Infiniti Investment Solutions, Inc

Our renderings for efficiency units that we will create from the hotel we own in Orlando for the multifamily conversion application to the city. This is such a fun project to be a part of.

https://www.usnews.com/news/top-news/articles/2021-08-26/us-supreme-court-ends-federal-residential-eviction-moratorium - this is big news.

U.S. Supreme Court Ends CDC's Pandemic Residential Eviction Moratorium US News is a recognized leader in college, grad school, hospital, mutual fund, and car rankings. Track elected officials, research health conditions, and find news you can use in politics, business, health, and education.

$14.28 million closing on Friday. 102 townhomes. We started by buying and helping people buy individual buy-to-let condos, townhomes and single family homes in the US 11 years ago. Now we buy whole subdivisions and apartment blocks. Why do investors keep partnering with us in these deals?
1 - investors always come first. Always.
2 - our teams track record of deals over the last 11 years at over $500million has never lost money, and we still have about $300million in assets under management producing consistent cashflow in USD of 8%+ per year
3 - trust is built on integrity, performance and consistency
4 - 8% consistent cashflow in USD + capital upside on exit makes investors happy
5 - we always put our own money in these deals. We ride together with our investors and, when you have skin in the game, you pay attention

You could be a part of these deals. Reach out if having USD assets, cashflow and capital growth makes sense to you.

Infiniti Investment Solutions, Inc updated their address.

Super excited! We closed on this property last week. We will be converting this hotel into 140+ apartments in Orlando. Total project value is around $17million.

Infiniti Lofts Intro Video Kevin, Abiel, Rene and Marcelo walked the property prior to closing. Ideas were aplenty, but now it's time to get stuck into the work.

Covid-19 is an unprecedented black swan event that will have significant impact on the real estate industry and the whole world's economy. This is going to be even more catastrophic than we can forecast or imagine. How are you preparing yourself to get through this time and position yourself to thrive in this new reality?

Processed approximately $600k in cashflow distributions for Q4 2019 from our multifamily projects in the USA! So exciting to see our projects working, our partners making money and seeing it land in their bank accounts every quarter! This is what investing in USD in stong assets with the right debt can give you! Dependable USD cashflow. That's what buys freedom.

It's official. On 9 November 2019, we closed on the biggest transaction in the history of our company. $75million portfolio of 5 multifamily complexes in Oklahoma - 827 units in total. This is an incredible achievement and we are very grateful to all the stakeholders, investors, partners and everyone else involved for making it happen.

Our model unit at Glen Abbey - https://youtu.be/FjiXh8HOhSo

Glen Abbey Project, Atlanta - Model Unit Glen Abbey Project, Atlanta - Model Unit. Formerly Delta Kingston Abbey, we have renovated extensively and are starting an aggressive marketing and lease-up ...

https://www.youtube.com/watch?v=9Pq9PEx5EYg&feature=youtu.be

We've kickstarted our 22 unit deal in Atlanta well. Contractors are all on-site, doing their thing! Kevin shot this little video for us while he was there a few days ago ;-)

Briarcliffs Update - August 2019 Infiniti multifamily renovation project, Briarcliffs, in Atlanta, USA. Briarcliffs Update - August 2019

Some interesting info about Depreciation on multifamily properties:
Of all the great tax benefits for multifamily real estate investors, the first and perhaps best is depreciation.

Multifamily properties often rise in market value over time. And, with proper maintenance, their useful lives are practically unlimited.

However, without proper maintenance and capital spending, buildings will eventually become uninhabitable.

Money spent on capital items comes from after-tax dollars, which owners might be reluctant to spend. So to encourage multifamily real estate owners to undertake necessary capital spending, the government permits them to take a depreciation deduction against current income equal to 1/27.5 (or 3.6%) of the building’s value at purchase each year.

In other words, even though buildings practically have a limitless useful life, the government allows you to treat a multifamily property as if the property will become obsolete in only 27.5 years. And, what’s more, regardless of the actual age of the property, the depreciation clock resets every time the property is sold to a new owner.

