“Success is the maximum utilization of the ability you have.”
- Zig Ziglar
We hope everyone enjoyed the first quarter of 2022. The mood was different one year ago and definitely so two years ago when the pandemic just started. We look forward to what this year continues to bring as we enter hopefully the endemic phase of Covid. The Flite team continues to maximize our experience in real estate, architecture and design, management skills through all project phases, construction experience, and accounting/ finance assessment to bring added value to real estate investments.
Leveraging our backgrounds - 29 units under rehab
We are currently rehabbing 29 units throughout our 8 active properties. We’ve also begun work on the exterior of some of our properties in preparation to hopefully exit this year. K1’s have been issued and utilizing our experience in tax and risk management, we were able to coordinate and maximize deductions for our investors.
The Blackwood Apartments - Acquired March 8, 2022
South Lake Tahoe, CA
Escrow has closed on March 8, 2022 for Blackwood Apartments and the acquisition is complete! This is a 20-unit apartment community nestled in the resort town of South Lake Tahoe, California and acquired off market through our broker relationships. Flite would like to congratulate everyone who invested in this deal and welcome our new investors aboard!
Investor Details
$2,925,000 purchase price
$1,150,000 capital raise (506b offering)
$50,000 minimum
8% preferred return
70/30 equity split
3 year projected hold
Projected Returns
22.1% projected IRR (Y3)
1.82X equity multiple (Y3)
21.7% projected IRR (Y5)
2.28X equity multiple (Y5)
See more details at our website link.
https://www.fliteinvest.com/properties-blackwood
The Spruce Apartments - Currently under escrow
South Lake Tahoe, CA
We are currently under escrow to acquire Spruce Apartments, a 100% vacant 12-unit apartment community also located in South Lake Tahoe, California and half a block away from our 13 unit property, Leawood Apartments, and across the street from our most recent acquisition, the 20 unit Blackwood Apartments. With the addition of Spruce Apartments, we are able to take further advantage of the economies of scale in terms of renovations, overall costs, and property management strategies, which will benefit all properties we hold in this market.
Investor Details
$2,160,000 purchase price
$900,000 capital raise (506b offering)
$50,000 minimum
8% preferred return
70/30 equity split
2 year projected hold
Projected Returns
38.9% projected IRR (Y1)
1.39X equity multiple (Y1)
23.3% projected IRR (Y2)
1.52X equity multiple (Y2)
20.6% projected IRR (Y3)
1.69X equity multiple (Y3)
The Wall Street Executive Storage - 33.4% Occupied!
Spokane, WA
Flite would like to provide some exciting updates for Wall Street Executive Storage! After closing escrow on December 10, 2021, we started with a clean slate on January 1, 2022 and by the end March 31, 2022, we were able to achieve 26.1% occupancy! And as of today, physical occupancy has increased to 33.4% with 17 units on reserve! This is ahead of the schedule we projected during acquisition. Flite and StoragePro have been working feverishly on strategy and marketing to increase occupancy as quickly as possible.
See more details at our website link.
https://www.fliteinvest.com/properties-wall-street
Real Estate Investing Real Talk - New show added!
Our fellow investor, Tyler, and Sherwin just released a latest video on their Real Estate Investing Real Talk show on YouTube where we chat with our good friends, Tommy and Jeff, who are General Partners in the large multifamily investing world.
Tommy and Jeff go into detail on how they got into their first deals, how they build relationships, how syndications are structured, and so much more! ENJOY!
Market Activity
We continue to monitor the markets we invest in during this phase of the pandemic. How do we know the markets we invest in are hot? We know because we have made offers on properties, competing with multiple offers, some almost $1M over asking price. We also have notified eligible residents of rent raises and are able to lease out rehabbed units at higher rent rates than a year ago.
We would like to thank our investors for their continued support and trust in us. Our investors can access their full Flite 2022 Q1 Investor Report on the investor portal.
Please feel free to reach out to us if you'd like to touch base, talk investing, or anything else you'd want to discuss.
Regards,
The Flite Team