At A Better Way Realty, our investing partnerships in Denver give our clients the opportunity to invest in different types of real estate without the management hassle or any obligation on the mortgages. Generally, our investing partnerships have a goal of either immediate income or capital appreciation.
Investing Partnerships in Denver with A Better Way Realty
Examples of our properties that have the goal of appreciation are four self-storage facilities. They are in Mobile, Alabama. These four properties comprise a total 230,000 ft.² of buildings; which is about 5.2 acres of buildings. They are located on about 20 acres of land in four different locations with a total of 2,020 individual units and 50,000 ft.² of flex warehouse space. This is rented to contractors and other companies needing an office and warehouse. The purchase price was $10,550,000. We raised $3,300,000 through four different partnerships, with an average investment of $35,000. Many of these investors utilized their IRAs. A self-directed IRA allows you to purchase an interest in a partnership.
ABW REO’s LLC is a partnership with the goal of immediate income. In 2007, Jim Flint jumpstarted ABW REOs’s LLC. This partnership is diversified. It has done over 300 loans to flippers.
We also own 18 assisted living properties which are leased to an operator on a triple net lease basis. This means that the partnership is not responsible for any of the hiring, advertising, taxes or insurance. Fixed rent is paid to the partnership each month. This partnership has generated a good return every year since inception. Currently we have $13 million of invested capital from 165 clients. Many of those clients also invested through their self-directed IRA. We also do short term commercial loans at 14%. We purchased a 50,000 sq ft office building in Lakewood. It was sold 2 years later at a small profit. In 2018 we purchased 25 SFR lots and land platted for 49 lots in Tabernash, north of Winter Park. The purchase price was $900,000 and included water and sewer taps for all the lots. During the holding period, we developed the 49 lots. By the end of 2020, we had sold 25 of the 49 lots for 1.8M and 20 of the 25 SFR lots for $1,200,000. The other 24 lots were sold in 2021 and 2022.
Our Napa auto parts store is another example of an immediate income property. We purchased a Napa auto parts store in 2014 in Minneapolis St. Paul Minnesota. The property was purchased for $1,600,000. This was also set up as a TIC (tenants-in-common) partnership. This allowed clients to trade their appreciated single-family homes and other types of real estate and execute a 1031 tax deferred exchange. Therefore, they were able to get a return on all the equity and not have to pay capital gain tax. This partnership also has had a good return since inception.
We have three other similar partnerships.
List of Investing Partnerships
- ABW REO’s LLC. As mentioned above, it has a diversified mix of properties. Original investment approximately $13,000,000. 165 partners.
- ABW Income Fund 6 LLC.This partnership only does loans. Many investors use there Self-Directed IRA to invest in the venture.
- ABW Growth and Income Fund 8 LLC, ABW Saraland Growth Fund 8 LLC, Parkway Storage LLC. and Rangeline Storage LLC. The goal of these funds were to increase the value of their capital. They purchased an underperforming Self Storage property.
The properties listed above are the partnerships I have formed and later sold the real estate. You will note that I raised about $3,000,000 and bought $12,000,000 of property, which was later sold for $20,000,000. The bottom section lists the current properties. In more recent years, I have raised over $11,000,000 and purchased over $22,000,000 in properties.
The most active partnership is ABW REO’s LLC. This Partnership’s primary goal is to provide immediate income. The Partnership is considered to be a mutual fund of real estate. It is diversified into three different sources of income.
In my classes I discuss the three benefits of real estate: income, tax benefits, and growth of equity. Each property will accentuate one of the benefits. These partners wanted immediate income. These partners wanted contractors to purchase homes, repair, and resell them. We have completed 92 homes at this point. We also have invested in some short-term commercial loans. All these loans are at 14% interest. For further diversification, we own three homes that have been converted to assisted living facilities. They are leased on a triple net lease basis to an operator. On a triple net lease basis we don’t pay for any operating expenses. The operator pays for taxes, insurance, all upkeep, all marketing, staff and other expenses. We just own the real estate. One facility has ten bedrooms, the other as 12, the third and most recent one has 16 bedrooms.
Maplewood NAPA, LLC also has the primary goal to provide immediate income. The difference between the two Partnerships is that this Partnership owns a NAPA Auto parts store in Minnesota. Because we own the property, we were able to have clients trade their appreciated long-term rental properties through a 1031 tax deferred exchange into ownership of this building. The rent from this building tripled the income that they were receiving. Some investors also invested cash. We focus on the needs of the investors with these partnerships.
The self-storage facilities are primarily a growth oriented partnership.
Our next partnership will be focused on long-term growth with three assisted living properties.
We are the Experts
