{"id":1190,"date":"2021-04-21T07:05:45","date_gmt":"2021-04-21T07:05:45","guid":{"rendered":"https:\/\/gammaincome.com\/old\/?page_id=1190"},"modified":"2023-10-15T08:34:22","modified_gmt":"2023-10-15T12:34:22","slug":"our-process","status":"publish","type":"page","link":"https:\/\/gammaincome.com\/old\/our-process\/","title":{"rendered":"Our Process"},"content":{"rendered":"\n\n  <div class=\"banner has-hover has-parallax\" id=\"banner-1148735275\">\n          <div class=\"banner-inner fill\">\n        <div class=\"banner-bg fill\" data-parallax=\"-6\" data-parallax-container=\".banner\" data-parallax-background>\n            <img loading=\"lazy\" decoding=\"async\" width=\"640\" height=\"427\" src=\"https:\/\/gammaincome.com\/old\/wp-content\/uploads\/2021\/04\/headway-5QgIuuBxKwM-unsplash.jpg\" class=\"bg attachment-large size-large\" alt=\"\" \/>                        <div class=\"overlay\"><\/div>            \n                    <\/div>\n\t\t\n        <div class=\"banner-layers container\">\n            <div class=\"fill banner-link\"><\/div>            \n\n   <div id=\"text-box-1048039023\" class=\"text-box banner-layer x50 md-x50 lg-x50 y50 md-y50 lg-y50 res-text\">\n                                <div class=\"text-box-content text dark\">\n              \n              <div class=\"text-inner text-center\">\n                  \n\n<h1 class=\"alt-font\"><span style=\"font-size: 150%; color: #ffffff;\">Our Process<\/span><\/h1>\n\n              <\/div>\n           <\/div>\n                            \n<style>\n#text-box-1048039023 {\n  width: 60%;\n}\n#text-box-1048039023 .text-box-content {\n  font-size: 100%;\n}\n<\/style>\n    <\/div>\n \n\n        <\/div>\n      <\/div>\n\n            \n<style>\n#banner-1148735275 {\n  padding-top: 350px;\n}\n#banner-1148735275 .overlay {\n  background-color: rgba(0, 0, 0, 0.63);\n}\n#banner-1148735275 .banner-bg img {\n  object-position: 61% 72%;\n}\n<\/style>\n  <\/div>\n\n\n\n\t<section class=\"section\" id=\"section_1421630535\">\n\t\t<div class=\"section-bg fill\" >\n\t\t\t\t\t\t\t\t\t\n\t\t\t\n\n\t\t<\/div>\n\n\t\t\n\n\t\t<div class=\"section-content relative\">\n\t\t\t\n\n<div class=\"row align-center\"  id=\"row-1039405577\">\n\n\n\t<div id=\"col-714310488\" class=\"col medium-10 small-12 large-10\"  >\n\t\t\t\t<div class=\"col-inner\"  >\n\t\t\t\n\t\t\t\n\n<h4><span style=\"font-size: 150%;\"><strong>Our 12 Step Process for scoring partners:<\/strong><\/span><\/h4>\n<p><span style=\"font-size: 105%;\">There are over 4,000 private placement partners in the United States, and no constant aggregator of management teams and the businesses they excel in. We have an internal system for scoring, rating and constantly managing our managers. Doing what you say you are going to do is a huge influence in our decision to implement a management team. We will not go into the weightings of our scoring, but here are a few key factors for you to keep in mind when choosing a 506b or 506c operator. We use the dad joke acronym of T-R-A-D-E-D and F-L-I-P-P-D :<\/span><\/p>\n<ol>\n<li>Track Record \u2013 We are looking for teams that have historic results of at least 10 projects. When the management team first projected the opportunity and return expectation- did they under promise and overdeliver?\u00a0 Did their time frame come in line?<\/li>\n<li>Demographics of the Deal \u2013 We believe that the wheelhouse is essentially 50-200 units, in B- to B+ neighborhoods in growing cities in the Southeast and Southwest part of the country are ideal. Management teams can make money in all markets, but we prefer the wind at the sails in markets that have multi-year trends or rising population and incomes gradually rising.\u00a0 Taxes and landlord-friendly states continue to add higher scores.<\/li>\n<li>Diamonds in the Rough \u2013 Does this manager have a track record of creative wins? Whether it be financing terms, speed of a construction flip, ability to add more units or ability to notice a demographic shift and propel investment returns.\u00a0 Is there an x-factor with this group? Many people assume off-market deals are the only way to differentiate yourself in the space, but really every asset owner is well-versed in these opportunities. \u00a0Do these General Partners really try to maximize every ounce of an opportunity for the highest Internal Rate of Return.\u00a0 Not holding forever, but also not leaving 20% of the income max be left off the table.<\/li>\n<li>Fees and Commissions \u2013 There are many fees that could be overlooked, we properly identify and aggregate to ensure there are not excess fees that tilt the beneficiary of the investment. We prefer 8% fixed, with 70\/30 splits up to 15% IRR, above 15% we see 50\/50 splits commonly.