Francis Property Investments

Our Investment Philosophy:
A Template for Success

Housing is a basic need that exists despite market fluctuations. We invest in apartment communities in good locations because they are less vulnerable to market volatility than commercial, retail, office and industrial real estate. Further, Francis Property prefers to take low-leveraged positions (typically placing 30-40% down) as a buffer against real estate cycles, interest rate fluctuations and other market forces (with the additional advantage of securing favorable financing).

Perhaps the most significant difference between our company and other syndicators is that the principals of Francis Property invest their own money in each acquisition, giving added assurance to investors because of a personal stake in the investment.

Using the conservative and responsible principles of sound acquisition, hands-on management and rational decision making, we can deliver the results our investors deserve: capital preservation, asset appreciation, and consistent returns over time.

The Management Difference

All of our properties are managed in-house by Francis Property Management, which enhances each investment property in order to maximize investor equity.

Most syndicators try to get the most out of a property as quickly as possible, often leading to deferred maintenance, minimal capital improvements and the implementation of imprudent policies to boost occupancy. Upon acquisition, Francis Property Management employs meticulous hands-on management strategies to streamline maintenance and reduce wasteful expenditures, ensuring that each repair or improvement enhances the long-term value of the property. Management staff does exhaustive competitive market research to stay ahead of the curve with unit and community enhancements. Additionally, cutting edge marketing and resident retention programs maintain our properties with some of the highest occupancies in their markets. As a result, our investment partners feel a “pride of ownership” in each property.

How We Differ from Syndicators

Typically, a syndicator makes his money through the sale of a property, which, unless "exchanged" into another asset, has the downside of creating a taxable event for investors. Additionally, syndicators generally have short-term (five to seven year) investment horizons, subscribing to a philosophy of "get in, get out."

Through experience, we have found that a long-term hold (15-25 years) produces the optimal return on investment for clients based on the benefits of appreciation and refinancing. By following this model, we maximize all aspects of our investments by holding onto them for longer terms, usually followed by an exchange so our clients avoid capital gains taxes.

Why Our Approach is Unique and Effective

Long-Term Investment Strategy
In comparison with most real estate investment firms, Francis Property retains properties over longer time horizons, typically fifteen years or more, without hefty acquisition and sales fees. Whereas traditional syndicators take a 20-50% promotional interest, Francis Property’s typical acquisition fee is considerably lower and is often based on the equity raised rather than purchase price.

Low-Leveraged Positions
To protect the investments we make in variable real estate cycles and to obtain lower financing rates, we take low-leveraged positions (typically placing 30-40% down).

We Invest Our Own Money
The most significant difference between Francis Property and most other investment firms is that the company’s principals invest their own money in each acquisition.