In practice, the depreciation deduction works this way. If you purchase a property for $5,000,000 and the land is deemed to be worth $250,000, each year a multifamily property owner is permitted to deduct 1/27.5th of $4,750,000, or $172,727, from current income. If this property is producing a 6% unlevered net yield before debt (6% Cap rate), or $300,000 a year, and we took debt at 4% interest on 75% LTV on an interest only loan, the deductible interest repayment would be $150,000. This would result in a net income after debt of $150,000. However, the depreciation allowance in this case allows us to deduct the $172,727 from the $150k income, leaving a $22,727 loss on the books of the property while leaving real FREE CASH FLOW to be used with no tax liability because the books are running at a loss.

This is true even if you invest passively through an LLC. The depreciation in our investments flows through to investors pro-rata according to their ownership percentage.

Comparison to a REIT:
REIT Taxation to Unitholders
The dividend payments made by the REIT are taxed to the unitholder as ordinary income, unless they are considered qualified dividends, which are taxed as capital gains. Otherwise, the dividend will be taxed at the unitholder's top marginal tax rate. This means anyone investing in a REIT does not get the benefit of the real estate depreciation allowance to offset the cashflow income tax liability.

Also, a portion of the dividends paid by REITs may constitute a nontaxable return of capital, which not only reduces the unit holder's taxable income in the year the dividend is received but also defers taxes on that portion until the capital asset is sold. These payments also reduce the cost basis for the unitholder. The nontaxable portions are then taxed as either long- or short-term capital gains/losses.
Taxation at the Trust Level
REITs must follow the same rules as all other unit investment trusts. REITs must be taxed first at the trust level, then to beneficiaries. But they must follow the same method of self-assessment as corporations. So, REITs have the same valuation and accounting rules as corporations, but instead of passing through profits, they pass cash flow directly to unitholders.

There are a few extra rules for REITs beyond the rules for other unit investment trusts:

Rental income is treated as business income to REITs because the government considers rent to be the business of REITs. This means all expenses related to rental activities can be deducted the same as business expenses can be written off by a corporation.
Furthermore, current income distributed to unitholders is not taxed to the REIT, but if the income is distributed to a non-resident beneficiary, that income must be subject to a 30% withholding tax for ordinary dividends and a 35% rate for capital gains, unless the rate is lower by treaty.
For all practical purposes, REITs are generally exempt from taxation at the trust level as long they distribute at least 90% of their income to their unitholders. However, even REITs adhering to this rule still face corporate taxation on any retained income.
extracted from: https://www.investopedia.com/articles/pf/08/reit-tax.asp

The Basics of REIT Taxation The unique tax advantages offered by real estate investment trusts (REITs) can translate into superior yields. Learn more about specifically how REITs are taxed.

We closed on a great little deal last night in Atlanta. 22 units that we're going to convert to high end luxury apartments! Well done to the team and the partners for bringing this one home. Now the work starts! ;-)

LOI sent out for 344 units this morning. Let's hope we win this one. The lender is on board for around $18million!
Distribution schedules done for other projects and paying out partners millions of USD today and tomorrow! Good start to the week.

http://www.worldpropertyjournal.com/real-estate-news/united-states/washington-dc-real-estate-news/mortgage-bankers-association-2018-commercial-real-estate-multifamily-finance-annual-origination-volume-summation-2018-commercial-mortgage-data-11351.php

Record $573.9 Billion of U.S. Commercial, Multifamily Mortgage Originations Made in 2018 Mortgage bankers in the U.S. closed a record $573.9 billion in commercial, multifamily loans in 2018.

We closed on this little 86 unit deal in Feb and had the whole team onsite in March https://youtu.be/RFj4wXgsULY

Delta Kingston Abbey - The whole team on site in Atlanta March 2019 Delta Kingston Abbey, 86 units in Atlanta undergoing a comprehensive renovation programme.

3/4 deals closed this last week. Let's make it 4 for 4 by FRIDAY! Boom! What a start to the year!

