STRATEGY
Section 42
RIL APARTMENTS SEEKS TO ACQUIRE, REHABILITATE, AND PRESERVE SECTION 42 HOUSING DEVELOPMENTS WITHIN THE SOUTHEAST REGION.
Market rents and housing costs are becoming increasingly out of reach for large swaths of the population. In major metropolitan areas, lower rent stocks have markedly declined over the past decade with rents continuing to outpace general inflation.
What is Section 42?
Housing tax credit program that benefits developers and investors that dedicate space in their communities to affordable housing. In exchange, they receive a federal tax credit, not government subsidies.
Who is it for?
Specifically for income-qualifying renters who want to live in private market housing.
Rent Dynamics
Rent is set at a rate below the average cost of rental housing in the area (market rate).
Typical Tenant Base?
Municipal workers, teachers, retail employees, entry-level office workers, tradesmen.
INVESTMENT CRITERIA
General
Properties in Section 42 affordable housing program that are stabilized and accompanied with least 12 years of historical financials.
Primary Markets
Primary real estate markets are best known for being the nation’s economic leaders, with large population bases and an oversized contribution to the GDP of the U.S.
Size
100-400 units.
Class
We focus on B-C Class assets with potential for improvement.
Year Build
1980s to 2000s vintage properties.
WHAT GIVES RIL APARTMENTS THE EDGE?
Acquisitions
We are constantly sourcing deals so you have a consistent selection of high-quality investments to choose from.
We have access to premier off-market deals that most groups will never see.
Joining our investor club will give you access to these assets and allow you to tap into our resources.
Rehabilitation
Our business plan is to buy 1980's to early 2000's vintage ¸ 100 to 450 unit B-C CLASS apartments with renovations needed. Our rehabilitation plan is to upgrade the property's exterior and strategically enhance apartment interiors. We also optimize operational efficiencies further boosting yield to our investors while creating outstanding communities for our tenants.
Preservation
Many modern day investors want to convert affordable housing into market rate properties. We want to keep as many properties affordable as possible. There is a huge crisis around housing affordablitity that is aided by not only the development of housing, but the preservation of low income current assests.