Strategy

Investment Strategy

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LN’s investment strategy follows old-fashioned real estate principles − buy low/sell high, invest wisely, manage proudly, keep transactions simple and do not follow the highly-leveraged, out-of-control industry trends. We always have and always will stay away from complex derivatives and toxic investments. This is LN’s commitment to its investors.

LN looks for undervalued properties where the current owners (individuals, financial institutions, government agencies and investment funds) are experiencing significant pressure to sell. This is often caused by a combination of high purchase prices, unanticipated construction costs and poor property management resulting in increased rental vacancies and expenses. Our team has extensive experience in the strategic financial analysis, construction, management and legal aspects of the multi-family apartment business. We also have built an extensive list of contacts with brokers and banks that allow us to stay ahead of the curve with regard to available properties. Before the acquisition of a property, our team performs an exhaustive due diligence to determine the necessary renovations and strategizes about how to improve the tenant base and how to raise rental income while controlling expenses.

In that respect, LN’s directors have continually implemented a cash flow allocation formula that: first, pays investors a 7% – 8% cumulative preferred return on their capital investment; second, repays investors all of their invested capital; and third, pays investors 60% to 70% of additional cash flow including proceeds from the sale of the property. As part of its strategy, LN typically holds properties between 5 and 10 years and prepares them for sale when the market has cycled up, thereby generating higher sales prices and investment returns. We try to refinance the initial mortgage, when applicable, after 2 to 3 years and pay investors a portion of their capital. When required by the lender, the Principals will personally guaranty the initial mortgage.

This is not an offer to sell securities. Any such offer must be made upon review of an Offering Memorandum
for a particular transaction and the execution of a Subscription Agreement.