Strategy
UHCM intends to invest solely in assets that present material “value added” opportunities.
Identifying Potential Assets
The Company will seek to take advantage of the current real estate market to purchase real estate assets demonstrating rental fee income and/or resale value, with an initial focus on the states of New York, New Jersey, Texas, Florida, Illinois and Pennsylvania.
Leverage with mortgage loan
30% down payment, 2x leverage.
Increase return by 2 times.
Buy and Hold
Using the concepts of BRRR (Buy, Rehab, Refinance, Repeat)
Refinance one over rental expenses, 2x of rental income to cover all expenses plus one-month rental income reserve.
Exit Strategy
Liquidating all assets once property values reached it’s peaked
Increase of properties acquisitions when real estate market has crashed
Goal Annual Return: 50%
Leverage – We expect that our projects may incorporate real estate mortgage debt, including:
first lien mortgages
construction loans
acquisition and development loans
The Company may borrow funds in the ordinary course of business at rates and on terms deemed competitive and acceptable.
UHCM seeks only to invest in such projects that have loan-to-cost ratios (“LTC”) no greater than 85%. And believe that leverage represents an important vehicle for maximizing returns, but UHCM will evaluate the appropriate amount of debt based on market conditions, feasibility of the project, and determined risk.
Ultimately, UHCM has the following objectives:
To preserve and protect the Company’s original invested capital
To produce cash flow
To provide the potential for capital gains through appreciation
Stringent DUE DILIGENCE would be performed on all investments decision and asset acquisition. We monitor and keep track through our systems the progress of all pipeline investment opportunities. Every opportunity is sought with the perspective of the ultimate exit strategy and how we go about maximizing the asset’s value of acquired property and increases the return on investment in the future.
Due Diligence on Real Estate property sourcing – UHCM team of experts will thoroughly inspect the fundamentals of the property, the seller and its financial standing, any legal, taxes and compliance obligations to mitigate various risks, reduce financial uncertainties and losses, thus would improved long term perspectives and capital returns for the project and assets.
Operational Due Diligence – UHCM is hands-on on its asset and property management operation. We only hire professionals with extensive experienced in the industry and our approach includes supervision of every part of the management of the project, identifying problems and causes, suggest actions, determine net effect on the asset value and reporting.
Due Diligence on Sales/Property Disposition – UHCM uses a disposition strategy roadmap a contingency tool Exit Plan and reporting which our asset managers utilize to regularly analyze and report on each progress of property’s standing in terms of when is the appropriate market-timed exit, analysis of the current micro and macro market trends, in order ensure maximize returns on investment.
Up High Capital, the manager, seeks to achieve to the best of its abilities the stated objectives. There can be no guarantee the objectives will be met.