OUR SERVICES / FEES / RISKS
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 outsized cash flow opportunities. Visit our Performance History to see our actual results.
Our minimum investment requirement is $50,000 per investor. We invest our own capital into each 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, due diligence, physical inspections, formation of the ownership entity, placement of debt financing, and closing. Our acquisition fee is equal to 4.0% of the asset value ($150,000 minimum) and is built into the initial capital raise. 100% of our fee is 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 96% of the investor capital raise goes directly into the investment. Many institutional real estate offerings charge sales loads as high as 8-10% of the total capital raise.
We secure and guarantee the acquisition financing on behalf of our investors, using conservative levels of debt financing (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.
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
Our asset management fee is calculated based on 2.5% of the property Effective Gross Income after vacancy and credit loss. ($1,500 monthly minimum).
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. 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 and State regulation. Please consult with your professional tax advisor prior to investing.
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.