This week’s post is one that features Janet LePage and her work around investments in Phoenix, Arizona. Janet LePage has been actively investing in Phoenix since 2008 and is the founder of Western Wealth Capital Ltd. (WWC) which provides investment properties in high-growth markets.
Shark Tank: Pitching for $2.4 million in equity
The Urban Land institute’s Arizona District Council is bringing together real deals and expert money in an event tailored after popular investment reality show “Shark Tank.” Entrepreneurs present real estate development proposals to a panel of “sharks” and an audience of real estate professionals with hope of being awarded investment capital. No easy task for even the most seasoned of entrepreneurs.
LePage pitched for equity in the amount $2.4 million in a 37-townhome development. She purchased Dolce Villagio via short sale because the property was going to go into foreclosure. Her business plan: to put in management, normalize rents that were below market value at the time, improve curb appeal and to draw in the right tenant base.
LePage says she believes what the “sharks” liked about her proposal was that she knew the microeconomics of the deal, had a tactical business plan and clearly walked them through how they were going to make money. LePage ended up receiving an on the spot deal from a member of the audience.
“From that point forward, I had a lot more publicity in my name and so it added to just the overall credibility of what I have been doing,” LePage says.
Eight months after making a deal, Dolce Villagio has been painted, received new landscaping, rents have increased to market as units turn over and everything is going exactly to plan, LePage says. When LePage purchased the property it was making $550,000 a year, now it makes $720,000 a year.
The Return
Investors have since seen a return on their equity of 120 percent and LePage has done three additional deals beyond Dolce Villagio with the partner she received from the tank.
“It is a really fun event that puts like-minded people in a room, and great things happen when you put like minded-people in a room,” LePage says.
Raising For Arizona
Janet Trpin (LePage) and the Western Wealth Capital management team are currently raising capital to acquire their 16th multi-family building in the Phoenix market. WWC acquires mis-managed buildings where they can increase the net operating income 25% – 30% over a 3 to 5 year period, using their proven value adding strategies.
The newest building, Solstice at Arcadia is similar to the 15 buildings before, however this particular deal is a bank-owned building, which is extremely rare in today’s market.
Currently owned and managed by the bank, Solstice at Arcadia is the perfect example of a poorly managed building that WWC seeks to acquire.
To view the Executive Summary for Solstice at Arcadia click here.
