The Core Properties Way
Real estate investing through private syndications can be a hit or miss proposition depending upon the capability of the sponsoring company. At Core Properties, we have been on both sides of this relationship. Our principals started as investors in syndications created by others. However, the after-the-fact recognition of the investment risk coupled with the promoter's frequency & method of communication left us unimpressed, uninformed, and generally concerned about the security and performance of our investment.
Ultimately, we thought we could provide a better real estate opportunity through our own syndications. Our goal was to present real estate to the investing public packaged to contain all the criteria we thought important. As a result, we structured Core Properties to offer lower risk real estate, to put the investor's interests ahead of ourselves, and to communicate to the investor in a meaningful and frequent manner. These three guiding principals have framed "The Core Way" of managing our business for the benefit and comfort of our investors.
Risk Adjusted Investment
Investment returns do not exist in a vacuum. Higher returns usually require the assumption of greater risk. Sometimes the relationship between the risk and its reward is unbalanced towards the risk. We are careful and our analysis tends to be sufficiently conservative to frequently create the opposite situation. Our rewards are appropriate while our risk is contained, thus we believe we provide investment returns that are statistically higher on a "risk-adjusted" basis than otherwise available. We call this "value investing" in real estate. See our position paper on "Core Properties Real Estate Selection Strategy".
Placing the Investor First
All of our analysis starts with defining and understanding the risks associated with a particular project. If the property successfully passes through these screens, it is analyzed from the perspective of the needs of the investor. Failure to successfully navigate these screens ends the consideration of the project.
As a result of this strict adherence to our risk profile requirements no project sponsored by Core Properties has ever failed and no investor has ever lost their investment.
The investor has a preferred return in all of Core's projects. This means that the stated return must be distributed before Core can participate in any income distribution.
Communication to Our Investors
We communicate frequently with our investors. We provide a written report on a quarterly basis that includes financials and a dividend check (unless it is a project under construction). The focus of the written report is to advise the investor of project performance along with any anticipated changes in either economics or strategy for the property. The financials provide a quarterly summary of operating performance and cash flow; the check represents the investor's percentage of the distributed cash flow. On an annual basis, each investor receives a k-1 tax return, prepared by an outside CPA.
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