Real Estate Investment Services

Through focused leadership and expertise in creating value at every phase of the investment lifecycle, DMT is committed to providing its investor Clients with the absolute best possible solution for their multifamily investment needs. Our investment advisory services are designed to assist Clients:

Evaluate a property's investment risk and return profile
Understand regional and local market fundamentals
Identify a property's physical and financial strengths and weaknesses
Understand a property's current and future competitive position in the submarket
Maximize top-line rental revenue, reduce operating expenses, increase net cash flow and asset value
Invest with confidence and purchase at the right price
Maximize the return on their invested equity

Cash Flow Analysis Services

The importance of properly evaluating the cash flow of a multifamily transaction in today's real estate environment has never been more critical. Given the volatility and uncertainty in prices, the smart investor is evaluating project cash flow projections on a regular basis. Realistic underwriting assumptions will undoubtedly provide "realistic" project cash flow results and "accurate" valuation projections. DMT advisors have the financial expertise and market knowledge to provide investor Clients this service.

Cash flow analysis services include:

Project financing and/or refinancing alternatives
Portfolio analysis and individual property analysis
Perform analysis of current and historical operating statements
Develop detailed rent roll analysis
Evaluate and verify underwriting assumptions
Incorporate debt financing in cash flow
Develop custom cash flow models
Develop multiple "what-if" analysis and impact on both cash flows and returns
Develop projected investment returns to equity
Review market studies
Review appraisals and 3rd party proformas
Provide recommendations to increase revenue, reduce expenses and maximize cash flow

Due Diligence Services

To often investors encounter financial and/or physical problems with an investment property "only after" the transaction has been completed and their equity capital has been invested. This is the primary reason that sound financial analysis and comprehensive due diligence are among the most critical components of the acquisition process. DMT advisors are uniquely positioned to provide investor Clients this service.

Due diligence services include:

Cash flow analysis services
In-depth submarket analysis on rental and sales comparables
Review and recommendations of other revenue sources
Feasibility and return-on-investment (ROI) analysis for value add enhancements (interior and/or exterior)
Arrange for termite inspection, structural inspection, Phase I environmental assessment including asbestos testing and radon gas testing if necessary
Obtain survey
Interview property management companies
Lease audit of all resident files
Exterior grounds and overall building inspections
Research code and parking space compliance
Supervise the inspection of the mechanical systems by a third party vendor
Conduct interviews of existing employees to determine suggestions for repairs and/or renovations
Review crime reports, work order log, and actual utility bills
Review property contracts (laundry lease, cable agreement, landscape, pool, pest, copier lease, etc.) as well as all other supporting due diligence material and negotiate favorable terms
Financing alternatives recommendations
Property tax analysis and forecast
Prepare a preliminary operating budget/business plan for the asset

Asset Management Services

At the core of DMT's investment philosophy is the belief that active, hands-on management drives both property performance and investment returns. Our mission is to provide investor Clients top-tier asset management services that assures targeted operational performance levels are achieved, thereby maximizing the return on their invested equity capital.

DMT's asset management process includes all of the disciplines involved in managing real property and is tactical in nature. This process begins prior to acquisition and continues until the property is sold. The primary responsibilities of DMT's asset management process are:

Thoroughly understand the macro and micro market where the property is located through in-depth market reviews and comprehensive studies.
Conduct physical site inspections of the property to become thoroughly knowledgeable about every aspect of its condition and operational characteristics.
Monitor and control the financial condition of the property, through detailed review of leases, capital spending, revenue collections and controlled operating expenses.
Using the information in (1) through (3), develop a strategic asset plan for the property.
Create, implement and oversee capital improvement programs, if any are required.
Supervise the 3rd party management company, on-site management and marketing services.
Monitor and provide direction to the on-site leasing and 3rd party property management personnel and objectively measure this performance, as well as resident satisfaction. Once a year each resident will be asked to complete a questionnaire to provide feedback on how the 3rd party management company is performing.
Review, revise and approve the operating budgets and business plans prepared by the property managers with comparison to the asset plan, strategy, acquisition pro forma and industry norms.
Review and approve all lease documents and associated costs.
Review and approve real estate tax matter.
Monitor financial management and accounting policies. Cash management, internal control, and reporting procedures are reviewed regularly.
Review property manager reports with emphasis on variances from budgets, accounts receivable, and compliance with the business plan.
Provide timely, accurate, and relevant information to the Client to monitor the performance of our asset management activities.
Control the risk management process, ensuring adequate insurance coverage.
Review annual valuations of each property to measure the success of the overall investment process.
Review and monitor the debt structure (if any) and optimize.
Continuously monitor property and market conditions relative to defined disposition strategy triggers and make disposition recommendations in order to capitalize on the optimum time to sell, thereby ensuring maximum return on invested equity.

Asset Management Reporting

Accounting data derived from the property level reports and supporting schedules are used by DMT Investments as the basis for producing the asset management level report. Each property is accounted for on an individual basis. The quarterly asset management reports are produced and submitted to the Client within the required period of time, typically 30 to 45 days following the quarter end.

The individual property reports produced by the 3rd party property management company are reviewed by senior management of DMT on a monthly basis. This involves a review of accounting variances from budgeted expectations, evaluation of property manager performance, review of property investment returns, and recommendations for further action, if necessary, in accordance with the asset management plan.

For more information on any of our investment services, please contact Darrell Roberts: darrell@dmtinvestmentsinc.com