South Bend 7 strategies range from core value-added acquisitions to lending and note purchasing. South Bend 7’s focus is to maximize investor returns by purchasing properties at a steep discount. The return on investment is directly correlated to the property purchase versus the rental rate. We provide stable, quality housing and exceptional asset management. We strive to better the communities we operate in by developing and delivering solutions in real estate that meet client specific investment requirements.
Our target properties are a combination of single family and multifamily residence. In order for them to be eligible for purchase, they must meet our proprietary asset selection model. By design, our model seeks to provide investment appreciation while allowing for potentially consistent cashflow. With a focus on properties that require limited repairs, and maintenance, we keep acquisition costs and vacancy rates to a minimum.
Based on our proprietary asset selection mode, our average holding period for any one property is expected to be 5 to 7 years. This time frame allows the fund to mitigate cash flow variance while seeking capital appreciation in an attempt to keep turnover moderately low. Capitalizing on market cycles, we are able to buy properties on the low and sell on the high.
We started with a SEC filed Regulation D 504 offering. Our original offering has been closed as of 1/20/2018 due to raising the maximum allowed by current rules and regulations. By 2/15/2018 we will be opening a Regulation D 506c offering for $10,000,000. If you are interested in learning more, contact us.
Indiana real estate has benefited from some of the country’s highest appreciation rates. No more than 6 months ago, Indiana real estate had the sharpest increase in home values at 26.8 percent in some town. Only a handful of other states were even close.
We purchase single-family properties at an average cost between $10,000 – $30,000 each with a retail value typically of $60,000 to $150,000. Closing costs are estimated to equal between 6% and 8% of the sales price, which a portion may be paid for by the seller. Not every property will require repairs but, in some instances, we may be pursuing “as is” properties that require light rehab repairs or construction before they can be leased to tenants.
Leo became a real-estate agent in 2011 and then a mortgage loan officer in 2013 and at the same time became interested in private lending. In 2015, Leo and his partner Geoff, founded South Bend 7, a private equity real-estate fund. The goal was to find great deals on cash flowing properties, pay cash for them using no leverage and create residual income. Like a great chess match, Leo enjoys the thrill and strategy of finding properties that fit the investment criteria set by the fund as well as tracking economic trends in both the local and global markets. He spends much of his time traveling, looking at properties around the country and attending high-end networking events in California. Leo also sits on the board of advisors for 4020 Coin Cryptocurrency and works with. MineDawg, a cryptocurrency mining and blockchain technology company offering consultation and analysis.
We utilized a wide range of local teams in the areas we invest in. From property managers, Title and Escrow Companies, Attorneys, Construction Crews, Landscapers, to name a few. Before we buy in an area, we spend time on the ground developing these relationships with people in areas that we need not only hit the ground running, but to also to be of the best benefit to the community.