How We Do It | Lysar Capital

The Acquisition is a long and very meticulous process executed carefully to ensure the deal’s potential is real.

We actively seek commercial investment opportunities through our extensive network of real estate agencies, lenders, brokers and other industry contacts. We then strategically identify undervalued properties which meet our standards and that are well located in markets with strong projected population and employment.

The investment opportunity is then thoroughly vetted by our underwriting team. Our investment team reviews the deal in order to make sure it aligns with our expectations. The deal’s terms and associated documents are reviewed and the deal is screened against investor demand in order to make sure that there is sufficient interest in the project.

Some of the items we look at in our screening process:

Project overviews
Pro Forma
Historical operating statements
Rent Rolls
Market Data
Appraisals
Third-party Data Reports
Lease Comps

Once this round ends and the deal’s potential has been verified, we move ahead to the next round - Evaluating the deal materials. This is where we dive deeper and make sure there are no issues or discrepancies pertaining to the information presented to us and the actual information available in the documents.

We gather third party reports and all documents to confirm our assumptions and the feasibility of the project’s business plan.

Some of the documents we review:

Zoning Reports
Property Management Agreement
Loan Documents
Settlement Statement
Property Condition Reports
Purchase and Sale Agreement
Capex Budget and Contracts
Deed of Trust
Lender Term Sheet
Surveys
Environmental Reports

We, subsequently, share the information we collected with our investors so they can do their own due diligence and make an educated decision as to if this deal is right for them or not.

Reposition & Asset Management.

The rigorous screening and acquisition phases are succeeded by our post-acquisition plan for the most comprehensive phase of them all. Lysar Management, our in-house Business Operation and Property Management Company, deploys our system of managing the investment and make sure management is fully aligned with our investors' expectations.

Some of Lysar Management’s responsibilities are:

Analyze project cost budgets, operating budgets and company’s financials.
Ensuring all parties adhere to the terms of the co-investment agreement.
Run site analysis and monitor construction plans, progress and timelines.
Formulate project strategy and constantly analyze local market conditions.
Ascertain partnership business plan and recommend improvements.
Evaluate capital requirements and raise additional funds, if needed.
Approve and assist in negotiating new terms with lenders.
Assess the property marketing plan and recommend enhancements.
Approve the project sales price and terms of sale.

Lysar Management operates at the core of our group and oversees much more than the business operation and management of the properties acquired. It oversees and coordinates the investors’ group formation prior to the acquisition and establishes the reporting infrastructure throughout the cycle of the investment. It is also involved in the early thorough market analysis and gathers information needed for the financing process while working closely with our lenders. And finally, it oversees the rehab & market positioning of the new asset.

Cash Flow, Refinance & Disposition.

Now that the property has been managed well and shows strong operation we provide strong cash flow to our investors. While enjoying the passive income and the property demonstrates improved financial performance we seek to capture the new and increased value of the property by refinancing. Refinancing allows investors to continue to enjoy the passive income while having their initial investment money fully returned to them.

Eventually, the time comes when we utilize our huge network of real estate professionals to find on and off-market buyers and give us the opportunity to sell the property to the right buyer at the highest price possible.

We have managed to work very hard in order to be so successful with our investments. It is our vision, partnerships, experience and our approach that make the difference.

We have taken pride in putting our residents, partners, and investors first and doing it with the highest degree of professionalism, transparency and integrity.