Michael Franks has formulated the following criteria used in identifying multifamily properties for acquisition, management and resale. These criteria, and the acquisitions which they produce, re-enforce the Michael Franks contrarian philosophy of buying undervalued properties.
- Multifamily residential apartments
- Units – 100 +
- $25,000 - $50,000 per door
- Emerging and Stable Markets
- Undervalued (10% to 20% under Apraissed value)
- 60% or more 2 Bedroom units
- Long Time Ownership
- Age – preferably properties constructed between 1970 - 1990
- Utilities – individually metered
- Roofs – pitched construction
- Minimum Occupancy – 80% However, Michael Franks will consider lower occupancy on properties which require renovation if the properties are well located and present value enhancement opportunities.