1031 Tenant-In-Common (TIC):

TIC structures allow individual investors to purchase fractional ownership of investment-grade properties with profits received from a sale of another income-producing property. Investors have the extra benefit of deferring capital gains tax related with this exchange of property. The TIC investor then becomes a co-owner of the replacement property and owns a deed to its share. The process is referred to as a 1031 TIC Exchange. In addition to the advantage of favorable tax treatment, the TIC structure enables 1031 investors to own interests in properties that were previously accessible only to institutional investors.

Michael Franks’ experienced real estate professionals are dedicated to sponsoring high-quality TIC transactions that provide stable monthly cash flow and potential for growth. We sponsor assets with a Tenant-In-Common structure that allows investors to:

  1. Eliminate the burden of active management
  2. Acquire undivided interests in institutional-quality assets
  3. Take advantage of the 1031 tax code in order to defer taxes

Joint Ventures:

Michael Franks has developed a series of partnerships designed to provide flexible sources of capital to reposition real estate properties. We are especially talented at sourcing the high-return opportunistic off-market projects that appeal to institutions seeking an experienced operating partner. Our partnerships provide investors with IRR-driven investment opportunities that allow investors to assume a greater equity risk for a higher targeted rate of return.

At Michael Franks, we apply our real estate knowledge and financial expertise to evaluate every asset, delivering only the highest quality investment-grade properties to market. Prior to sponsoring a property, our analysts source and review hundreds of possible deals, and we only pursue those opportunities that meet our strict investment criteria:

  • Well-maintained Class B (or better) multifamily properties
  • Located in the Midwest or Texas
  • Located in a emerging growth markets where employment and population are trending positively.
  • Assets possess some aspect that permits a value-add opportunity for investors: above market vacancy; above average expenses; below market rents; deferred maintenance
  • Has stable and sustainable cash flow in place at time of acquisition

Our diligent review of the fundamentals within the multi-family industry convinces us that significant investment opportunities currently exist within this specialized market. Fortunately, the specific knowledge and industry contacts generated by our market experience provide us the tools and information necessary to exploit this attractive market.

 

Investment Funds:

Michael Franks is the manager of various value-add and opportunistic investment offerings for high net worth investors. These offerings allow our investors to participate on the same basis with Michael Franks’ principals and our institutional partners in opportunistic real estate projects. This includes ground-up development, re-development, and acquisitions. Our goal is to provide opportunistic returns while mitigating the risks associated with these entrepreneurial projects.