OUR MODEL
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 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 out-sized cash flow opportunities. We invest our own capital in every deal that we acquire. This approach puts us on equal footing with our investors, helping to build compatible goals and objectives.
PARTICIPATION
Our minimum investment requirement is $50,000 per investor. Qualified retirement accounts can be used to invest in our partnerships.
DUE DILIGENCE
We are constantly searching for new opportunities that provide our investors with safe, sustainable monthly dividends and long-term capital appreciation. When looking at a new opportunity, we analyze various metrics to ensure that the asset will provide our investors with a safe return over the life of the investment. Part of this process involves the analysis of historical operating history over a minimum three year look back period. We then base our forward looking assumptions on realistic growth targets. Finally, we establish a capital reserve account to ensure that we will have the necessary capital to fund needed capital improvements/repairs over the life of the investment.
ACQUISITION
Once a property has been fully vetted, we handle all aspects of the transaction from negotiation and execution of the Purchase and Sale Agreement, due diligence, physical inspections, formation of the ownership entity, placement of debt financing and insurance, and closing.
DEBT FINANCING
As sponsors, we secure and guarantee the acquisition financing on behalf of our investors using conservative levels of debt (generally 65%-75% of the purchase price). Most of our acquisitions utilize government agency debt (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. 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.
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
- Processing monthly investor distributions, including property updates
- Partnership management and administration
- Annual partnership tax preparation
- Capital markets analysis
- Debt capital financing/refinancing
DISPOSITION
Our investments are generally held for 7-10 years. If you are a long-term investor and can commit your investment funds for this period of time, our investments might be right for you.
TAXATION
Real estate investing involves complex tax issues that are subject to change by Federal and State regulation. Please consult with your professional tax adviser prior to investing.
RISKS
Real estate investing involves risk. These risks are outlined in the subscription documents you will sign to become an investor. Please review these risks carefully, and consult with your legal counsel prior investing.