKee’s acquisitions generally fall in a range of between $5,000,000-$15,000,000. Our minimum investment for accredited investors is $200,000.00.
PROFESSIONAL
MANAGEMENT
McKee professionally manages all of its investments. Through our national management entity, Salus Asset Management, LLC, we hire, train and supervise most of our site staff throughout the U.S. We augment this staffing with third party management entities in certain areas.
RE-LEVERAGING AND
RE-DEPLOYMENT OF
CAPITAL
Acquiring good investments can be challenging in a strong real estate market. When we have an investment that is performing well, it’s hard to let go of it. But loan maturities require us to re-assess our investments every 5-10 years. Sometimes it makes sense to refinance and hold for another term; sometimes it makes better sense to sell, and re-deploy the capital into a newer, larger, or better located asset. We help guide these decisions in an effort to keep your capital invested at the highest rate of return.
DIVERSIFICATION
Through our partnerships, investors may choose to diversify by investing in different geographic regions of the country. We have the footprint and management infrastructure to enable us to enter secondary and tertiary markets unavailable to most investors.
TAX DEFERRAL
Our partnerships are structured to allow you to use 1031 exchange funds to join in one of our investments, and conversely when the investment matures, you may elect to use a 1031 to exchange into a new investment. (NOTE: Partnership structure must be modified to accept and disburse capital into/from 1031 exchange transactions.