Closing call with everyone at 12.00am in the morning - should be wrapped up by 1am. Team committed. Deals don't sleep!

12am

You can't build $1000 a month B class rental apartments in the USA right now for what we can buy them at, even though cap rates are low! Cost of labour, materials, debt, construction management, weather delays.. if I can buy 20-40% below replacement cost and still produce 6-8%+ cashflow out the gates, I know there's nowhere to go but up!

Time. Your most valuable asset. But most people who invest in real estate aren't being practical with it. Say, for example, that you set a goal to acquire a total of 24 units over the course of the next 12 months. This means that if you were to focus solely on single-family housing, you would have to purchase an average of two units per month. you will probably look at as many as 10 units, or possibly even more to find the one. For the sake of simplicity, we will assume that in some form or another, you will review an average of 10 properties for every one that you purchase. This means that each and every month for the next 12 months, you will review approximately 20 properties, or a total of 240, to achieve your goal of purchasing 24 units. Most real estate investors have full-time jobs and invest in real estate to supplement their existing income in an effort to build long-term wealth. If you have a full-time job, the amount of time and effort required to review this many properties simply is not practical. Even if you are available to invest and manage your real estate holdings on a full-time basis, if you spend all of your time looking at potentially suitable properties, there is little time left for anything else. This is why you have to change your strategy.
1 - Partner with people hunting down mega deals who are spending every waking moment looking at deals.
2 - Buy much bigger deals. By partnering, you can own a piece of a 200 unit building instead of having to go find 200 units yourself. That way, you lower your risk, deploy your time and capital more effectively and can achieve your goals faster because you have now bought other professional investors time, network and abilities and can now focus on what you're doing in your business/work to create more capital and partner again!

Assumptions are 6.25 exit cap in a market thats trading mid 5's at the moment, gentle rent escalations over 5 years to get an average of 15% increase in that period, increase of 5% on expenses with a 45% opex ratio out the gates, fixed i/o debt at 5% and aggressive exit fees at sale event.. if we can expect to more than double our cash on this basis while collecting nearly 10% while we hold, this deal is a no brainer.. now to dig to find the truth, negotiate hard, get the right debt, the right structure and management team to unlock it and really sweat the asset. What if that's possible in 24 months instead of 5 years?

Best article I've read this year - https://www.biggerpockets.com/renewsblog/stop-overpaying-for-multifamily/?fbclid=IwAR1Fzd235nnNYCHhV-Lx1B8QgK1MffLFbvaOSIk13i3gMHe3zByxJcmx2bA

If You're Overpaying for Multifamily, Ignoring Traditional Investing Advice... Stop It! Are you scooping up multifamily assets in the current market, ignoring key metrics and investment advice? I’m writing to urge you not to be that guy. And if you’re tempted to do it anyway, then do yourself a favor and just…STOP IT!

http://ht.ly/AJ5C30mSCfW

The states that are winning - and losing - in the US real estate game The U.S. housing market still hasn't fully rebounded from the financial crash of 2008, and Nevada has taken the biggest hit, with prices down 17 percent from what they were in 2007.

The best black friday deal we found was the property we trying to get under contract in Fort Myers right now! 52 units, $6million, 8%+ cash on cash. If you're interested in buying something like this that will create USD income instead of buying consumables, get in touch!

One of the complements our deal hunter got this week from some big playas in Miami is the question: "how'd you guys from South Africa find a deal and get it under contract right in our backyard?!" ... and its not the 1st time that's happened ;-)

Andrew Rissik from Sable Forex (our go-to guy to help move cash around the world) and Todd Baldwin, our Accountant from the USA will both be at our breakfast next week. If you want to learn how to move cash around the world easily or talk structuring and tax with Todd, come join us. Only a few seats left! https://bit.ly/2zQarOH

How to create dependable USD Cash Flow in multimillion USD deals from $100k USA investing workshop on how you can source, investigate, partner, invest in and enjoy the benefits of multimillion U$D property deals.