McKee Private Capital specializes in the acquisition and management of investment real estate throughout the U.S. Through our affiliated companies, McKee Properties and McKee Commercial, we have over three decades of broad based experience in all aspects of real estate operations.
Real estate investing is a complex endeavor, made even more challenging when venturing into new markets in different regions of the country. We travel extensively throughout the U.S. looking for under-appreciated markets, hidden pockets of growth, and outsized cash flow opportunities. Visit our Performance History to see our actual results.
Our minimum investment requirement is $50,000 per investor or entity. We invest side by side with our investors on every deal we acquire, aligning our interests with yours throughout the life of the investment.
We are constantly searching for new opportunities that provide our investors with safe, sustainable monthly dividends and long-term capital appreciation.
Our extensive pre-review process analyzes many demographic factors to help narrow the choices to only those properties with the lowest risk profiles.
We review the historical performance of each investment over a minimum three year lookback period and base our forward looking assumptions on very conservative underwriting, including establishment of capital reserve funding to ensure that future capital needs are met over the life of the investment.
Once a property is selected, we handle all aspects of the transaction from execution of the Purchase and Sale Agreement, through formation of the ownership entity, placement of debt financing, and closing. Our acquisition fee is the greater of $100,000 or 3.0% of Asset Value and is built into the initial capital raise. NOTE: 100% of our fees are generally invested back into the property, along with additional capital depending on deal size and availability of excess investment units. There are no broker-dealer fees, so 97% of the investor capital raise goes directly into the investment. Many institutional real estate offerings charge sales loads as high as 10-12% of the total capital raise.
Our multi-family acquisitions use conservative levels of debt financing (generally 65%-75% of the purchase price). Loans are usually originated through Government Sponsored Entities (GSE’s) including Fannie Mae and Freddie Mac. These loans offer the best rates and terms, and are non-recourse, requiring no personal guarantees on the part of our investors. (Note: on non-residential commercial acquisitions, partial recourse may be required). Investors who acquire 25% or greater interest in the investment will be required to submit the following documentation during underwriting: 3 years’ Federal tax returns, personal financial statement, and schedule of real estate owned. All investors will be subject to credit screening. NOTE: We are the sponsor and primary principal on the loan, and will sign all loan documents in connection with the purchase.
Equity preservation is our most important responsibility. This requires constant vigilance. Our asset management services include:
- Supervision of 3rd party onsite property management
- Construction management of all capital improvements
- Risk management, including annual insurance analyses
- Real estate property tax appeals
- Monthly investor distributions, including property updates
- Partnership management and administration
- Annual partnership tax preparation
- Capital markets analysis
- Debt capital financing/refinancing
Our asset management fee is based on a percentage of the property’s Effective Gross Income, after vacancy and credit loss. This fee is the greater of 2.0% of EGI or $1,000 per month, and is paid monthly from property operations.
Our investments are generally held for 7-10 years. If you believe you cannot commit your investment funds for this period of time, this is probably not the right investment for you. We do not take a preferred share of the partnership profits upon sale, but share equally with our investors based upon our percentage of equity participation. We charge a 6.0% disposition fee to transact the sale. This includes all commissions and marketing costs paid to outside brokers.
Real estate investing involves complex tax issues that are subject to change by Federal regulation. Please consult with your tax and legal counsel prior to committing funds to our investments.