(480)-382-3933



"Enjoy passive real estate income without the hassle of management"

High yield cash flow centric investments for busy professionals.


Download The Kahuna Trusted Cash Flow Formula...





Download The Kahuna Trusted Cash Flow Formula


Our Approach

Multi-family Real Estate

Facts support our belief that the United States is expected to experience a significant demand for rental units. The recession resulted in an unparalleled shift away from home ownership and toward a strong demand for rentals. Millennial's want more flexibility and do not want to be tied to a house. Babyboomer's are selling their homes and moving to apartments in order to have no maintenance. Additionally, the prior recession significantly hindered and reduced the supply of new housing.

While construction financing has become easier and new supply is on the rise, the pipeline for new construction is expected to lag U.S. population growth over the long term. Kahuna Property Partners and its investors are poised to take advantage of these economic and demographic factors by acquiring premier B and C multi-family properties with stable cash flow and long term appreciation.

Kahuna Property Partners - Multi Family Real Estate Investments

Transaction Size:

Asset Type:

  • B+ to C+ class multi-family properties; Prefer B class in A market and C+ class in B market opportunities. Will review distressed A class deals in markets with 1MM+ populations.

Occupancy:

  • Prefer stabilized properties. Minimum 85% occupancy. Will consider lower occupancy if property is well located and has value-add upside.

Age:

  • Preference is 1978 and newer, but will consider all age properties.

Target Markets:

  • Nationwide growth markets.

Location:

  • B+ to C+ trade areas with strong demographics and economic diversity.

CAP Rate:

  • Min. 7% (based on current financials)

Target Return & Investment Period:

  • 6%- 8% annual cash on cash return (based on current financials)
  • 10%-14% total annual return over investment period
  • 5-7 year hold period (medium to long- term)

General Criteria:

  • Potential high yield income streams.
  • 20% below replacement cost.
  • Cash equity-"All cash" or "Cash to existing debt".
  • Value-add opportunities sought.

Property Criteria:

  • Utilities: Individual metered units preferred.
  • Roofs: Pitched roof construction preferred, but not required.
  • Premier Properties: Stabilized properties with minimal deferred maintenance preferred, but will consider others if well located and possessing a strong, value-add opportunity.

Our Process

Kahuna Property Partner Formula - Multi-family Investments

  1. Kahuna Acquisition Filter ™

    Allows us to thoroughly analyze 95% of all deals in our targeted markets with only 2% - 3% qualifying for further review. This strict filtering process ensures assets that meet our conservative underwriting and focus on cash flow for investors get selected.

  2. Kahuna Due Diligence Audit ™

    When on-site, our team of experts inspect and analyze on site all financials and the physical condition of the property to mitigate potential risks and uncover opportunities for our investors. Only qualified deals move forward.

  3. Kahuna Management Advantage ™

    Our systematic team approach to performance, KPIs and people constantly elevates our communities to highest standards. This ensures predictable investor cash flow and appreciation.

  4. Kahuna Investor Return Maximizer ™

    Utilizes a cash flow centric approach, driving profits to the bottom line, while maintaining the asset. This positions the property for a proper and profitable exit for our investors. With return of equity and profits, our investors are now positioned to take advantage of the next Kahuna acquisition.

Kahuna Property Partners
Asset Management Organization Chart

Kahuna Property Partner Formula - Multi-family Investments


About Us - Our Executive Team

Corey Peterson

Corey Peterson, Managing Partner

As a managing member of Kahuna Property Partners, Corey Peterson strives to provide his investors with stable cash flow returns and long term capital appreciation. Corey has flipped, renovated, converted, acquired and sold over $39 million in real estate across the country. He has also been involved in the ownership and management of more than $31 Million dollars worth of commercial and residential properties nationwide. Corey is the bestselling author of "Why The Rich Get Richer-The Secret to Cash Flowing Apartments", and has spoken at the prestigious, Harvard University. Corey is also the host of the podcast, Multi-Family Apartments Investing Podcast and has been featured on FOX, CBS, ABC, NBC affiliates.

Jack Bosch

Jack Bosch, Managing Partner

Jack Bosch is the second managing member of Kahuna Property Partners. Jack has vast experience in real estate having negotiated, bought, sold, rehabbed, as well as owned and managed over 3,800 properties since 2002. Currently he holds a large portfolio of properties in land, single family, commercial, and large multi-family properties. After completing his Masters degrees in Business Administration, Jack and his wife Michelle, built the 3rd largest land auction company (selling only their own properties) in the United States. They also started a highly successful 7-figure real estate education company focusing on teaching others how to invest in real estate. Jack is also a #1 bestselling author of the financial literacy book "Forever Cash, break the earn-spend cycle, take charge of your life, and build everlasting wealth."

Shelley Peterson

Shelley Peterson MS/RD, Investor Relations

Shelley Peterson focuses on investor relations, acquisitions and asset management of all current portfolio assets. Her primary roles are sourcing investment opportunities and managing investor communications. In addition to finding deals, Shelley is responsible for developing effective communication strategies and vehicles targeted to the investment community that accurately portrays the company's vision, performance and prospects. Shelley graduated from the University of Central Oklahoma with a Masters degree in science. Her strengths include an unmatched ability to quickly connect and communicate effectively to others.

