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The firm follows a rigorous process for each project to ensure opportunities are thoroughly analyzed, execution risks reduced and clients time is used efficiently and effectively. 

 

 

 

 

Confido Properties supports its clients throughout the entire asset lifecyle from acquisition to asset management:

  • Acquisition: goals definition, asset sourcing and selection, valuation and property assessment
     
  • Transaction structuring & execution: negotiation support, detailed due diligence, financing, legal/tax & accounting set up
     
  • Construction: architect selection & project scoping, detailed project definition & selection of construction partners, construction management
     
  • Asset management: ongoing property management, asset life cycle management

Acquisition

 

1.     Goals definition: every project starts with a clear definition of the clients’ objectives, risk appetite and individual constraints, for instance:

  • Investment property vs. residential use
  • Income stream stability vs. long term appreciation potential
  • Appetite for higher risk, higher reward opportunities (e.g., new development, emerging neighborhoods)
  • “Turnkey” property vs. full asset refurbishment 
  • Liquidity/flexibility requirements (e.g., property can be rented or sold at any time)
  • Financing requirements
  • Personal preferences for specific types of assets / neighborhoods / characteristics
  • Time horizon

2.     Asset sourcing and selection: based on clients’ goals, Confido Properties develops a range of potential options and that are fine tuned with the client based on price/location/asset trade offs, market conditions (e.g., current inventory might be limited) and other considerations. Once a limited set of options have been established, Confido Properties will work with a small group of partners & some of the city’s top brokers to source opportunities. Clients are guided and advised throughout the process and to converge quickly towards relevant properties.

3.     Valuation and preliminary property assessment: once a property is identified, Confido Properties will go through an in depth valuation process to better understand the investment characteristics and support the negotiation process.  Typical activities & deliverables include:

  • Acquisition price validation and determination of potential rent value vs. comparable transactions using markets deal databases, research on new developments and market experience
  • Directional assessment of potential construction / renovation costs in partnership with tried & tested architects and contractors
  • Estimation of maintenance and tax costs current and projected, reflecting key parameters that might drive potential increases (e.g., tax abatements, required building renovations vs. current building reserves / reserving policy)
  • Financial modeling: rate of return (IRR) based on various financing, market appreciation and economic assumptions
  • Identification of potential “deal breakers” or “red flags” (e.g., inflexible board, non financeable building, anticipated dramatic changes in the neighborhood, unacceptable tenants/residents, building legal status)
  • Assessment of non financial / non-tangible value (e.g., proximity to schools and main shopping areas, future neighborhood enhancements plans, “uniqueness” of the target property)
  • Assessment of financing feasibility and requirements (e.g., % financeable, estimated debt costs and conditions) and preliminary structuring/evaluation of potential financing options   
                    

Transaction structuring & execution

 

4.     Negotiation support: based on the valuation and preliminary property assessment, Confido Properties will support its clients throughout the negotiation process and help execute the transaction at the right price and at the right conditions, while coordinating the different parties involved (e.g., buyers and sellers attorneys and brokers, condo board, bankers, etc).

5.     Detailed due-diligence: once an offer has been accepted, Confido Properties will conduct an in-depth due diligence before funds are deployed towards an initial down payment. Due-diligence typically requires a lot of back and forth with multiple stakeholders as well as in-depth research of issues that come up during the process – Confido Properties will handle the process on behalf of its clients, synthesize the key risks factors and provide an expert opinion of the merit of various risk mitigation strategies. Typical activities include:

  • Review of building financials (e.g., reserving, cash flow generation, debt level)
  • Review of the building legal situation (e.g., pending/active lawsuit, existence of certificate of occupation)
  • Review of building policies and by laws (e.g., leasing policy, minimum occupation)
  • Review of the Board minutes to identify any other known/potential issues with the building (e.g., construction flaw, issues with specific tenants)
  • Review of lending activity in the building (through network of partner banks)
  • In-depth analysis of the individual characteristics of the unit (e.g., structural electrical or construction issues, lot line windows affecting the unit, asbestos or contamination)
  • In addition and when appropriate, Confido Properties might conduct interviews with Board members / neighbors to further analyze specific issues that arose during the due diligence process


6.     Financing: concurrent with the due-diligence process, Confido will guide its clients through the financing process, from selecting potential banking partners, defining and evaluating potential financing structures, negotiating key terms & conditions with the bankers. Oftentimes, Confido Properties is able to optimize the financing structure and negotiate better rates & conditions that clients would have alone, generating substantial savings.  (e.g., Confido Properties can help clients navigate through a “mortgage reassignment”: if the sellers still have a mortgage on the target property, the mortgage can be reassigned to a new banking institution, potentially saving tens of thousands of dollars on very standard transactions).
 

7.     Legal, tax & accounting set up: depending on the client situation, Confido Properties can structure and provide advice to set up the most appropriate and most efficient tax and legal structure.

 

Construction

 

More often that not, value is created through enhancing an existing asset. Confido Properties assists clients throughout this process from identifying and evaluating potential enhancement options, selecting the right construction partners, and obtaining the necessary permits to ensuring the execution of a plan within budget and timing constraints.
 

8.     Architect selection & project scoping: typically includes architect & expediter selection, identification of required permits in conjunction with the architect, the expediter & the Department of Buildings (D.O.B) and Landmarks Preservation Commissions (when necessary), development of construction options and project scoping (e.g., design blueprint, estimated timeline, high level budget, permit requirements, etc). 
 

9.    Detailed project definition & selection of construction partners: development of projects detailed specs, contractor selection & competitive bidding process, contract drafting & negotiation.
 

10.   Construction management : day-to-day management of key stakeholders involved, including architect, expediter, contractor, sub-contractors, attorneys and building management company.

 

Asset management

 

11.     Ongoing property management: once an asset has been acquired, Confido Properties offers end-to-end, reliable property management services. Typical services include:

  • Identification/screening/selection of potential tenants
  • Development of rental agreements/contracts
  • Payment collection
  • Litigation support (e.g., with tenants, building) 
  • On site repair & maintenance
  • Property insurance, security & cleaning
  • Board representation
  • Tenant management
  • Coordination with local & state agencies (when required) 
  • Selection of building management company and contract negotiation (in the case where an entire building is managed).
     

12.  Lifecycle management: Confido Properties assists clients throughout an asset lifecycle:

  • Ongoing business plan update: capital expenditure assessment, rent increase strategy, assessment of maintenance changes, etc 
  • Identification of new opportunities: opportunistic sale or acquisition of adjacent property, response to building or neighborhood structural change
  • Exit strategy 
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