\u00a0 We do not want to see excess acquisition fees, property management fees, refinancing fees, sales fees or asset management fees.\u00a0 We understand the industry averages for these and for companies looking to grow their investor pool, we expect those fee structures to be slightly in the favor of the Limited Partner- and definitely nothing in excess<\/li>\n<li>Annual Revenue of General Partner- We are actively looking for new managers that will benefit from capital infusion. The larger the GP business, the more profits they inherently share for themselves and less available to Limited Partners (YOU!) .\u00a0 We want the business to want and need capital from placement holders.\u00a0 We want the splits to be very beneficial to the LP, while incentivizing the General Partner to enhance their rate of return.\u00a0 Sometimes called waterfalls and\/or splits.<\/li>\n<li>Project Managers Money In The Deal \u2013 Are they implementing investors capital only or are they investing their personal capital in addition to their GP capital. If yes, how many owners and team members and what is the percentage of the typical deal invested by in-house management.<\/li>\n<li>Leadership- Same management teams, same players in the company, same construction team and property managers. If there is a major difference, are they transparent to disclose that information?\u00a0 Are they accurately accessing the risk of changes within the management teams.\u00a0 Who is responsible for which duties?<\/li>\n<li>Investor Communication \u2013 Are there materials to read, research and do due diligence. Are there web conferences and one-on-one meetings set up if necessary.\u00a0 How are the communication methods with the share holder leading up to the purchase of the asset.\u00a0 Throughout the process monthly or quarterly, how transparent are these managers with problems, updates, expected distributions, taxes and any irregularities.<\/li>\n<li>Experts in the Field- Knowing what is in your backyard is critical. The managers that specialize in a few key areas and know it inside and out really benefit from a level of unknown unknowns, meaning that there can or could be permit problems or town legal issues or preferred construction managers in a municipality.\u00a0 The more well known a manager is in a community or state, the better the results are for all the partners.<\/li>\n<li>Raising Capital- Accredited and Non-Accredited Investors \u2013 Does the GP have a process for both Accredited and Non-Accredited Investors to invest. At this stage we are looking for $50,000 as a minimum investment with our General Partners.\u00a0 We continually access and will where GPs assets are coming from, whether it be institutions, family offices, businesses or accredited investors.\u00a0 We like to see a diversified basket.<\/li>\n<li>Deal Flow- How often are these managers working on a new project? We are looking at the teams and making sure that they have the asset managers and the correct amount of people for the deal flow they are executing.\u00a0 We also want to work with managers that are not purchasing assets for the flow of their business, but for the investment opportunities that are currently available.<\/li>\n<li>Protecting our LPs-\u00a0 Private Placements can have some level of liability.\u00a0 We want to ensure the General Partner and the people allocating their liability are well capitalized.\u00a0 We do not want there to be a risk that is unforeseen.\u00a0 Furthermore, we are adding scoring points to stronger, better-capitalized members to ensure that level of protection for our end stakeholders.<\/li>\n<\/ol>\n\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\n\t\n\n<\/div>\n\n\t\t<\/div>\n\n\t\t\n<style>\n#section_1421630535 {\n  padding-top: 30px;\n  padding-bottom: 30px;\n}\n<\/style>\n\t<\/section>\n\t\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"page-blank.php","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"class_list":["post-1190","page","type-page","status-publish","hentry"],"ams_acf":[],"_links":{"self":[{"href":"https:\/\/gammaincome.com\/old\/wp-json\/wp\/v2\/pages\/1190","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/gammaincome.com\/old\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/gammaincome.com\/old\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/gammaincome.com\/old\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/gammaincome.com\/old\/wp-json\/wp\/v2\/comments?post=1190"}],"version-history":[{"count":5,"href":"https:\/\/gammaincome.com\/old\/wp-json\/wp\/v2\/pages\/1190\/revisions"}],"predecessor-version":[{"id":2092,"href":"https:\/\/gammaincome.com\/old\/wp-json\/wp\/v2\/pages\/1190\/revisions\/2092"}],"wp:attachment":[{"href":"https:\/\/gammaincome.com\/old\/wp-json\/wp\/v2\/media?parent=1190"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}