Michelle Bosch

Michelle Bosch, CFO

As a key part of leadership Michelle is responsible for company financials and its financial ability to achieve growth goals, both now and into the ensuring future. Prior to this position, Michelle held positions as COO and CFO for Orbit Investments, LLC and Orbit Publishing, LLC. Together with her husband Jack, they have built multiple 8-figure companies, bought, sold and managed thousands of property transactions across the entire United States. Michelle holds a Masters of International Management from the prestigious Thunderbird International School of Management and a Bachelors of Business in Finance from Western Illinois University.

FAQs

What kind of properties do in you invest in?
We currently solely invest in multi-family apartment buildings, one of the most recession proof segments of the Real Estate Market, particularly with the United States population continuing to grow. Even with the continued advancements in online marketing (particularly Amazon) and "work from home" which threatens the retail and office markets, people will always need to live somewhere. Within this segment, we focus on B+ to C+ class multi-family properties and prefer B class in A markets and C+ class in B markets. We believe this positions us in the segment of the market that is shielded most from the ups and downs in the economic cycles. We will also review distressed A class deals in markets with 1MM+ populations.
What is an Accredited Investor?

To qualify as an accredited investor, a person must demonstrate an annual income of $200,000, or $300,000 for joint income, for the last two years with expectation of earning the same or higher income. An individual must have earned income above the thresholds either alone or with a spouse over the last three years.

Or...

A person is also considered an accredited investor if he has a net worth exceeding $1 million, either individually or jointly with his spouse excluding personal home.

Can I invest even if I am not accredited?
Unfortunately no, you have to be an accredit investor to participate in our deals.
How does Kahuna Property Partners find it's Apartment Deals?
We have relationships with the vast majority of all commercial brokers in the Central and Eastern US, who bring us deals often before they go on the open market. We also occasionally engage in direct marketing campaigns and are constantly building relationships with banks to get access to their REO inventory. Once presented with an opportunity our team then underwrites ever single property to the highest standards and eliminates those that do not qualify at our rigorous standards. As an example last year our team underwrote 726 properties and with only a little over 20 qualifying for our stringent standards.
What will my return on Investment be?

All our investment and Private Placement Memorandums are based on individual properties, and every property is different and will therefore offer different returns. Our current investors are right now realizing between a 6%-8% preferred cash yield annually, and are expected to double this return upon the sale or refinancing of the property for overall investment life cycle returns of 10%-16%.

Our returns consist of three parts:

  1. Preferred Return from Cash Flow:

    Each investment is selected such that it pays an min. average annual preferred return of at least 6% (depending on the individual property deal this could be higher than that) which is paid out quarterly via direct deposit into your bank account or by check. In other words, the investors get paid first before the sponsors get paid anything. This protects you as an investor and makes sure we only pick projects that have strong cash flow outlooks.

  2. Profit Share:

    Upon a Sale or Refinancing of the property it is our goal to return 100% of the initial invested amount to each investor, and then do a 50/50 profit split between sponsors and investors up to the point where investors doubled their annual return from the Cash flow (so if Preferred Return from Cash flow is 7% the profit split is 50/50 until they reached a total "Target Return" of a 14% per year return over the holding period)

  3. Additional participation:

    After the target return (in the above example 14%) is reached the investors continue to participate at additional sale proceeds at 10% of any dollar above this threshold. This ensures everyone involved is focusing one the same thing, "increasing cash flows as much as possible while maintaining the property in great condition, both of which ensures a high forced appreciation of the property".

We don't wait for the market to appreciate, we actively increase property values through world class management, value add, and maintenance.

How much are these properties leveraged?
This is an exciting point. Over a 5-year period it is our goal to have our properties not be more than 50-60% leveraged. While we start out with a 75%-80% leverage based on purchase price, we decrease that ratio rapidly by actively paying down the loan and by forcing appreciation of the property through value add improvements, superior management, and rent increases, leading to a 5-year loan to value ratio of no more than 60%. This conservative approach provides additional buffer from the ups and downs of the real estate market.
How are the Kahuna Property Partners Investments Structured?

Great news. You will be limited liability owner of the property which comes with all the benefits like depreciation and cash flow, meaning the property is owned by a "Property LLC" for which that property is the only asset (reduces liability).

You in turn will be a direct shareholder in this Property LLC so in essence you are part owner of the company that owns the property. This allows for a direct flow-through of cash flow, depreciation, and allows you upon sale of the asset to realize long term capital gains … PLUS, you literally get to tell your friends you "own" an apartment complex, because you do.

Can I invest with my retirement plan?
Yes, investing in Multi-family in a structure like ours is perfect for retirement plan investing because your involvement is by definition passive. All you need to do, if you haven't already, is set up a SELF-DIRECTED IRA with an independent custodian, like www.SpecializedIRAServices.com or www.VantageIRAs.com and once that is done you can invest using your IRA/401K/ROTH-IRA… or several other self-directed retirement account forms. If you have questions about how to do that, please contact us through the Contact US form or call us at 480-382-3933

 

 

"Enjoy passive real estate income without the hassle of management"

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