White Paper
McKee Private Capital, based in Coronado, California, 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.
Visit our Performance History to see our performance metrics.
PARTICIPATION
We invest side by side with our investors on every deal we acquire, aligning our interests with yours throughout the life of the investment.
DUE DILIGENCE
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 property and 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 look back period, and base our forward looking assumptions on conservative underwriting, including establishment of capital reserve funding to ensure that future capital needs are met over the life of the investment.
ACQUISITION
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 5.0% of the purchase price (minimum of $150,000) 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 95% 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.
DEBT FINANCING
Our 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 terms, and are non-recourse, requiring no personal guarantees on the part of our investors. Investors who acquire 25% or greater interest in the investment will be subject to credit qualifying, and will be required to submit the following documents: 3 years Federal tax returns, personal financial statement, and schedule of real estate owned. These are documents that your tax accountant should have readily available. NOTE: We are the sponsor and primary principal on the loan, and will sign all loan documents in connection with the purchase.
ASSET MANAGEMENT
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 equal to $1,500.00 or 2.0% of the property’s Effective Gross Income, payable monthly from property operations.
DISPOSITION
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 disproportionate share of the partnership profits upon sale, but share equally with our investors based upon our percentage of equity participation. There is a 6.0% disposition fee charged to transact the sale, pay outside brokers, wrap up partnership operations and file the final tax returns.
TAXATION
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.